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Jun 30, 2020
Ranger Energy Services Q2 2020 Earnings Report
Ranger Energy Services reported a decrease in revenue and net income in Q2 2020, but maintained positive EBITDA and cash flow through cost-cutting measures and market share gains.
Key Takeaways
Ranger Energy Services experienced a significant decrease in revenue and net income in Q2 2020 compared to Q1 2020, driven by declining activity across all segments. However, the company managed to maintain positive adjusted EBITDA and cash flow through aggressive cost-cutting measures and market share gains. Net debt was reduced by $15.1 million during the quarter.
Revenue decreased by 62% to $30.7 million in Q2 2020 from $81.0 million in Q1 2020.
Net loss was $8.9 million in Q2 2020, compared to a net income of $2.8 million in Q1 2020.
Adjusted EBITDA decreased to $3.2 million in Q2 2020 from $11.4 million in Q1 2020.
Net debt reduced by $15.1 million over the course of the quarter.
Ranger Energy Services
Ranger Energy Services
Ranger Energy Services Revenue by Segment
Revenue by Segment
High-Specification Rigs Revenue
CapyFin.comWireline Services Revenue
CapyFin.comProcessing & Ancillary Revenue
CapyFin.com Forward Guidance
Ranger has completed internal restructuring and is focused on new customer relationships and consolidation efforts. Activity in High Spec Rig and Wireline businesses increased from a late May trough. The opportunity set for mergers and acquisitions has increased.
Positive Outlook
- Activity move higher off of a late May trough in High Spec Rig and Wireline businesses
- Focus on further development of new customer relationships
- Ongoing consolidation efforts
- Incremental Wireline deployments with a new customer
- Potential for a meaningfully expanded Processing solutions customer base
Revenue & Expenses
Visualization of income flow from segment revenue to net income