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Sep 30, 2023
Ranger Energy Services Q3 2023 Earnings Report
Ranger Energy Services reported strong financial performance despite lower U.S. onshore drilling and completions activity and sustained weakness in the natural gas basins.
Key Takeaways
Ranger Energy Services, Inc. announced its Q3 2023 financial results, with revenue of $164.4 million, a 1% increase from the previous quarter. Net income was $9.4 million, or $0.38 per fully diluted share, up from $6.1 million in the previous quarter. Adjusted EBITDA was $24.0 million, a 10% increase from the previous quarter. The company repurchased $2.7 million of shares and paid its first dividend of $0.05 per share.
Revenue of $164.4 million, a 1% increase from Q2 2023.
Net income of $9.4 million, or $0.38 per fully diluted share, up from $6.1 million in Q2 2023.
Adjusted EBITDA of $24.0 million, a 10% increase from Q2 2023.
Repurchased $2.7 million of shares and declared a dividend of $0.05 per share.
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
The Company anticipates resuming quarter over quarter growth in 2024 when a more supportive industry backdrop comes into focus.
Positive Outlook
- Expects incremental growth from larger integrated customers in High Specification Rigs business.
- Signed a new customer agreement with a large integrated producer providing an established minimum market share of business.
- Believes the rig count is close to bottoming out and anticipates a modest increase in activity levels in 2024.
- Focusing on high grading work and customers in High Specification Rigs business.
- Pivoting Wireline business to be more production focused and enhancing pull-through in Ancillary service lines.
Challenges Ahead
- Lower than expected customer activity.
- Fourth quarter results are expected to be heavily influenced by weather events and customer plans at year end.
- Potential for results to vary from expectations due to weather and customer plans.
- Updated capital expenditure guidance reflects additional purchases of capital equipment.
- Unspecified risks associated with an improving North America onshore environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income