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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.
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 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.
- Wireline business has a more competitive landscape.
- Pricing and operational performance showing improvements in the wireline business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income