Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Q4 2022 Earnings Presentation
20 slides from Ranger Energy Services's earnings presentation, Mar 7, 2023
Slide 1: Q4 2022 Earnings
Q4 2022 Earnings March 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, future operations, financial position, estimated revenues and
Slide 3: 2022 Ranger Highlights
01 Strong Year-over-Year Revenue Growth 2022 Ranger Highlights Fourth Quarter and Full Year • Q4 revenue of $154.3 million, a 25% increase year-over-year • FY revenue of $608.5 million, a 108% increase year-over-year 02 Expanding EBITDA Margins • Q4 Adjusted EBITDA of $21.6 million with 14% margins
Slide 4: Q4 / FY 2022 Financial Summary
Q4 / FY 2022 Financial Summary Revenue ($MM) Q4 2022 Highlights 25% 108% • Grew revenue and Adj EBITDA across all segments year over year in Q4 $608.5 $123.1 $154.3 $293.1 • Leveraged Free Cash Flow generation to repay $24.5 million of debt • Winter Storm Elliott operational downtime resulted in a c
Slide 5: EBITDA Reconciliation
EBITDA Reconciliation Q4 Adjusted EBITDA Bridge $3.0 $21.6 $3.7 $6.8 $(0.6) $(0.4) $9.1 4Q21 HSR Segment Wireline Segment Ancillary Segment Winter Storm Other Items 4Q22 Impact Impact Impact Elliott Effect FY2022 Adjusted EBITDA Bridge $8.6 $7.3 $(4.7) $79.5 $7.5 $8.8 $15.5 $23.7 $12.8 FY2021 HSR Ac
Slide 6: High-Specification Rig Segment Highlights
High-Specification Rig Segment Highlights Revenue ($MM) Q4 Operational Results • Adj. EBITDA improved $6.4 million (+73%) Y/Y due to 22% higher activity, better pricing and improved operating 109% leverage $140.1 $293.2 $59.5 $72.6 • Rig hours increased from 111,600 in Q4 2021 to 113,600 in Q4 2022.
Slide 7: Wireline Service Segment Highlights
Wireline Service Segment Highlights Q4 Operational Results Revenue ($MM) • Adj. EBITDA increased $3.7 million due to improved pricing and cost 8% absorption as Adj. EBITDA margins expanded materially Y/Y 67% $197. • Winter Strom Elliot in December resulting in 13 unplanned weather $48.3 $117.9 0 $44
Slide 8: Processing Solutions & Ancillary Services Segment Highlights
Processing Solutions & Ancillary Services Segment Highlights Revenue ($MM) Q4 Operational Results • Revenues increased year-over-year across all business lines: 237% 78% • Coil tubing (+$6.7m) $118. • Rentals (+$5.1m) $33.4 • Plug and abandonment services (+$2.1m) 3 $18.8 $35.1 2021 2022 Q4 2021 Q4
Slide 9: 2023 Guidance
2023 Guidance As of March 2023 • Improving asset utilization and operating efficiency will continue growth and margin expansion • Expect activity levels to ramp in to 2Q, with 2Q and 3Q representing the seasonally strongest quarters for 2023 • Expected Adjusted EBITDA margins in 2023 of 14-16% • Cap
Slide 10: Capital Allocation Priorities
Capital Allocation Priorities • Recent focus on deploying free cash flow to repay debt and optimize the capital structure for growth. • After achieving net debt zero target, Ranger intends to initiate a quarterly dividend program of $0.05 per share. • Board has authorized $35 million towards a share
Slide 11: Investment Thesis
Investment Thesis Maximizing Returns Through Improved Asset Utilization • 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 multipl
Slide 12: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 12
Slide 13: Ranger Business Overview
OVERVIEW RANGER BUSINESS WELL SERVICES WIRELINE SERVICES • High-Spec Service Rigs • Plug and Perf • Rig-Assist Snubbing • Pump-Down Services • Coiled Tubing • Cement and Casing Evaluation • Rental and Fishing • Intervention Services • Plug and Abandonment • Pumping Services ANCILLARY SERVICES • Fish
Slide 14: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Three Months Ended December 31, 2022 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $9.8MM $2.0MM $4.6MM ($8.8MM) $7.6MM Interest expense, net - - - $1.6MM $1.6MM Income tax expense - - - ($0.
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Three Months Ended September 30, 2022 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $10.7MM $8.6MM $9.2MM ($14.9MM) $13.6MM Interest expense, net - - - $1.8MM $1.8MM Income tax expense - - -
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Year-Ended December 31, 2022 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $34.3MM $7.6MM $20.2MM ($47.0MM) $15.1MM Interest expense, net - - - $7.3MM $7.3MM Income tax expense - - - $0.9MM $
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Three Months Ended December 31, 2021 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $38.1MM ($3.0MM) $2.4MM ($13.1MM) $24.4MM Interest expense, net - - - $2.3MM $2.3MM Income tax expense - - -
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Year-Ended December 31, 2021 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $37.0MM ($5.8MM) $0.3MM ($33.6MM) ($2.1MM) Interest expense, net - - - $5.0MM $5.0MM Income tax expense - - - ($6.2M
Slide 19: Non-GAAP Reconciliation: Adjusted Net Debt
Non-GAAP Reconciliation: Adjusted Net Debt 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 fi
Slide 20: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation: Free Cash Flow Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Net cash provided by operating activities $26.0MM ($62.8MM) $44.5MM ($39.4MM) Purchase of property and equipment ($5.1MM) ($1.7MM) ($13.8MM) ($5.6MM) Free cas
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