Ranger Energy Services (RNGR) FY Conference Summary Company Overview - Ranger Energy Services provides high specification well service rigs, wireline, and ancillary oilfield services across the US, trading on NASDAQ under the symbol RNGR [1] - Founded in 2014, went public in 2017, and has since focused on production-oriented well services [4][5] Core Business and Market Position - Ranger operates primarily in production services (80%) with limited exposure to completions (20%), which helps mitigate risks in the cyclical oil and gas industry [9] - The company claims to have the largest active fleet of high specification rigs in the Lower 48 states, focusing on key areas like Texas and the Permian Basin [12][14] - Major clients include ExxonMobil, Chevron, Oxy, and ConocoPhillips, providing stability and through-cycle returns [15] Financial Performance - Ranger has a strong balance sheet with zero net debt and $120 million in total liquidity, including $48 million in cash [16] - The company has converted approximately 67% of its EBITDA into free cash flow, with a commitment to return at least 25% of free cash flow to shareholders through dividends and share repurchases [9][10][15] - Year-to-date, Ranger has returned 33% of cash flow to investors, historically exceeding 40% [15] Growth Strategies - Ranger has been focusing on electrifying its existing rig fleet, with plans to convert idle rigs into electric rigs, enhancing safety and operational efficiency [30][32] - The electrification project is expected to provide guaranteed returns from customers, with contracts already signed for two rigs [33][59] - The company is also developing a unique electric ticketing system and AI-driven safety monitoring to improve operational efficiency and safety [35][37] Market Dynamics and Competitive Landscape - The oilfield services market is becoming increasingly fragmented, with lower barriers to entry for new competitors, particularly in wireline services [20][21] - Ranger's focus on high specification rigs positions it uniquely in a market where major oil producers are looking for high-quality service providers [42] - The company is exploring acquisition opportunities to increase market share, currently holding around 20% of the market [54] Technology and Innovation - Ranger is investing in technology to enhance safety and operational efficiency, including the development of the Tango system for operational tracking and the Overwatch system for safety monitoring [35][37] - The electrification of rigs is seen as a path to growth, with strong demand signals from customers for additional electric rigs [34][58] Conclusion - Ranger Energy Services presents a compelling investment opportunity with strong fundamentals, a focus on shareholder returns, and innovative growth strategies in a competitive market [50]

Core Insights - RPC, Inc. reported a 26% sequential increase in revenues for Q2 2025, totaling $420.8 million, driven by the acquisition of Pintail Completions, despite challenges in the pressure pumping service line [6][10][12] - The oilfield services market is facing challenges due to lower commodity prices and macroeconomic uncertainties, but RPC's diversified service lines and customer base provided some resilience [5][10] Financial Performance - Revenues for pressure pumping, RPC's largest service line, decreased by 18%, while other service lines, excluding Pintail's wireline, saw increases [6][10] - Net income was reported at $10.1 million, down 16% sequentially, with diluted EPS at $0.05, reflecting a net income margin decrease of 120 basis points to 2.4% [10][12] - Adjusted net income increased by 46% sequentially to $17.5 million, with adjusted diluted EPS at $0.08, and an adjusted net income margin increase of 60 basis points to 4.2% [10][13] Cost and Expenses - Cost of revenues increased by 30% to $317.7 million, primarily due to the addition of Pintail, offset by lower pressure pumping activity [7][10] - Selling, general and administrative expenses decreased to $40.8 million, down from $42.5 million, with a reduction in employment costs contributing to a decrease in SG&A as a percentage of revenues [8][10] Acquisition Impact - The acquisition of Pintail Completions, effective April 1, 2025, contributed $98.9 million in revenues, significantly impacting RPC's financial results [10][12] - Acquisition-related employment costs were approximately $6.6 million during Q2 2025, with total expected costs of $78.6 million to be recognized over 12 quarters [9][10] Industry Context - The average U.S. rig count decreased to 571 in Q2 2025, down 2.9% from Q1 2025 and 5.3% year-over-year [5][10] - Oil prices averaged $64.74 per barrel, a decline of 10% sequentially and 20.8% year-over-year, while natural gas prices fell by 22.7% sequentially to $3.20 per Mcf [5][10] Cash Flow and Capital Allocation - Cash and cash equivalents at the end of Q2 2025 were $162.1 million, with net cash provided by operating activities at $92.9 million and free cash flow at $17.6 million year-to-date [14][15] - The company declared a quarterly cash dividend of $0.04 per share, payable on September 10, 2025 [15]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $150.5 million, an increase of approximately 6% compared to Q4 2024, and within the guidance range of $146 million to $152 million [6] - Adjusted EBITDA for the quarter was $16.5 million, reflecting a 17% increase quarter over quarter, with adjusted EBITDA margins at approximately 26% [6][7] - Cash and cash equivalents as of March 31, 2025, were $17.3 million, with total liquidity of $53.8 million [11][12] Business Line Data and Key Metrics Changes - Cementing revenue increased by approximately 4% to $57.2 million, with jobs completed rising by approximately 11% [12][13] - Wireline revenue grew by approximately 7% to $29.6 million, with 7,713 wireline stages completed, an increase of approximately 15% [13] - Coiled tubing revenue increased by approximately 16% to $29.9 million, driven by a 36% increase in coiled tubing days [14] Market Data and Key Metrics Changes - The U.S. rig count remained flat in Q1 2025, yet the company achieved revenue growth across all service lines [7] - Pricing across service lines was mostly stable, except for wireline operations in the Northeast, which experienced lower stage pricing due to previous bidding processes [8][9] Company Strategy and Development Direction - The company is focused on market share gains and cost reductions, with a strong emphasis on technology development and maintaining service quality [6][19] - The recent appointment of Joey Hall to the Board of Directors is aimed at enhancing industry expertise within the company [20] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of declining oil prices and increased costs due to tariffs on future activity levels [16][18] - The company anticipates Q2 revenue to decline compared to Q1, projecting between $138 million and $148 million [19] - Management remains optimistic about the long-term outlook for natural gas and its potential positive impact on earnings [17] Other Important Information - The company refinanced its ABL revolving credit facility, increasing liquidity and financial flexibility [10][11] - The average blended revenue per cementing job decreased by approximately 6%, while the average blended revenue per wireline stage decreased by approximately 7% [12][13] Q&A Session Summary Question: Pricing pressures and impacted business lines - Management indicated that pricing pressure is primarily seen in the cementing division, particularly in West Texas, due to tariff impacts and commodity price evaluations [24][25] Question: Oil price guidance and its implications - Management stated it is too early to provide specific guidance on oil prices, emphasizing the importance of market evaluations by customers [31][32] Question: Ability to pass on tariff costs to customers - Management confirmed plans to pass on tariff costs to customers, as the service sector cannot absorb these increases [33][34] Question: Outlook for natural gas markets - Management expressed excitement about the natural gas market, particularly in Haynesville, but confirmed no plans to relocate equipment at this time [36][37] Question: International tool sales and opportunities - Management reported positive performance in international tool sales and highlighted ongoing development of completion tools to meet stringent international requirements [38][39]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $150.5 million, an increase of approximately 6% compared to Q4 2024, and within the guidance range of $146 million to $152 million [5] - Adjusted EBITDA for the quarter was $16.5 million, reflecting a 17% increase quarter over quarter, with incremental adjusted EBITDA margins of approximately 26% [5][6] - Cash and cash equivalents as of March 31, 2025, were $17.3 million, with total liquidity of $53.8 million [11] Business Line Data and Key Metrics Changes - Cementing revenue increased by approximately 4% to $57.2 million, with jobs completed rising by approximately 11% [12][13] - Wireline revenue grew by approximately 7% to $29.6 million, with 7,713 wireline stages completed, an increase of approximately 15% [13] - Coiled tubing revenue increased by approximately 16% to $29.9 million, with utilization significantly higher compared to Q4 [8][14] Market Data and Key Metrics Changes - The U.S. rig count remained flat in Q1, yet the company achieved revenue growth across all service lines [6] - Pricing across service lines was mostly stable, except for wireline operations in the Northeast, which experienced lower stage pricing due to bidding impacts [7] Company Strategy and Development Direction - The company is focused on market share gains and cost reductions, with a strong emphasis on technology development and maintaining service quality [5][19] - The recent appointment of Joey Hall to the Board of Directors is aimed at enhancing industry expertise within the company [20] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the energy industry due to declining oil prices and increased costs from tariffs, impacting customer plans and activity levels [16][18] - The company anticipates Q2 revenue to decline compared to Q1, projecting between $138 million and $148 million [19] - Management remains optimistic about the long-term outlook for natural gas and its potential positive impact on earnings [17] Other Important Information - The company completed a refinancing of its ABL revolving credit facility, increasing liquidity and financial flexibility [9][10] - General and administrative expenses for Q1 were $13.3 million, with a full-year CapEx budget unchanged at $15 million to $25 million [14][15] Q&A Session Summary Question: Pricing pressures and impacted business lines - Management indicated that pricing pressure is primarily seen in the cementing division, largely due to tariffs and commodity price fluctuations [22][23] Question: Oil price guidance - Management stated it is too early to provide specific guidance on oil prices, emphasizing the importance of market conditions and customer evaluations [27][28] Question: Ability to pass on tariff costs - Management confirmed plans to pass tariff costs onto customers, as the service sector cannot absorb these increases [30][31] Question: Natural gas market outlook - Management expressed excitement about the natural gas market and confirmed no plans to relocate equipment at this time [33][34] Question: International tool sales - Management reported positive performance in international tool sales and highlighted ongoing development of completion tools [36]