Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Investor Presentation (March 2023)
25 slides from Ranger Energy Services's investor presentation, Mar 23, 2023
Slide 1: Ranger Investor Presentation March 2023
March 2023 RANGER INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
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 operations, financial positio
Slide 3: Ranger at a Glance
High specification rigs 48%Wireline services 32% Processing solutions and ancillary services 20% 3 Segment Profile RANGER AT A GLANCE Market leading provider of oil & gas support services with ~2,000 employees and 5,000 operational assets. Operating in 25 locations across 8 basins, RNGR’s 11 dif
Slide 4: Servicing U.S. Onshore Horizontal Wells
• >160,000 modern, extended lateral, horizontal wells currently producing which require High- Spec Service Rigs and support equipment to maintain efficient production • Extended reach became the primary lateral length drilling type in 2017, increasing demand for well servicing versus coiled tubing •
Slide 5: Well Cycle Exposure Profile
WELL CYCLE EXPOSURE PROFILE 5 • Completion Related Drill-outs H ig h S p e c R ig s • Artificial Lift Installation • Workovers & Well Maintenance • Re-Completions and Re-Fracs • Acidizing Services W ir e li n e S e rv ic e s • Toe-Prep • Plug and Perf • Pump-Down Services • Casing and Cementing Eval
Slide 6: Ranger High Spec Rig Presence
Ranger Energy Services Key Energy Services Axis Energy Services Brigade Energy Services Clearwell Dynamics Ensign Energy Services RANGER HIGH SPEC RIG PRESENCE Source: Management Estimates 6 RANGER HAS THE HIGHEST ACTIVE RIG COUNT IN THE INDUSTRY WITH ~165 ACTIVE RIGS. Leading Service Providers 50%
Slide 7: Value Creation Framework
Ranger’s commitment to maximizing shareholder value is focused on improving free cash flow through asset utilization, fortifying the balance sheet, returning capital to shareholders and growing through acquisition. V A L U E C R E A T IO N F R A M E W O R K IMPROVING FREE CASH FLOW GENERATION FORTIF
Slide 8: Improving Cash Flow Through Utilization
IMPROVING CASH FLOW THROUGH UTILIZATION 8 Note (1): Charts designed to show earnings capacity and should not be relied upon as company guidance. Opportunity to grow revenues & profitability through deployment of additional assets available for activation • Ability to improve utilization contingent o
Slide 9: Fortifying the Balance Sheet
$29.8 $27.0 $57.3 $72.3 $79.9 $58.3 $45.2 $22.4 1Q21 2Q21 3Q21 4Q21* 1Q22 2Q22 3Q22 4Q22 FORTIFYING THE BALANCE SHEET 9Note (1): Total Adjusted Net Debt is a Non-GAAP measure. Please see slide 24 for a reconciliation of Adjusted Net Debt to the most comparable GAAP metric. Note (2): Adjusted Net Lev
Slide 10: Attractive Capital Returns Framework
ATTRACTIVE CAPITAL RETURNS FRAMEWORK 10Note (1): TTM Return on Invested Capital is defined as Trailing Twelve-Month Net Income divided by the statistical mean value of combined debt and shareholders’ equity for the beginning and end of the trailing twelve-month period. Focus is on balanced capital r
Slide 11: Exploring Growth Through Acquisition
EXPLORING GROWTH THROUGH ACQUISITION 11 Intentional and selective approach to acquisitions with clear objective of value creation through inorganic growth • Successful track record of executing accretive M&A • Fragmented and competitive industry provides opportunity for value-creation • Paired with
Slide 12: Financial Overview & Investment Thesis
FINANCIAL OVERVIEW & INVESTMENT THESIS 12
Slide 13: Fourth Quarter and Full Year 2022 Highlights
FOURTH QUARTER AND FULL YEAR 2022 HIGHLIGHTS 13 $293.1 $608.5 2021 2022 108% $123.1 $154.3 Q4 2021 Q4 2022 Revenue ($s in Millions) $9.1 $21.6 Q4 2021 Q4 2022 $12.8 $79.5 2021 2022 Adjusted EBITDA ($s in Millions) 521% Adjusted EBITDA Margin 7% 14% Q4 2021 Q4 2022 4% 13% 2021 2022 • Successful integ
Slide 14: Adjusted EBITDA Growth Drivers
FY2022 Adjusted EBITDA Bridge ($s in Millions) ADJUSTED EBITDA GROWTH DRIVERS 14 Q4 Adjusted EBITDA Bridge ($s in Millions)
Slide 15: 2023 Full Year Company Guidance
2023 FULL YEAR COMPANY GUIDANCE • Improving asset utilization and operating efficiency will continue growth and margin expansion • Expect activity levels to ramp into 2Q, with 2Q and 3Q representing the seasonally strongest quarters for 2023 • Expected Adjusted EBITDA margins in 2023 of 14-16% • Cap
Slide 16: Investment Thesis
INVESTMENT THESIS Maximizing Returns Through Improved Asset Utilization 16 • Significant opportunity for continued profitability growth through improved asset utilization, supported by opportunity for organic market share growth in existing markets • Attractive free cash flow generation creates mult
Slide 17: Ranger Leads the Way
RANGER LEADS THE (eager WAY ey
Slide 18: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 18
Slide 19: High-Specification Rig Segment Highlights
$0.9 $9.8 Q4 2021 Q4 2022 $59.5 $72.6 Q4 2021 Q4 2022 $8.8 $15.2 Q4 2021 Q4 2022 HIGH-SPECIFICATION RIG SEGMENT HIGHLIGHTS 19 22% Revenue ($MM) Adjusted EBITDA ($MM) 73% Operating Income ($MM) 989% • Adj. EBITDA improved $6.4 million (+73%) Y/Y due to higher activity, better pricing and improved ope
Slide 20: Wireline Service Segment Highlights
WIRELINE SERVICE SEGMENT HIGHLIGHTS 20 • Adj. EBITDA increased $3.7 million due to improved pricing and cost absorption as Adj. EBITDA margins expanded materially Y/Y • Winter Storm Elliot in December resulting in 13 unplanned weather days and negatively impacted revenues by $3.0 million • Completed
Slide 21: Processing Solutions & Ancillary Services Segment Highlights
$2.4 $4.6 Q4 2021 Q4 2022 $0.3 $20.2 2021 2022 $3.6 $6.6 Q4 2021 Q4 2022 $18.8 $33.4 Q4 2021 Q4 2022 PROCESSING SOLUTIONS & ANCILLARY SERVICES SEGMENT HIGHLIGHTS 21 78% Revenue ($MM) Adjusted EBITDA ($MM) 83% Operating Income ($MM) 92% • Revenues increased year-over-year across all business lines: •
Slide 22: Historical Trends by Segment
$132 $83 $140 $293 $184 $99 $118 $197 $21 $7 $35 $118 2019 2020 2021 2022 High Spec Rigs Wireline Services Process Solutions & Ancillary Serices HISTORICAL TRENDS BY SEGMENT 22 13% 15% 15% 21% 25% 25% 2% 9% 55% 60% 18% 22% Adjusted EBITDA Margin Revenue
Slide 23: Trended Segment Operating Metrics (Wireline)
7 11 7 28 41 11 13 13 68 68 2018 2019 2020 2021 2022 Active Wireline Trucks Available Wireline Trucks M a jo r W ir e lin e A cq u is it io n s TRENDED SEGMENT OPERATING METRICS (Wireline) 23 Wireline Truck Capacity(1) Note (1): Charts designed to show earnings or revenue capacity and should not be
Slide 24: Adjusted EBITDA Reconciliations
ADJUSTED EBITDA RECONCILIATIONS 24 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 list
Slide 25: Non-GAAP Reconciliation: Adjusted Net Debt
NON-GAAP RECONCILIATION: ADJUSTED NET DEBT 25 December 31, 2022 September 30, 2022 Change Debt and Other Obligations Credit facility $1.4MM $24.9MM ($23.5MM) Eclipse Term Loan A $10.4MM $11.0MM ($0.6MM) Secured Promissory Note $6.1MM $7.0MM ($0.9MM) Installment purchases $0.5MM $0.6MM ($0.1MM) Other
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