Ranger Energy Services, Inc. · NYSE:RNGR
Ranger Energy Services — Investor Presentation (June 2023)
24 slides from Ranger Energy Services's investor presentation, June 2023
Slide 1: Ranger Investor Presentation June 2023
RANGER INVESTOR PRESENTATION June 2023
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES Forward-Looking Statements: The informationin this presentationincludes“forward-lookingstatements.” All statements,other than statementsof historicalfact includedin this presentation,regardingour strategy,our expectedresultsof operations,cashflows,future operations,financialpos
Slide 3: Ranger at a Glance
Segment Profile RANGER AT A GLANCE Market leading provider of oil & gas Revenue by Segment % of Total 1Q 2023 Net Revenue support services with ~2,000 employees and 5,000 operational Processing assets. solutions and . ancillary services Operating in 25 locations across 8 19% High- basins, RNGR’s
Slide 4: Ranger Services U.S. Onshore Horizontal Wells
RANGER SERVICES U.S. ONSHORE HORIZONTAL WELLS WELL SERVICE DEMAND GROWS ANNUALLY U.S. PRODUCTION DECLINE ENSURES NEW DRILLING • >160,000 modern, extended lateral, horizontal • Without new drilling, U.S. horizontal oil production wells currently producing onshore U.S., which would drop by 43% in one
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 Market Share
RANGER HIGH-SPEC RIG MARKET SHARE RANGER HAS THE HIGHEST ACTIVE RIG COUNT IN THE INDUSTRY WITH ~165 ACTIVE RIGS. Well Servicing Rig Market Operational Rig Count for Large Providers 1000 – 1200 total rigs 15% - 20% Mkt Share Other Providers Leading Service ~165 Rigs 40% to 50% Providers (20+ 50% to 6
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: 2023 Year to Date Accomplishments
2023 YEAR TO DATE ACCOMPLISHMENTS CONTINUED STRONG BUSINESS PERFORMANCE • High-Spec Rigs segment outperforming expectations with new rig activations despite market pressure • Continuing to reduce Adjusted Net Debt with paydown of $13.1 million in Q1 2023 • Free cash flow of $12.0 million in Q1, or 6
Slide 9: Improving Cash Flow Through Utilization
IMPROVING CASH FLOW THROUGH UTILIZATION Opportunity to grow High Specification Rig Adj EBITDA(1) $s in Millions revenues & profitability through deployment of $61 additional assets available $12 $21 for activation 2020 2021 2022 Wireline Services Adj EBITDA(1) • Ability to improve utilization $s in
Slide 10: Fortifying the Balance Sheet
FORTIFYING THE BALANCE SHEET Added leverage to execute on strategic transactions Total Adjusted Net Debt(1) $s in Millions and have quickly repaid $79.9 $72.3 debt from resulting free $57.3 $58.3 cash flow; targeting net $45.2 $29.8 debt zero in 2Q 2023. $27.0 $22.4 $9.3 1Q21 2Q21 3Q21 4Q21 1Q22 2Q2
Slide 11: Attractive Capital Returns Framework
ATTRACTIVE CAPITAL RETURNS FRAMEWORK Focus is on balanced capital returns and maximizing ROIC $0.05 $35 million >25% FCF Initiating Quarterly Authorized Share Return Commitment • Announced capital returns Dividend Repurchase program in conjunction with visibility toward net-debt zero in 2Q23 • Frame
Slide 12: Exploring Growth Through Acquisition
EXPLORING GROWTH THROUGH ACQUISITION Intentional and selective approach to acquisitions ATTRACTIVE PROFILES & CRITERIA FOR CONSIDERATION: with clear objective of • High quality workforce and assets that • Earnings potential with visible value creation through reinforce or expand current reputation c
Slide 13: Financial Overview & Investment Thesis
FINANCIAL OVERVIEW & INVESTMENT THESIS 13
Slide 14: First Quarter 2023 Financial Highlights
FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS Revenue ($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 milli
Slide 15: Q1 Y/Y Revenue & EBITDA Reconciliation
Q1 Y/Y REVENUE & EBITDA RECONCILIATION Q1 Revenue Bridge Q1 Adjusted EBITDA Bridge 15
Slide 16: 2023 Guidance
2023 GUIDANCE • 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 -15% 13 • Capital expenditures and leases expected between -35 $25 million,
Slide 17: Investment Thesis
INVESTMENT THESIS Maximizing Returns Through Improved Asset Utilization • Significant opportunity for continued profitability growth through improved asset utilization, supported by opportunity rganic for o market share growth in existing markets • Attractive free cash flow generation creates multip
Slide 18: Ranger Leads the Way
RANGER LEADS THE WAY
Slide 19: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION 19
Slide 20: High-Specification Rigs Segment Highlights
HIGH-SPECIFICATION RIGS SEGMENT HIGHLIGHTS Revenue ($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 $689 du
Slide 21: Wireline Services Segment Highlights
WIRELINE SERVICES SEGMENT HIGHLIGHTS Q1 Operational Results Revenue ($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 $6.0 million due to increased operating activity and
Slide 22: Processing Solutions & Ancillary Services Segment Highlights
PROCESSING SOLUTIONS & ANCILLARY SERVICES SEGMENT HIGHLIGHTS Revenue ($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 23: 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 performancewhen comparedto our peers,without regard to our financingmethods or capital structure. We excludethe items listed above
Slide 24: 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
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