Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Investor Presentation (November 2022)
27 slides from Ranger Energy Services's investor presentation, November 2022
Slide 1: Ranger Investor Presentation
RANGER INVESTOR PRESENTATION November 2022
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 Ticker RNGR (NYSE) Service Offerings: Market Capitalization ~$265 million 11 Ancillary Debt ~$45 million Services High Spec Rig Liquidity ~$35 million 19% Operational Services Assets: 2022E 50% ~5,000 Revenue Wireline ~$620M Operating RANGER Services 31% Locations: 25 AT A GLANCE Inv
Slide 4: Ranger Business Overview
OVERVIEW RANGER BUSINESS High Spec Rigs WIRELINE SERVICES • High-Spec Rig Services • Plug and Perf • Completion related drill-outs • Pump-Down Services • Workovers and well maintenance • Cement and Casing Evaluation • Intervention Services ANCILLARY SERVICES • Rig-Assist Snubbing • Coiled Tubing • R
Slide 5: Value Proposition
VALUE PROPOSITION OPPORTUNITIES PROVEN THROUGH CYCLE STRONG CASH FLOW FOR GROWTH & CONSOLIDATION PERFORMANCE GENERATION OPTIMIZATION PLATFORM Since the Initial Public Offering in 2017, the Ranger business has demonstrated its ability to generate strong returns, weather significant market pressures a
Slide 6: Production Services with Completions Exposure
PRODUCTION SERVICES WITH COMPLETIONS EXPOSURE 1) Well Completion Support 3) Workovers and Recompletions • Completion services utilized during and after hydraulic • Well work providing operators with low-cost incremental barrels fracturing, but prior to placing a well into production • Recompletion o
Slide 7: Lateral Wells Necessitate More Maintenance
LATERAL WELLS NECESSITATE MORE MAINTENANCE DEMAND GROWING AROUND PRODUCTION SPENDING • >150,000 horizontal wells currently producing with modern, extended lateral, horizontal well designs being utilized by U.S. E&P Operators which require High-Spec Service Rigs and support equipment • Extended reach
Slide 8: Value Proposition
VALUE PROPOSITION OPPORTUNITIES PROVEN THROUGH CYCLE STRONG CASH FLOW FOR GROWTH & CONSOLIDATION PERFORMANCE GENERATION OPTIMIZATION PLATFORM Ranger has been intentional in maintaining and acquiring operational assets that provide substantial capacity to grow its existing business lines without sign
Slide 9: Ranger High Spec Rig Presence
RANGER HIGH SPEC RIG PRESENCE RANGER HAS THE HIGHEST ACTIVE RIG COUNT IN THE SPACE WITH ~165 ACTIVE RIGS OPERATING AT THE END OF OCTOBER 2022. Well Servicing Rig Market Operational Rig Count for Large Providers 1000 – 1200 total rigs 15%-20% Mkt Share Other Providers ~165 Rigs 40% to 50% Leading Ser
Slide 10: Ranger High Spec Rigs Growth Potential
RANGER HIGH SPEC RIGS GROWTH POTENTIAL WELL SERVICING BUSINESS CAN GROW UP TO 20% IN ACTIVITY LEVELS WITH EXISTING AVAILABLE RIG CAPACITY (1). Well Services Revenue(1) (in millions) $365 $280 $150 Well Services EBITDA(1) $132 $140 (in millions) $83 $17 $14 $14 2018 2019 2020 2021 3Q22 Future $9 TTM
Slide 11: Wireline Service Utilization
WIRELINE SERVICE UTILIZATION WIRELINE HAS CAPACITY TO GROW REVENUE UP TO 30% THROUGH INCREASED UTILIZATION OF EXISTING AVAILABLE ASSETS. Wireline Truck Capacity(1) 68 68 Major Wireline Acquisitions 45 11 13 13 28 7 11 7 (2) 2018 2019 2020 2021 2022 Active Wireline Trucks Available Wireline Trucks No
Slide 12: Wireline Service Growth Potential
WIRELINE SERVICE GROWTH POTENTIAL Wireline Revenue(1) $260 (in millions) $193 $136 Wireline EBITDA(1) $105 (in millions) $79 25% $64M 19% 2019 2020 2021 3Q22 Future $46M TTM Opportunity $39 / 29% $23 / 29% $2 / 2% $15 / 8% EBITDA / % 9% $17M 2Q22 3Q22 Future Annualized Annualized Opportunity EBITDA
Slide 13: Ancillary Business Potential
ANCILLARY BUSINESS POTENTIAL P&A Revenue(1) (in millions, per quarter) RANGER HAS DOUBLED THE SIZE OF ITS FISHING AND $8 >$9 RENTAL BUSINESS SINCE ACQUIRING THE BASIC ASSETS $7 WITH CAPACITY OF > $48MM PER ANNUM. $6 $6 Fishing and Rentals Revenue(1) (in millions, per quarter) >$12 $10 $9 4Q21 1Q22 2
Slide 14: Growth in Action
GROWTH IN ACTION RANGER MADE INTENTIONAL INVESTMENTS INTO THE BASIC COIL TUBING ASSETS IN THE FALL OF 2021 WITH THE RIGHT MANAGEMENT AND FOCUS; WE BELIEVE OUR EFFORTS HAVE PAID OFF FOR THE COMPANY. Coil Tubing Revenue Replacement Asset Value: ~$35MM (in millions) $13 Purchase Price: $2MM $9 Estimate
Slide 15: Consolidated Available Capacity
CONSOLIDATED AVAILABLE CAPACITY RANGER CAN GROW SIGNIFICANTLY ACROSS PRODUCT LINES WITH EXISTING ASSET CAPACITY. MARKET CONDITIONS WILL DICTATE THE PACE OF THAT GROWTH IN FUTURE PERIODS. 2022 Ancillary Estimate High Spec Rigs Wireline $620 Services Consolidated Asset Capacity(1) (in millions) Availa
Slide 16: Value Proposition
VALUE PROPOSITION PROVEN THROUGH CYCLE OPPORTUNITIES STRONG CASH FLOW CONSOLIDATION PERFORMANCE TO OPTIMIZE GENERATION PLATFORM Ranger has exercised financial prudence over the years, paying down debt and generating cash. Cash flows from operations and more recently, free cash flow generation, have
Slide 17: Strong Earnings Profile
STRONG EARNINGS PROFILE THE COMPANY ANTICIPATES GROWING REVENUE BY APPROXIMATELY 110% AND ADJUSTED EBITDA BY APPROXIMATELY 500% YEAR OVER YEAR. Consolidated Company Performance (revenue and EBITDA, in millions) 15% $620 13% 14% 13% 12% $454 $337 $303 $293 $188 4% $51 $58 ~$80 $41 $22 $13 2018 2019 2
Slide 18: Track Record of Cash Flow Generation
TRACK RECORD OF CASH FLOW GENERATION RANGER HAS CONSISTENTLY PRODUCED CASH FLOWS OF MORE THAN 10% AGAINST CAPITAL EMPLOYED AND CONVERTED EBITDA TO CASH AT AN AVERAGE RATE OF 77%. Debt: Repaid over $50 million of debt since 2018. Cash Flow from Operations Basic, PerfX (in millions) & Patriot Acquisit
Slide 19: Value Proposition
VALUE PROPOSITION PROVEN THROUGH CYCLE OPPORTUNITIES STRONG CASH FLOW CONSOLIDATION PERFORMANCE TO OPTIMIZE GENERATION PLATFORM During 2021, Ranger acquired three companies across two service lines and has demonstrated a strong return profile and value capture from consolidation as well as successfu
Slide 20: Proven Track Record – Basic Assets
PROVEN TRACK RECORD – BASIC ASSETS RANGER INVESTED $40MM TO PURCHASE CERTAIN ASSETS OF BASIC ENERGY IN 2021. THESE ASSETS HAVE GENERATED APPROXIMATELY $38MM of EBITDA OVER THAT SAME PERIOD RETURNING 95% OF THE TOTAL INVESTMENT IN 12 MONTHS. Investment Elements Amount Purchase Price $41.0MM Transacti
Slide 21: Proven Track Record – Patriot Assets
PROVEN TRACK RECORD – PATRIOT ASSETS RANGER INVESTED $11.6MM IN PATRIOT DURING 2021. THESE ASSETS HAVE GENERATED APPROXIMATELY $12MM of EBITDA OVER THAT SAME PERIOD RETURNING OVER 100% OF THE TOTAL INVESTMENT IN THE 15 MONTHS. Performance (in millions) $15 $9 Investment Elements Amount $7 $6 $6 Purc
Slide 22: Platform for Consolidation & Growth
PLATFORM FOR CONSOLIDATION & GROWTH RANGER INTENDS TO REMAIN HIGHLY SELECTIVE WHEN LOOKING FOR STRATEGIC OPPORTUNITIES ATTRACTIVE PROFILES & CRITERIA FOR CONSIDERATION: • High quality workforce and assets that reinforce or expand current reputation • Committed and experienced management to support t
Slide 23: Value Proposition
VALUE PROPOSITION PROVEN THROUGH CYCLE OPPORTUNITIES STRONG CASH FLOW CONSOLIDATION PERFORMANCE TO OPTIMIZE GENERATION PLATFORM RANGER LEADS THE WAY 23
Slide 24: Ranger Leads the Way
RANGER LEADS THE WAY
Slide 25: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 25
Slide 26: EBITDA Reconciliations
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 above fro
Slide 27: EBITDA Reconciliations
EBITDA RECONCILIATIONS BASIC ASSETS 4Q21 1Q22 2Q22 3Q22 Total Net income (loss) $8MM $7MM $11MM $12MM $38MM Depreciation and amortization - - - - - Interest expense, net - - - - - Impairment of fixed assets - - - - - Tax benefit - - - - - EBITDA $8MM $7MM $11MM $12MM $38MM Adjusted EBITDA $8MM $7MM
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