Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Q3 2023 Earnings Presentation
19 slides from Ranger Energy Services's earnings presentation, Oct 31, 2023
Slide 1: Q3 2023 Earnings
Q3 2023 Earnings October 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: Q3 2023 Financial Summary
Q3 2023 Financial Summary Revenue ($MM) & Baker Hughes Land Rig Count 2023 Highlights ▪ Business showing steady growth despite lower rig count in recent quarters due to heavy production focus and nimble rig redeployments offset by wireline completions market pressure ◦ Revenue up 7% year over year ◦
Slide 4: Sequential Quarterly Performance Drivers
Sequential Quarterly Performance Drivers High specification rig business showing continued resilience quarter over quarter. Significant improvement in wireline margins despite revenue declines driven by reorganization to pivot focus to production work. QoQ Revenue Bridge ($MM) QoQ Adjusted EBITDA Br
Slide 5: Quarterly Year over Year Performance Drivers
Quarterly Year over Year Performance Drivers Revenue decreases driven by wireline completions business with some declines in coil tubing and rentals service lines with HSR revenues relatively flat with slight margin reduction due to white space issues in 2023. Q3 Revenue Bridge ($MM) Q3 Adjusted EBI
Slide 6: High-Specification Rigs Segment Highlights
High-Specification Rigs Segment Highlights Revenue ($MM) & Baker Hughes Land Rig Count Q3 Operational Results ▪ Revenue increased slightly quarter over quarter despite rig count declines and decreased slightly year over year with improvements in rig rates offsetting slight declines in rig activity l
Slide 7: Wireline Services Segment Highlights
Wireline Services Segment Highlights Q3 Operational Results Revenue ($MM) & Baker Hughes Land Rig Count ▪ Adj. EBITDA increased sequentially by $1.7 million driven primarily by cost control initiatives which more than offset a decline in sequential revenues ▪ Pricing pressure over the past several m
Slide 8: Processing Solutions & Ancillary Services Segment Highlights
Processing Solutions & Ancillary Services Segment Highlights Revenue ($MM) & Baker Hughes Land Rig Count Q3 Operational Results ▪ Revenues increased quarter over quarter due to increased Coil Tubing ▪ Segment Adjusted EBITDA increased by $0.9 million primarily due to increased Coil Tubing volume 202
Slide 9: 2023 Guidance – Q3 Update
2023 Guidance – Q3 Update Anticipate improving North America onshore backdrop from currently depressed rig count levels Fourth quarter activity levels expected to be lower due to seasonality and customer budget exhaustion offset somewhat by new rig activity affecting both revenue and Adjusted EB
Slide 10: Capital Allocation Priorities
Capital Allocation Priorities 2023 Announced Capital Return Strategy 2023E Cash Flow Profile Shifting focus from debt paydown to a balanced view on growth and returning capital to shareholders through a commitment of 25% return of cash flows minimum Initiated a quarterly dividend program of $0.0
Slide 11: Investment Thesis
Investment Thesis Maximizing Returns Through Improved Asset Utilization Significant opportunity for continued profitable growth through improved asset utilization, supported by organic market share expansion in existing markets Attractive free cash flow generation creates multiple value creation
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 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 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 June 30, 2023 Net income (loss) $ 11.5 $ 2.8 $ 4.2 $ (12.4) $ 6.1 Interest expense, net — — — 0.9 0.9 Income tax expense — — — 2
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 Nine Months Ended September 30, 2023 Net income (loss) $ 34.0 $ 8.9 $ 12.1 $ (33.3) $ 21.7 Interest expense, net — — — 2.8 2.8 Income tax expense —
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 September 30, 2022 Net income (loss) $ 10.7 $ 8.6 $ 9.2 $ (14.9) $ 13.6 Interest expense, net — — — 1.8 1.8 Income tax expense —
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 Nine Months Ended September 30, 2022 Net income (loss) $ 24.5 $ 5.6 $ 15.6 $ (38.2) $ 7.5 Interest expense, net — — — 5.7 5.7 Income tax expense —
Slide 19: Non-GAAP Reconciliation: Free Cash Flows (in millions)
Non-GAAP Reconciliation: Free Cash Flows (in millions) Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 September 30, 2022 Net cash provided by operating activities $ 12.2 $ 53.1 $ 7.8 Purchase of property and equipment (15.0) (27.9) (5.7) Free cash Flow $ (2.8) $ 25.2 $ 2.
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