Ranger Energy Services, Inc. (NYSE: RNGR) (“Ranger” or the
“Company”) announced today its results for the second quarter ended
June 30, 2023.
Second Quarter 2023 Highlights
- Revenue of $163.2 million, a 6% increase from $153.6 million in
second quarter 2022
- Net income of $6.1 million, or $0.24 per fully diluted share,
up from a net loss of $0.4 million, or $0.02 loss per share in
second quarter of 2022
- Adjusted EBITDA1 of $21.9 million, a 22% increase from $18.0
million in second quarter 2022 driven by increases in activity and
pricing across segments
- Returned $5.9 million of capital to shareholders through share
repurchases representing 37% of free cash flow during the
quarter.
- Ended the quarter with debt of $0.3 million, marking the
achievement of the Company’s stated goal of net debt zero.
- Initiating a quarterly dividend of $0.05 per share of common
stock, payable on September 8, 2023 to all stockholders of record
as of August 18, 2023
Year to Date 2023 Highlights
- Revenue of $320.7 million, a 16% increase from $277.2 million
in the prior year
- Net income of $12.3 million, a 302% increase from a net loss of
$6.1 million in the prior year
- Adjusted EBITDA of $42.0 million, a 52% increase from $27.6
million in the prior year driven by increases in activity and
pricing across segments
________________ 1
“Adjusted EBITDA” and “Free Cash Flow” are
not presented in accordance with generally accepted accounting
principles in the United States (“U.S. GAAP”). A Non-GAAP
supporting schedule is included with the statements and schedules
attached to this press release and can also be found on the
Company's website at: www.rangerenergy.com.
Comments
Stuart Bodden, Ranger’s Chief Executive Officer, commented, “We
are pleased to report another quarter of strong financial
performance. Despite facing commodity price and reduced activity
headwinds during the second quarter affecting the pace of our
planned growth for the year, our team's resilience and strategic
focus enabled us to achieve a 6% increase in revenue and an
impressive 22% increase in adjusted EBITDA compared to the same
period last year. While natural gas basins have remained under
pressure, our reputation for industry leading service quality has
allowed us to successfully reposition assets into oilier basins and
hold pricing steady. Although rig hours were generally flat through
the first half of the year, we are encouraged by the opportunity to
increase rig activity in the second half of the year and have
recently seen stabilization in the wireline market.
“Most notably during the quarter, we achieved our goal of
becoming net debt zero, having paid down over $56 million in debt
in the past twelve months. This tremendous accomplishment
highlights the effectiveness of our strategy and the superior cash
flow conversion that results from our business model. During the
second quarter, we repurchased approximately $6 million of Ranger
stock, equivalent to 37% of our second quarter free cash flow, and
will continue to actively repurchase our stock based on market
conditions. I am also pleased to announce that Ranger’s Board of
Directors has approved the payment of the Company’s first quarterly
dividend of $0.05 per share of common stock to be paid out in the
third quarter.
“Our continued strong operating and financial performance is a
testament to our exceptional people and the differentiated value of
our production cycle focus providing resiliency through cycle. We
are encouraged as we look to the second half of the year by several
customer discussions in flight that signal more revenue growth in
the future, and we expect seasonal trends to drive increased
activity in the third quarter. Taken together, we have confidence
in our business model and our strong cash flow conversion, which we
have demonstrated through our commitment to shareholder
returns.”
STRATEGIC UPDATE
Ranger’s four pillar strategy for creating shareholder value
are: maximizing cash flow, fortifying its balance sheet, growing
through acquisition, and returning meaningful capital to
shareholders. We made progress in each of these areas during the
second quarter of 2023.
- Maximizing Cash Flow: The Company’s focus on cash flow
generation is underpinned by a capital efficient business model
with strong operating leverage. The Company generated $16 million
of free cash flow during the second quarter and has generated $28
million of free cash flow on a year to date basis yielding a free
cash flow conversion rate of 67%. Initiatives are underway this
year to improve market penetration and operating efficiency across
all segments, along with efforts to diminish the impact of
seasonality in our wireline business.
- Fortifying the Balance Sheet: During the second quarter,
the Company reduced debt by $15.5 million and ended the quarter
essentially debt free. The Company believes that minimal debt
provides the ability to maximize shareholder returns through
opportunistic investment and capital returns to shareholders.
- Exploring Growth Through Acquisition: Ranger has
demonstrated a successful track record of making attractive asset
acquisitions and consolidating businesses. During the second
quarter, the Company saw an increase in inquiries and continued to
evaluate opportunities. One such tuck-in opportunity was recently
signed for $7.25 million of pump down assets and support equipment
with payback of less than two years. Ranger is committed to
pursuing a disciplined acquisition strategy rooted in maximizing
long-term value.
- Initiating Capital Return Framework: The Company
previously announced a share repurchase and dividend framework that
it believes provides the best overall value creation potential for
investors with a commitment to return at least 25% of annual cash
flows. During the second quarter, the Company repurchased 508,700
shares of its Class A common stock at an average of $10.87 per
share, representing 2% of shares outstanding. The Company intends
to continue repurchasing shares in future quarters and is
continuing to evaluate the best mechanism to do so. In addition,
the Company will declare its first quarterly dividend of $0.05 per
share to holders of record in the third quarter.
PERFORMANCE SUMMARY
For the second quarter of 2023, revenue was $163.2 million, an
increase of 6% from $153.6 million in the prior year period. The
increase in revenue compared to the prior year primarily reflects
improvements across all lines of businesses. Year to date revenue
was $320.7 million, an increase of 16% from $277.2 million in the
prior year due to increasing operating activity and pricing
improvements in select service lines.
Cost of services for the second quarter of 2023 was $136.3
million, or 84% of revenue, compared to $130.0 million, or 85% of
revenue in the prior year period. The decrease in cost of services
as a percentage of revenue was primarily attributable to operating
leverage from incremental revenue, improved operating efficiency as
well as pricing improvement offset by higher employee medical
costs. On a year to date basis, cost of services totaled $267.2
million, which represented 83% of revenue as compared to $238.0
million, or 86% of revenue in 2022. Operating margins improved by
3% year over year due to strong operating leverage on incremental
revenue as well as improving pricing. Offsetting these
improvements, the Company experienced a $3.3 million year over year
increase in employee medical costs across segments with per
employee costs increasing by over 45% as compared to the prior
year. The Company believes that the a significant portion of these
increases are unusual in nature and should not be recurring.
General and administrative expenses were $7.3 million for the
second quarter of 2023 compared to $11.2 million in the prior year
period. The decrease in general and administrative expenses was
primarily due to a decrease in acquisition and integration costs
related to the Basic Asset Acquisition in the prior year period.
General and administrative expenses year to date totaled $15.7
million. This compares to general and administrative expenses of
$21.4 million in 2022.
Net income totaled $6.1 million for the second quarter of 2023
compared to a loss of $0.4 million for the second quarter of 2022.
The increase in net income relative to the prior year period is
primarily due to the increase in profit margins for both the High
Specification Rigs and Wireline Services segments of our business.
Net income, on a year to date basis, tripled year over year from a
loss of $6.1 million in 2022 to a net income of $12.3 million year
to date in 2023.
Fully diluted earnings per share was $0.24 for the second
quarter of 2023 compared to a loss per share of $0.02 in the prior
year period. Fully diluted earnings per share for year to date was
$0.49 compared to a diluted loss per share of $0.29 in the prior
year
Adjusted EBITDA of $21.9 million for the second quarter of 2023
increased $3.9 million when compared to the second quarter of 2022.
The increase in Adjusted EBITDA was primarily the result of
increased operating activity in certain service lines as well as
improved pricing and operating efficiency, offset by significantly
higher employee medical costs, some of which is expected to be
non-recurring. Year to date Adjusted EBITDA was $42.0 million on a
year to date basis in 2023, an increase of $14.4 million when
compared to the prior year to date period.
BUSINESS SEGMENT FINANCIAL RESULTS
High Specification Rigs
High Specification Rigs segment revenue was $77.6 million in the
second quarter, an increase of $1.6 million, or 2% relative to the
second quarter of 2022. Hourly rig rates were $687 per hour in the
second quarter as compared to $632 per hour in the second quarter
of 2022 reflecting an increase in pricing as well as reduced
downtime and heightened efficiency from better rig scheduling and
logistics management. Rig hours decreased to 113,200 rig hours in
the second quarter compared to 119,900 rig hours in the second
quarter of 2022. Segment revenue for year to date was $155.1, an
increase of $14.20, or 10% relative to year to date 2022. Rig hours
decreased by 3% from 232,400 for year to date 2022 to 225,700 for
year to date 2023. Hourly rig rates increased by 14% from $606 per
hour for the year to date 2022 to $688 per hour for year to date
2023.
Operating income was $11.5 million in the second quarter, an
increase of $5.4 million, or 89% relative to $6.1 million in the
second quarter of 2022. Adjusted EBITDA was $15.6 million in the
second quarter, up from $14.2 million in the second quarter of
2022. Operating income was $23.4 million for year to date 2023, an
increase of 9.6, or 70% relative to $13.8 million for year to date
2022. Adjusted EBITDA was $33.0 million for year to date 2023, up
from $28.3 million in year to date 2022. The increase in operating
income and Adjusted EBITDA was largely the result of improved
pricing and rig efficiency.
Wireline Services
Wireline Services segment revenue was $54.5 million, up $5.0
million, or 10% in the second quarter, from $49.5 million in the
second quarter of 2022. The increase in revenue reflects an
increase in operating activity in certain operating geographies as
well as improved pricing on a year over year basis. Year to date
segment revenue was $104.4 million, up $16.3 million or 19% year to
date 2023 compared to $88.1 million for the comparable period in
2022. Completed stage counts decreased by 10% from 15,400 for the
2022 year to date period, compared to 13,800 for the year to date
2023 period. The increase in revenue and decrease in stage count is
indicative of improvements made in pricing levels and pricing terms
with customers.
Operating income was $2.8 million, up $1.3 million, or 87% in
the second quarter, from $1.5 million in the second quarter of
2022. Adjusted EBITDA was $5.7 million in the second quarter, up
from $4.3 million in the prior year period. Operating income was
$4.6 million, up $7.6 million, or 253% for year to date 2023, from
an operating loss of $3.0 million for year to date 2022. Adjusted
EBITDA was $9.9 million for year to date 2023, up from $2.5 million
for year to date 2022. Improved profitability in this segment is
driven by both an increase in stage count pricing on a year over
year basis as well as a series of cost savings initiatives that
were put into place.
Processing Solutions and Ancillary Services
Processing Solutions and Ancillary Services segment revenue was
$31.1 million in the second quarter, up $3.0 million, or 11% from
$28.1 million in the second quarter of 2022. Segment revenue was
$61.2 million for year to date 2023, up $13.0 million, or 27% from
$48.2 million for year to date 2022. The increase in revenue was
attributable to the increase in operational activity across all
lines of business including coil tubing, processing solutions,
rentals and fishing, and plug and abandonment services.
Operating income was $4.2 million in the second quarter, down
from $5.1 million in the prior year period. Adjusted EBITDA was
$5.6 million in the second quarter, compared to $5.1 million in the
second quarter of 2021. Operating income was $7.6 million for year
to date 2023, up from $6.4 million in the prior year period.
Adjusted EBITDA was $10.6 million for year to date 2023, compared
to $8.4 million in the prior year period. This segment has seen
profitability improvement year over year due to increased activity
levels across the various service lines.
BALANCE SHEET, CASH FLOW AND LIQUIDITY
As of June 30, 2023, the Company had $69.1 million of liquidity,
consisting of $62.7 million of capacity on its revolving credit
facility and $6.4 million of cash on hand. This compares favorably
to the prior year period end of June 30, 2022 when the Company had
$28.3 million of liquidity, consisting of $23.2 million of capacity
on its revolving credit facility and $5.1 million of cash on
hand.
The Company had total debt of $0.3 million compared to total
debt of $18.4 million at December 31, 2022, a reduction of 98%.
Year to date Cash from Operating Activities was $40.9 million,
compared to $7.8 million over the same period in 2022. The
Company’s free cash flow(1) improved significantly to $28.0 million
on a year to date basis compared to free cash flow(1) of $2.1
million in the prior year. On a year to date basis, the Company had
capital expenditures of $12.9 million with proceeds from asset
sales of $4.7 million.
FINANCIAL GUIDANCE
Based on the most recent forecasts, the Company believes that
its Adjusted EBITDA and Free Cash Flow guidance remain achievable
at the lower end of the published ranges. Guidance ranges have been
narrowed and adjusted accordingly. The third quarter is anticipated
to be similar to the prior year and the fourth quarter is
anticipated to be improved from the prior year barring any extreme
weather events. The Company continues to expect full-year 2023 free
cash flow conversion to be approximately 60%. A summary of Company
guidance follows representing current views which are subject to
change.
($ in Millions)
FY 2022 Actual
FY 2023 Forecast
Updated
FY 2023 Forecast
Revenue
$608.5
$685 - $715
$660 - $680
Adjusted EBITDA
$79.5
$95 - $105
$92 - $97
Free Cash Flow
$30.7
$55 - $70
$55 - $65
Capital Expenditures and Leases
$19.1
$25 - $35
$25 - $35
Conference Call
The Company will host a conference call to discuss its results
from the second quarter of 2023 on Tuesday, August 8, 2023, at 9:00
a.m. Central Time (10:00 a.m. Eastern Time). To join the conference
call from within the United States, participants may dial
1-833-255-2829. To join the conference call from outside of the
United States, participants may dial 1-412-902-6710. When
instructed, please ask the operator to join the Ranger Energy
Services, Inc. call. Participants are encouraged to login to the
webcast or dial in to the conference call approximately ten minutes
prior to the start time. To listen via live webcast, please visit
the Investor Relations section of the Company’s website,
http://www.rangerenergy.com.
An audio replay of the conference call will be available shortly
after the conclusion of the call and will remain available for
approximately seven days. The replay will also be available in the
Investor Resources section of the Company’s website shortly after
the conclusion of the call and will remain available for
approximately seven days.
About Ranger Energy Services, Inc.
Ranger is one of the largest providers of high specification
mobile rig well services, cased hole wireline services, and
ancillary services in the U.S. oil and gas industry. Our services
facilitate operations throughout the lifecycle of a well, including
the completion, production, maintenance, intervention, workover and
abandonment phases.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained in this press release constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements represent
Ranger’s expectations or beliefs concerning future events, and it
is possible that the results described in this press release will
not be achieved. These forward-looking statements are subject to
risks, uncertainties and other factors, many of which are outside
of Ranger’s control that could cause actual results to differ
materially from the results discussed in the forward-looking
statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, Ranger does not
undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. New factors emerge from time to time, and it is not
possible for Ranger to predict all such factors. When considering
these forward-looking statements, you should keep in mind the risk
factors and other cautionary statements in our filings with the
Securities and Exchange Commission. The risk factors and other
factors noted in Ranger’s filings with the SEC could cause its
actual results to differ materially from those contained in any
forward-looking statement.
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share and
per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
High specification rigs
$
77.6
$
76.0
$
155.1
$
140.9
Wireline services
54.5
49.5
104.4
88.1
Processing solutions and ancillary
services
31.1
28.1
61.2
48.2
Total revenue
163.2
153.6
320.7
277.2
Operating expenses
Cost of services (exclusive of
depreciation and amortization):
High specification rigs
62.0
61.8
122.1
112.6
Wireline services
48.8
45.2
94.5
85.6
Processing solutions and ancillary
services
25.5
23.0
50.6
39.8
Total cost of services
136.3
130.0
267.2
238.0
General and administrative
7.3
11.2
15.7
21.4
Depreciation and amortization
8.7
11.4
18.7
23.0
Impairment of fixed assets
—
1.1
—
1.1
(Gain) loss on sale of assets
(0.5
)
2.1
(1.5
)
1.1
Total operating expenses
151.8
155.8
300.1
284.6
Operating income (loss)
11.4
(2.2
)
20.6
(7.4
)
Other (income) expenses
Interest expense, net
0.9
1.8
2.1
3.9
Loss on debt retirement
2.4
—
2.4
—
Gain on bargain purchase, net of tax
—
(2.8
)
—
(2.8
)
Total other (income) expenses, net
3.3
(1.0
)
4.5
1.1
Income (loss) before income tax expense
(benefit)
8.1
(1.2
)
16.1
(8.5
)
Income tax expense (benefit)
2.0
(0.8
)
3.8
(2.4
)
Net income (loss)
6.1
(0.4
)
12.3
(6.1
)
Income (loss) per common share:
Basic
$
0.25
$
(0.02
)
$
0.49
$
(0.29
)
Diluted
$
0.24
$
(0.02
)
$
0.49
$
(0.29
)
Weighted average common shares
outstanding
Basic
24,840,569
23,581,466
24,890,178
21,041,300
Diluted
25,188,123
23,581,466
25,249,026
21,041,300
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in millions, except share and
per share amounts)
June 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
6.4
$
3.7
Accounts receivable, net
74.9
91.2
Contract assets
31.1
26.9
Inventory
7.5
5.9
Prepaid expenses
7.2
9.2
Assets held for sale
1.0
3.2
Total current assets
128.1
140.1
Property and equipment, net
218.8
221.6
Intangible assets, net
6.7
7.1
Operating leases, right-of-use assets
10.0
11.2
Other assets
1.2
1.6
Total assets
$
364.8
$
381.6
Liabilities and Stockholders'
Equity
Accounts payable
22.0
24.3
Accrued expenses
31.1
36.1
Other financing liability, current
portion
0.6
0.7
Long-term debt, current portion
0.3
6.8
Other current liabilities
6.3
6.6
Total current liabilities
60.3
74.5
Operating leases, right-of-use
obligations
8.4
9.6
Other financing liability
11.3
11.6
Long-term debt, net
—
11.6
Other long-term liabilities
10.8
8.1
Total liabilities
$
90.8
$
115.4
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.01 per share;
50,000,000 shares authorized; no shares issued and outstanding as
of June 30, 2023 and December 31, 2022
—
—
Class A Common Stock, $0.01 par value,
100,000,000 shares authorized; 25,689,807 shares issued and
24,589,879 shares outstanding as of June 30, 2023; 25,446,292
shares issued and 24,894,464 shares outstanding as of December 31,
2022
0.3
0.3
Class B Common Stock, $0.01 par value,
100,000,000 shares authorized; no shares issued or outstanding as
of June 30, 2023 and December 31, 2022
—
—
Less: Class A Common Stock held in
treasury at cost; 1,099,928 treasury shares as of June 30, 2023 and
551,828 treasury shares as of December 31, 2022
(9.7
)
(3.8
)
Retained earnings
19.5
7.1
Additional paid-in capital
263.9
262.6
Total controlling stockholders' equity
274.0
266.2
Total liabilities and stockholders'
equity
$
364.8
$
381.6
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
Six Months Ended June
30,
2023
2022
Cash Flows from Operating
Activities
Net income (loss)
$
12.3
$
(6.1
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
18.7
23.0
Equity based compensation
2.4
1.7
(Gain) loss on disposal of property and
equipment
(1.5
)
1.1
Impairment of fixed assets
—
1.1
Gain on bargain purchase, net of tax
—
(2.8
)
Deferred income tax expense
3.8
—
Loss on debt retirement
2.4
—
Other expense, net
0.9
0.6
Changes in operating assets and
liabilities
Accounts receivable
15.8
(3.7
)
Contract assets
(4.2
)
(14.5
)
Inventory
(1.8
)
(1.7
)
Prepaid expenses and other current
assets
2.0
5.0
Other assets
0.9
(1.2
)
Accounts payable
(2.3
)
6.2
Accrued expenses
(7.2
)
—
Other current liabilities
(0.1
)
(0.2
)
Other long-term liabilities
(1.2
)
(0.7
)
Net cash provided by operating
activities
40.9
7.8
Cash Flows from Investing
Activities
Purchase of property and equipment
(12.9
)
(5.7
)
Proceeds from disposal of property and
equipment
4.7
13.9
Net cash provided by (used in)
investing activities
(8.2
)
8.2
Cash Flows from Financing
Activities
Borrowings under Credit Facility
298.6
283.3
Principal payments on Credit Facility
(301.1
)
(276.4
)
Principal payments on Eclipse M&E Term
Loan
(10.4
)
(0.8
)
Principal payments under Eclipse Term Loan
B
—
(9.4
)
Principal payments on Secured Promissory
Note
(6.2
)
(2.7
)
Principal payments on financing lease
obligations
(2.7
)
(2.3
)
Principal payments on other financing
liabilities
(0.5
)
(1.8
)
Shares withheld on equity transactions
(0.9
)
(1.2
)
Payments on Installment Purchases
(0.2
)
(0.2
)
Repurchase of Class A Common Stock
(5.9
)
—
Deferred financing costs on Wells
Fargo
(0.7
)
—
Net cash used in financing
activities
(30.0
)
(11.5
)
Increase in cash and cash
equivalents
2.7
4.5
Cash and cash equivalents, Beginning of
Period
3.7
0.6
Cash and cash equivalents, End of
Period
$
6.4
$
5.1
Supplemental Cash Flow
Information
Interest paid
$
0.6
$
0.6
Supplemental Disclosure of Non-cash
Investing and Financing Activities
Additions to fixed assets through
installment purchases and financing leases
$
(3.4
)
$
(2.0
)
Additions to fixed assets through asset
trades
$
(1.1
)
$
—
RANGER ENERGY SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Note Regarding Non‑GAAP Financial Measure
The Company utilizes certain non-GAAP financial measures that
management believes to be insightful in understanding the Company’s
financial results. These financial measures, which include Adjusted
EBITDA and Free Cash Flow, should not be construed as being more
important than, or as an alternative for, comparable U.S. GAAP
financial measures. Detailed reconciliations of these Non-GAAP
financial measures to comparable U.S. GAAP financial measures have
been included below and are available in the Investor Relations
sections of our website at www.rangerenergy.com. Our presentation
of Adjusted EBITDA and Free Cash Flow should not be construed as an
indication that our results will be unaffected by the items
excluded from the reconciliations. Our computations of these
Non-GAAP financial measures may not be identical to other similarly
titled measures of other companies.
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
below from net income or loss in arriving at Adjusted EBITDA
because these amounts can vary substantially within our industry
depending upon accounting methods, book values of assets, capital
structures and the method by which the assets were acquired.
Certain items excluded from Adjusted EBITDA are significant
components in understanding and assessing a company’s financial
performance, such as a company’s cost of capital and tax structure,
as well as the historic costs of depreciable assets, none of which
are reflected in Adjusted EBITDA.
We define Adjusted EBITDA as net income or loss before net
interest expense, income tax provision or benefit, depreciation and
amortization, equity‑based compensation, acquisition-related,
severance and reorganization costs, gain or loss on disposal of
assets, and certain other non-cash items that we do not view as
indicative of our ongoing performance.
The following tables are a reconciliation of net income or loss
to Adjusted EBITDA for the respective periods:
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary 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
—
—
—
2.0
2.0
Depreciation and amortization
4.1
2.9
1.4
0.3
8.7
EBITDA
15.6
5.7
5.6
(9.2
)
17.7
Equity based compensation
—
—
—
1.2
1.2
Loss on retirement of debt
—
—
—
2.4
2.4
Gain on disposal of property and
equipment
—
—
—
(0.5
)
(0.5
)
Severance and reorganization costs
—
—
—
0.2
0.2
Acquisition related costs
—
—
—
0.9
0.9
Adjusted EBITDA
$
15.6
$
5.7
$
5.6
$
(5.0
)
$
21.9
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Three Months Ended June 30,
2022
Net income (loss)
$
6.1
$
1.5
$
5.1
$
(13.1
)
$
(0.4
)
Interest expense, net
—
—
—
1.8
1.8
Income tax benefit
—
—
—
(0.8
)
(0.8
)
Depreciation and amortization
8.1
2.8
—
0.5
11.4
EBITDA
14.2
4.3
5.1
(11.6
)
12.0
Impairment of fixed assets
—
—
—
1.1
1.1
Equity based compensation
—
—
—
0.9
0.9
Gain on disposal of property and
equipment
—
—
—
2.1
2.1
Bargain purchase gain, net of tax
—
—
—
(2.8
)
(2.8
)
Severance and reorganization costs
—
—
—
0.5
0.5
Acquisition related costs
—
—
—
3.3
3.3
Legal fees and settlements
—
—
—
0.9
0.9
Adjusted EBITDA
$
14.2
$
4.3
$
5.1
$
(5.6
)
$
18.0
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Six Months Ended June 30,
2023
Net income (loss)
$
23.4
$
4.6
$
7.6
$
(23.3
)
$
12.3
Interest expense, net
—
—
—
2.1
2.1
Income tax expense
—
—
—
3.8
3.8
Depreciation and amortization
9.6
5.3
3.0
0.8
18.7
EBITDA
33.0
9.9
10.6
(16.6
)
36.9
Equity based compensation
—
—
—
2.3
2.3
Loss on retirement of debt
—
—
—
2.4
2.4
Gain on disposal of property and
equipment
—
—
—
(1.5
)
(1.5
)
Severance and reorganization costs
—
—
—
0.4
0.4
Acquisition related costs
—
—
—
1.5
1.5
Adjusted EBITDA
$
33.0
$
9.9
$
10.6
$
(11.5
)
$
42.0
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Six Months Ended June 30,
2022
Net income (loss)
$
13.8
$
(3.0
)
$
6.4
$
(23.3
)
$
(6.1
)
Interest expense, net
—
—
—
3.9
3.9
Income tax benefit
—
—
—
(2.4
)
(2.4
)
Depreciation and amortization
14.5
5.5
2.0
1.0
23.0
EBITDA
28.3
2.5
8.4
(20.8
)
18.4
Impairment of fixed assets
—
—
—
1.1
1.1
Equity based compensation
—
—
—
1.7
1.7
Loss on disposal of property and
equipment
—
—
—
1.1
1.1
Bargain purchase gain, net of tax
—
—
—
(2.8
)
(2.8
)
Severance and reorganization costs
—
—
—
0.5
0.5
Acquisition related costs
—
—
—
6.5
6.5
Legal fees and settlements
—
—
—
1.1
1.1
Adjusted EBITDA
$
28.3
$
2.5
$
8.4
$
(11.6
)
$
27.6
Free Cash Flow
We believe free cash flow is an important financial measure for
use in evaluating the Company’s financial performance, as it
measures our ability to generate additional cash from our business
operations. Free cash flow should be considered in addition to,
rather than as a substitute for, net income as a measure of our
performance or net cash provided by operating activities as a
measure of our liquidity. Additionally, our definition of free cash
flow is limited and does not represent residual cash flows
available for discretionary expenditures due to the fact that the
measure does not deduct the payments required for debt service and
other obligations or payments made for business acquisitions.
Therefore, we believe it is important to view free cash flow as
supplemental to our entire statement of cash flows.
The following table is a reconciliation of consolidated
operating cash flows to Free Cash Flow for the six months ended
June 30, 2023 and 2022, in millions:
Six Months Ended
June 30, 2023
June 30, 2022
Net cash provided by operating
activities
$
40.9
$
7.8
Purchase of property and equipment
(12.9
)
(5.7
)
Free cash Flow
$
28.0
$
2.1
EBITDA
$
42.0
$
27.6
Free cash flow conversion - Free cash
flow as a percentage of EBITDA
67
%
8
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230807816492/en/
Melissa Cougle Chief Financial Officer (713) 935-8900
InvestorRelations@rangerenergy.com
Ranger Energy Services (NYSE:RNGR)
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Ranger Energy Services (NYSE:RNGR)
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