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Jun 30, 2024
Ranger Energy Services Q2 2024 Earnings Report
Ranger Energy Services reported increased revenue and net income in Q2 2024, driven by strong performance in the High Specification Rigs segment and improved margins in the Wireline Services segment.
Key Takeaways
Ranger Energy Services reported revenue of $138.1 million and net income of $4.7 million, or $0.21 per fully diluted share, for the second quarter of 2024. The company experienced growth in the High Specification Rigs and Ancillary segments, which offset declines in wireline completions activity. Adjusted EBITDA was $21.0 million, and free cash flow was $6.8 million, or $0.30 per share.
Revenue increased to $138.1 million, with growth in High Specification Rigs and Ancillary segments offsetting declines in wireline completions activity.
High specification rig revenue reached a record $82.7 million, a 4% increase from Q1 2024 and a 7% increase from Q2 2023.
Net income was $4.7 million, or $0.21 per fully diluted share, an increase of $5.5 million from Q1 2023 but a decrease of $1.4 million from Q2 2023.
Adjusted EBITDA was $21.0 million, a 93% improvement from Q1 2024 but a 4% decrease from Q2 2023.
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 expects modest further improvement in third quarter results on a consolidated basis and typical seasonality in the fourth quarter, although year end customer behavior is unpredictable in current market conditions.
Positive Outlook
- The High Specification Rigs business is expected to grow revenues modestly year over year despite operator activity levels that have continued to decline during 2024.
- Processing and Ancillary Services segment is expected to have a strong third quarter.
- Wireline segment results have begun to stabilize over the past two months paving the way for a modest improvement in third quarter results.
- Ranger has deployed a significant amount of its expected annual capital expenditures in the first half of 2024 and expects a declining capital expenditure profile in the back half of the year.
- Company has gained traction during the summer months and are optimistic as they move into the second half of the year.
Challenges Ahead
- Year end customer behavior is unpredictable in current market conditions.
- Rig count declines of more than 20% from peak levels in 2023.
- Challenging conditions within the wireline completions service line.
- Year over year revenue declines are due to reduced activity in our Wireline Services segment driven by deteriorating market conditions over the period and pricing pressure in our wireline completions service line.
- Year over year decreases in Adjusted EBITDA were driven by reductions in activity in Wireline Services and certain Ancillary Services lines as well as inflationary pressure on costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income