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Dec 31, 2021
Ranger Energy Services Q4 2021 Earnings Report
Announced Q4 2021 results, highlighting inorganic growth and strategic acquisitions.
Key Takeaways
Ranger Energy Services reported a strong Q4 2021, marked by a 51% sequential increase in revenue driven by the Basic Energy asset transaction. The company's net income saw a significant rise due to a bargain purchase gain, and adjusted EBITDA also increased, reflecting improved profit margins in the High Specification Rigs and Processing Solutions segments.
Completed the Basic Energy asset transaction, recognizing a gain on purchase of $48 million.
Revenue grew 51% sequentially, driven by inorganic growth.
Net income increased $33.5 million from Q3, driven by a $37.2 million bargain purchase gain related to the Basic Energy Asset Acquisition.
Adjusted EBITDA increased $7.2 million from Q3, driven by increased profit margins in the High Spec Rigs and Processing Solutions segments.
Revenue by Segment
Forward Guidance
Ranger Energy Services anticipates revenue of approximately $120 million for Q1, with an exit run rate of $130 million. For full year 2022, they expect revenues to fall within a range of $520 million - $560 million, an increase from previous guidance. They expect full year EBITDA margins to range between 11% and 13% while still targeting a 15% EBITDA run rate target by year end for the company as a whole.
Positive Outlook
- Revenue of approximately $120 million for Q1
- Exit run rate of $130 million for Q1
- Full year 2022 revenue expected between $520 million and $560 million
- EBITDA margins to range between 11% and 13% for full year 2022
- Targeting a 15% EBITDA run rate target by year end for the company as a whole.
Challenges Ahead
- Pattern of margin and EBITDA development to be more weighted to the back half of 2022 than originally anticipated.
- Experiencing increased demand for services but supply chain and labor issues persist.
- Attracting new labor into the industry remains a challenge.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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