Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Scotia Howard Weil Annual Energy Conference 2018
23 slides from Ranger Energy Services's conference presentation, Mar 28, 2018
Slide 1: Scotia Howard Weil Annual Energy Conference
Scotia Howard Weil Annual Energy Conference New Orleans, Louisiana March 28, 2018
Slide 2: Important Disclosures
Important Disclosures IMPORTANT INFORMATION Ranger Energy Services, Inc. (“Ranger”), filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the its initial public offering of common stock (the “IPO”), such registration statement became effecti
Slide 3: Company Overview
Company Overview Well Services 95% Q4 2017 Revenue Contribution by Segment Processing Solutions 5% Ranger focused on the high-spec service rig market : fleet designed for modern unconventional horizontal wells Ranger also provides support equipment, often deployed with the well service rigs Ra
Slide 4: Key Market Trends
Key Market Trends A Modern Well Design Necessitates High-Spec Service Rigs B Demand Growing Along with Horizontal Completion and Production Spending 4
Slide 5: Production Market
A Production Market The contribution from horizontal wells completed more than 3 years ago, which include wells most likely to require workover and maintenance activity, represented 16% of total U.S. production in 2016 (up from 4% in 2012), a trend that is expected to continue Furthermore, the m
Slide 6: Market Trends Favor Longer Lateral Horizontal Wells
A Market Trends Favor Longer Lateral Horizontal Wells Percentage of Quarterly Horizontal Wells by Lateral Length High-Spec Rig Requirements for Extended Lateral Wells High-Spec Rig Requirements for Extended Lateral Wells 2,000' 4,000' 6,000' 8,000' 10,000' Extended reach (>8,000’) became the primary
Slide 7: Key Investment Highlights
Key Investment Highlights Full-Cycle Well Services Offering Facilitates Operations Across “Life of the Well” Solutions Approach with Service Offerings Across the Value Chain Deep Relationships with Blue-Chip E&P Customers Across Multiple Basin’s Processing Solutions Provides Critical Bridge to Perma
Slide 8: Ranger Solutions Approach Across Full Life of Well
Ranger Solutions Approach Across Full Life of Well 1 Well Completion Support 3 Workover Completion services utilized during and subsequent to Major well work conducted multiple times throughout life of well hydraulic fracturing but prior to placing a well into production – Recompletion or re-fra
Slide 9: Well Completion Support – Wireline Solutions
Well Completion Support – Wireline Solutions Typical Delaware Basin Completion Well MD: 18,000' - 21,000' Lateral Length: 8,000' - 13,000' Casing Design: 4-1/2" - 5-1/2" Stages: 30- 50 Perf Guns: 2-3/4" - 3-1/8", 3 - 4 SPF Mallard Fleet Mallard Performance • 5 Active Units • Began Operations in Octo
Slide 10: Well Completion Support – Drillout Process
Well Completion Support – Drillout Process Height Requirement String Weight Historical operations have utilized up to 6 distinct service providers to execute the drillout process and overcome the challenges listed Surface Plug Capture/ Fluid Separation Rotational Forces Motor Performance Hole Cleani
Slide 11: Well Completion Support – Ranger Drillout Solution
Well Completion Support – Ranger Drillout Solution High Spec Rigs Height Requirement String Weight Rig-Assist Snubbing Units Drag Forces Hydraulic Forces HT Power Swivels Rotational Forces 600/1000 HP Pumps Hole Cleaning Motor Performance Ranger Flowback Spreads (MVCI Asset Acquisition
Slide 12: High-Spec Rigs Lead to High Utilization
High-Spec Rigs Lead to High Utilization 99% 100% 12% 11% 28% 40% 143 High- 125 High- 50 High- 50 High- 250 High- ~40 High- High-spec % of Spec Rigs Spec Rigs Spec Rigs Spec Rigs Spec Rigs Spec Rigs total service rig inventory(1) High-spec Non-High-spec 179 4Q’17 Service 126 Rig Utilization 95 (H
Slide 13: Blue-Chip Customer Base
Blue-Chip Customer Base Headquarters Field locations(1) (1) Ranger combined consolidated revenues Q3-17 excluding Torrent 13
Slide 14: Proprietary Processing Solutions Critical Bridge
Proprietary Processing Solutions Critical Bridge • Ranger’s modular processing equipment provides critical midstream functions in basins where D&C activity has outpaced infrastructure buildout • Ranger’s proprietary equipment is designed to process natural gas to meet pipeline specifications, extrac
Slide 15: Platform for Organic and Acquisition Growth
Platform for Organic and Acquisition Growth Organic Growth Acquisition Growth Mallard Completions brand organic startup yielding early Ranger’s criteria for attractive acquisition candidates: success through high demand, flawless performance and Dedication to high-spec assets deployment of latest
Slide 16: Financial Overview
Financial Overview Privileged & Strictly Confidential
Slide 17: 2017 Q4 Results
2017 Q4 Results Revenues were $50.1 million for the three months ended December 31, 2017, a sequential increase of 22% from $41.1 million in Q3 2017. Operating loss of $5.2 million for Q4 from a loss of $4.8 million in the prior quarter. Adjusted EBITDA (A Non-GAAP measure) increased to $3.8 m
Slide 18: Financial Philosophy
Financial Philosophy Committed to maintaining a conservative balance sheet – No bank debt post-IPO with $7M seller note – High level of liquidity with a $50M bank ABL facility Preserve sufficient liquidity to operate the business and execute growth objectives & strategies Focus on high returns
Slide 19: Appendix
Appendix Privileged & Strictly Confidential
Slide 20: Our History
Our History Founding of Bayou Workover Services (“Bayou”) ESCO Acquisition(1) Founding of Ranger Energy 2010 Holdings, LLC 2017 • Contributed well services, 2014 • Contributed well services to decommissioning and fluid Ranger management services to Ranger A Strategic Combination of Assets Founding o
Slide 21: Utilization Calculation
Utilization Calculation We measure rig utilization by total monthly rig hours worked in a particular period per rig in service, which we refer to as our average hours per rig – Mid-month convention: A rig placed into service during a month (meaning that we have taken delivery of the rig) is assume
Slide 22: Well Service Rig Fleet Overview
Well Service Rig Fleet Overview Ranger has a modern fleet of high-spec well service rigs(1) – More than one third of the fleet has been built since 2014 – 81% of Ranger’s fleet has an operating capacity of 500 HP or more Ranger Well Servicing Rig Fleet(1) By Vintage(2) By Horsepower By Mast Height
Slide 23: Ranger Leads the Way
ENERGY SERVICES * ———— oe Ranger Leads the Way
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