Ranger Energy Services Inc · Q4 2020 earnings

Briefing

Announced Q4 2020 results, showing revenue increase driven by High Specification Rigs segment, offset by increased costs and net loss.

Ranger Energy Services, Inc. reported a 20% increase in revenue to $41.5 million in Q4 2020, driven by growth in the High Specification Rigs segment. However, the company experienced a net loss of $6.7 million, and adjusted EBITDA decreased to $3.2 million due to increased costs, including make-ready expenses. Despite these challenges, Ranger highlighted its commitment to efficiency, cost management, and strategic client relationships.

• Overall revenues improved 20%, or $7 million vs Q3.
• High Spec Rig revenues grew 50% on increased utilization and pricing strength.
• The company returned $26 million of operating cash flow across the year while reducing long-term debt by nearly 50%.
• Q4 marked the first real signs of an industry turnaround with improving commodity prices and global energy demand.

Headline financials

Revenue & EPS history

The current trends of the market are setting up for a much more favorable 2021. Oil prices and U.S. land drilling activity are up 30% and 15%, respectively, since the beginning of 2021. More operators are adopting simul-frac operations leading to greater completion intensity, and maintenance activity has started the year strong.