Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — NobleCon (November 2024)
25 slides from Ranger Energy Services's conference presentation, November 2024
Slide 1: We Generate Positive Energy
ENERGY SERVICES * We Generate Positive Energy
Slide 2: Important Disclosures
Important Disclosures 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
Slide 3: Largest Well Service Provider in the United States
Largest Well Service Provider in the United States Production Focused Well Service Company • High-spec rigs provide downside protection and consistent demand • Completions exposure provides upside to increased activity High Cash Flow Conversion Through the Cycle • Established fleet and low capital i
Slide 4: Ranger Services the Well Life after Drilling
Ranger Services the Well Life after Drilling Drilling Completion Production Decommissioning Ranger Revenue None 30-40% 50-60% <10% Contribution Estimated 2-3 weeks 1 week 1 week 15-20 years Duration Annual Market $15bn $25bn $10bn $1bn Size Volatility High Medium Low Medium 4 Source: Spears & Associ
Slide 5: Production Spending Resilient Through the Cycle
Production Spending Resilient Through the Cycle Customer discretionary spending prioritizes maximizing existing production, making well service often the most profitable use of capital. Focusing on production enhances business resilience and reduces volatility throughout the cycle. 87% 69% Well Prod
Slide 6: Complementary Portfolio with Opportunities for Growth
Complementary Portfolio with Opportunities for Growth High-Spec Rigs Wireline Ancillary Strength of Segment Strength of Segment Strength of Segment ✓ Anchor business with largest market ✓ Significant market share in North region ✓ Plug and Abandonment market growing share in US onshore across Bakken
Slide 7: Growth and Free Cash Flow Conversion Drives Returns
Growth and Free Cash Flow Conversion Drives Returns TTM Free Cash Flow ($MM) & Returned Capital Percentage (2,3) 62% 83% 59% Capital returns and growth with 40% average annual ROIC of 9%(1) $54.3 $47.8 $38.6 $52.2 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Adjusted EBITDA ($MM) & Free Cash Flow Conversion Perc
Slide 8: High-Spec Rigs Growth
High-Spec Rigs Growth High-Spec Rigs segment thriving despite U.S. rig count declines. Production focused service line achieved record quarterly revenue and EBITDA in Q3 2024 demonstrating its counter-cyclical strength. High-Spec Rigs Revenue & U.S. Rig Count High-Spec Rigs Adjusted EBITDA & Margin
Slide 9: Service & Safety Record Drives Customer Loyalty
Service & Safety Record Drives Customer Loyalty E&P consolidation has benefited Ranger as major operators prioritize service quality and reliability from a reduced number of vendors and look to build out full package solutions supporting margin improvement. Ranger has additional rigs it can deploy a
Slide 10: Growth From Acquisitions and Increased Market Share
Growth From Acquisitions and Increased Market Share Ranger has achieved a 36% CAGR in revenue since 2020, driven by several successful acquisitions and growing its service lines organically. Despite a decline in drilling rig counts, the company continued to see incremental revenue growth in 2023. An
Slide 11: Acquisitions Have Created Significant Value
Acquisitions Have Created Significant Value Ranger has led the way in consolidating and rationalizing the sector, more than doubling its size in 2021 through three highly accretive acquisitions that have delivered strong returns. 2021 Acquisitions Performance ($MM) Net Investment Revenue $89 $88 In
Slide 12: Committed to Returning Capital to Shareholders
Committed to Returning Capital to Shareholders Ranger has returned over 80% of its free cash flow to shareholders year to date in 2024. Opportunistic Share Repurchases Cumulative Uses of Excess Cash Since Accelerates Per Share Growth Implementing Capital Returns Program Ranger’s capital return progr
Slide 13: Investment Highlights and Key Takeaways
Investment Highlights and Key Takeaways Strong track record of growth with compelling investment fundamentals with 1 attractive free cash flow conversion and ROIC Differentiated focus on production services leads to a consistently growing 2 market, reducing inherent cyclical volatility experienced i
Slide 14: Leads the Way
LEADS THE WAY
Slide 15: Appendix
APPENDIX
Slide 16: High-Specification Rigs Segment Highlights
High-Specification Rigs Segment Highlights Revenue ($MM) & Land Drilling Rig Count(1) Q3 2024 Operational Results 776 761 760 ▪ Rig hours increased 3% from Q2 and 4% year- 719 over-year, despite rig count declines of over 20% from prior year peaks 648 ▪ HSR revenue was a record $86.7 million in Q3,
Slide 17: Processing Solutions & Ancillary Services Segment Highlights
Processing Solutions & Ancillary Services Segment Highlights Revenue ($MM) & Land Drilling Rig Count(1) Q3 2024 Operational Results 776 761 760 ▪ Q3 rebound in Processing Solutions & Ancillary Services segment 719 continued from Q2 and expected to remain resilient into Q4 ▪ Increased revenue in Q3 b
Slide 18: Wireline Services Segment Highlights
Wireline Services Segment Highlights Q3 2024 Operational Results Revenue ($MM) & Land Drilling Rig Count(1) 776 761 760 ▪ Production Wireline revenue reached a new peak, reflecting increased 719 operational activity and an intentional management decision to pivot to production related work 648 ▪ Pum
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Processing High Solutions and Specification Wireline Ancillary Rigs Services 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.
Slide 20: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Processing High Solutions and Specification Wireline Ancillary Rigs Services 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 expense — — — 2.0 2.
Slide 21: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Processing High Solutions and Specification Wireline Ancillary Rigs Services Services 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)
Slide 22: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Processing High Solutions and Specification Wireline Ancillary Rigs Services Services 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 1.8 Income tax expense — — —
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Processing High Solutions and Specification Wireline Ancillary Rigs Services 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 1.6 Income tax expense — — —
Slide 24: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Processing High Solutions and Specification Wireline Ancillary Rigs Services Services Other Total Three Months Ended June 30, 2023 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 D
Slide 25: Non-GAAP Reconciliation: Free Cash Flow ($MM)
Non-GAAP Reconciliation: Free Cash Flow ($MM) Three Months Ended September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Net cash provided by operating activities $ 17.7 $ 22.1 $ 12.0 $ 37.7 $ 12.2 Purchase of property and equipment (6.9) (15.3) (6.5) (8.6) (15.0) Free C