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Ranger Energy Services, Inc. Announces Q3 2024 Results

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Ranger Energy Services (NYSE: RNGR) reported Q3 2024 results with revenue of $153.0 million, up 11% from Q2 but down 7% year-over-year. Net income reached $8.7 million ($0.39 per share), showing an 85% increase from Q2. Adjusted EBITDA was $25.1 million, up 20% quarter-over-quarter. The company generated Free Cash Flow of $10.8 million and continued its shareholder returns with 155,200 shares repurchased during Q3. High Specification Rigs segment achieved record revenues, while Wireline Services showed improvement in margins despite lower completions activity.

Ranger Energy Services (NYSE: RNGR) ha riportato i risultati del terzo trimestre 2024, con un fatturato di 153,0 milioni di dollari, in aumento dell'11% rispetto al secondo trimestre, ma in calo del 7% rispetto all'anno precedente. L'utile netto ha raggiunto 8,7 milioni di dollari (0,39 dollari per azione), mostrando un incremento dell'85% rispetto al secondo trimestre. L'EBITDA rettificato è stato di 25,1 milioni di dollari, in crescita del 20% rispetto al trimestre precedente. L'azienda ha generato un Flusso di Cassa Libero di 10,8 milioni di dollari e ha continuato i suoi ritorni agli azionisti, riacquistando 155.200 azioni durante il terzo trimestre. Il segmento degli Impianti ad Alta Specifica ha raggiunto ricavi record, mentre i Servizi Wireline hanno mostrato un miglioramento nei margini nonostante una minore attività di completamento.

Ranger Energy Services (NYSE: RNGR) informó los resultados del tercer trimestre de 2024, con ingresos de 153,0 millones de dólares, un aumento del 11% en comparación con el segundo trimestre, pero una disminución del 7% en comparación con el año anterior. La ganancia neta alcanzó 8,7 millones de dólares (0,39 dólares por acción), mostrando un incremento del 85% desde el segundo trimestre. El EBITDA ajustado fue de 25,1 millones de dólares, un aumento del 20% respecto al trimestre anterior. La compañía generó un Flujo de Caja Libre de 10,8 millones de dólares y continuó sus retornos a los accionistas, recomprando 155,200 acciones durante el tercer trimestre. El segmento de Equipos de Alta Especificación logró ingresos récord, mientras que los Servicios de Línea mostraron una mejora en los márgenes a pesar de una menor actividad de finalización.

Ranger Energy Services (NYSE: RNGR)는 2024년 3분기 실적을 보고했으며, 수익은 1억 5,300만 달러로 2분기 대비 11% 증가했으나, 전년 동기 대비 7% 감소했습니다. 순이익은 870만 달러 (주당 0.39 달러)에 이르러 2분기 대비 85% 증가했습니다. 조정된 EBITDA는 2,510만 달러로 전 분기 대비 20% 증가했습니다. 회사는 1,080만 달러의 자유 현금을 창출하고 3분기 동안 155,200주를 재매입하여 주주 환원을 지속했습니다. 고사양 장비 부문은 사상 최고의 수익을 달성했으며, 와이어라인 서비스는 완료 활동이 줄어든 상황에서도 마진이 개선되는 모습을 보였습니다.

Ranger Energy Services (NYSE: RNGR) a rapporté des résultats pour le troisième trimestre 2024 avec un chiffre d'affaires de 153,0 millions de dollars, en hausse de 11% par rapport au deuxième trimestre, mais en baisse de 7% par rapport à l'année précédente. Le bénéfice net a atteint 8,7 millions de dollars (0,39 dollar par action), affichant une augmentation de 85% par rapport au deuxième trimestre. L'EBITDA ajusté s'élevait à 25,1 millions de dollars, en hausse de 20% par rapport au trimestre précédent. L'entreprise a généré un flux de trésorerie libre de 10,8 millions de dollars et a poursuivi ses retours aux actionnaires avec le rachat de 155 200 actions pendant le troisième trimestre. Le segment des équipements haute spécification a atteint des revenus record, tandis que les services de ligne ont montré une amélioration des marges malgré une baisse de l'activité de réalisation.

Ranger Energy Services (NYSE: RNGR) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 153,0 Millionen Dollar, was einem Anstieg von 11% im Vergleich zum zweiten Quartal entspricht, jedoch einem Rückgang von 7% im Vergleich zum Vorjahr. Der Nettogewinn erreichte 8,7 Millionen Dollar (0,39 Dollar pro Aktie), was einem Anstieg von 85% im Vergleich zum zweiten Quartal entspricht. Das bereinigte EBITDA betrug 25,1 Millionen Dollar, was einem Anstieg von 20% im Quartalsvergleich entspricht. Das Unternehmen generierte einen freien Cashflow von 10,8 Millionen Dollar und gab während des dritten Quartals 155.200 Aktien zurück. Der Bereich der Hochspezifikationsanlagen erreichte Rekordumsätze, während die Drahtleistungsdienste trotz niedrigerer Abschlussaktivitäten eine Verbesserung der Margen zeigten.

Positive
  • Q3 revenue increased 11% quarter-over-quarter to $153.0 million
  • Net income grew 85% from Q2 to $8.7 million ($0.39 per share)
  • Adjusted EBITDA improved 20% to $25.1 million vs Q2
  • Generated $10.8 million in Free Cash Flow
  • High Specification Rigs segment revenue increased to $86.7 million with improved margins
  • Strong liquidity position with $86.1 million available
Negative
  • Revenue decreased 7% year-over-year from $164.4 million
  • Wireline Services revenue declined 43% year-over-year
  • Completed stage counts in Wireline decreased 63% year-over-year
  • Net income decreased by $0.7 million compared to Q3 2023

Insights

The Q3 2024 results show strong operational execution with several positive indicators. Revenue increased 11% quarter-over-quarter to $153.0 million, while net income jumped 85% to $8.7 million ($0.39 per share). The High-Spec Rig segment achieved record revenues with expanding margins, while Wireline showed improvement after strategic restructuring.

Key financial metrics demonstrate solid performance: Adjusted EBITDA grew 20% QoQ to $25.1 million and Free Cash Flow reached $10.8 million. The company maintains zero net debt while aggressively returning capital to shareholders through buybacks ($15.5 million YTD) and dividends, exceeding their 25% FCF return commitment.

The company's production-focused strategy appears resilient despite market challenges, with strong liquidity of $86.1 million and improving operational metrics across segments. While Q4 may see seasonal impacts, the outlook for 2025 appears positive with expected growth in key segments.

RNGR's strategic pivot to production-oriented services is yielding results, particularly evident in the Wireline segment's margin improvements. The company's aggressive share repurchase program, having bought back 15% of outstanding shares at an average price of $10.37, demonstrates management's confidence in the business model and commitment to shareholder returns.

The market positioning in high-specification rigs shows particular strength, with hourly rates increasing 6% year-over-year to $741 per hour. The diversified revenue streams across segments provide stability, while the focus on production services rather than completions work suggests better margin sustainability in varying market conditions.

HOUSTON--(BUSINESS WIRE)-- Ranger Energy Services, Inc. (NYSE: RNGR) (“Ranger” or the “Company”) announced today its results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

  • Revenue of $153.0 million, representing an 11% increase from $138.1 million in the second quarter of 2024 and a 7% decrease from $164.4 million in the third quarter of 2023
  • Net income of $8.7 million, or $0.39 per fully diluted share, an 85% increase from $4.7 million in the second quarter 2024 and a decrease of $0.7 million from $9.4 million in the third quarter of 2023
  • Adjusted EBITDA(1) of $25.1 million representing a 20% increase from $21.0 million reported in the second quarter of 2024 and a 5% increase from $24.0 million reported in third quarter of 2023
  • Free Cash Flow(2) for the quarter of $10.8 million, or $0.49 per share, with year to date Free Cash Flow(2) of $23.1 million, or $1.04 per share
  • Share repurchases during the quarter totaling 155,200 shares and year to date repurchases totaling 1,520,300 shares for a total value of $15.5 million spent during 2024 on repurchases
________________

1

“Adjusted EBITDA” is not presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company defines Adjusted EBITDA as net income or loss before net income 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. A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release and can also be found on the Company's website at: www.rangerenergy.com.

2

“Free Cash Flow” is not presented in accordance with U.S. GAAP and 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. The Company defines Free Cash Flow as net cash provided by operating activities before purchase of property and equipment. A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release and can also be found on the Company's website at www.rangerenergy.com.

Management Comments

Stuart Bodden, Ranger’s Chief Executive Officer, commented, “Ranger continued to execute at a high level, achieving near-record revenues, gross margin, and adjusted EBITDA this quarter in two of its three segments. Every quarter of solid performance by Ranger in this market validates our differentiated, production-focused service lines and underscores our resilient business model. Each of our segments excelled, reflecting our collective determination to exceed customer expectations by delivering quality assets, services and safety performance every day.”

“Ranger’s flagship high-spec rig business surpassed expectations again, delivering top-line growth that set yet another record for the business, with steadily expanding margins. Our Wireline segment showed marked improvement, as our decisions to streamline this business segment and focus on production oriented services are paying off, reflected in improved revenues and healthier margins. Ancillary Services also performed strongly, with coil tubing, plug-and-abandonment and Torrent service lines growing revenue nicely quarter over quarter.

"Looking ahead to the fourth quarter, we remain optimistic about our ability to continue executing at a high level in a challenging environment, with the High Specification Rigs segment leading the way. While typical seasonality and holiday impacts are expected to occur in the fourth quarter, early indications for 2025 are positive. We anticipate year-over-year growth in High Specification Rigs, continued stabilization in Wireline as the pivot to production services matures, and further contributions from Ancillary Services.

"Our production focus sets us apart and enables us to concentrate on our strategic pillars of free cash flow conversion, balance sheet strength, and returning cash to shareholders under any market conditions. We have continued to maintain zero net debt and returned over 81% of free cash flow to shareholders year to date through dividends and share buybacks, far exceeding our commitment. We’ve thrived as an organization through the market challenges presented over the past 18 months. As always, I remain grateful to our entire Ranger team for their dedication, which makes me as optimistic about the future as ever.”

CAPITAL RETURNS AND GOVERNANCE UPDATE

Ranger has far exceeded its commitment of returning at least 25% of Free Cash Flow(2) to shareholders this year. Year to date, the Company has repurchased 1,520,300 shares of stock for a total value of $15.5 million at an average price of $10.11 per share. Since the share repurchase program’s inception in 2023 through the end of the most recent quarter, the Company has repurchased a total of 3,325,800 shares, representing over 15% of shares outstanding as of September 30, 2024, for a total value of $34.5 million at an average price of $10.37 per share. Additionally, on October 28, 2024, the Board of Directors declared a quarterly cash dividend of $0.05 per share payable November 22, 2024 to common stockholders of record at the close of business on November 8, 2024 reinforcing our commitment to returning capital each and every quarter.

This quarter, Ranger is also announcing an update to its governance structure. Charlie Leykum has announced his intention to step down from the Board of Directors effective November 1, 2024. As a Founder of Ranger, Charlie has been instrumental in supporting the organization since its inception and his contributions are deeply acknowledged and appreciated. With his retirement, Ranger will affect a change to reduce the size of its Board of Directors from 7 members to 6 members.

PERFORMANCE SUMMARY

For the third quarter of 2024, revenue was $153.0 million, an increase from the second quarter of $138.1 million and a decrease from $164.4 million in the prior year period. Quarter over quarter increases in revenue are attributable to improvements across segments in activity levels while year over year revenue declines are due to reduced activity in the wireline completions service line partially offset by increases in other business segments. Cost of services for the third quarter of 2024 was $122.0 million, or 80% of revenue, compared to $134.8 million, or 82% of revenue in the prior year period. The decrease in cost of services as a percentage of revenue from the prior year quarter was primarily attributable to reduced operating activity in wireline completions activity and restructuring activities. General and administrative expenses were $7.1 million for the third quarter of 2024 compared to $6.9 million in the prior quarter and $7.0 million in the prior year period.

Net income totaled $8.7 million for the third quarter of 2024 compared to $4.7 million in the prior quarter and $9.4 million in the prior year period. Fully diluted earnings per share was $0.39 for the third quarter of 2024 compared to $0.21 in the prior quarter and $0.38 in the prior year period.

Adjusted EBITDA of $25.1 million for the third quarter of 2024 increased $4.4 million from $21.0 million in the prior quarter and increased $1.1 million from $24.0 million in the prior year period. Quarter over quarter increases were driven by increasing activity levels in several service lines and margin improvements from operating leverage and restructuring efforts. The year over year increases were driven by increases to revenue and margins in High-Specification Rigs and Ancillary Services.

BUSINESS SEGMENT FINANCIAL RESULTS

High Specification Rigs

High Specification Rigs segment revenue was $86.7 million in the third quarter of 2024, an increase of $4.0 million relative to the prior quarter revenue of $82.7 million and an increase of $7.5 million relative to the prior year period. Rig hours increased by 3% to 116,900 from 113,100 in the prior quarter and from 112,400 in the prior year period. Hourly rig rates increased by 1% to $741 from $732 per hour in the prior quarter, due to asset mix reflecting relatively consistent pricing levels quarter over quarter. Hourly rig rates increased by 6% from $700 in the prior year period.

Operating income was $13.8 million in the third quarter of 2024, an increase of $2.0 million, or 17% compared to $11.8 million in the prior quarter, and an increase of $3.2 million, or 30% compared to $10.6 million in the prior year period. Adjusted EBITDA was $19.2 million in the third quarter, up from $18.7 million in the prior quarter and from $15.7 million in the prior year period.

Wireline Services

Wireline Services segment revenue was $30.3 million in the third quarter of 2024, up $5.8 million, or 24% compared to $24.5 million in the prior quarter and down $22.9 million, or 43% compared to $53.2 million in the prior year period. Our Completions service line reported completed stage counts of 2,500, a decrease of 47% compared to 1,700 for the prior quarter and 63% compared to 6,800 in the prior year period.

Revenue Breakdown by Service Line, in millions:

 

Nine Months Ended September 30,

Service Line

2022 YTD
Revenue

2023 YTD
Revenue

2024 YTD
Revenue

Wireline Completions

$109.4

$108.0

$35.5

Wireline Production

26.7

32.5

35.9

Wireline Pump Down

12.6

17.1

16.2

Total Wireline Segment Revenue

$148.7

$157.6

$87.6

The decrease in revenue and stage count from the prior year 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 focused work.

Operating income was at a break-even in the third quarter, up $2.6 million from an operating loss of $2.6 million for the prior quarter and down $4.3 million, from operating income of $4.3 million in the prior year period. Adjusted EBITDA was $2.7 million, up from $0.4 million for the prior quarter and down 64% from $7.4 million in the prior year period.

Processing Solutions and Ancillary Services

Processing Solutions and Ancillary Services segment revenue was $36.0 million in the third quarter of 2024, up $5.1 million, or 17% from $30.9 million in the prior quarter and up $4.0 million, or 13% from $32.0 million for the prior year period. The increase from the prior quarter was largely attributable to increased operational activity in most service lines with the largest contribution coming from the Coil Tubing service line. The increase from the prior year period was largely attributable to increased operational activity in most service lines with the largest contribution coming from the P&A and Torrent service lines.

Operating income in this segment was $6.6 million in the third quarter, up from $5.2 million in the prior quarter and $4.5 million in the prior year period. Adjusted EBITDA was $8.8 million, an increase compared to $7.3 million in the prior quarter and $6.5 million in the prior year period.

BALANCE SHEET, CASH FLOW AND LIQUIDITY

As of September 30, 2024, the Company had $86.1 million of liquidity, consisting of $71.3 million of capacity on its revolving credit facility and $14.8 million of cash on hand. This compares to the prior year period end of September 30, 2023 when the Company had $69.9 million of liquidity, consisting of $61.7 million of capacity on its revolving credit facility and $8.2 million of cash on hand.

Cash provided by Operating Activities for year to date 2024 is $51.8 million, compared to $53.1 million over the same period in 2023. The Company’s Free Cash Flow(2) of $23.1 million for year to date 2024 compares to Free Cash Flow(2) of $25.2 million in the prior year period primarily due to heavier capital expenditures during 2024 in support of expanding customer relationships.

The Company had capital expenditures of $28.7 million, compared to $27.9 million over the same period in 2023. Year to date, the Company has deployed approximately $10 million toward growth capital expenditures on more modern equipment that is more marketable at better pricing, updates to technology offerings or expanded service offerings. Many of these investments have been implemented in order to strengthen our customer relationships and provide for improved returns in future periods.

Conference Call

The Company will host a conference call to discuss its third quarter 2024 results on Monday, October 28, 2024, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To join the conference call from within the United States, participants may dial 1-833-255-2829. To join the conference call from outside of the United States, participants may dial 1-412-902-6710. When instructed, please ask the operator to join the Ranger Energy Services, Inc. call. Participants are encouraged to login to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investor Relations section of the Company’s website, www.rangerenergy.com.

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 U.S. oil and gas industry. Our services facilitate operations throughout the lifecycle of a well, including the completion, production, maintenance, intervention, workover and abandonment phases.

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 U.S. Securities and Exchange Commission (“SEC”). These documents are available through our website or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at www.sec.gov. These risks include, but are not limited to, the risks described under “Part I, Item 1A, Risk Factors” in our Annual Report on 10-K filed with the SEC on March 5, 2024, and those set forth from time-to-time in other filings by the Company with the SEC.

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.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share amounts)

 

 

 

Three Months Ended June 30,

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

 

 

 

 

 

 

 

 

 

High specification rigs

 

$

82.7

 

 

$

86.7

 

 

$

79.2

 

 

$

249.1

 

 

$

234.3

 

Wireline services

 

 

24.5

 

 

 

30.3

 

 

 

53.2

 

 

 

87.6

 

 

 

157.6

 

Processing solutions and ancillary services

 

 

30.9

 

 

 

36.0

 

 

 

32.0

 

 

 

91.3

 

 

 

93.2

 

Total revenue

 

 

138.1

 

 

 

153.0

 

 

 

164.4

 

 

 

428.0

 

 

 

485.1

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

Cost of services (exclusive of depreciation and amortization):

 

 

 

 

 

 

 

 

 

 

High specification rigs

 

 

65.3

 

 

 

67.2

 

 

 

63.5

 

 

 

198.8

 

 

 

185.6

 

Wireline services

 

 

24.2

 

 

 

27.6

 

 

 

45.8

 

 

 

84.4

 

 

 

140.3

 

Processing solutions and ancillary services

 

 

23.7

 

 

 

27.2

 

 

 

25.5

 

 

 

72.8

 

 

 

76.1

 

Total cost of services

 

 

113.2

 

 

 

122.0

 

 

 

134.8

 

 

 

356.0

 

 

 

402.0

 

General and administrative

 

 

6.9

 

 

 

7.1

 

 

 

7.0

 

 

 

20.7

 

 

 

22.7

 

Depreciation and amortization

 

 

11.0

 

 

 

11.1

 

 

 

10.6

 

 

 

33.3

 

 

 

29.3

 

Impairment of fixed assets

 

 

 

 

 

 

 

 

0.4

 

 

 

 

 

 

0.4

 

Gain on sale of assets

 

 

(0.3

)

 

 

(0.1

)

 

 

(0.1

)

 

 

(1.7

)

 

 

(1.6

)

Total operating expenses

 

 

130.8

 

 

 

140.1

 

 

 

152.7

 

 

 

408.3

 

 

 

452.8

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

7.3

 

 

 

12.9

 

 

 

11.7

 

 

 

19.7

 

 

 

32.3

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

0.6

 

 

 

0.7

 

 

 

0.7

 

 

 

2.1

 

 

 

2.8

 

Loss on debt retirement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.4

 

Total other expenses, net

 

 

0.6

 

 

 

0.7

 

 

 

0.7

 

 

 

2.1

 

 

 

5.2

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

 

6.7

 

 

 

12.2

 

 

 

11.0

 

 

 

17.6

 

 

 

27.1

 

Income tax expense

 

 

2.0

 

 

 

3.5

 

 

 

1.6

 

 

 

5.0

 

 

 

5.4

 

Net income

 

 

4.7

 

 

 

8.7

 

 

 

9.4

 

 

 

12.6

 

 

 

21.7

 

 

 

 

 

 

 

 

 

 

 

 

Income per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

 

$

0.39

 

 

$

0.38

 

 

$

0.56

 

 

$

0.88

 

Diluted

 

$

0.21

 

 

$

0.39

 

 

$

0.38

 

 

$

0.55

 

 

$

0.86

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,364,422

 

 

 

22,241,847

 

 

 

24,500,607

 

 

 

22,608,796

 

 

 

24,758,890

 

Diluted

 

 

22,480,448

 

 

 

22,494,453

 

 

 

24,887,275

 

 

 

22,731,259

 

 

 

25,149,415

 

RANGER ENERGY SERVICES, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share amounts)

 

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

 

Cash and cash equivalents

 

$

14.8

 

 

$

15.7

 

Accounts receivable, net

 

 

81.9

 

 

 

85.4

 

Contract assets

 

 

23.7

 

 

 

17.7

 

Inventory

 

 

5.7

 

 

 

6.4

 

Prepaid expenses

 

 

6.0

 

 

 

9.6

 

Assets held for sale

 

 

0.6

 

 

 

0.6

 

Total current assets

 

 

132.7

 

 

 

135.4

 

 

 

 

 

 

Property and equipment, net

 

 

226.9

 

 

 

226.3

 

Intangible assets, net

 

 

5.8

 

 

 

6.3

 

Operating leases, right-of-use assets

 

 

7.7

 

 

 

9.0

 

Other assets

 

 

0.8

 

 

 

1.0

 

Total assets

 

$

373.9

 

 

$

378.0

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

Accounts payable

 

 

29.3

 

 

 

31.3

 

Accrued expenses

 

 

27.6

 

 

 

29.6

 

Other financing liability, current portion

 

 

0.7

 

 

 

0.6

 

Long-term debt, current portion

 

 

 

 

 

0.1

 

Short-term lease liability

 

 

8.2

 

 

 

7.3

 

Other current liabilities

 

 

0.7

 

 

 

0.1

 

Total current liabilities

 

 

66.5

 

 

 

69.0

 

 

 

 

 

 

Long-term lease liability

 

 

13.3

 

 

 

14.9

 

Other financing liability

 

 

10.5

 

 

 

11.0

 

Deferred tax liability

 

 

16.0

 

 

 

11.3

 

Total liabilities

 

$

106.3

 

 

$

106.2

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

Preferred stock, $0.01 per share; 50,000,000 shares authorized; no shares issued and outstanding as of September 30, 2024 and December 31, 2023

 

 

 

 

 

 

Class A Common Stock, $0.01 par value, 100,000,000 shares authorized; 26,122,840 shares issued and 22,245,212 shares outstanding as of September 30, 2024; 25,756,017 shares issued and 23,398,689 shares outstanding as of December 31, 2023

 

 

0.3

 

 

 

0.3

 

Class B Common Stock, $0.01 par value, 100,000,000 shares authorized; no shares issued or outstanding as of September 30, 2024 and December 31, 2023

 

 

 

 

 

 

Less: Class A Common Stock held in treasury at cost; 3,877,628 treasury shares as of September 30, 2024 and 2,357,328 treasury shares as of December 31, 2023

 

 

(38.6

)

 

 

(23.1

)

Retained earnings

 

 

37.5

 

 

 

28.4

 

Additional paid-in capital

 

 

268.4

 

 

 

266.2

 

Total controlling stockholders' equity

 

 

267.6

 

 

 

271.8

 

Total liabilities and stockholders' equity

 

$

373.9

 

 

$

378.0

 

 

RANGER ENERGY SERVICES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(in millions)

 

 

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

Cash Flows from Operating Activities

 

 

 

 

Net income

 

$

12.6

 

 

$

21.7

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

33.3

 

 

 

29.3

 

Equity based compensation

 

 

4.2

 

 

 

3.6

 

Gain on disposal of property and equipment

 

 

(1.7

)

 

 

(1.6

)

Impairment of fixed assets

 

 

 

 

 

0.4

 

Deferred income tax expense

 

 

4.7

 

 

 

4.8

 

Loss on debt retirement

 

 

 

 

 

2.4

 

Other expense, net

 

 

0.6

 

 

 

2.3

 

Changes in operating assets and liabilities

 

 

 

 

Accounts receivable

 

 

3.3

 

 

 

0.1

 

Contract assets

 

 

(6.0

)

 

 

(8.7

)

Inventory

 

 

0.6

 

 

 

(2.0

)

Prepaid expenses and other current assets

 

 

3.6

 

 

 

0.6

 

Other assets

 

 

1.4

 

 

 

1.2

 

Accounts payable

 

 

(1.5

)

 

 

8.3

 

Accrued expenses

 

 

(2.5

)

 

 

(7.7

)

Other current liabilities

 

 

(1.9

)

 

 

 

Other long-term liabilities

 

 

1.1

 

 

 

(1.6

)

Net cash provided by operating activities

 

 

51.8

 

 

 

53.1

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

Purchase of property and equipment

 

 

(28.7

)

 

 

(27.9

)

Proceeds from disposal of property and equipment

 

 

1.5

 

 

 

4.9

 

Net cash used in investing activities

 

 

(27.2

)

 

 

(23.0

)

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

Borrowings under Revolving Credit Facility

 

 

25.3

 

 

 

315.6

 

Principal payments on Revolving Credit Facility

 

 

(25.3

)

 

 

(308.1

)

Principal payments on Eclipse M&E Term Loan Facility

 

 

 

 

 

(10.4

)

Principal payments on Secured Promissory Note

 

 

 

 

 

(6.2

)

Principal payments on financing lease obligations

 

 

(4.2

)

 

 

(4.0

)

Principal payments on other financing liabilities

 

 

(0.5

)

 

 

(0.7

)

Dividends paid to Class A Common Stock shareholders

 

 

(3.4

)

 

 

(1.2

)

Shares withheld for equity compensation

 

 

(1.8

)

 

 

(1.0

)

Payments on Other Installment Purchases

 

 

(0.1

)

 

 

(0.3

)

Repurchase of Class A Common Stock

 

 

(15.5

)

 

 

(8.6

)

Deferred financing costs on Wells Fargo

 

 

 

 

 

(0.7

)

Net cash used in financing activities

 

 

(25.5

)

 

 

(25.6

)

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

 

(0.9

)

 

 

4.5

 

Cash and cash equivalents, Beginning of Period

 

 

15.7

 

 

 

3.7

 

Cash and cash equivalents, End of Period

 

$

14.8

 

 

$

8.2

 

 

 

 

 

 

Supplemental Cash Flow Information

 

 

 

 

Interest paid

 

$

1.4

 

 

$

1.0

 

Supplemental Disclosure of Non-cash Investing and Financing Activities

 

 

 

 

Capital expenditures included in accounts payable and accrued liabilities

 

$

0.6

 

 

$

 

Additions to fixed assets through installment purchases and financing leases

 

$

(5.0

)

 

$

(5.6

)

Additions to fixed assets through asset trades

 

$

(4.4

)

 

$

(1.1

)

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 U.S. GAAP financial measures. Detailed reconciliations of these Non-GAAP financial measures to comparable U.S. GAAP financial measures have been included below and are available in the Investor Relations sections of our website at www.rangerenergy.com. Our presentation of Adjusted EBITDA and Free Cash Flow should not be construed as an indication that our results will be unaffected by the items excluded from the reconciliations. Our computations of these Non-GAAP financial measures may not be identical to other similarly titled measures of other companies.

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 Specification Rigs

 

Wireline Services

 

Processing Solutions and Ancillary Services

 

Other

 

Total

 

 

Three Months Ended September 30, 2024

Net income (loss)

 

$

13.8

 

 

$

 

$

6.6

 

$

(11.7

)

 

$

8.7

 

Interest expense, net

 

 

 

 

 

 

 

 

 

0.7

 

 

 

0.7

 

Income tax expense

 

 

 

 

 

 

 

 

 

3.5

 

 

 

3.5

 

Depreciation and amortization

 

 

5.7

 

 

 

2.7

 

 

2.2

 

 

0.5

 

 

 

11.1

 

EBITDA

 

 

19.5

 

 

 

2.7

 

 

8.8

 

 

(7.0

)

 

 

24.0

 

Equity based compensation

 

 

 

 

 

 

 

 

 

1.4

 

 

 

1.4

 

Gain on disposal of property and equipment

 

 

 

 

 

 

 

 

 

(0.1

)

 

 

(0.1

)

Legal fees and settlements

 

 

(0.3

)

 

 

 

 

 

 

0.1

 

 

 

(0.2

)

Adjusted EBITDA

 

$

19.2

 

 

$

2.7

 

$

8.8

 

$

(5.6

)

 

$

25.1

 

 

 

High Specification Rigs

 

Wireline Services

 

Processing Solutions and Ancillary Services

 

Other

 

Total

 

 

Three Months Ended June 30, 2024

Net income (loss)

 

$

11.8

 

$

(2.6

)

 

$

5.2

 

$

(9.7

)

 

$

4.7

 

Interest expense, net

 

 

 

 

 

 

 

 

 

0.6

 

 

 

0.6

 

Income tax benefit

 

 

 

 

 

 

 

 

 

2.0

 

 

 

2.0

 

Depreciation and amortization

 

 

5.6

 

 

2.9

 

 

 

2.0

 

 

0.5

 

 

 

11.0

 

EBITDA

 

 

17.4

 

 

0.3

 

 

 

7.2

 

 

(6.6

)

 

 

18.3

 

Equity based compensation

 

 

 

 

 

 

 

 

 

1.4

 

 

 

1.4

 

Gain on disposal of property and equipment

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

(0.3

)

Severance and reorganization costs

 

 

0.7

 

 

0.1

 

 

 

0.1

 

 

0.1

 

 

 

1.0

 

Acquisition related costs

 

 

0.1

 

 

 

 

 

 

 

 

 

 

0.1

 

Legal fees and settlements

 

 

0.5

 

 

 

 

 

 

 

 

 

 

0.5

 

Adjusted EBITDA

 

$

18.7

 

$

0.4

 

 

$

7.3

 

$

(5.4

)

 

$

21.0

 

 

 

High Specification Rigs

 

Wireline Services

 

Processing Solutions and Ancillary Services

 

Other

 

Total

 

 

Three Months Ended September 30, 2023

Net income (loss)

 

$

10.6

 

$

4.3

 

$

4.5

 

$

(10.0

)

 

$

9.4

 

Interest expense, net

 

 

 

 

 

 

 

 

0.7

 

 

 

0.7

 

Income tax expense

 

 

 

 

 

 

 

 

1.6

 

 

 

1.6

 

Depreciation and amortization

 

 

5.1

 

 

3.1

 

 

2.0

 

 

0.4

 

 

 

10.6

 

EBITDA

 

 

15.7

 

 

7.4

 

 

6.5

 

 

(7.3

)

 

 

22.3

 

Impairment of fixed assets

 

 

 

 

 

 

 

 

0.4

 

 

 

0.4

 

Equity based compensation

 

 

 

 

 

 

 

 

1.3

 

 

 

1.3

 

Gain on disposal of property and equipment

 

 

 

 

 

 

 

 

(0.1

)

 

 

(0.1

)

Acquisition related costs

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

Adjusted EBITDA

 

$

15.7

 

$

7.4

 

$

6.5

 

$

(5.6

)

 

$

24.0

 

 

 

 

High Specification Rigs

 

Wireline Services

 

Processing Solutions and Ancillary Services

 

Other

 

Total

 

 

Nine Months Ended September 30, 2024

Net income (loss)

 

$

33.4

 

$

(5.5

)

 

$

12.3

 

$

(27.6

)

 

$

12.6

 

Interest expense, net

 

 

 

 

 

 

 

 

 

2.1

 

 

 

2.1

 

Income tax expense

 

 

 

 

 

 

 

 

 

5.0

 

 

 

5.0

 

Depreciation and amortization

 

 

16.9

 

 

8.7

 

 

 

6.2

 

 

1.5

 

 

 

33.3

 

EBITDA

 

 

50.3

 

 

3.2

 

 

 

18.5

 

 

(19.0

)

 

 

53.0

 

Equity based compensation

 

 

 

 

 

 

 

 

 

4.0

 

 

 

4.0

 

Gain on disposal of property and equipment

 

 

 

 

 

 

 

 

 

(1.7

)

 

 

(1.7

)

Severance and reorganization costs

 

 

0.7

 

 

0.1

 

 

 

0.1

 

 

0.1

 

 

 

1.0

 

Acquisition related costs

 

 

0.3

 

 

 

 

 

 

 

0.1

 

 

 

0.4

 

Legal fees and settlements

 

 

0.2

 

 

 

 

 

 

 

0.1

 

 

 

0.3

 

Adjusted EBITDA

 

$

51.5

 

$

3.3

 

 

$

18.6

 

$

(16.4

)

 

$

57.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High Specification Rigs

 

Wireline Services

 

Processing Solutions and Ancillary Services

 

Other

 

Total

 

 

Nine Months Ended September 30, 2023

Net income (loss)

 

$

34.0

 

$

8.9

 

$

12.1

 

$

(33.3

)

 

$

21.7

 

Interest expense, net

 

 

 

 

 

 

 

 

2.8

 

 

 

2.8

 

Income tax expense

 

 

 

 

 

 

 

 

5.4

 

 

 

5.4

 

Depreciation and amortization

 

 

14.7

 

 

8.4

 

 

5.0

 

 

1.2

 

 

 

29.3

 

EBITDA

 

 

48.7

 

 

17.3

 

 

17.1

 

 

(23.9

)

 

 

59.2

 

Impairment of fixed assets

 

 

 

 

 

 

 

 

0.4

 

 

 

0.4

 

Equity based compensation

 

 

 

 

 

 

 

 

3.6

 

 

 

3.6

 

Loss on retirement of debt

 

 

 

 

 

 

 

 

2.4

 

 

 

2.4

 

Gain on disposal of property and equipment

 

 

 

 

 

 

 

 

(1.6

)

 

 

(1.6

)

Severance and reorganization costs

 

 

 

 

 

 

 

 

0.4

 

 

 

0.4

 

Acquisition related costs

 

 

 

 

 

 

 

 

1.6

 

 

 

1.6

 

Adjusted EBITDA

 

$

48.7

 

$

17.3

 

$

17.1

 

$

(17.1

)

 

$

66.0

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Nine Months Ended

 

 

September 30,
2024

 

September 30,
2023

 

September 30,
2024

 

September 30,
2023

Net cash provided by operating activities

 

$

17.7

 

 

$

12.2

 

 

$

51.8

 

 

$

53.1

 

Purchase of property and equipment

 

 

(6.9

)

 

 

(15.0

)

 

 

(28.7

)

 

 

(27.9

)

Free Cash Flow

 

$

10.8

 

 

$

(2.8

)

 

$

23.1

 

 

$

25.2

 

 

 

 

 

 

 

 

 

 

Add back:

Purchase of property and equipment related to asset acquisition

 

 

 

 

 

7.3

 

 

 

 

 

 

7.3

 

Modified Free cash Flow

 

$

10.8

 

 

$

4.5

 

 

$

23.1

 

 

$

32.5

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

25.1

 

 

$

24.0

 

 

$

57.0

 

 

$

66.0

 

Free cash Flow conversion - Free cash flow as a percentage of EBITDA

 

 

43

%

 

 

(12

)%

 

 

41

%

 

 

38

%

Modified Free cash Flow conversion -

Modified Free cash Flow as a percentage of EBITDA

 

 

43

%

 

 

19

%

 

 

41

%

 

 

49

%

 

Melissa Cougle

Chief Financial Officer

(713) 935-8900

InvestorRelations@rangerenergy.com

Source: Ranger Energy Services, Inc.

FAQ

What was Ranger Energy's (RNGR) revenue in Q3 2024?

Ranger Energy Services reported revenue of $153.0 million in Q3 2024, representing an 11% increase from Q2 2024 but a 7% decrease from Q3 2023.

How much did Ranger Energy (RNGR) earn per share in Q3 2024?

Ranger Energy Services earned $0.39 per fully diluted share in Q3 2024, up from $0.21 in Q2 2024.

What was RNGR's Free Cash Flow in Q3 2024?

Ranger Energy Services generated Free Cash Flow of $10.8 million, or $0.49 per share, in Q3 2024.

How many shares did RNGR repurchase in Q3 2024?

Ranger Energy Services repurchased 155,200 shares during Q3 2024, with year-to-date repurchases totaling 1,520,300 shares worth $15.5 million.

Ranger Energy Services, Inc.

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