Ranger Energy Services, Inc. (NYSE: RNGR) (“Ranger” or the
“Company”) announced today its results for the third quarter ended
September 30, 2023.
Third Quarter 2023 Highlights
– Revenue of $164.4 million, a 1% increase
from $163.2 million in the second quarter 2023
– Net income of $9.4 million, or $0.38 per
fully diluted share, up from $6.1 million, or $0.24 per share in
second quarter of 2023
– Adjusted EBITDA1 of $24.0 million, a 10%
increase from $21.9 million in second quarter of 2023
– Repurchased $2.7 million of shares under
existing share repurchase authorization with total repurchases year
to date of $8.6 million
– Paid first dividend in Ranger history of
$0.05 per share with fourth quarter dividend declared
Year-to-Date 2023 Highlights
– Revenue of $485.1 million, a 7% increase
from $454.2 million in the prior year
– Net income of $21.7 million, or $0.86 per
fully diluted share, up from $7.5 million, or $0.33 per share the
prior year
– Adjusted EBITDA of $66.0 million, a 14%
increase from $57.9 million in the prior year
________________
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.
Management Comments
Stuart Bodden, Ranger’s Chief Executive Officer, commented, “In
the third quarter of 2023, Ranger continued to deliver strong
financial performance despite lower U.S. onshore drilling and
completions activity and sustained weakness in the natural gas
basins. Rig counts during the year have decreased by more than 15%,
but Ranger has successfully maintained operational activity levels
and increased revenue and EBITDA despite these declines. We
experienced some unexpected white space in our high specification
rigs business due to several rig change outs, and pressure in our
wireline completions business. That said, we were able to increase
revenue slightly and Adjusted EBITDA by 10% from the prior quarter
through a focus on operational efficiency in our wireline and
ancillary businesses. Thanks to our industry leading teams and the
resilience of our production focused business model, we are well
positioned to regain our growth momentum as activity levels begin
to pick up once more.
“We expect incremental growth from larger integrated customers
in our High Specification Rigs business given our solid reputation
for safety and service quality. This quarter we were pleased to
sign a new customer agreement with a large integrated producer that
provides for an established minimum market share of business. This
customer commitment increases our resilience and provides higher
confidence in our 2024 plan and captures opportunities for growth.
We deeply value and appreciate the confidence our customers place
in Ranger and believe these types of arrangements allow us to
further elevate our service quality and provide our customers
assurance of execution.
Mr. Bodden continued, “We continue to benefit from a strong
balance sheet, ensuring we can optimize shareholder returns even in
challenging times. We’ve also been proactive in exploring further
opportunities through acquisitions. As previously announced, we
closed on the acquisition of complimentary pump-down assets during
the third quarter, which we believe will have less than a two-year
payback, with a few of those assets already at work with customers.
We continue to evaluate other opportunistic tuck-in acquisitions
that will deliver attractive capital returns.
“As we look forward, we hold a similar view to other industry
observers who believe the rig count is close to bottoming out, and
we anticipate a modest increase in activity levels in 2024. We will
be focused on high grading work and customers in our High
Specification Rigs business, pivoting our Wireline business to be
more production focused, and enhancing pull-through in our
Ancillary service lines next year.
Mr. Bodden concluded, “Finally, as evidence of our commitment to
return meaningful capital to our shareholders, we have been
repurchasing shares this year and recently initiated a quarterly
dividend, ensuring that Ranger remains one of the most compelling
investments in the oilfield services sector. Our unwavering
commitment to creating value for our shareholders is evident in the
continued execution of our four-pillar strategy. These strategic
updates, alongside our strong financial performance, emphasize our
dedication to delivering value to our shareholders and our optimism
as we anticipate a positive shift in industry activity in the
coming year.”
STRATEGIC UPDATE
Ranger’s four strategic pillars for creating shareholder value
are: maximizing cash flow, fortifying its balance sheet, growing
through acquisition, and returning meaningful capital to
shareholders. We continued to make progress in each of these areas
during the third 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. Year-to-date, the Company has
generated $32.5 million of free cash flow(1), after adjusting for
the recent acquisition of pumps, which was treated as a capital
expenditure for accounting purposes. Operating efficiency
initiatives are also demonstrating their effectiveness within our
wireline business through expanding profit margins.
- Fortifying the Balance Sheet: The Company ended the
third quarter with $10.3 million of debt and $8.2 million of cash
and cash equivalents. The Company’s outstanding debt predominantly
consists of borrowings on the Revolving Credit Facility associated
with the recent pump acquisition. The Company believes that minimal
debt is critical to its ability to maximize shareholder returns
through opportunistic investment and capital returns to
shareholders.
- Exploring Growth Through Acquisition: During the third
quarter, the Company continued to evaluate asset acquisition and
consolidation opportunities. Most notably, it closed on its
purchase of $7.25 million of pump down assets and support
equipment, which it believes will have a payback of less than two
years. Ranger is committed to pursuing a disciplined acquisition
strategy rooted in maximizing long-term value.
- Returning Capital to Shareholders: The Company is
committed to returning at least 25% of annual cash flows to its
shareholders. During the third quarter, the Company repurchased
232,900 shares of its Class A common stock at an average of $11.60
per share, representing 1% of shares outstanding, and declared its
first quarterly dividend of $0.05 per share. Year to date, the
Company has repurchased 781,000 shares, representing just over 3%
of shares outstanding. Furthermore, the Board is declaring its
quarterly dividend today, October 31, 2023, of $0.05 per share of
common stock, payable on December 1, 2023 to shareholders of record
as of November 13, 2023.
PERFORMANCE SUMMARY
For the third quarter of 2023, revenue was $164.4 million, a
decrease from $177.0 million in the prior year period, and an
increase from $163.2 million in the prior quarter. Revenue
decreases from the prior year were attributable to reduced activity
in our wireline and ancillary services segment. Year-to-date
revenue was $485.1 million, an increase of 7%, or $30.9 million
from $454.2 million in the prior year due to increasing operating
activity and pricing improvements across high specification rigs
and wireline segments.
Cost of services for the third quarter of 2023 was $134.8
million, or 82% of revenue, compared to $138.1 million, or 78% of
revenue in the prior year period. The increase in cost of services
as a percentage of revenue from the prior year quarter was
primarily attributable to reduced operating activity and
inflationary cost pressures. Year-to-date cost of services was
$402.0 million compared to $376.1 million in the prior year, equal
to 83% of revenue for both periods.
General and administrative expenses were $7.0 million for the
third quarter of 2023 compared to $11.0 million in the prior year
period and $7.3 million in the prior quarter. General and
administrative expenses year-to-date totaled $22.7 million. This
compares to general and administrative expenses of $32.4 million in
2022. The decrease in general and administrative expenses was
primarily due to a decrease in acquisition and integration costs
related to the Basic Energy Services, Inc. acquisition in the prior
year period.
Net income totaled $9.4 million for the third quarter of 2023
compared to $13.6 million in the prior year period and $6.1 million
in the second quarter of 2023. The decrease in net income from the
prior year period is primarily attributable to reduced operating
activity compared to the prior year while the increase in net
income relative to the prior quarter is primarily due to the
increase in profit margins in wireline and ancillary segments. Net
income, on a year-to-date basis, tripled year over year from $7.5
million in 2022 to $21.7 million year-to-date in 2023.
Fully diluted earnings per share was $0.38 for the third quarter
of 2023 compared to $0.54 in the prior year period and $0.24 in the
prior quarter. Fully diluted earnings per share for year-to-date
was $0.86 compared to $0.33 in the prior year.
Adjusted EBITDA of $24.0 million for the third quarter of 2023
decreased $6.3 million from $30.3 million in the prior year period
and increased $2.1 million from $21.9 million in the prior quarter.
The year over year decrease was driven by the aforementioned
reduction in wireline completions activity and certain ancillary
service lines. Year-to-date Adjusted EBITDA was $66.0 million, an
increase of $8.1 million compared to the prior year-to-date
period.
BUSINESS SEGMENT FINANCIAL RESULTS
High Specification Rigs
High Specification Rigs segment revenue was $79.2 million in the
third quarter of 2023, a decrease of $0.5 million, or 1% relative
to the prior year period, and an increase of $1.6 million, or 2%
relative to the for the prior quarter revenue of $77.6 million. Rig
hours decreased by 1% to 112,400 from 113,200 in the prior quarter.
Hourly rig rates increased by 2% to 700 from $687 per hour in the
prior quarter, reflecting an slight increase in pricing. Segment
revenue year-to-date was $234.3 million, an increase of $13.7
million, or 6% relative to year-to-date 2022. Hourly rig rates
increased by 12% from $621 per hour for the year-to-date 2022 to
$693 per hour for year-to-date 2023.
Operating income was $10.6 million in the third quarter of 2023,
a decrease of $0.1 million, or 1% relative to $10.7 million in the
prior year period and a decrease of $0.9 million, or 8% relative to
$11.5 million in the prior quarter. Adjusted EBITDA was $15.7
million in the third quarter, down from $17.0 million in the prior
year period and from $15.6 million in the prior quarter. Operating
income was $34.0 million for year-to-date 2023, an increase of $9.5
million, or 39% relative to $24.5 million for year-to-date 2022.
Adjusted EBITDA was $48.7 million for year-to-date 2023, up from
$45.3 million in year-to-date 2022.
Wireline Services
Wireline Services segment revenue was $53.2 million in the third
quarter of 2023, down $7.4 million, or 12% compared to $60.6
million in the prior year period and down $1.3 million, or 2%
compared to $54.5 million in the prior quarter. Our Completions
service line completed stage counts of 6,800, a decrease of 26%
compared to 9,200 in the prior year period and a decrease of 8%
compared to 7,400 for the prior quarter. Stage count pricing was
$7,800 for the current quarter as compared to $6,600 for the prior
year period and $7,400 for the prior quarter. The decrease in
revenue and stage count is indicative of lower operational
activity, offset by improvements made in pricing. Year-to-date
segment revenue was $157.6 million, up $8.9 million, or 6% compared
to $148.7 million for the comparable period in 2022. Completed
stage counts decreased by 16% from 24,600 for the 2022 year-to-date
period, to 20,600 for the year-to-date 2023 period.
Operating income was $4.3 million in the third quarter, down
$4.3 million, or 50% from $8.6 million in the prior year period and
up $1.5 million, or 54%, from $2.8 million for prior quarter.
Adjusted EBITDA was $7.4 million, down 35% from $11.4 million in
the prior year period and up 30% from $5.7 million for the prior
quarter. Operating income was $8.9 million, up $3.3 million, or 59%
for year-to-date 2023, from $5.6 million for year-to-date 2022.
Adjusted EBITDA was $17.3 million for year-to-date 2023, up from
$13.9 million for year-to-date 2022.
Processing Solutions and Ancillary Services
Processing Solutions and Ancillary Services segment revenue was
$32.0 million in the third quarter of 2023, down $4.7 million, or
13% from $36.7 million for the prior year period and up $0.9
million, or 3% from $31.1 million for the prior quarter. The
decrease from the prior year and increase from the prior quarter
was largely attributable to shifting operational activity within
the coil tubing, rentals and plug and abandonment service line.
Segment revenue was $93.2 million for year-to-date 2023, up $8.3
million, or 10% from $84.9 million for year-to-date 2022. The
increase in revenue was attributable to the increase in operational
activity in certain lines of business including coil tubing, plug
and abandonment services, and logistics services.
Operating income was $4.5 million in the third quarter, down
from $9.2 million in the prior year period and up from $4.2 million
in the prior quarter. Adjusted EBITDA was $6.5 million, down
compared to $10.5 million in the prior period and up compared to
$5.6 million in the prior quarter.
BALANCE SHEET, CASH FLOW AND LIQUIDITY
As of September 30, 2023, the Company had $69.9 million of
liquidity, consisting of $61.7 million of capacity on its revolving
credit facility and $8.2 million of cash on hand. This compares to
$35.7 million of liquidity as of September 30, 2022, which
consisted of $30.5 million of capacity on its revolving credit
facility and $5.2 million of cash on hand.
The Company had total debt of $10.3 million compared to total
debt of $18.4 million at December 31, 2022, a reduction of 44%.
Year-to-date Cash provided by Operating Activities was $53.1
million, compared to $18.5 million over the same period in 2022.
The Company’s free cash flow(1) improved significantly year over
year to $25.2 million on a year-to-date basis compared to free cash
flow(1) of $2.1 million in the prior year. Free cash flow(1) for
the third quarter was impacted by a working capital build that is
expected to release in the fourth quarter as well as the
aforementioned pump-down assets acquired that were treated as
capital expenditures. On a year-to-date basis, the Company had
capital expenditures of $27.9 million, which includes $7.25 million
for the pumping asset acquisition.
FINANCIAL GUIDANCE
In light of lower than expected customer activity, the Company
is updating its financial expectations for the year. The Company
does see signals of an improving North America onshore environment
from currently depressed rig counts; however, fourth quarter
results are expected to be heavily influenced by weather events and
customer plans at year end which could cause results to vary from
expectations. Additionally, updated capital expenditure guidance
reflects additional purchases of capital equipment associated with
the recently signed customer agreement and pump refurbishments. The
Company anticipates resuming quarter over quarter growth in 2024
when a more supportive industry backdrop comes into focus. A
summary of Company guidance follows representing current views
which are subject to change.
($ in Millions)
FY 2022 Actual
Updated
FY 2023 Forecast
Revenue
$608.5
$630 - $640
Adjusted EBITDA
$79.5
$85 - $90
Free Cash Flow
(exclusive of pumping assets)
$30.7
$45 - $55
Capital Expenditures and Leases
(exclusive of pumping assets)
$19.1
$35 - $40
Conference Call
The Company will host a conference call to discuss its results
from the third quarter of 2023 on Tuesday, October 31, 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,
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2023
2022
2023
2022
Revenue
High specification rigs
$
77.6
$
79.2
$
79.7
$
234.3
$
220.6
Wireline services
54.5
53.2
60.6
157.6
148.7
Processing solutions and ancillary
services
31.1
32.0
36.7
93.2
84.9
Total revenue
163.2
164.4
177.0
485.1
454.2
Operating expenses
Cost of services (exclusive of
depreciation and amortization):
High specification rigs
62.0
63.5
62.7
185.6
175.3
Wireline services
48.8
45.8
49.2
140.3
134.8
Processing solutions and ancillary
services
25.5
25.5
26.2
76.1
66.0
Total cost of services
136.3
134.8
138.1
402.0
376.1
General and administrative
7.3
7.0
11.0
22.7
32.4
Depreciation and amortization
8.7
10.6
10.8
29.3
33.8
Impairment of fixed assets
—
0.4
0.2
0.4
1.3
Gain on sale of assets
(0.5
)
(0.1
)
(1.1
)
(1.6
)
—
Total operating expenses
151.8
152.7
159.0
452.8
443.6
Operating income
11.4
11.7
18.0
32.3
10.6
Other (income) expenses
Interest expense, net
0.9
0.7
1.8
2.8
5.7
Loss on debt retirement
2.4
—
—
2.4
—
Gain on bargain purchase, net of tax
—
—
(0.8
)
—
(3.6
)
Total other (income) expenses, net
3.3
0.7
1.0
5.2
2.1
Income before income tax expense
8.1
11.0
17.0
27.1
8.5
Income tax expense
2.0
1.6
3.4
5.4
1.0
Net income
6.1
9.4
13.6
21.7
7.5
Income per common share:
Basic
$
0.25
$
0.38
$
0.55
$
0.88
$
0.34
Diluted
$
0.24
$
0.38
$
0.54
$
0.86
$
0.33
Weighted average common shares
outstanding
Basic
24,840,569
24,500,607
24,845,517
24,758,890
22,323,308
Diluted
25,188,123
24,887,275
25,184,067
25,149,415
22,637,457
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in millions, except share and
per share amounts)
September 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
8.2
$
3.7
Accounts receivable, net
89.9
91.2
Contract assets
35.6
26.9
Inventory
7.7
5.9
Prepaid expenses
8.6
9.2
Assets held for sale
1.0
3.2
Total current assets
151.0
140.1
Property and equipment, net
225.0
221.6
Intangible assets, net
6.5
7.1
Operating leases, right-of-use assets
9.8
11.2
Other assets
1.2
1.6
Total assets
$
393.5
$
381.6
Liabilities and Stockholders'
Equity
Accounts payable
32.6
24.3
Accrued expenses
29.6
36.1
Other financing liability, current
portion
0.6
0.7
Long-term debt, current portion
10.3
6.8
Other current liabilities
6.5
6.6
Total current liabilities
79.6
74.5
Operating leases, right-of-use
obligations
8.0
9.6
Other financing liability
11.1
11.6
Long-term debt, net
—
11.6
Other long-term liabilities
14.3
8.1
Total liabilities
$
113.0
$
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 September 30, 2023 and December 31, 2022
—
—
Class A Common Stock, $0.01 par value,
100,000,000 shares authorized; 25,744,069 shares issued and
24,411,241 shares outstanding as of September 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 September 30, 2023 and December 31, 2022
—
—
Less: Class A Common Stock held in
treasury at cost; 1,332,828 treasury shares as of September 30,
2023 and 551,828 treasury shares as of December 31, 2022
(12.4
)
(3.8
)
Retained earnings
27.6
7.1
Additional paid-in capital
265.0
262.6
Total controlling stockholders' equity
280.5
266.2
Total liabilities and stockholders'
equity
$
393.5
$
381.6
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
Nine Months Ended September
30,
2023
2022
Cash Flows from Operating
Activities
Net income
$
21.7
$
7.5
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
29.3
33.8
Equity based compensation
3.6
2.8
Gain on disposal of property and
equipment
(1.6
)
—
Impairment of fixed assets
0.4
1.3
Gain on bargain purchase, net of tax
—
(3.6
)
Deferred income tax expense
4.8
—
Loss on debt retirement
2.4
—
Other expense, net
2.3
0.9
Changes in operating assets and
liabilities
Accounts receivable
0.1
(14.3
)
Contract assets
(8.7
)
(25.7
)
Inventory
(2.0
)
(2.9
)
Prepaid expenses and other current
assets
0.6
(4.2
)
Other assets
1.2
(3.6
)
Accounts payable
8.3
16.0
Accrued expenses
(7.7
)
3.7
Other current liabilities
—
0.8
Other long-term liabilities
(1.6
)
6.0
Net cash provided by operating
activities
53.1
18.5
Cash Flows from Investing
Activities
Purchase of property and equipment
(27.9
)
(8.7
)
Proceeds from disposal of property and
equipment
4.9
20.4
Net cash provided by (used in)
investing activities
(23.0
)
12.5
Cash Flows from Financing
Activities
Borrowings under Revolving Credit
Facility
315.6
431.0
Principal payments on Revolving Credit
Facility
(308.1
)
(433.2
)
Principal payments on Eclipse M&E Term
Loan Facility
(10.4
)
(1.5
)
Principal payments under Eclipse Term Loan
B Facility
—
(12.4
)
Principal payments on Secured Promissory
Note
(6.2
)
(3.3
)
Principal payments on financing lease
obligations
(4.0
)
(3.4
)
Principal payments on other financing
liabilities
(0.7
)
(2.2
)
Dividends paid to Class A Common Stock
shareholders
(1.2
)
—
Shares withheld on equity transactions
(1.0
)
(1.1
)
Payments on Other Installment
Purchases
(0.3
)
(0.3
)
Repurchase of Class A Common Stock
(8.6
)
—
Deferred financing costs on Wells
Fargo
(0.7
)
—
Net cash used in financing
activities
(25.6
)
(26.4
)
Increase in cash and cash
equivalents
4.5
4.6
Cash and cash equivalents, Beginning of
Period
3.7
0.6
Cash and cash equivalents, End of
Period
$
8.2
$
5.2
Supplemental Cash Flow
Information
Interest paid
$
1.0
$
0.8
Supplemental Disclosure of Non-cash
Investing and Financing Activities
Additions to fixed assets through
installment purchases and financing leases
$
(5.6
)
$
(3.5
)
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, in millions:
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Three Months Ended September
30, 2023
Net income (loss)
$
10.6
$
4.3
$
4.5
$
(10.0
)
$
9.4
Interest expense, net
—
—
—
0.7
0.7
Income tax expense
—
—
—
1.6
1.6
Depreciation and amortization
5.1
3.1
2.0
0.4
10.6
EBITDA
15.7
7.4
6.5
(7.3
)
22.3
Impairment of fixed assets
—
—
—
0.4
0.4
Equity based compensation
—
—
—
1.3
1.3
Gain on disposal of property and
equipment
—
—
—
(0.1
)
(0.1
)
Acquisition related costs
—
—
—
0.1
0.1
Adjusted EBITDA
$
15.7
$
7.4
$
6.5
$
(5.6
)
$
24.0
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
Nine Months Ended September
30, 2023
Net income (loss)
$
34.0
$
8.9
$
12.1
$
(33.3
)
$
21.7
Interest expense, net
—
—
—
2.8
2.8
Income tax expense
—
—
—
5.4
5.4
Depreciation and amortization
14.7
8.4
5.0
1.2
29.3
EBITDA
48.7
17.3
17.1
(23.9
)
59.2
Impairment of fixed assets
—
—
—
0.4
0.4
Equity based compensation
—
—
—
3.6
3.6
Loss on retirement of debt
—
—
—
2.4
2.4
Gain on disposal of property and
equipment
—
—
—
(1.6
)
(1.6
)
Severance and reorganization costs
—
—
—
0.4
0.4
Acquisition related costs
—
—
—
1.6
1.6
Adjusted EBITDA
$
48.7
$
17.3
$
17.1
$
(17.1
)
$
66.0
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Three Months Ended September
30, 2022
Net income (loss)
$
10.7
$
8.6
$
9.2
$
(14.9
)
$
13.6
Interest expense, net
—
—
—
1.8
1.8
Income tax expense
—
—
—
3.4
3.4
Depreciation and amortization
6.3
2.8
1.3
0.4
10.8
EBITDA
17.0
11.4
10.5
(9.3
)
29.6
Impairment of fixed assets
—
—
—
0.2
0.2
Equity based compensation
—
—
—
1.1
1.1
Gain on disposal of property and
equipment
—
—
—
(1.1
)
(1.1
)
Bargain purchase gain, net of tax
—
—
—
(0.8
)
(0.8
)
Severance and reorganization costs
—
—
—
1.1
1.1
Legal fees and settlements
—
—
—
0.2
0.2
Adjusted EBITDA
$
17.0
$
11.4
$
10.5
$
(8.6
)
$
30.3
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Nine Months Ended September
30, 2022
Net income (loss)
$
24.5
$
5.6
$
15.6
$
(38.2
)
$
7.5
Interest expense, net
—
—
—
5.7
5.7
Income tax expense
—
—
—
1.0
1.0
Depreciation and amortization
20.8
8.3
3.3
1.4
33.8
EBITDA
45.3
13.9
18.9
(30.1
)
48.0
Impairment of fixed assets
—
—
—
1.3
1.3
Equity based compensation
—
—
—
2.8
2.8
Bargain purchase gain, net of tax
—
—
—
(3.6
)
(3.6
)
Severance and reorganization costs
—
—
—
1.6
1.6
Acquisition related costs
—
—
—
6.5
6.5
Legal fees and settlements
—
—
—
1.3
1.3
Adjusted EBITDA
$
45.3
$
13.9
$
18.9
$
(20.2
)
$
57.9
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 respective periods,
in millions:
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2023
September 30, 2022
Net cash provided by operating
activities
$
12.2
$
53.1
$
7.8
Purchase of property and equipment
(15.0
)
(27.9
)
(5.7
)
Free cash Flow
$
(2.8
)
$
25.2
$
2.1
Add back:
Purchase of property and equipment related
to asset acquisition
7.3
7.3
Modified Free cash Flow
$
4.5
$
32.5
EBITDA
$
24.0
$
66.0
$
57.9
Free cash Flow conversion -
Free cash flow as a percentage of
EBITDA
(12
)%
38
%
4
%
Modified Free cash Flow conversion
-
Modified Free cash Flow as a percentage
of EBITDA
19
%
49
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231031749315/en/
Melissa Cougle Chief Financial Officer (713) 935-8900
InvestorRelations@rangerenergy.com
Ranger Energy Services (NYSE:RNGR)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Ranger Energy Services (NYSE:RNGR)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
