• Revenue (Q4 2024): $143.1 million.
• Adjusted EBITDA (Q4 2024): $21.9 million, with a margin of 15.3%.
• Revenue (Full Year 2024): $571.1 million, down 10% from the previous year.
• Adjusted EBITDA (Full Year 2024): $78.9 million.
• Free Cash Flow (Full Year 2024): $50.4 million.
• High-Spec Rigs Revenue (Q4 2024): $87 million.
• High-Spec Rigs Adjusted EBITDA (Q4 2024): $19 million, up 21% year-over-year.
• Ancillary Services Revenue (Full Year 2024): $124.8 million.
• Ancillary Services Adjusted EBITDA (Full Year 2024): $26.6 million, up 18% year-over-year.
• Wireline Revenue (Q4 2024): $22.6 million, down 26% from the prior quarter.
• Cash and Liquidity (Year-End 2024): $40.9 million in cash and total liquidity of $112.1 million.
• Dividend Increase (2025): 20% increase to $0.06 per share.

• Warning! GuruFocus has detected 4 Warning Sign with RNGR.

Release Date: March 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ranger Energy Services Inc (NYSE:RNGR) reported a strong fourth quarter with revenue of $143.1 million and adjusted EBITDA of $21.9 million, marking a 320-basis-point improvement in margin over the same period last year.
• The company announced a 20% increase in its regular quarterly dividend, reflecting confidence in its business stability and commitment to returning capital to shareholders.
• Ranger's high-spec rigs business achieved record revenue and adjusted EBITDA, with a 21% year-over-year increase in EBITDA, showcasing strong operational performance.
• The Torrent business line experienced double-digit growth and is expected to achieve full utilization later in the year, indicating strong demand for its services.
• Ranger Energy Services Inc (NYSE:RNGR) maintained a strong balance sheet with nearly $41 million in cash and zero long-term debt, providing financial flexibility for strategic investments and shareholder returns.

Negative Points

• Revenue for the full year 2024 was down 10% from the previous year, primarily due to lower activity levels and challenges in the wireline completions segment.
• The wireline segment faced significant challenges, with revenue dropping by nearly half and margins falling to single digits, impacting overall financial performance.
• The company anticipates a subdued US land services market in the first half of 2025, with potential recovery only in the latter half, affecting near-term growth prospects.
• Ranger Energy Services Inc (NYSE:RNGR) expects total company EBITDA to be below $20 million in the first quarter of 2025 due to extreme winter weather disruptions.
• Despite efforts to pivot to conventional wireline services, the company does not foresee significant improvement in the wireline segment's market conditions in 2025.

Q & A Highlights

Q: Can you discuss the investments made in the Plug and Abandonment (P&A) market and what is driving the increase in P&A work? A: The investments are mainly on the E&P side, focusing on activating additional spreads, which include a wireline truck, a well service rig, and a cementing unit. There is also an effort to bid on government work associated with the IRA.

Q: Are you seeing potential for increased rig activity in the Haynesville and other gas basins due to LNG demand? A: Yes, there is potential for increased activity in the back half of the year, particularly in the Mid-Con and Haynesville markets, driven by recent gas price increases and LNG demand.

Q: How important are safety records and maintenance schedules in securing contracts with larger companies? A: Safety records and maintenance schedules are increasingly important. Larger customers often inspect equipment and verify crew training documents. Ranger's ability to provide a complete package on well sites and operate across multiple basins is a differentiator.

Q: Do you have visibility into rig demand from major oil and gas companies for the next few quarters? A: The demand is expected to remain consistent over the next few quarters. Some work may be picked up from major customers who have consolidated or acquired other companies.

Q: Are larger operators dropping smaller incumbents, allowing Ranger to gain more work? A: Yes, this trend was observed in 2024 and is expected to continue into 2025, with larger players like Ranger gaining market share at the expense of smaller ones.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.