Ranger Energy Services, Inc. (NYSE: RNGR) (“Ranger” or the
“Company”) announced today its results for the third quarter ended
September 30, 2024.
Third Quarter 2024 Highlights
- Revenue of $153.0 million, representing an 11% increase from
$138.1 million in the second quarter of 2024 and a 7% decrease from
$164.4 million in the third quarter of 2023
- Net income of $8.7 million, or $0.39 per fully diluted share,
an 85% increase from $4.7 million in the second quarter 2024 and a
decrease of $0.7 million from $9.4 million in the third quarter of
2023
- Adjusted EBITDA(1) of $25.1 million representing a 20% increase
from $21.0 million reported in the second quarter of 2024 and a 5%
increase from $24.0 million reported in third quarter of 2023
- Free Cash Flow(2) for the quarter of $10.8 million, or $0.49
per share, with year to date Free Cash Flow(2) of $23.1 million, or
$1.04 per share
- Share repurchases during the quarter totaling 155,200 shares
and year to date repurchases totaling 1,520,300 shares for a total
value of $15.5 million spent during 2024 on repurchases
________________
1
“Adjusted EBITDA” is not presented in
accordance with generally accepted accounting principles in the
United States (“U.S. GAAP”). The Company defines Adjusted EBITDA as
net income or loss before net income expense, income tax provision
or benefit, depreciation and amortization, equity-based
compensation, acquisition-related, severance and reorganization
costs, gain or loss on disposal of property and equipment, and
certain other non-cash items that we do not view as indicative of
our ongoing performance. 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.
2
“Free Cash Flow” is not presented in
accordance with U.S. GAAP and 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. The Company defines Free Cash Flow as net
cash provided by operating activities before purchase of property
and equipment. 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,
“Ranger continued to execute at a high level, achieving near-record
revenues, gross margin, and adjusted EBITDA this quarter in two of
its three segments. Every quarter of solid performance by Ranger in
this market validates our differentiated, production-focused
service lines and underscores our resilient business model. Each of
our segments excelled, reflecting our collective determination to
exceed customer expectations by delivering quality assets, services
and safety performance every day.”
“Ranger’s flagship high-spec rig business surpassed expectations
again, delivering top-line growth that set yet another record for
the business, with steadily expanding margins. Our Wireline segment
showed marked improvement, as our decisions to streamline this
business segment and focus on production oriented services are
paying off, reflected in improved revenues and healthier margins.
Ancillary Services also performed strongly, with coil tubing,
plug-and-abandonment and Torrent service lines growing revenue
nicely quarter over quarter.
"Looking ahead to the fourth quarter, we remain optimistic about
our ability to continue executing at a high level in a challenging
environment, with the High Specification Rigs segment leading the
way. While typical seasonality and holiday impacts are expected to
occur in the fourth quarter, early indications for 2025 are
positive. We anticipate year-over-year growth in High Specification
Rigs, continued stabilization in Wireline as the pivot to
production services matures, and further contributions from
Ancillary Services.
"Our production focus sets us apart and enables us to
concentrate on our strategic pillars of free cash flow conversion,
balance sheet strength, and returning cash to shareholders under
any market conditions. We have continued to maintain zero net debt
and returned over 81% of free cash flow to shareholders year to
date through dividends and share buybacks, far exceeding our
commitment. We’ve thrived as an organization through the market
challenges presented over the past 18 months. As always, I remain
grateful to our entire Ranger team for their dedication, which
makes me as optimistic about the future as ever.”
CAPITAL RETURNS AND GOVERNANCE UPDATE
Ranger has far exceeded its commitment of returning at least 25%
of Free Cash Flow(2) to shareholders this year. Year to date, the
Company has repurchased 1,520,300 shares of stock for a total value
of $15.5 million at an average price of $10.11 per share. Since the
share repurchase program’s inception in 2023 through the end of the
most recent quarter, the Company has repurchased a total of
3,325,800 shares, representing over 15% of shares outstanding as of
September 30, 2024, for a total value of $34.5 million at an
average price of $10.37 per share. Additionally, on October 28,
2024, the Board of Directors declared a quarterly cash dividend of
$0.05 per share payable November 22, 2024 to common stockholders of
record at the close of business on November 8, 2024 reinforcing our
commitment to returning capital each and every quarter.
This quarter, Ranger is also announcing an update to its
governance structure. Charlie Leykum has announced his intention to
step down from the Board of Directors effective November 1, 2024.
As a Founder of Ranger, Charlie has been instrumental in supporting
the organization since its inception and his contributions are
deeply acknowledged and appreciated. With his retirement, Ranger
will affect a change to reduce the size of its Board of Directors
from 7 members to 6 members.
PERFORMANCE SUMMARY
For the third quarter of 2024, revenue was $153.0 million, an
increase from the second quarter of $138.1 million and a decrease
from $164.4 million in the prior year period. Quarter over quarter
increases in revenue are attributable to improvements across
segments in activity levels while year over year revenue declines
are due to reduced activity in the wireline completions service
line partially offset by increases in other business segments. Cost
of services for the third quarter of 2024 was $122.0 million, or
80% of revenue, compared to $134.8 million, or 82% of revenue in
the prior year period. The decrease in cost of services as a
percentage of revenue from the prior year quarter was primarily
attributable to reduced operating activity in wireline completions
activity and restructuring activities. General and administrative
expenses were $7.1 million for the third quarter of 2024 compared
to $6.9 million in the prior quarter and $7.0 million in the prior
year period.
Net income totaled $8.7 million for the third quarter of 2024
compared to $4.7 million in the prior quarter and $9.4 million in
the prior year period. Fully diluted earnings per share was $0.39
for the third quarter of 2024 compared to $0.21 in the prior
quarter and $0.38 in the prior year period.
Adjusted EBITDA of $25.1 million for the third quarter of 2024
increased $4.4 million from $21.0 million in the prior quarter and
increased $1.1 million from $24.0 million in the prior year period.
Quarter over quarter increases were driven by increasing activity
levels in several service lines and margin improvements from
operating leverage and restructuring efforts. The year over year
increases were driven by increases to revenue and margins in
High-Specification Rigs and Ancillary Services.
BUSINESS SEGMENT FINANCIAL RESULTS
High Specification Rigs
High Specification Rigs segment revenue was $86.7 million in the
third quarter of 2024, an increase of $4.0 million relative to the
prior quarter revenue of $82.7 million and an increase of $7.5
million relative to the prior year period. Rig hours increased by
3% to 116,900 from 113,100 in the prior quarter and from 112,400 in
the prior year period. Hourly rig rates increased by 1% to $741
from $732 per hour in the prior quarter, due to asset mix
reflecting relatively consistent pricing levels quarter over
quarter. Hourly rig rates increased by 6% from $700 in the prior
year period.
Operating income was $13.8 million in the third quarter of 2024,
an increase of $2.0 million, or 17% compared to $11.8 million in
the prior quarter, and an increase of $3.2 million, or 30% compared
to $10.6 million in the prior year period. Adjusted EBITDA was
$19.2 million in the third quarter, up from $18.7 million in the
prior quarter and from $15.7 million in the prior year period.
Wireline Services
Wireline Services segment revenue was $30.3 million in the third
quarter of 2024, up $5.8 million, or 24% compared to $24.5 million
in the prior quarter and down $22.9 million, or 43% compared to
$53.2 million in the prior year period. Our Completions service
line reported completed stage counts of 2,500, a decrease of 47%
compared to 1,700 for the prior quarter and 63% compared to 6,800
in the prior year period.
Revenue Breakdown by Service Line, in millions:
Nine Months Ended September
30,
Service Line
2022 YTD Revenue
2023 YTD Revenue
2024 YTD Revenue
Wireline Completions
$109.4
$108.0
$35.5
Wireline Production
26.7
32.5
35.9
Wireline Pump Down
12.6
17.1
16.2
Total Wireline Segment Revenue
$148.7
$157.6
$87.6
The decrease in revenue and stage count from the prior year
periods is indicative of lower operational activity reflecting the
Company's decision to pursue only work with appropriate margins and
a shift in activity from completions work to production focused
work.
Operating income was at a break-even in the third quarter, up
$2.6 million from an operating loss of $2.6 million for the prior
quarter and down $4.3 million, from operating income of $4.3
million in the prior year period. Adjusted EBITDA was $2.7 million,
up from $0.4 million for the prior quarter and down 64% from $7.4
million in the prior year period.
Processing Solutions and Ancillary Services
Processing Solutions and Ancillary Services segment revenue was
$36.0 million in the third quarter of 2024, up $5.1 million, or 17%
from $30.9 million in the prior quarter and up $4.0 million, or 13%
from $32.0 million for the prior year period. The increase from the
prior quarter was largely attributable to increased operational
activity in most service lines with the largest contribution coming
from the Coil Tubing service line. The increase from the prior year
period was largely attributable to increased operational activity
in most service lines with the largest contribution coming from the
P&A and Torrent service lines.
Operating income in this segment was $6.6 million in the third
quarter, up from $5.2 million in the prior quarter and $4.5 million
in the prior year period. Adjusted EBITDA was $8.8 million, an
increase compared to $7.3 million in the prior quarter and $6.5
million in the prior year period.
BALANCE SHEET, CASH FLOW AND LIQUIDITY
As of September 30, 2024, the Company had $86.1 million of
liquidity, consisting of $71.3 million of capacity on its revolving
credit facility and $14.8 million of cash on hand. This compares to
the prior year period end of September 30, 2023 when 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.
Cash provided by Operating Activities for year to date 2024 is
$51.8 million, compared to $53.1 million over the same period in
2023. The Company’s Free Cash Flow(2) of $23.1 million for year to
date 2024 compares to Free Cash Flow(2) of $25.2 million in the
prior year period primarily due to heavier capital expenditures
during 2024 in support of expanding customer relationships.
The Company had capital expenditures of $28.7 million, compared
to $27.9 million over the same period in 2023. Year to date, the
Company has deployed approximately $10 million toward growth
capital expenditures on more modern equipment that is more
marketable at better pricing, updates to technology offerings or
expanded service offerings. Many of these investments have been
implemented in order to strengthen our customer relationships and
provide for improved returns in future periods.
Conference Call
The Company will host a conference call to discuss its third
quarter 2024 results on Monday, October 28, 2024, 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,
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 Relations 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, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical fact included in this press release,
regarding our strategy, future operations, financial position,
estimated revenue and losses, projected costs, prospects, plans and
objectives of management are forward-looking statements. When used
in this press release, the words “may,” “should,” “intend,”
“could,” “believe,” “anticipate,” “estimate,” “expect,” “outlook,”
“project” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain such identifying words. 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. Should one or more
of these risks or uncertainties described occur, or should
underlying assumptions prove incorrect, our actual results and
plans could differ materially from those expressed in any
forward-looking statements.
Our future results will depend upon various other risks and
uncertainties, including, but not limited to, those detailed in our
current and past filings with the U.S. Securities and Exchange
Commission (“SEC”). These documents are available through our
website or through the SEC’s Electronic Data Gathering and Analysis
Retrieval system at www.sec.gov. These risks include, but are not
limited to, the risks described under “Part I, Item 1A, Risk
Factors” in our Annual Report on 10-K filed with the SEC on March
5, 2024, and those set forth from time-to-time in other filings by
the Company with the SEC.
All forward looking statements, expressed or implied, included
in this press release are expressly qualified in their entirety by
this cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that we or persons acting on our behalf
may issue. Except as otherwise required by applicable law any
forward-looking statement speaks only as of the date on which is it
made. We disclaim any duty to update any forward-looking
statements, all of which are expressly qualified by the statements
in this cautionary statement, to reflect events or circumstances
after the date of this press release.
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,
2024
2024
2023
2024
2023
Revenue
High specification rigs
$
82.7
$
86.7
$
79.2
$
249.1
$
234.3
Wireline services
24.5
30.3
53.2
87.6
157.6
Processing solutions and ancillary
services
30.9
36.0
32.0
91.3
93.2
Total revenue
138.1
153.0
164.4
428.0
485.1
Operating expenses
Cost of services (exclusive of
depreciation and amortization):
High specification rigs
65.3
67.2
63.5
198.8
185.6
Wireline services
24.2
27.6
45.8
84.4
140.3
Processing solutions and ancillary
services
23.7
27.2
25.5
72.8
76.1
Total cost of services
113.2
122.0
134.8
356.0
402.0
General and administrative
6.9
7.1
7.0
20.7
22.7
Depreciation and amortization
11.0
11.1
10.6
33.3
29.3
Impairment of fixed assets
—
—
0.4
—
0.4
Gain on sale of assets
(0.3
)
(0.1
)
(0.1
)
(1.7
)
(1.6
)
Total operating expenses
130.8
140.1
152.7
408.3
452.8
Operating income
7.3
12.9
11.7
19.7
32.3
Other expenses
Interest expense, net
0.6
0.7
0.7
2.1
2.8
Loss on debt retirement
—
—
—
—
2.4
Total other expenses, net
0.6
0.7
0.7
2.1
5.2
Income before income tax expense
6.7
12.2
11.0
17.6
27.1
Income tax expense
2.0
3.5
1.6
5.0
5.4
Net income
4.7
8.7
9.4
12.6
21.7
Income per common share:
Basic
$
0.21
$
0.39
$
0.38
$
0.56
$
0.88
Diluted
$
0.21
$
0.39
$
0.38
$
0.55
$
0.86
Weighted average common shares
outstanding
Basic
22,364,422
22,241,847
24,500,607
22,608,796
24,758,890
Diluted
22,480,448
22,494,453
24,887,275
22,731,259
25,149,415
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in millions, except share and
per share amounts)
September 30, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
14.8
$
15.7
Accounts receivable, net
81.9
85.4
Contract assets
23.7
17.7
Inventory
5.7
6.4
Prepaid expenses
6.0
9.6
Assets held for sale
0.6
0.6
Total current assets
132.7
135.4
Property and equipment, net
226.9
226.3
Intangible assets, net
5.8
6.3
Operating leases, right-of-use assets
7.7
9.0
Other assets
0.8
1.0
Total assets
$
373.9
$
378.0
Liabilities and Stockholders'
Equity
Accounts payable
29.3
31.3
Accrued expenses
27.6
29.6
Other financing liability, current
portion
0.7
0.6
Long-term debt, current portion
—
0.1
Short-term lease liability
8.2
7.3
Other current liabilities
0.7
0.1
Total current liabilities
66.5
69.0
Long-term lease liability
13.3
14.9
Other financing liability
10.5
11.0
Deferred tax liability
16.0
11.3
Total liabilities
$
106.3
$
106.2
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, 2024 and December 31, 2023
—
—
Class A Common Stock, $0.01 par value,
100,000,000 shares authorized; 26,122,840 shares issued and
22,245,212 shares outstanding as of September 30, 2024; 25,756,017
shares issued and 23,398,689 shares outstanding as of December 31,
2023
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, 2024 and December 31, 2023
—
—
Less: Class A Common Stock held in
treasury at cost; 3,877,628 treasury shares as of September 30,
2024 and 2,357,328 treasury shares as of December 31, 2023
(38.6
)
(23.1
)
Retained earnings
37.5
28.4
Additional paid-in capital
268.4
266.2
Total controlling stockholders' equity
267.6
271.8
Total liabilities and stockholders'
equity
$
373.9
$
378.0
RANGER ENERGY SERVICES,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
Nine Months Ended September
30,
2024
2023
Cash Flows from Operating
Activities
Net income
$
12.6
$
21.7
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
33.3
29.3
Equity based compensation
4.2
3.6
Gain on disposal of property and
equipment
(1.7
)
(1.6
)
Impairment of fixed assets
—
0.4
Deferred income tax expense
4.7
4.8
Loss on debt retirement
—
2.4
Other expense, net
0.6
2.3
Changes in operating assets and
liabilities
Accounts receivable
3.3
0.1
Contract assets
(6.0
)
(8.7
)
Inventory
0.6
(2.0
)
Prepaid expenses and other current
assets
3.6
0.6
Other assets
1.4
1.2
Accounts payable
(1.5
)
8.3
Accrued expenses
(2.5
)
(7.7
)
Other current liabilities
(1.9
)
—
Other long-term liabilities
1.1
(1.6
)
Net cash provided by operating
activities
51.8
53.1
Cash Flows from Investing
Activities
Purchase of property and equipment
(28.7
)
(27.9
)
Proceeds from disposal of property and
equipment
1.5
4.9
Net cash used in investing
activities
(27.2
)
(23.0
)
Cash Flows from Financing
Activities
Borrowings under Revolving Credit
Facility
25.3
315.6
Principal payments on Revolving Credit
Facility
(25.3
)
(308.1
)
Principal payments on Eclipse M&E Term
Loan Facility
—
(10.4
)
Principal payments on Secured Promissory
Note
—
(6.2
)
Principal payments on financing lease
obligations
(4.2
)
(4.0
)
Principal payments on other financing
liabilities
(0.5
)
(0.7
)
Dividends paid to Class A Common Stock
shareholders
(3.4
)
(1.2
)
Shares withheld for equity
compensation
(1.8
)
(1.0
)
Payments on Other Installment
Purchases
(0.1
)
(0.3
)
Repurchase of Class A Common Stock
(15.5
)
(8.6
)
Deferred financing costs on Wells
Fargo
—
(0.7
)
Net cash used in financing
activities
(25.5
)
(25.6
)
Increase (decrease) in cash and cash
equivalents
(0.9
)
4.5
Cash and cash equivalents, Beginning of
Period
15.7
3.7
Cash and cash equivalents, End of
Period
$
14.8
$
8.2
Supplemental Cash Flow
Information
Interest paid
$
1.4
$
1.0
Supplemental Disclosure of Non-cash
Investing and Financing Activities
Capital expenditures included in accounts
payable and accrued liabilities
$
0.6
$
—
Additions to fixed assets through
installment purchases and financing leases
$
(5.0
)
$
(5.6
)
Additions to fixed assets through asset
trades
$
(4.4
)
$
(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
property and equipment, 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, 2024
Net income (loss)
$
13.8
$
—
$
6.6
$
(11.7
)
$
8.7
Interest expense, net
—
—
—
0.7
0.7
Income tax expense
—
—
—
3.5
3.5
Depreciation and amortization
5.7
2.7
2.2
0.5
11.1
EBITDA
19.5
2.7
8.8
(7.0
)
24.0
Equity based compensation
—
—
—
1.4
1.4
Gain on disposal of property and
equipment
—
—
—
(0.1
)
(0.1
)
Legal fees and settlements
(0.3
)
—
—
0.1
(0.2
)
Adjusted EBITDA
$
19.2
$
2.7
$
8.8
$
(5.6
)
$
25.1
High Specification
Rigs
Wireline Services
Processing Solutions and
Ancillary Services
Other
Total
Three Months Ended June 30,
2024
Net income (loss)
$
11.8
$
(2.6
)
$
5.2
$
(9.7
)
$
4.7
Interest expense, net
—
—
—
0.6
0.6
Income tax benefit
—
—
—
2.0
2.0
Depreciation and amortization
5.6
2.9
2.0
0.5
11.0
EBITDA
17.4
0.3
7.2
(6.6
)
18.3
Equity based compensation
—
—
—
1.4
1.4
Gain on disposal of property and
equipment
—
—
—
(0.3
)
(0.3
)
Severance and reorganization costs
0.7
0.1
0.1
0.1
1.0
Acquisition related costs
0.1
—
—
—
0.1
Legal fees and settlements
0.5
—
—
—
0.5
Adjusted EBITDA
$
18.7
$
0.4
$
7.3
$
(5.4
)
$
21.0
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
Nine Months Ended September
30, 2024
Net income (loss)
$
33.4
$
(5.5
)
$
12.3
$
(27.6
)
$
12.6
Interest expense, net
—
—
—
2.1
2.1
Income tax expense
—
—
—
5.0
5.0
Depreciation and amortization
16.9
8.7
6.2
1.5
33.3
EBITDA
50.3
3.2
18.5
(19.0
)
53.0
Equity based compensation
—
—
—
4.0
4.0
Gain on disposal of property and
equipment
—
—
—
(1.7
)
(1.7
)
Severance and reorganization costs
0.7
0.1
0.1
0.1
1.0
Acquisition related costs
0.3
—
—
0.1
0.4
Legal fees and settlements
0.2
—
—
0.1
0.3
Adjusted EBITDA
$
51.5
$
3.3
$
18.6
$
(16.4
)
$
57.0
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
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, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Net cash provided by operating
activities
$
17.7
$
12.2
$
51.8
$
53.1
Purchase of property and equipment
(6.9
)
(15.0
)
(28.7
)
(27.9
)
Free Cash Flow
$
10.8
$
(2.8
)
$
23.1
$
25.2
Add back:
Purchase of property and equipment related
to asset acquisition
—
7.3
—
7.3
Modified Free cash Flow
$
10.8
$
4.5
$
23.1
$
32.5
Adjusted EBITDA
$
25.1
$
24.0
$
57.0
$
66.0
Free cash Flow conversion - Free cash
flow as a percentage of EBITDA
43
%
(12
)%
41
%
38
%
Modified Free cash Flow conversion
-
Modified Free cash Flow as a percentage
of EBITDA
43
%
19
%
41
%
49
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241025673583/en/
Melissa Cougle Chief Financial Officer (713) 935-8900
InvestorRelations@rangerenergy.com
Ranger Energy Services (NYSE:RNGR)
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