Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Q4 2023 Earnings Presentation
19 slides from Ranger Energy Services's earnings presentation, Mar 5, 2024
Slide 1: Q4 2023 Earnings
Q4 2023 Earnings March 2024
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: Delivering Returns to Shareholders
Delivering Returns to Shareholders Capital Return Update 2023 Cash Flow Profile ▪ Repurchased $19.3 million net of tax, or 1,805,500 Dividends shares,(2) in 2023 with repurchases continuing during $2.4MM 2024 Debt ▪ Total of 2,542,300 shares repurchased through February Paydown 4% 29, 2024 through e
Slide 4: 2023 Financial Summary
Q4 2023 2023 Financial Financial Summary Summary Revenue ($MM) & Baker Hughes Land Rig Count 2023 Highlights $700.0 779 YE 900 $600.0 ▪ Business achieved YoY growth despite 20% drop in rig count 586 YE 622 YE 700 $500.0 ◦ Revenue up 5% Y/Y $400.0 500 $300.0 ◦ Adjusted EBITDA up 6% Y/Y 300 $200.0 ◦ M
Slide 5: 2023 Performance Analysis
2023 Performance Analysis All segments demonstrated top line growth year over year despite challenging market conditions. 2023 Revenue Bridge ($MM) 2023 Adjusted EBITDA Bridge ($MM) 5
Slide 6: Q4 2023 Financial Summary
Q4 Q42023 2023Financial FinancialSummary Summary Revenue ($MM) & Baker Hughes Land Rig Count Q4 2023 Highlights $200.0 761 776 800 760 713 719 750 ▪ Quarterly revenue performance comparable to prior year $150.0 700 period despite significant reduction in rig count 648 633 $100.0 622 650 ◦ Rig count
Slide 7: Quarterly Performance Analysis
Quarterly Performance Analysis Revenue resiliency of HSR business shown in Q4 with decreases driven primarily by reduction in Wireline Completions activity in the South. Margin also affected by fixed cost base and higher cost of goods sold in Wireline segment QoQ Revenue Bridge ($MM) QoQ Adjusted EB
Slide 8: High-Specification Rigs Segment Highlights
High-Specification Rigs Segment Highlights Revenue ($MM) & Baker Hughes Land Rig Count Q4 Operational Results $90.0 776 800 761 760 $80.0 ▪ Resilient revenue performance quarter over 713 719 750 quarter despite seasonality and rig count drop $70.0 $60.0 700 $50.0 648 ▪ Revenue per rig hour increased
Slide 9: Wireline Services Segment Highlights
Wireline Services Segment Highlights Q4 Operational Results Revenue ($MM) & Baker Hughes Land Rig Count ▪ Rig activity declines felt more acutely with 14% reduction from Q4 $70.0 776 800 761 760 2022 and 22% quarter-over-quarter due to declining frac activity $60.0 719 750 levels 713 $50.0 700 ▪ Low
Slide 10: Processing Solutions & Ancillary Services Segment Highlights
Processing Solutions & Ancillary Services Segment Highlights Revenue ($MM) & Baker Hughes Land Rig Count Q4 Operational Results 776 $40.0 761 760 800 ▪ Revenue flat from previous quarters despite effects of $35.0 719 750 equipment outages in November 713 $30.0 $25.0 648 700 ▪ Segment Adjusted EBITDA
Slide 11: A Compelling Investment
A Compelling Investment Attractive free cash flow generation creates multiple value creation opportunities ▪ Shareholder Returns: Sustainable quarterly dividend program, supplemented by $85 million share repurchase authorization ▪ Self-Funded M&A: Allows for pursuit of opportunistic M&A to create va
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 (in millions)
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) 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 Income tax expense —
Slide 15: Non-GAAP Reconciliation: Adjusted EBITDA (in millions)
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) 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 Income tax expense —
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA (in millions)
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) Processing High Solutions and Specification Wireline Ancillary Rigs Services Services Other Total Year Ended December 31, 2023 Net income (loss) $ 44.0 $ 7.1 $ 15.5 $ (42.8) $ 23.8 Interest expense, net — — — 3.5 3.5 Income tax expense — — — 7.2
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA (in millions)
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) Processing High Solutions and Specification Wireline Ancillary Rigs Services Services Other Total Three Months Ended December 31, 2022 Net income (loss) $ 9.8 $ 2.0 $ 4.6 $ (8.8) $ 7.6 Interest expense, net — — — 1.6 1.6 Income tax benefit — — —
Slide 18: Non-GAAP Reconciliation: Adjusted EBITDA (in millions)
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) Processing High Solutions and Specification Wireline Ancillary Rigs Services Services Other Total Twelve Months Ended December 31, 2022 Net income (loss) $ 34.3 $ 7.6 $ 20.2 $ (47.0) $ 15.1 Interest expense, net — — — 7.3 7.3 Income tax expense
Slide 19: Non-GAAP Reconciliation: Free Cash Flows (in millions)
Non-GAAP Reconciliation: Free Cash Flows (in millions) Three Months Ended Year Ended December 31, 2023 December 31, 2023 December 31, 2022 Net cash provided by operating activities $ 37.7 $ 90.8 $ 44.5 Purchase of property and equipment (8.6) (36.5) (13.8) Free cash Flow $ 29.1 $ 54.3 $ 30.7 Add bac
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