Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Q1 2023 Earnings Presentation
16 slides from Ranger Energy Services's earnings presentation, May 2, 2023
Slide 1: Q1 2023 Earnings
Q1 2023 Earnings May 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: Q1 2023 Financial Summary
Q1 2023 Financial Summary Revenue ($MM) Q1 2023 Highlights +27% $157.5 • Strong year-over-year growth across all segments $123.6 • Revenue up 27% y/y • Adjusted EBITDA up 109% y/y Q1 2022 Q1 2023 Adjusted EBITDA ($MM) • Adjusted EBITDA Margin up +500 bps y/y • Net Income of $6.2 million, or $0.25 pe
Slide 4: YoY Reconciliation
YoY Reconciliation Q1 Revenue Bridge Q1 Adjusted EBITDA Bridge 4
Slide 5: High-Specification Rigs Segment Highlights
High-Specification Rigs Segment Highlights Revenue ($MM) Q1 Operational Results $77.5 • Adj. EBITDA improved 23% Y/Y due to better pricing and +19% improved operating leverage $64.9 • Rig hours were steady Y/Y at 112,500, but revenue per rig Q1 2022 Q1 2023 hour increased by 19% from $577 to $689 du
Slide 6: Wireline Services Segment Highlights
Wireline Services Segment Highlights Q1 Operational Results Revenue ($MM) • Revenue increased 29% from $38.6M to $49.9M driven largely by $49.9 incremental pricing and production activity releases year over year $38.6 +29% • Adj. EBITDA increased $6.0 million due to increased operating activity and
Slide 7: Processing Solutions & Ancillary Services Segment Highlights
Processing Solutions & Ancillary Services Segment Highlights Revenue ($MM) Q1 Operational Results $30.1 • Revenues increased year-over-year across all business lines due to $20.1 +50% increases in operational activity: • Coil tubing (+$5.2m) • Plug and abandonment services (+$2.0m) • Rentals and fis
Slide 8: 2023 Guidance – Q1 Update
2023 Guidance – Q1 Update • Asset utilization and operating efficiency will push growth and margin expansion • Activity levels expected to ramp in 2Q and 3Q expected the seasonally strongest quarters • Adjusted EBITDA margins in 2023 of 13-15% • Capital expenditures and leases expected between $25-3
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities • Continued focus on deploying free cash flow to repay debt and optimize the capital structure for growth • Ranger intends to initiate a quarterly dividend program of $0.05 per share after achieving net debt zero target • Board authorized $35 million towards a share rep
Slide 10: 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 11: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 11
Slide 12: Ranger Business 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 13: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Three Months Ended March 31, 2023 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $11.9MM $1.8MM $3.4MM ($10.9MM) $6.2MM Interest expense, net - - - $1.2MM $1.2MM Income tax expense - - - $1.8M
Slide 14: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA Three Months Ended March 31, 2022 Processing High Wireline Solutions & Specification Other Total Services Ancillary Rigs Services Net income (loss) $7.7MM ($4.5MM) $1.3MM ($10.2MM) ($5.7MM) Interest expense, net - - - $2.1MM $2.1MM Income tax benefit - - - ($
Slide 15: Non-GAAP Reconciliation: Adjusted Net Debt
Non-GAAP Reconciliation: Adjusted Net Debt March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Debt and Other Obligations Credit facility - $1.4MM $24.9MM $33.9MM $44.8MM $27.0MM Eclipse Term Loan A $9.8MM $10.4MM $11.0MM $11.7MM $12.0MM $12.5MM Eclipse
Slide 16: Non-GAAP Reconciliation: Free Cash Flows
Non-GAAP Reconciliation: Free Cash Flows Three Months Ended March 31, March 31, 2023 2022 Net cash provided by operating activities $17.4MM ($12.1MM) Purchase of property and equipment ($5.4MM) ($1.6MM) Free cash Flow $12.0M M ($13.7M M ) 16
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