Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Q2 2023 Earnings Presentation
18 slides from Ranger Energy Services's earnings presentation, Aug 7, 2023
Slide 1: Q2 2023 Earnings
Q2 2023 Earnings August 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: Q2 2023 Financial Summary
Q2 2023 Financial Summary Revenue Q2 ($MM) Revenue YTD ($MM) 2023 Highlights +6% +16% ▪ Strong year-over-year growth across all segments ◦ Revenue up 16% y/y ◦ Adjusted EBITDA up 52% y/y ◦ Adjusted EBITDA Margin up +300 bps y/y ▪ Net Income of $12.3 million, or $0.49 per fully diluted share Adjusted
Slide 4: Year over Year Performance Drivers
Year over Year Performance Drivers Q2 YTD Revenue Bridge ($MM) Q2 YTD Adjusted EBITDA Bridge ($MM) 4
Slide 5: High-Specification Rigs Segment Highlights
High-Specification Rigs Segment Highlights Revenue Q2 ($MM) Revenue YTD ($MM) Q2 Operational Results +2% +10% ▪ Adj. EBITDA improved 10% Y/Y due to better pricing and improved operating leverage ▪ Rig hours decreased Y/Y by 6,700, but revenue per rig hour increased by 9% from $632 to $687 due to inc
Slide 6: Wireline Services Segment Highlights
Wireline Services Segment Highlights Revenue Q2 ($MM) Revenue YTD ($MM) Q2 Operational Results +10% +19% ▪ Increased revenue by $5 million and Adj. EBITDA by $1.4 million year over year driven primarily by pricing and term improvements in completion services and activity levels in other service line
Slide 7: Processing Solutions & Ancillary Services Segment Highlights
Processing Solutions & Ancillary Services Segment Highlights Revenue Q2 ($MM) Revenue YTD ($MM) Q2 Operational Results +11% +27% ▪ Revenues increased year-over-year due to pricing increases and higher operational activity predominately in coil tubing and plug and abandonment services ▪ Segment Adjus
Slide 8: 2023 Guidance – Q2 Update
2023 Guidance – Q2 Update ▪ Asset utilization expected to improve in back half of the year with associated margin expansion ▪ Activity levels expected to ramp and peak in Q3, similar to prior year, before pull back as seasonality begins in Q4 ▪ Adjusted EBITDA margins expected to improve with operat
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities ▪ Shifting focus from debt paydown to capital return strategy and growth opportunities ▪ Initiating a quarterly dividend program of $0.05 per share during Q3 2023 ▪ Continuing active share repurchase program initiated in Q1 2023 ▪ Targeting accretive inorganic growth wi
Slide 10: Delivering Returns to Shareholders
Delivering Returns to Shareholders 2023 Announced Capital Return Strategy 2023E Cash Flow Profile Committed to returning at least 25% of free cash flows through share repurchases and dividends, balancing the remaining cash flows between growth opportunities and further repurchases dependent on marke
Slide 11: Investment Thesis
Investment Thesis Maximizing Returns Through Improved Asset Utilization ▪ Significant opportunity for continued profitability growth through improved asset utilization, supported by opportunity for organic market share growth in existing markets ▪ Attractive free cash flow generation creates multipl
Slide 12: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 12
Slide 13: Overview
OVERVIEW RANGER BUSINESS WELL SERVICES WIRELINE SERVICES • High-Spec Service Rigs • Plug and Perf • Rig-Assist Snubbing • Pump-Down Services • Coiled Tubing • Cement and Casing Evaluation • Rental and Fishing • Intervention Services • Plug and Abandonment • Pumping Services ANCILLARY SERVICES • Fish
Slide 14: Non-GAAP Reconciliation: Adjusted EBITDA ($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 $ (10.5) $ 8.0 Interest expense, net - - - 0.9 0.9 Income tax expense - - - 0.1 0.1 Dep
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Three Months Ended June 30, 2022 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services Net income (loss) $ 6.1 $ 1.5 $ 5.1 $ (13.1) $ (0.4) Interest expense, net - - - 1.8 1.8 Income tax benefit - - - (0.8) (0.8
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Six Months Ended June 30, 2023 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services Net income (loss) $ 23.4 $ 4.6 $ 7.6 $ (21.4) $ 14.2 Interest expense, net - - - 2.1 2.1 Income tax expense - - - 1.9 1.9 Depr
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA ($MM)
Non-GAAP Reconciliation: Adjusted EBITDA ($MM) Six Months Ended June 30, 2022 Processing High Specification Wireline Services Solutions & Other Total Rigs Ancillary Services Net income (loss) $ 13.8 $ (3.0) $ 6.4 $ (23.3) $ (6.1) Interest expense, net - - - 3.9 3.9 Income tax benefit - - - (2.4) (2.
Slide 18: Non-GAAP Reconciliation: Free Cash Flows ($MM)
Non-GAAP Reconciliation: Free Cash Flows ($MM) Six Months Ended June 30, 2023 June 30, 2022 Net cash provided by operating activities $ 41.0 $ 7.8 Purchase of property and equipment (12.9) (5.7) Free Cash Flow $ 28.0 $ 2.1 18
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