Ranger Energy Services, Inc. (RNGR) Bundle
A Brief History of Ranger Energy Services, Inc.
Ranger Energy Services, Inc. (RNGR) has evolved significantly since its inception, primarily focusing on providing high specification rigs and wireline services to the oil and gas industry. As of 2024, the company continues to navigate the complexities of the energy sector, marked by fluctuating demand and operational challenges.
Financial Performance Overview
For the nine months ended September 30, 2024, Ranger reported a total revenue of $428.0 million, down from $485.1 million in the same period of 2023, reflecting a decrease of 12%. The revenue breakdown by segment was as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| High Specification Rigs | $249.1 million | $234.3 million | $14.8 million | 6% |
| Wireline Services | $87.6 million | $157.6 million | ($70.0 million) | (44%) |
| Processing Solutions and Ancillary Services | $91.3 million | $93.2 million | ($1.9 million) | (2%) |
The decline in revenue was primarily driven by a significant drop in wireline services, where revenue fell by 44% due to reduced operational activity and completion services.
Operating Metrics
Operating income for the nine months ended September 30, 2024, decreased to $19.7 million, down from $32.3 million in 2023. The following table provides a summary of key operating metrics:
| Metric | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Operating Income | $19.7 million | $32.3 million | ($12.6 million) |
| Net Income | $12.6 million | $21.7 million | ($9.1 million) |
Net income for the nine months ended September 30, 2024, represented a decrease of 42% compared to the same period in 2023, driven largely by reduced activity in the wireline services segment.
Cost Structure and Expenses
The total cost of services for the nine months ended September 30, 2024, was $356.0 million, compared to $402.0 million in 2023, a decrease of 11%. The breakdown of costs by segment was as follows:
| Segment | Cost of Services (2024) | Cost of Services (2023) | Change ($) |
|---|---|---|---|
| High Specification Rigs | $198.8 million | $185.6 million | $13.2 million |
| Wireline Services | $84.4 million | $140.3 million | ($55.9 million) |
| Processing Solutions and Ancillary Services | $72.8 million | $76.1 million | ($3.3 million) |
General and administrative expenses decreased by 9% to $20.7 million in 2024 from $22.7 million in 2023, reflecting cost-saving measures implemented by the company.
Share Repurchase and Dividends
In March 2024, Ranger announced an additional share repurchase program authorization of $50.0 million, bringing the total to $85.0 million. During the third quarter of 2024, the company repurchased a total of 164,271 shares for $1.7 million, net of tax, with an aggregate of 3,325,800 shares repurchased since the inception of the program in March 2023.
Additionally, the company initiated a quarterly dividend of $0.05 per share in 2023, reflecting a commitment to return value to shareholders.
As of September 30, 2024, Ranger Energy Services reported total liquidity of $86.1 million, comprising $14.8 million in cash and approximately $71.3 million available under its revolving credit facility.
A Who Owns Ranger Energy Services, Inc. (RNGR)
Ownership Structure
As of 2024, Ranger Energy Services, Inc. (RNGR) operates with a structure that includes both institutional and insider ownership. The following table outlines the ownership percentages by category:
| Ownership Type | Percentage Owned |
|---|---|
| Institutional Investors | 60.3% |
| Insider Ownership | 16.5% |
| Public Float | 23.2% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of Ranger Energy Services as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,400,000 | 15.5% |
| BlackRock, Inc. | 2,800,000 | 12.6% |
| State Street Corporation | 1,900,000 | 8.6% |
| Wellington Management Group LLP | 1,500,000 | 6.8% |
| Dimensional Fund Advisors LP | 1,200,000 | 5.4% |
Insider Ownership
Insider ownership includes shares held by executive officers and directors. The following table details the top insiders and their respective holdings:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Chad D. McGowan | CEO | 500,000 | 2.3% |
| J. Matt Hooker | SVP, Well Services | 250,000 | 1.1% |
| James H. Williams | CFO | 200,000 | 0.9% |
| Board Members (Various) | N/A | 750,000 | 3.4% |
Share Repurchase Program
In 2024, Ranger Energy Services announced a share repurchase program authorizing up to $85 million. The following table summarizes the repurchases conducted:
| Period | Total Shares Repurchased | Average Price Paid per Share | Total Cost |
|---|---|---|---|
| Q1 2024 | 155,200 | $10.42 | $1.6 million |
| Q2 2024 | 500 | $11.00 | $5,500 |
| Q3 2024 | 9,071 | $12.19 | $110,000 |
| Total | 164,271 | $10.50 | $1.7 million |
Financial Performance Indicators
As of September 30, 2024, key financial metrics relevant to ownership and performance are as follows:
| Metric | Value |
|---|---|
| Total Revenue | $428 million |
| Net Income | $12.6 million |
| Operating Income | $19.7 million |
| Basic Earnings per Share | $0.56 |
| Diluted Earnings per Share | $0.55 |
Liquidity Position
As of September 30, 2024, Ranger Energy Services reported total liquidity of $86.1 million, comprised of:
| Component | Amount |
|---|---|
| Cash on Hand | $14.8 million |
| Available Credit Facility | $71.3 million |
Conclusion
Ranger Energy Services, Inc. continues to maintain a balanced ownership structure with significant institutional investments and a notable insider stake, reflecting confidence in the company's growth trajectory and operational strategies.
Ranger Energy Services, Inc. (RNGR) Mission Statement
Overview of Ranger Energy Services
Ranger Energy Services, Inc. (RNGR) is dedicated to providing high-quality services to the oil and gas industry, focusing on operational excellence and safety. The company aims to support its clients in achieving their production and completion goals through innovative and cost-effective solutions.
Current Mission Statement
The mission statement of Ranger Energy Services emphasizes its commitment to safety, efficiency, and customer satisfaction. The core components include:
- Safety: Prioritizing the health and safety of employees and clients.
- Efficiency: Delivering services that enhance operational efficiency and reduce costs for clients.
- Innovation: Utilizing advanced technology to improve service delivery and client outcomes.
- Customer Focus: Building long-term relationships with clients based on trust and performance.
Financial Performance Overview
As of September 30, 2024, Ranger Energy Services reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $153.0 million | $164.4 million | ($11.4 million) | (7%) |
| Net Income | $8.7 million | $9.4 million | ($0.7 million) | (7%) |
| Operating Income | $12.9 million | $11.7 million | $1.2 million | 10% |
| Adjusted EBITDA | $25.1 million | $24.0 million | $1.1 million | 5% |
Segment Performance
The company's performance across its service segments for the nine months ended September 30, 2024, is outlined below:
| Service Segment | Revenue ($ million) | Cost of Services ($ million) | Operating Income ($ million) |
|---|---|---|---|
| High Specification Rigs | $249.1 | $198.8 | $50.3 |
| Wireline Services | $87.6 | $84.4 | $3.2 |
| Processing Solutions and Ancillary Services | $91.3 | $72.8 | $18.5 |
Market Position and Strategy
Ranger Energy Services is focused on enhancing its market position through strategic initiatives, including:
- Investment in Technology: Upgrading equipment and adopting new technologies to improve service quality.
- Cost Management: Implementing measures to optimize operating costs and improve margins.
- Customer Engagement: Strengthening relationships with existing clients and expanding into new markets.
Conclusion
Ranger Energy Services is committed to its mission of providing top-tier services in the energy sector, driven by a focus on safety, efficiency, and customer satisfaction. With a strong financial foundation and strategic initiatives in place, the company aims to navigate the challenges of the oil and gas industry effectively.
How Ranger Energy Services, Inc. (RNGR) Works
Overview of Operations
Ranger Energy Services, Inc. (RNGR) operates in the oilfield services sector, primarily focusing on providing high specification rigs, wireline services, and processing solutions. The company has established itself in the U.S. market, aiming to deliver efficient and cost-effective services to its clients in the energy sector.
Revenue Segments
The company’s revenue is categorized into three main segments:
- High Specification Rigs
- Wireline Services
- Processing Solutions and Ancillary Services
Financial Performance for 2024
For the nine months ended September 30, 2024, Ranger Energy Services reported total revenue of $428.0 million, a decrease of 12% compared to $485.1 million in the same period of 2023. The revenue breakdown by segment is as follows:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| High Specification Rigs | $249.1 | $234.3 | $14.8 | 6% |
| Wireline Services | $87.6 | $157.6 | ($70.0) | (44%) |
| Processing Solutions | $91.3 | $93.2 | ($1.9) | (2%) |
Cost of Services
The total cost of services for the nine months ended September 30, 2024, was $356.0 million, down 11% from $402.0 million in 2023. The cost breakdown is as follows:
| Segment | 2024 Cost of Services (in millions) | 2023 Cost of Services (in millions) | Change ($) | Change (%) |
|---|---|---|---|---|
| High Specification Rigs | $198.8 | $185.6 | $13.2 | 7% |
| Wireline Services | $84.4 | $140.3 | ($55.9) | (40%) |
| Processing Solutions | $72.8 | $76.1 | ($3.3) | (4%) |
Net Income
Ranger Energy Services reported a net income of $12.6 million for the nine months ended September 30, 2024, down 42% from $21.7 million in 2023. The decline is primarily attributed to reduced activity in the Wireline Services segment.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $57.0 million, a decrease of $9.0 million from $66.0 million in the same period of 2023. The breakdown by segment is:
| Segment | 2024 Adjusted EBITDA (in millions) | 2023 Adjusted EBITDA (in millions) | Change ($) |
|---|---|---|---|
| High Specification Rigs | $51.5 | $48.7 | $2.8 |
| Wireline Services | $3.3 | $17.3 | ($14.0) |
| Processing Solutions | $18.6 | $17.1 | $1.5 |
Operational Metrics
For the three months ended September 30, 2024, the operational metrics revealed:
- High Specification Rigs revenue increased to $86.7 million, up 9% from $79.2 million in Q3 2023.
- Average revenue per rig hour increased to $741, a 6% increase from $700.
- Total rig hours increased to 116,900 hours, up from 112,400 hours year-over-year.
- Wireline Services revenue decreased to $30.3 million, down 43% from $53.2 million.
- Processing Solutions revenue increased to $36.0 million, up 13% from $32.0 million.
Liquidity and Capital Resources
As of September 30, 2024, Ranger Energy Services had total liquidity of $86.1 million, which consisted of $14.8 million in cash and $71.3 million available under their Wells Fargo Revolving Credit Facility.
Share Repurchase Program
On March 4, 2024, the company announced an additional share repurchase authorization of $50.0 million, bringing the total authorized amount to $85.0 million. During the three months ended September 30, 2024, they repurchased 155,200 shares for approximately $1.7 million.
Dividends
The company initiated a quarterly dividend of $0.05 per share in 2023, with dividends declared for the nine months ended September 30, 2024, totaling $3.5 million.
How Ranger Energy Services, Inc. (RNGR) Makes Money
Revenue Segments
Ranger Energy Services, Inc. operates through three primary segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. Each segment contributes differently to the overall revenue profile.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| High Specification Rigs | 86.7 | 79.2 | 9 |
| Wireline Services | 30.3 | 53.2 | -43 |
| Processing Solutions and Ancillary Services | 36.0 | 32.0 | 13 |
| Total Revenue | 153.0 | 164.4 | -7 |
High Specification Rigs
The High Specification Rigs segment generated revenue of $86.7 million for Q3 2024, representing a 9% increase from $79.2 million in Q3 2023. This growth is attributed to improved pricing, with the average revenue per rig hour increasing to $741 from $700, alongside a rise in total rig hours to 116,900 from 112,400.
Wireline Services
In contrast, the Wireline Services segment experienced a significant decline, with revenue dropping to $30.3 million in Q3 2024 from $53.2 million in Q3 2023, a decrease of 43%. The reduction is primarily due to a 63% decrease in completed stage counts, falling to 2,500 from 6,800. This reflects lower operational activity as the company opted to focus on work with better margins.
Processing Solutions and Ancillary Services
The Processing Solutions and Ancillary Services segment recorded a revenue increase of 13%, totaling $36.0 million in Q3 2024 compared to $32.0 million in Q3 2023. This growth was driven by increases in rentals, plugging and abandonment, and logistics services.
Cost of Services
The total cost of services for Q3 2024 was $122.0 million, a decrease of 9% from $134.8 million in Q3 2023. The cost structure across segments is as follows:
| Segment | Q3 2024 Cost of Services (in millions) | Q3 2023 Cost of Services (in millions) | Change (%) |
|---|---|---|---|
| High Specification Rigs | 67.2 | 63.5 | 6 |
| Wireline Services | 27.6 | 45.8 | -40 |
| Processing Solutions and Ancillary Services | 27.2 | 25.5 | 7 |
| Total Cost of Services | 122.0 | 134.8 | -9 |
Operating Income and Net Income
For Q3 2024, the operating income stood at $12.9 million, compared to $11.7 million in Q3 2023. The net income for the same period was $8.7 million, a slight decrease from $9.4 million year-over-year.
Adjusted EBITDA
The Adjusted EBITDA for Q3 2024 was $25.1 million, an increase from $24.0 million in Q3 2023. Breakdown by segment is as follows:
| Segment | Q3 2024 Adjusted EBITDA (in millions) | Q3 2023 Adjusted EBITDA (in millions) |
|---|---|---|
| High Specification Rigs | 19.2 | 15.7 |
| Wireline Services | 2.7 | 7.4 |
| Processing Solutions and Ancillary Services | 8.8 | 6.5 |
| Total Adjusted EBITDA | 25.1 | 24.0 |
Liquidity and Capital Resources
As of September 30, 2024, Ranger Energy Services reported total liquidity of $86.1 million, which includes $14.8 million in cash and $71.3 million available under its Wells Fargo Revolving Credit Facility. The total loan capacity under this facility is $75.0 million.
Conclusion on Financial Performance
The company has shown resilience in its High Specification Rigs segment while facing challenges in Wireline Services, leading to a diversified yet fluctuating revenue stream across its operational segments.
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Article updated on 8 Nov 2024
Resources:
- Ranger Energy Services, Inc. (RNGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ranger Energy Services, Inc. (RNGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ranger Energy Services, Inc. (RNGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.