Ranger Energy Services Inc · Q4 2021 earnings

Briefing

Announced Q4 2021 results, highlighting inorganic growth and strategic acquisitions.

Ranger Energy Services reported a strong Q4 2021, marked by a 51% sequential increase in revenue driven by the Basic Energy asset transaction. The company's net income saw a significant rise due to a bargain purchase gain, and adjusted EBITDA also increased, reflecting improved profit margins in the High Specification Rigs and Processing Solutions segments.

• Completed the Basic Energy asset transaction, recognizing a gain on purchase of $48 million.
• Revenue grew 51% sequentially, driven by inorganic growth.
• Net income increased $33.5 million from Q3, driven by a $37.2 million bargain purchase gain related to the Basic Energy Asset Acquisition.
• Adjusted EBITDA increased $7.2 million from Q3, driven by increased profit margins in the High Spec Rigs and Processing Solutions segments.

Headline financials

Revenue & EPS history

Ranger Energy Services anticipates revenue of approximately $120 million for Q1, with an exit run rate of $130 million. For full year 2022, they expect revenues to fall within a range of $520 million - $560 million, an increase from previous guidance. They expect full year EBITDA margins to range between 11% and 13% while still targeting a 15% EBITDA run rate target by year end for the company as a whole.