NYSE$RNGR

Ranger Energy Services Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Ranger Energy Services reported strong financial performance despite lower U.S. onshore drilling and completions activity and sustained weakness in the natural gas basins.

Ranger Energy Services, Inc. announced its Q3 2023 financial results, with revenue of $164.4 million, a 1% increase from the previous quarter. Net income was $9.4 million, or $0.38 per fully diluted share, up from $6.1 million in the previous quarter. Adjusted EBITDA was $24.0 million, a 10% increase from the previous quarter. The company repurchased $2.7 million of shares and paid its first dividend of $0.05 per share.

  • Revenue of $164.4 million, a 1% increase from Q2 2023.
  • Net income of $9.4 million, or $0.38 per fully diluted share, up from $6.1 million in Q2 2023.
  • Adjusted EBITDA of $24.0 million, a 10% increase from Q2 2023.
  • Repurchased $2.7 million of shares and declared a dividend of $0.05 per share.

Headline financials

Total Revenue

$164M

Previous: $177M-7.1%
EPS (adj)

$0.38

Previous: $0.54-29.6%
Adjusted EBITDA

$24M

Previous: $30.3M-20.8%
Capital Expenditures

-$27.9M

Previous: -$8.7M-220.7%
Free Cash Flow

-$18.5M

Previous: $4.9M-477.6%
Net Income

$9.4M

Previous: $13.6M-30.9%
Operating Income

$11.7M

Previous: $18M-35.0%
Gross Profit

$29.6M

Previous: $38.9M-23.9%
Cash & Equivalents

$8.2M

Previous: $5.2M+57.7%
Total Assets

$394M

Previous: $408M-3.6%
Stock-Based Comp

$1.2M

Previous: $1.1M+9.1%

Revenue & EPS history

Ranger Energy Services · Revenue · Quarterly

$164M

Q3 2023-7.1%vs Q3 2022
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Ranger Energy Services · $164M total across 3 segments · Q3 2023

  • High Specification Rigs
    $79.2M-0.6%
  • Wireline Services
    $53.2M-12.2%
  • Processing Solutions
    $32M-12.8%

Forward guidance

The Company anticipates resuming quarter over quarter growth in 2024 when a more supportive industry backdrop comes into focus.

Tailwinds

  • Expects incremental growth from larger integrated customers in High Specification Rigs business.
  • Signed a new customer agreement with a large integrated producer providing an established minimum market share of business.
  • Believes the rig count is close to bottoming out and anticipates a modest increase in activity levels in 2024.
  • Focusing on high grading work and customers in High Specification Rigs business.
  • Pivoting Wireline business to be more production focused and enhancing pull-through in Ancillary service lines.

Headwinds

  • Lower than expected customer activity.
  • Fourth quarter results are expected to be heavily influenced by weather events and customer plans at year end.
  • Potential for results to vary from expectations due to weather and customer plans.
  • Updated capital expenditure guidance reflects additional purchases of capital equipment.
  • Unspecified risks associated with an improving North America onshore environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.0%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.1%

Avg return

30 days after

39%

14 / 36 earnings

Positive

+15.4%

Q3 2020

Best reaction

-20.1%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.4%-6.9%-17.6%
Q4 2025-2.9%-4.4%-3.7%
Q3 2025-0.7%+0.1%+3.9%
Q2 2025-1.4%+0.3%+7.1%
Q1 2025-12.1%-5.8%-15.6%
Q4 2024-2.1%-9.7%-18.2%
Q3 2024+3.3%+6.7%+33.8%
Q2 2024+12.0%+4.9%+8.9%
Q1 2024+1.6%+0.4%+0.4%
Q4 2023+4.9%+4.4%+8.9%
Q3 2023-11.4%-12.6%-26.4%
Q2 2023+6.6%+19.5%+17.0%
Q1 2023-2.8%-1.3%-1.6%
Q4 2022+2.6%+2.2%-2.9%
Q3 2022+3.7%+5.2%+10.8%
Q2 2022-3.0%-3.5%+7.6%
Q1 2022+6.3%-1.8%+14.1%
Q4 2021+9.6%+7.4%-5.8%
Q3 2021-0.8%+0.6%-2.2%
Q2 2021-3.1%-9.7%-10.7%
Q1 2021+3.1%+7.8%+35.0%
Q4 2020+3.0%+7.1%+3.9%
Q3 2020+15.4%+6.1%+29.6%
Q2 2020-10.7%-11.0%-7.1%
Q1 2020-1.3%-6.9%-7.3%
Q4 2019-1.6%-2.0%-44.5%
Q3 2019-5.7%+0.0%+33.4%
Q2 2019-14.6%-11.2%-10.0%
Q1 2019+7.5%+4.2%-14.4%
Q4 2018-2.2%+0.8%+34.0%
Q3 2018-0.3%+11.3%+15.5%
Q2 2018-6.8%-3.8%-10.3%
Q1 2018-2.8%-2.3%+2.5%
Q4 2017-4.0%-8.3%-20.7%
Q3 2017-20.1%-21.4%-12.2%
Q2 2017+2.6%+2.3%+3.5%
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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