Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Investor Presentation (September 2023)
29 slides from Ranger Energy Services's investor presentation, September 2023
Slide 1: Ranger Energy Services
Ranger Energy Services Different with Ranger Investor Presentation September 2023
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES Forward-Looking Statements: The information in this presentation includes “forward-looking statements.” All statements, other than statements of historical fact included in this presentation, regarding our strategy, our expected results of operations, cash flows, future operati
Slide 3: Ranger at a Glance
Ranger at a Glance YOY Projected Adj. EBITDA Growth 2023E Revenue by Segment Investment Thesis Ranger is a production focused service +23% company generating sustainable, through cycle cash flows. Ranger’s completion Ancillary YOY Projected Revenue Growth Services exposure allows for additional earn
Slide 4: Investment Highlights & Key Takeaways
Investment Highlights & Key Takeaways Ranger has grown significantly in the past 24 months and demonstrates compelling 1 investment fundamentals with attractive free cash flow conversion and ROIC. A differentiated focus on Production services leads to a consistently growing addressable 2 market that
Slide 5: Ranger's Growth & FCF Conversion Drives ROIC
Ranger’s Growth & FCF Conversion Drives ROIC TTM Return on Invested Capital(1) 12% 12% 9% Enabling capital returns and 5% growth framework and annual ROIC of >10% 3Q22 4Q22 1Q23 2Q23 Free Cash Flow Conversion & Adjusted EBITDA(2) Providing high EBITDA conversion ($MM) 97% $35.0 100% to Free Cash Flo
Slide 6: Well Cycle Exposure is Unique
Well Cycle Exposure is Unique Ranger’s Production market focus area lends itself to a consistently increasing addressable market providing for increased resiliency and reduced volatility through cycle. Service Market Growth Index by Cycle 87% 69% Well Production Spending 59% Well Production Spending
Slide 7: Ever Increasing Addressable Market
Ever Increasing Addressable Market Oil production decline curves spur new drilling activity creating a consistently increasing addressable market with service intensity also increasing due to new and improved extractive technologies that can be applied through workover services. U.S. PRODUCTION DECL
Slide 8: Ranger's Primary Service Focus is Production
Ranger’s Primary Service Focus is Production Secondary exposure to Completion market provides upside to commodity cyclicality and decommission exposure provides opportunity to pursue fast growing market. Drilling Completion Production Decommissioning Ranger Revenue None 30-40% 50-60% <10% Contributi
Slide 9: Service Lines Offer Different Advantages
Service Lines Offer Different Advantages High Spec Rigs Wireline Ancillary Services Strength of Segment Strength of Segment Strength of Segment ✓ Anchor business with largest ✓ Significant market share in North ✓ Certain service lines have newer market share in US onshore region across Bakken and Po
Slide 10: High Spec Rigs Significant Market Share
XXX High Specs Rigs Significant Market Share HSR Ranger has the highest rig count in the industry with approximately 180 marketable and active rigs that have worked over the past year in a space that still has room for further consolidation. Well Servicing Rig Market Operational Rig Count for Large
Slide 11: Reputation for Service Quality
Reputation for Reputation for Service Service Quality Quality HSR Revenue by Customer Type 2023 Awards / Recognition with Major Operators 365 Day Incident Free Recognition Rig of the Month Awards Safety Council Representation Recognition Stop Work Authority Recognition <40% Small & Midsize >
Slide 12: Wireline Market Strength & Opportunity
XXX Wireline Market Strength & Opportunity WL US Wireline market remains fragmented in general; however, the Northern Region affords Ranger an anchor market position and the Production Service market is an attractive growth area. Wireline US Onshore Market ~$3.5 Billion Wireline Northern Region Mark
Slide 13: Geographical Footprint
Geographical Footprint Ranger has significant market presence throughout the central United States producing basins and believes best returns come from ensuring in basin scale to minimize administrative costs and maximize operating leverage. Geography Focus In Action ➢ Post-2021 Acquisitions 50 Loca
Slide 14: Differentiated Growth Potential
Differentiated Growth Potential Ranger has experienced a 60%+ compounded annual growth since 2020 on the back of several successful acquisitions with incremental market share growth over the current year despite rig count drops. Consolidated Company Performance & Rig Count over Time (revenues and EB
Slide 15: Financial Performance versus Peers
XXX Financial Performance versus Peers Ranger has shown stronger relative valuation to its peer group without the volatility brought about by higher drilling and completion exposure. Return on Invested Capital (ROIC) Free Cash Flow Conversion Rate 14% 70% 63% 12% 12% 12% 60% 55% 10% 50% 8% 40% 6% 40
Slide 16: High Spec Rigs Asset Capacity Analysis
XXX High Spec Rigs Asset Capacity Analysis HSR As the gas market recovers and service quality translates into incremental work, Ranger is well positioned to deploy additional rigs and believes incremental EBITDA ranges of 30%-40% are possible as those rigs are brought online Average Hours & Rate per
Slide 17: Wireline Asset Capacity Analysis
XXX Wireline Asset Capacity Analysis WL Ranger’s wireline production focused assets have returned stronger margins than those with completion exposure. With approximately 25 idle assets, including newly acquired pumps, this segment has strong incremental revenue capacity and has historically seen in
Slide 18: Unique Capital Allocation Platform
Unique Capital Industry LeaderAllocation Platform in Returning Capital Capital Returns Capital Returns Commitment Framework Last-Twelve-Month Capital Returned to Shareholders as a Percentage of Free Cash Flow to Equity(1) Company commitment to return at least >25% of Free Cash Flow to 91% investors
Slide 19: Strategic Cash Flow Allocation
XXX Strategic Cash Flow Allocation Debt Repayment Year to Date Cash Flow Summary Executing Within Our Debt Share Framework in 2023 Repayment Repurchases $19.5M $5.9M ➢ Repurchased $5.9 million, or Reserved for 508,700 shares YTD FCF Growth $28M Opportunities ➢ ~$29 million of remaining $2.6M 2023E C
Slide 20: OFS Consolidation Brings Scale & Higher Margins
OFS Consolidation Brings Scale & Higher Margins The past few years has seen an acceleration in consolidation activities across the industry with Ranger benefitting significantly from participating in this consolidation. Alongside this consolidation, the industry has seen greater capital discipline a
Slide 21: Consolidation in Action
Consolidation in Action Ranger has been a leader in consolidating and rationalizing the sector more than doubling the size of the organization during 2021 through three acquisitions that have proven highly accretive with strong returns. 2021 Acquisitions 2023 Growth Philosophy Ranger purchased three
Slide 22: A Different Growing Investment Opportunity
A Different with Growing Investment Opportunity Ranger in the Future On the back of a business model lending itself to high cash free flow conversion, Ranger’s strategy will continue its differentiated path of both organic and inorganic growth as well as meaningful returns to shareholders relying on
Slide 23: The Way
THE WAY
Slide 24: Appendix
ENERGY SERWIGCES APPENDIX
Slide 25: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Three Months Ended June 30, 2023 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services Net income (loss) $ 11.5 $ 2.8 $ 4.2 $ (12.4) $ 6.1 Interest expense, net - - - 0.9 0.9 Income tax expense - - - 2.0 2.0 Dep
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Three Months Ended March 31, 2023 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services 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 De
Slide 27: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Three Months Ended December 31, 2022 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services Net income (loss) $ 9.8 $ 2.0 $ 4.6 $ (8.8) $ 7.6 Interest expense, net - - - 1.6 1.6 Income tax benefit - - - (0.1) (0.
Slide 28: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Three Months Ended September 30, 2022 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services Net income (loss) $ 10.7 $ 8.6 $ 9.2 $ (14.9) $ 13.6 Interest expense, net - - - 1.8 1.8 Income tax expense - - - 3.4 3
Slide 29: Non-GAAP Reconciliation: Free Cash Flow ($MM)
Non-GAAP Reconciliation: Free Cash Flow ($MM) T hree M onths E nded S ep tember 3 0, 2022 Dec ember 3 1 , 2022 M arc h 3 1 , 2023 J une 3 0, 2023 Net cas h provided by operating activities $1 0.7 $26.0 $1 7 .4 $40.9 P urchas e of property and equipment ($3 .0) ($5.1 ) ($5.4) ($1 2.9) F ree c as h F
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