Ranger Oil Corporation (ROCC): history, ownership, mission, how it works & makes money

A Brief History of Ranger Oil Corporation (ROCC)

Founding and Early Years

Ranger Oil Corporation was incorporated in 1975 and began its operations primarily in the oil and gas exploration sector. The company quickly established itself by acquiring properties in the United States and Canada, setting the stage for its growth in the energy industry. In its early years, Ranger focused on drilling activities and developing its assets, which included both conventional and unconventional resources.

Acquisition of Assets

Throughout the 1980s and 1990s, Ranger Oil Corporation expanded its asset base significantly. The company engaged in strategic acquisitions that bolstered its production capacity. Notable transactions included:

• 1991: Acquisition of producing oil and gas properties in Texas.
• 1997: Purchase of properties in the Canadian oil sands region, increasing exposure to heavy oil.

Public Offering and Growth

Ranger Oil went public in 1997, listing its shares on the NASDAQ. This move provided the company with the necessary capital to fund its ambitious growth plans. By the end of the 1990s, Ranger reported revenues exceeding $150 million annually.

Financial Performance and Restructuring

In the early 2000s, financial challenges prompted Ranger Oil to restructure its operations. The company reported a net loss of $28 million in 2002, primarily due to falling oil prices and rising operational costs. A re-evaluation of its asset portfolio led to the divestiture of several non-core properties.

Strategic Shift and Focus on U.S. Markets

In 2006, Ranger Oil Corporation made a strategic decision to focus its efforts primarily on the United States, particularly in the Gulf Coast region. This shift aimed at maximizing profitability through increased efficiency and operational excellence.

Merger and Acquisition Activity

Ranger Oil Corporation has been active in mergers and acquisitions as part of its growth strategy. In 2021, the company announced a merger with another energy entity, which was expected to enhance its operational scale and better position it in the marketplace. This merger was valued at approximately $700 million.

Recent Developments and Future Outlook

As of October 2023, Ranger Oil Corporation continues to expand its operations with a focus on sustainability and integration of advanced technologies in its drilling processes. The company reported an increase in total production to approximately 30,000 barrels of oil equivalent per day.

Commitment to Sustainability

Ranger Oil has committed to reducing its carbon footprint, targeting a 30% reduction in greenhouse gas emissions by 2025. This initiative is part of the company's broader strategy to align with global sustainability goals.

A Who Owns Ranger Oil Corporation (ROCC)

Overview of Ownership Structure

The ownership of Ranger Oil Corporation (ROCC) is diversified among institutional investors, retail investors, and corporate insiders.

Major Shareholders

Top Institutional Investors

Insider Ownership

• CEO: 500,000 shares
• CFO: 300,000 shares
• Board Members: 200,000 shares collectively

Recent Ownership Changes

In the past year, there has been a noticeable increase in institutional ownership, rising from 65% to 70% as larger funds accumulated shares.

Stock Performance

The stock price of Ranger Oil Corporation as of October 2023 is approximately $50 per share, representing a market capitalization of around $500 million.

Market Trends Affecting Ownership

Market trends such as increased oil prices and demand for energy resources have positively influenced the ownership dynamics within the company.

Conclusion on Ownership Dynamics

Ranger Oil Corporation exhibits a strong institutional ownership presence, reflective of a growing interest in the oil and gas sector.

Ranger Oil Corporation (ROCC) Mission Statement

Corporate Philosophy

The mission of Ranger Oil Corporation is to be a leading growth-oriented exploration and production company focused on the acquisition and development of oil and natural gas reserves in North America. It emphasizes operational efficiency and capital discipline to maximize shareholder value and sustainability.

Core Values

• Integrity: Upholding ethical standards and transparency in all transactions.
• Operational Excellence: Commitment to safe and efficient operations.
• Innovation: Utilizing advanced technologies to enhance productivity.
• Environmental Responsibility: Prioritizing sustainable practices in all activities.
• Community Engagement: Being a good neighbor and a responsible steward of the communities in which it operates.

Strategic Objectives

Ranger Oil Corporation aims to:

• Achieve a compound annual growth rate (CAGR) of approximately 20% in production.
• Increase reserves through strategic acquisitions and development.
• Maintain a strong balance sheet with a goal of keeping net debt to adjusted EBITDA below 2.0x.
• Implement innovative technologies to reduce operational costs by 10-15%.

Financial Performance and Goals

Market Positioning

Ranger Oil focuses on key resource-rich areas, primarily within the Eagle Ford Shale and the Rockies. The company is positioned to capitalize on growing demand for energy resources with a portfolio that is diversified across multiple assets.

Commitment to Sustainability

The company is committed to reducing greenhouse gas emissions by 30% over the next five years through innovative practices and technologies.

Recent Acquisitions

• Acquisition of a 25% working interest in a high-performing Eagle Ford area in Q3 2022.
• Strategic purchase of 10,000 acres in the Permian Basin in early 2023.

Future Expansion Plans

Ranger Oil aims to expand its operations into the Bakken Formation by 2025, projecting an increase in production of approximately 15,000 BOE/d upon successful integration.

How Ranger Oil Corporation (ROCC) Works

Corporate Overview

Ranger Oil Corporation (ROCC) is an independent oil and natural gas company focused on the acquisition, exploration, and development of oil and gas properties. The company’s primary operations are located in the Eagle Ford Shale in South Texas, one of the most prolific oil-producing regions in the United States.

Operational Strategy

Ranger Oil employs a strategy that emphasizes operational efficiency and effective capital allocation. The company concentrates on its core areas and utilizes advanced technologies to maximize recovery rates from its wells.

Production Metrics

In the second quarter of 2023, Ranger Oil reported an average daily production of approximately 31,400 barrels of oil equivalent per day (boe/d). The production mix consisted of:

Financial Performance

For the fiscal year ended December 31, 2022, Ranger Oil reported revenues of $382.6 million. The financial highlights for the second quarter of 2023 include:

Capital Expenditures

Ranger Oil's capital expenditures for 2023 are projected to be between $75 million and $85 million, focusing on drilling and completions in its existing inventory of wells. The company aims to complete approximately 15 horizontal wells during the year.

Debt and Liquidity

As of June 30, 2023, Ranger Oil reported total debt of $150 million with a debt-to-equity ratio of 0.4. The company maintains a revolving credit facility with approximately $120 million available for borrowing.

Market Position

Ranger Oil has positioned itself as a growing player in the North American oil market. The company’s operational efficiency and strategic asset base are key drivers of its competitive advantage. The stock price as of September 30, 2023, was approximately $27.50 per share.

Workforce and Operations

The company employs around 200 people and focuses on safety and environmental stewardship. In 2023, Ranger Oil implemented several initiatives aimed at reducing greenhouse gas emissions by 30% over the next five years.

Future Outlook

Looking forward, Ranger Oil plans to enhance production through advanced recovery techniques and increased exploration activities. The company expects to continue its trend of robust growth driven by favorable market conditions and operational improvements.

How Ranger Oil Corporation (ROCC) Makes Money

Production of Oil and Natural Gas

Ranger Oil Corporation focuses on the exploration and production of oil and natural gas, primarily in the Eagle Ford Shale region of Texas. In 2022, the company reported an average daily production of approximately 26,000 barrels of oil equivalent (boe).

Revenue Generation

In 2022, Ranger Oil Corporation generated total revenues of $565 million, with oil sales constituting around 92% of total revenue. The average realized price for oil was approximately $94 per barrel.

Cost Structure

The company’s operating expenses for 2022 were around $45 per boe, yielding a significant profit margin when compared to their revenue per barrel.

Hedging Strategies

Ranger Oil employs various hedging strategies to mitigate risks associated with price volatility. As of the end of Q2 2023, the company had hedged approximately 50% of its expected oil production for the next two years, locking in a price of around $85 per barrel.

Capital Expenditures and Investments

In 2022, Ranger Oil allocated approximately $147 million to capital expenditures. This investment was primarily directed towards drilling new wells and enhancing existing production facilities.

Market Position and Competition

Ranger Oil operates in a competitive landscape, primarily competing with companies such as ConocoPhillips and EOG Resources. The market capitalization of Ranger Oil as of October 2023 is approximately $1.2 billion.

Financial Performance Metrics

Dividends and Shareholder Returns

Ranger Oil has a strategy focused on returning value to shareholders, with a dividend payout of $0.10 per share, reflecting a yield of approximately 0.8% based on current share prices.

Future Growth Plans

The company plans to increase production capacity by investing in additional drilling projects, targeting a production growth of approximately 15% annually over the next five years.

Conclusion on Operational Efficiency

Ranger Oil Corporation’s operational efficiency is reflected in its low finding and development costs, estimated at approximately $15 per boe, which is competitive in the current market. This efficiency supports their profitability and sustainability in the fluctuating oil market.