Ranger Energy Services Q1 2022 Earnings Report
Key Takeaways
Ranger Energy Services reported Q1 2022 revenues of $123.6 million, a slight increase from the previous quarter. The company experienced a net loss of $5.7 million, which was an improvement compared to the previous quarter's net income due to a bargain purchase gain in Q4. Adjusted EBITDA increased to $9.6 million, driven by improved gross profit margins in the High-Spec Rig segment.
Quarterly revenues increased by $0.5 million to $123.6 million.
High-Spec Rig revenue grew 9% sequentially, with an operating income increase of $6.8 million.
Net loss decreased by $30.1 million from Q4 net income.
Adjusted EBITDA increased by $0.5 million to $9.6 million.
Ranger Energy Services
Ranger Energy Services
Ranger Energy Services Revenue by Segment
Forward Guidance
Ranger Energy Services expects Q2 revenue to be between $135 million and $145 million with corporate EBITDA margins ranging between 10% and 12%. For full year 2022, the company is increasing its guidance for revenue to be between $540 million and $580 million with full year EBITDA margins of 11% to 13%.
Positive Outlook
- Q2 revenue is expected to be between $135 million and $145 million.
- Corporate EBITDA margins for Q2 are projected to range between 10% and 12%.
- Full year 2022 revenue guidance increased to between $540 million and $580 million.
- Full year EBITDA margins are expected to be between 11% and 13%.
- Targeting 15% EBITDA margins by year end.
Challenges Ahead
- Experienced weather related delays in April, particularly in Northern operations.
- Seasonal issues during January and February impacted Q1 performance.
- Supply chain related issues during January and February impacted Q1 performance.
- Wireline Services’ Q1 performance was impacted by both supply chain and labor utilization issues.
- Processing Solutions and Ancillary Services segment experienced low January utilization levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income