Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Investor Presentation (March 2023)
25 slides from Ranger Energy Services's investor presentation, March 2023
Slide 1: Ranger Investor Presentation
RANGER INVESTOR PRESENTATION 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, our expected results of operations, cash flows, future operati
Slide 3: Ranger at a Glance
Segment Profile RANGER AT A GLANCE Market leading provider of oil & gas Revenue by Segment % of Total 2022 Net Revenue support services with ~2,000 employees and 5,000 operational Processing solutions and assets. ancillary services 20% Operating in 25 locations across 8 High basins, RNGR’s 11 di
Slide 4: Servicing U.S. Onshore Horizontal Wells
SERVICING U.S. ONSHORE HORIZONTAL WELLS DEMAND GROWING AROUND PRODUCTION SPENDING • >160,000 modern, extended lateral, horizontal wells currently producing which require High- Spec Service Rigs and support equipment to maintain efficient production • Extended reach became the primary lateral length
Slide 5: Well Cycle Exposure Profile
WELL CYCLE EXPOSURE PROFILE Drilling Completion Production Decommissioning RNGR Revenue Contribution 30-40% 50-60% <10% Production Focused Business Lines with Completion and Decommissioning Exposure • Completion Artificial Lift Installation High Spec • Related Drill-outs • Workovers & Well Maintenan
Slide 6: Ranger High Spec Rig Presence
RANGER HIGH SPEC RIG PRESENCE RANGER HAS THE HIGHEST ACTIVE RIG COUNT IN THE INDUSTRY WITH ~165 ACTIVE RIGS. Well Servicing Rig Market 1000 – 1200 total rigs Operational Rig Count for Large Providers 15% - 20% Mkt Share Leading Service Other Providers Providers ~165 Rigs 40% to 50% 50% to 60% (20+ C
Slide 7: Value Creation Framework
VALUE CREATION FRAMEWORK IMPROVING FREE ATTRACTIVE FORTIFYING THE GROWTH THROUGH CASH FLOW CAPITAL RETURNS BALANCE SHEET ACQUISITION GENERATION FRAMEWORK Ranger’s commitment to maximizing shareholder value is focused on improving free cash flow through asset utilization, fortifying the balance sheet
Slide 8: Improving Cash Flow Through Utilization
IMPROVING CASH FLOW THROUGH UTILIZATION Opportunity to grow High Specification Rig Adj EBITDA(1) $75 $s in Millions $61 revenues & profitability through deployment of $21 additional assets $12 available for activation 2020 2021 2022 Illustrative Opportunity Wireline Services Adj EBITDA(1) • Ability
Slide 9: Fortifying the Balance Sheet
FORTIFYING THE BALANCE SHEET In anticipation of achieving net-debt zero in 2023, Total Adjusted Net Debt(1) $s in Millions introduced a sustainable $72.3 $79.9 capital return program that $57.3 $58.3 also provides flexibility to $45.2 pursue attractive growth $29.8 $27.0 $22.4 opportunities 1Q21 2Q2
Slide 10: Attractive Capital Returns Framework
ATTRACTIVE CAPITAL RETURNS FRAMEWORK Focus is on balanced capital returns and maximizing ROIC $0.05 25% or greater $35 million Free Cash Initiating Quarterly Authorized Share • Pivot toward capital returns will Dividend Repurchase Flow (post net debt zero) occur after net-debt zero is Return Commitm
Slide 11: Exploring Growth Through Acquisition
EXPLORING GROWTH THROUGH ACQUISITION Intentional and selective approach to acquisitions ATTRACTIVE PROFILES & CRITERIA FOR CONSIDERATION: with clear objective of • High quality workforce and assets that • Earnings potential with visible capital value creation through reinforce or expand current repu
Slide 12: Financial Overview & Investment Thesis
FINANCIAL OVERVIEW & INVESTMENT THESIS 12
Slide 13: Fourth Quarter and Full Year 2022 Highlights
FOURTH QUARTER AND FULL YEAR 2022 HIGHLIGHTS Revenue ($s in Millions) Q4 2022 Highlights 25% 108% • Grew revenue and Adj EBITDA across all segments year over year in Q4 $154.3 $608.5 $123.1 $293.1 • Leveraged Free Cash Flow generation to repay $25 million of debt Q4 2021 Q4 2022 2021 2022 • Winter S
Slide 14: Adjusted EBITDA Growth Drivers
ADJUSTED EBITDA GROWTH DRIVERS Q4 Adjusted EBITDA Bridge ($s in Millions) FY2022 Adjusted EBITDA Bridge ($s in Millions) 14
Slide 15: 2023 Full Year Company Guidance
2023 FULL YEAR COMPANY GUIDANCE As of March 2023 • Improving asset utilization and operating efficiency will continue growth and margin expansion • Expect activity levels to ramp into 2Q, with 2Q and 3Q representing the seasonally strongest quarters for 2023 • Expected Adjusted EBITDA margins in 202
Slide 16: Investment Thesis
INVESTMENT THESIS Maximizing Returns Through Improved Asset Utilization • Significant opportunity for continued profitability growth through improved asset utilization, supported by opportunity for organic market share growth in existing markets • Attractive free cash flow generation creates multipl
Slide 17: Ranger Leads the Way
RANGER LEADS THE WAY
Slide 18: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 18
Slide 19: High-Specification Rig Segment Highlights
HIGH-SPECIFICATION RIG SEGMENT HIGHLIGHTS Revenue ($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 $72.6 • Rig hours increased from 111,600 in Q4 2021 to 113,600 in Q4 2022.
Slide 20: Wireline Service Segment Highlights
WIRELINE SERVICE SEGMENT HIGHLIGHTS Q4 Operational Results Revenue ($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 Storm Elliot in December resulting in 13 unplanned weather $48.3 0 $44.8 days
Slide 21: Processing Solutions & Ancillary Services Segment Highlights
PROCESSING SOLUTIONS & ANCILLARY SERVICES SEGMENT HIGHLIGHTS Revenue ($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 22: Historical Trends by Segment
HISTORICAL TRENDS BY SEGMENT Adjusted EBITDA Margin 60% 55% 25% 25% 22% 18% 21% 15% 13% 15% 9% 2% Revenue $MM $293 $197 $184 $132 $140 $118 $118 $99 $83 $35 $21 $7 2019 2020 2021 2022 High Spec Rigs Wireline Services Process Solutions & Ancillary Serices 22
Slide 23: Trended Segment Operating Metrics (Wireline)
TRENDED SEGMENT OPERATING METRICS (Wireline) Wireline Truck Capacity(1) 68 68 Major Wireline Acquisitions Stages Count 2018 9,800 NA 2019 16,700 70% 2020 13,900 -17% 41 13 13 11 28 2021 27,000 94% 11 7 7 2022 31,400 16% 2018 2019 2020 2021 2022 Active Wireline Trucks Available Wireline Trucks Note (
Slide 24: Adjusted EBITDA Reconciliations
ADJUSTED EBITDA RECONCILIATIONS Adjusted EBITDA We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed
Slide 25: Non-GAAP Reconciliation: Adjusted Net Debt
NON-GAAP RECONCILIATION: ADJUSTED NET DEBT 25
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