Ranger Energy Services, Inc. Announces Q1 2024 Results
Ranger Energy Services, Inc. announced Q1 2024 results with revenue of $136.9 million, a 13% decrease from Q1 2023. Net loss of $0.8 million, adjusted EBITDA of $10.9 million, and free cash flow of $5.5 million. The company repurchased 846,900 shares for $8.5 million and declared a quarterly dividend of $0.05 per share. Despite challenges in completions market, the company remains optimistic about future opportunities.
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Insights
The reported 13% decrease in revenue for Ranger Energy Services, Inc. in Q1 2024 compared to the same quarter last year, paired with a shift from net income to a net loss, indicates a significant downturn in the company's financial performance. This is compounded by a stark 46% drop in Adjusted EBITDA, which serves as a proxy for the company's operating profitability. Such drastic changes warrant a closer look at the macroeconomic conditions and operational challenges faced by the company, including the declining completions market and increased competition. The repurchase of shares could suggest management confidence in the company's intrinsic value, or a strategic move to improve earnings per share.
Given the increased medical costs contributing to a rise in cost of services, investors should evaluate the sustainability of the company's cost structure amidst ongoing inflationary pressures. The estimated $4 million impact from completions market pullback and the anticipated recovery in certain service lines highlight the volatility and cyclical nature of the energy services sector. The management's proactive response in identifying cost savings and their optimistic outlook for the remainder of the year must be balanced against the actual performance in subsequent quarters.
The capital returns update showcases the company's commitment to shareholder returns, which is a positive sign for investors, especially since the company continues to generate positive free cash flow. However, the 24% reduction in free cash flow year-over-year should be noted as it could impact future dividends and share repurchases. This financial analysis suggests a need for cautious optimism and close monitoring of the company's execution of its strategic initiatives and market conditions.
The pullback in the completions market over the winter months has imparted considerable pressure on Ranger's operations, particularly highlighted by a 17% decline in frac spreads. Investors should note the potential ramifications for Ranger's Wireline Completions and Coil Tubing service lines, both of which have been significantly impacted. Although Ranger has reported an uptick in activities from April onwards, the sustainability of this recovery is critical, given the seasonal fluctuations inherent in the industry. The execution of decommissioning work and the uptick in inbound sales inquiries for in-field gas processing solutions could signal diversification and adaptation to market demands.
The company's venture into geothermal projects opens new avenues, diversifying its portfolio and potentially offsetting some of the volatility observed in traditional oil and gas services. For investors, understanding the energy service market's cyclicality and Ranger's positioning within this framework can provide valuable insights into the company's capacity to navigate industry headwinds and leverage emerging opportunities.
From a market strategy perspective, Ranger Energy Services' approach to avoiding aggressive pricing concessions and focusing on profitable returns over chasing market share is noteworthy. This decision likely reflects a calculated risk assessment and strategic positioning to maintain financial health over short-term gains. Ranger's share repurchase program and the declaration of a quarterly cash dividend illustrate a commitment to delivering shareholder value, which is a reassuring signal to investors regarding management's confidence in the company's trajectory. The long-term bullish outlook despite the quarter's setbacks underscores the management's vision and resilience. Investors should consider how these strategies align with their investment thesis and risk tolerance, particularly in an industry known for its volatility and sensitivity to external factors.
First Quarter 2024 Highlights
– Revenue of
– High specification rig revenue of
– Net loss of
– Adjusted EBITDA(1) of
– Free Cash Flow(2) of
– Share repurchases of 846,900 shares during the first quarter of 2024 for a total value of
1 |
“Adjusted EBITDA” is not presented in accordance with generally accepted accounting principles in |
|
2 |
“Free Cash Flow” is not presented in accordance with |
Management Comments
Stuart Bodden, Ranger’s Chief Executive Officer, commented, “This quarter’s results presented Ranger with a unique set of challenges that adversely impacted multiple service lines. As mentioned in our year-end investor call, 2024 got off to a slow start. As the quarter progressed, typical weather disruptions and other events beyond our control, combined with a declining completions market that created excess capacity and increased competition, impacted our quarterly performance more than originally expected.”
“To expand, the most significant factor impacting performance this quarter was pressure from the completions market pullback over the winter, from a peak of 281 frac spreads at the end of November to a trough of 234 frac spreads mid-January, representing a
“We have previously mentioned the challenging dynamics of the Wireline Completions business in the Permian Basin. These dynamics began to spread to our North region this quarter where the normal seasonal lull in the wireline business was exacerbated by aggressive pricing concessions made by some of our competitors. We do not believe these pricing levels are sustainable and will likely result in meaningful losses for these competitors. Ranger has made a conscious choice to avoid chasing market share in lieu of profitable returns and remains focused on expanding our production business, which is an important strategic effort for us this year.”
“Our Ancillary Services segment was also negatively affected by depressed levels of activity in our Coil Tubing service line due to competitive pressures associated with the previously mentioned completions declines over the winter months. However, we have begun to see a recovery in this service line beginning in April that we expect to continue to build in May and reach normalized levels of activity by June.”
Mr. Bodden continued, “In our High Specification Rigs segment, although revenues were essentially flat quarter over quarter, Ranger experienced weather-related impacts and an unexpected downtime event due to a safety-related incident on a non-Ranger rig that was outside of our control. We estimate that approximately 75 rig days were affected by this event, during which the company carried the full rig cost burden, pressuring segment margins for the quarter.
“Despite the first quarter headwinds, we were still able to generate positive free cash flow during the quarter. Importantly, we believe Ranger’s fundamental value proposition remains fully intact. We continue to be encouraged by our near-term opportunities and have had several bright spots among our service lines that are worth highlighting.
– In our P&A business, customers are contracting incremental rigs to complete necessary decommissioning work and we believe Ranger is well positioned to capitalize on this trend;
– In our in-field gas processing solution service, Torrent has been receiving an increased number of inbound sales inquiries given the need for in-field power generation and to take advantage of increasing liquids prices, and we believe there is an opportunity for this business to provide greater contribution in the future; and
– In our Wireline Services segment, we completed our first geothermal project with a new customer. These projects are technically challenging, and the Ranger team was able to rise to the occasion and provide the quality service our customers expect. We are optimistic there is a new opportunity for Ranger with this type of work in the future.”
Mr. Bodden concluded, “Although the year has not started in the way we planned, we view our first quarter as a perfect storm that we have weathered and emerged from as a stronger organization, with important lessons learned and efficiencies catalyzed by these challenges. Most of the challenges we faced during the first quarter were non-recurring and are now in our rear-view mirror. In March we posted strong margins with an improving revenue profile as customer activity levels picked up and our High Specification Rigs business returned to peak levels. Our view for the full year remains positive and we are confident the worst is behind us now; we will remain steadfast on ensuring we generate strong cash flows which will lead to increasing shareholder returns."
CAPITAL RETURNS UPDATE
During the quarter, Ranger repurchased 846,900 shares of stock for a total value of
On May 7, 2024, the Board of Directors declared a quarterly cash dividend of
PERFORMANCE SUMMARY
For the first quarter of 2024, revenue was
Cost of services for the first quarter of 2024 was
General and administrative expenses were
Net loss totaled
Fully diluted loss per share was
Adjusted EBITDA of
In response to reductions in wireline activity levels, and to better align the business and drive further efficiencies, management has undertaken a comprehensive review of company-wide expenses and has identified approximately
2024 OUTLOOK
Ranger remains bullish on the long-term opportunities and growth potential for the Company. Our High Specification Rigs business is expected to grow modestly year over year despite continuing to hold the view that operator activity levels are likely to remain flat during 2024. Our Processing and Ancillary Services segment is still anticipated to show very modest year over year growth as well, although this will largely be dependent on customer behavior at the end of this year. Despite depressed margins and activity levels in both January and February, March results showed significant revenue and margin improvements.
Our expectation is that consolidated April results will continue to show increasing strength on the top line with resumption of our historical margin averages and this trend will continue through the summer months and into the fall. Strong conversion of EBITDA to Free Cash Flow(2) through effective capital expense management will continue to provide a strong return of capital to Ranger shareholders during the year.
BUSINESS SEGMENT FINANCIAL RESULTS
High Specification Rigs
High Specification Rigs segment revenue was
Operating income was
Wireline Services
Wireline Services segment revenue was
Revenue Breakdown by Service Line, in millions:
Service Line |
FY 2022 Revenue |
FY 2023 Revenue |
Q4 2023 Revenue |
Q1 2024 Revenue |
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Wireline Completions |
|
|
|
|
|
|
|
|
Wireline Production |
36.8 |
|
42.2 |
|
9.7 |
|
10.4 |
|
Wireline Pump Down |
16.6 |
|
22.2 |
|
5.2 |
|
5.1 |
|
Total Wireline Segment Revenue |
|
|
|
|
|
|
|
The decrease in revenue and stage count from the prior year and quarter periods is indicative of lower operational activity reflecting the Company's decision to pursue only work with appropriate margins and a shift in activity from completions work to production.
Operating loss was
The Company has made a series of adjustments in February, March and April to the fixed costs associated with Wireline Services lines to improve margins on a go forward basis.
Processing Solutions and Ancillary Services
Processing Solutions and Ancillary Services segment revenue was
Operating income in this segment was
BALANCE SHEET, CASH FLOW AND LIQUIDITY
As of March 31, 2024, the Company had
Cash provided by Operating Activities was
Conference Call
The Company will host a conference call to discuss its results from the first quarter of 2024 on Tuesday, May 7, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To join the conference call from within
An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days. The replay will also be available in the Investor Relations section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.
About Ranger Energy Services, Inc.
Ranger is one of the largest providers of high specification mobile rig well services, cased hole wireline services, and ancillary services in the
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “may,” “should,” “intend,” “could,” “believe,” “anticipate,” “estimate,” “expect,” “outlook,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements represent Ranger’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ranger’s control. Should one or more of these risks or uncertainties described occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.
Our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in our current and past filings with the
All forward looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law any forward-looking statement speaks only as of the date on which is it made. We disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this cautionary statement, to reflect events or circumstances after the date of this press release.
RANGER ENERGY SERVICES, INC. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(in millions, except share and per share amounts) |
||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||
|
|
2023 |
|
2024 |
|
2023 |
||||||
Revenue |
|
|
|
|
|
|
||||||
High specification rigs |
|
$ |
79.0 |
|
|
$ |
79.7 |
|
|
$ |
77.5 |
|
Wireline services |
|
|
41.5 |
|
|
|
32.8 |
|
|
|
49.9 |
|
Processing solutions and ancillary services |
|
|
31.0 |
|
|
|
24.4 |
|
|
|
30.1 |
|
Total revenue |
|
|
151.5 |
|
|
|
136.9 |
|
|
|
157.5 |
|
|
|
|
|
|
|
|
||||||
Operating expenses |
|
|
|
|
|
|
||||||
Cost of services (exclusive of depreciation and amortization): |
|
|
|
|
|
|
||||||
High specification rigs |
|
|
63.6 |
|
|
|
66.3 |
|
|
|
60.1 |
|
Wireline services |
|
|
40.4 |
|
|
|
32.6 |
|
|
|
45.7 |
|
Processing solutions and ancillary services |
|
|
25.7 |
|
|
|
21.9 |
|
|
|
25.1 |
|
Total cost of services |
|
|
129.7 |
|
|
|
120.8 |
|
|
|
130.9 |
|
General and administrative |
|
|
6.8 |
|
|
|
6.7 |
|
|
|
8.4 |
|
Depreciation and amortization |
|
|
10.6 |
|
|
|
11.2 |
|
|
|
10.0 |
|
Gain on sale of assets |
|
|
(0.2 |
) |
|
|
(1.3 |
) |
|
|
(1.0 |
) |
Total operating expenses |
|
|
146.9 |
|
|
|
137.4 |
|
|
|
148.3 |
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
|
4.6 |
|
|
|
(0.5 |
) |
|
|
9.2 |
|
|
|
|
|
|
|
|
||||||
Other expenses |
|
|
|
|
|
|
||||||
Interest expense, net |
|
|
0.7 |
|
|
|
0.8 |
|
|
|
1.2 |
|
Total other expenses, net |
|
|
0.7 |
|
|
|
0.8 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
||||||
Income (loss) before income tax expense (benefit) |
|
|
3.9 |
|
|
|
(1.3 |
) |
|
|
8.0 |
|
Income tax expense (benefit) |
|
|
1.8 |
|
|
|
(0.5 |
) |
|
|
1.8 |
|
Net income (loss) |
|
|
2.1 |
|
|
|
(0.8 |
) |
|
|
6.2 |
|
|
|
|
|
|
|
|
||||||
Income (loss) per common share: |
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.09 |
|
|
$ |
(0.04 |
) |
|
$ |
0.25 |
|
Diluted |
|
$ |
0.09 |
|
|
$ |
(0.03 |
) |
|
$ |
0.25 |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
||||||
Basic |
|
|
24,129,081 |
|
|
|
22,738,286 |
|
|
|
24,940,335 |
|
Diluted |
|
|
24,537,046 |
|
|
|
22,922,284 |
|
|
|
25,209,980 |
|
RANGER ENERGY SERVICES, INC. |
||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in millions, except share and per share amounts) |
||||||||
|
|
March 31, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
11.1 |
|
|
$ |
15.7 |
|
Accounts receivable, net |
|
|
70.6 |
|
|
|
85.4 |
|
Contract assets |
|
|
21.2 |
|
|
|
17.7 |
|
Inventory |
|
|
6.4 |
|
|
|
6.4 |
|
Prepaid expenses |
|
|
6.6 |
|
|
|
9.6 |
|
Assets held for sale |
|
|
0.6 |
|
|
|
0.6 |
|
Total current assets |
|
|
116.5 |
|
|
|
135.4 |
|
|
|
|
|
|
||||
Property and equipment, net |
|
|
223.1 |
|
|
|
226.3 |
|
Intangible assets, net |
|
|
6.1 |
|
|
|
6.3 |
|
Operating leases, right-of-use assets |
|
|
8.9 |
|
|
|
9.0 |
|
Other assets |
|
|
0.9 |
|
|
|
1.0 |
|
Total assets |
|
$ |
355.5 |
|
|
$ |
378.0 |
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
||||
Accounts payable |
|
|
21.7 |
|
|
|
31.3 |
|
Accrued expenses |
|
|
27.0 |
|
|
|
29.6 |
|
Other financing liability, current portion |
|
|
0.6 |
|
|
|
0.6 |
|
Long-term debt, current portion |
|
|
— |
|
|
|
0.1 |
|
Short-term lease liability |
|
|
7.4 |
|
|
|
7.3 |
|
Other current liabilities |
|
|
1.3 |
|
|
|
0.1 |
|
Total current liabilities |
|
|
58.0 |
|
|
|
69.0 |
|
|
|
|
|
|
||||
Long-term lease liability |
|
|
14.2 |
|
|
|
14.9 |
|
Other financing liability |
|
|
10.8 |
|
|
|
11.0 |
|
Deferred tax liability |
|
|
10.8 |
|
|
|
11.3 |
|
Total liabilities |
|
$ |
93.8 |
|
|
$ |
106.2 |
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Class A Common Stock, |
|
|
0.3 |
|
|
|
0.3 |
|
Class B Common Stock, |
|
|
— |
|
|
|
— |
|
Less: Class A Common Stock held in treasury at cost; 3,204,228 treasury shares as of March 31, 2024 and 2,357,328 treasury shares as of December 31, 2023 |
|
|
(31.6 |
) |
|
|
(23.1 |
) |
Retained earnings |
|
|
26.5 |
|
|
|
28.4 |
|
Additional paid-in capital |
|
|
266.5 |
|
|
|
266.2 |
|
Total controlling stockholders' equity |
|
|
261.7 |
|
|
|
271.8 |
|
Total liabilities and stockholders' equity |
|
$ |
355.5 |
|
|
$ |
378.0 |
|
RANGER ENERGY SERVICES, INC. |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
||||||||
(in millions) |
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2024 |
|
2023 |
||||
Cash Flows from Operating Activities |
|
|
|
|
||||
Net income |
|
$ |
(0.8 |
) |
|
$ |
6.2 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
11.2 |
|
|
|
10.0 |
|
Equity based compensation |
|
|
1.3 |
|
|
|
1.1 |
|
Gain on disposal of property and equipment |
|
|
(1.3 |
) |
|
|
(1.0 |
) |
Deferred income tax expense (benefit) |
|
|
(0.5 |
) |
|
|
1.9 |
|
Other expense, net |
|
|
0.2 |
|
|
|
1.1 |
|
Changes in operating assets and liabilities |
|
|
|
|
||||
Accounts receivable |
|
|
14.7 |
|
|
|
12.3 |
|
Contract assets |
|
|
(3.6 |
) |
|
|
(5.3 |
) |
Inventory |
|
|
— |
|
|
|
(0.8 |
) |
Prepaid expenses and other current assets |
|
|
3.0 |
|
|
|
1.5 |
|
Other assets |
|
|
0.1 |
|
|
|
0.3 |
|
Accounts payable |
|
|
(9.5 |
) |
|
|
3.3 |
|
Accrued expenses |
|
|
(2.6 |
) |
|
|
(12.3 |
) |
Other current liabilities |
|
|
0.2 |
|
|
|
0.2 |
|
Other long-term liabilities |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
Net cash provided by operating activities |
|
|
12.0 |
|
|
|
17.4 |
|
|
|
|
|
|
||||
Cash Flows from Investing Activities |
|
|
|
|
||||
Purchase of property and equipment |
|
|
(6.5 |
) |
|
|
(5.4 |
) |
Proceeds from disposal of property and equipment |
|
|
0.8 |
|
|
|
4.3 |
|
Net cash used in investing activities |
|
|
(5.7 |
) |
|
|
(1.1 |
) |
|
|
|
|
|
||||
Cash Flows from Financing Activities |
|
|
|
|
||||
Borrowings under Revolving Credit Facility |
|
|
2.1 |
|
|
|
167.7 |
|
Principal payments on Revolving Credit Facility |
|
|
(2.1 |
) |
|
|
(169.1 |
) |
Principal payments on Eclipse M&E Term Loan Facility |
|
|
— |
|
|
|
(0.6 |
) |
Principal payments on Secured Promissory Note |
|
|
— |
|
|
|
(0.6 |
) |
Principal payments on financing lease obligations |
|
|
(1.3 |
) |
|
|
(1.3 |
) |
Principal payments on other financing liabilities |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Shares withheld for equity compensation |
|
|
(0.9 |
) |
|
|
(1.0 |
) |
Payments on Other Installment Purchases |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Repurchase of Class A Common Stock |
|
|
(8.5 |
) |
|
|
(0.4 |
) |
Net cash used in financing activities |
|
|
(10.9 |
) |
|
|
(5.6 |
) |
|
|
|
|
|
||||
Increase (decrease) in cash and cash equivalents |
|
|
(4.6 |
) |
|
|
10.7 |
|
Cash and cash equivalents, Beginning of Period |
|
|
15.7 |
|
|
|
3.7 |
|
Cash and cash equivalents, End of Period |
|
$ |
11.1 |
|
|
$ |
14.4 |
|
|
|
|
|
|
||||
Supplemental Cash Flow Information |
|
|
|
|
||||
Interest paid |
|
$ |
0.4 |
|
|
$ |
0.3 |
|
Supplemental Disclosure of Non-cash Investing and Financing Activities |
|
|
|
|
||||
Capital expenditures included in accounts payable and accrued liabilities |
|
$ |
0.1 |
|
|
$ |
— |
|
Additions to fixed assets through installment purchases and financing leases |
|
$ |
(0.9 |
) |
|
$ |
(1.5 |
) |
Additions to fixed assets through asset trades |
|
$ |
2.6 |
|
|
$ |
— |
|
RANGER ENERGY SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Note Regarding Non‑GAAP Financial Measure
The Company utilizes certain non-GAAP financial measures that management believes to be insightful in understanding the Company’s financial results. These financial measures, which include Adjusted EBITDA and Free Cash Flow, should not be construed as being more important than, or as an alternative for, comparable
Adjusted EBITDA
We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed below from net income or loss in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA.
We define Adjusted EBITDA as net income or loss before net interest expense, income tax provision or benefit, depreciation and amortization, equity‑based compensation, acquisition-related, severance and reorganization costs, gain or loss on disposal of property and equipment, and certain other non-cash items that we do not view as indicative of our ongoing performance.
The following tables are a reconciliation of net income or loss to Adjusted EBITDA for the respective periods, in millions:
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
||||||||
|
|
Three Months Ended March 31, 2024 |
||||||||||||||||
Net income (loss) |
|
$ |
7.8 |
|
$ |
(2.9 |
) |
|
$ |
0.5 |
|
$ |
(6.2 |
) |
|
$ |
(0.8 |
) |
Interest expense, net |
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.8 |
|
|
|
0.8 |
|
Income tax benefit |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
Depreciation and amortization |
|
|
5.6 |
|
|
3.1 |
|
|
|
2.0 |
|
|
0.5 |
|
|
|
11.2 |
|
EBITDA |
|
|
13.4 |
|
|
0.2 |
|
|
|
2.5 |
|
|
(5.4 |
) |
|
|
10.7 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.2 |
|
|
|
1.2 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(1.3 |
) |
|
|
(1.3 |
) |
Acquisition related costs |
|
|
0.2 |
|
|
— |
|
|
|
— |
|
|
0.1 |
|
|
|
0.3 |
|
Adjusted EBITDA |
|
$ |
13.6 |
|
$ |
0.2 |
|
|
$ |
2.5 |
|
$ |
(5.4 |
) |
|
$ |
10.9 |
|
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
||||||||
|
|
Three Months Ended December 31, 2023 |
||||||||||||||||
Net income (loss) |
|
$ |
10.0 |
|
$ |
(1.8 |
) |
|
$ |
3.4 |
|
$ |
(9.5 |
) |
|
$ |
2.1 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.7 |
|
|
|
0.7 |
|
Income tax expense |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.8 |
|
|
|
1.8 |
|
Depreciation and amortization |
|
|
5.4 |
|
|
2.9 |
|
|
|
1.9 |
|
|
0.4 |
|
|
|
10.6 |
|
EBITDA |
|
|
15.4 |
|
|
1.1 |
|
|
|
5.3 |
|
|
(6.6 |
) |
|
|
15.2 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.2 |
|
|
|
1.2 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
Severance and reorganization costs |
|
|
— |
|
|
1.7 |
|
|
|
— |
|
|
— |
|
|
|
1.7 |
|
Acquisition related costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.5 |
|
|
|
0.5 |
|
Adjusted EBITDA |
|
$ |
15.4 |
|
$ |
2.8 |
|
|
$ |
5.3 |
|
$ |
(5.1 |
) |
|
$ |
18.4 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
||||||||
|
|
Three Months Ended March 31, 2023 |
||||||||||||||||
Net income (loss) |
|
$ |
11.9 |
|
$ |
1.8 |
|
|
$ |
3.4 |
|
$ |
(10.9 |
) |
|
$ |
6.2 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.2 |
|
|
|
1.2 |
|
Income tax expense |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.8 |
|
|
|
1.8 |
|
Depreciation and amortization |
|
|
5.5 |
|
|
2.4 |
|
|
|
1.6 |
|
|
0.5 |
|
|
|
10.0 |
|
EBITDA |
|
|
17.4 |
|
|
4.2 |
|
|
|
5.0 |
|
|
(7.4 |
) |
|
|
19.2 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.1 |
|
|
|
1.1 |
|
Gain on disposal of property and equipment |
|
— |
|
|
— |
|
|
|
— |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
Severance and reorganization costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.2 |
|
|
|
0.2 |
|
Acquisition related costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.6 |
|
|
|
0.6 |
|
Adjusted EBITDA |
|
$ |
17.4 |
|
$ |
4.2 |
|
|
$ |
5.0 |
|
$ |
(6.5 |
) |
|
$ |
20.1 |
|
Free Cash Flow
We believe Free Cash Flow is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire statement of cash flows.
The following table is a reconciliation of consolidated operating cash flows to Free Cash Flow for the respective periods, in millions:
|
|
Three Months Ended |
||||||
|
|
March 31, 2024 |
|
March 31, 2023 |
||||
Net cash provided by operating activities |
|
$ |
12.0 |
|
|
$ |
17.4 |
|
Purchase of property and equipment |
|
|
(6.5 |
) |
|
|
(5.4 |
) |
Free Cash Flow |
|
$ |
5.5 |
|
|
$ |
12.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507474762/en/
Melissa Cougle
Chief Financial Officer
(713) 935-8900
InvestorRelations@rangerenergy.com
Source: Ranger Energy Services, Inc.
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