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Dec 31, 2023
Ranger Energy Services Q4 2023 Earnings Report
Announced Q4 2023 and full year 2023 results, reporting revenue of $151.5 million and net income of $2.1 million for the quarter.
Key Takeaways
Ranger Energy Services reported Q4 2023 results with revenue of $151.5 million and net income of $2.1 million. The company's performance was impacted by customer budget exhaustion and holiday slowdowns, but the high specification rigs business showed stability.
Q4 revenue was $151.5 million, a decrease from $154.3 million in the prior year period.
Net income totaled $2.1 million for the fourth quarter of 2023, compared to $7.6 million in the prior year period.
Adjusted EBITDA was $18.4 million for the fourth quarter of 2023, a decrease from $21.6 million in the prior year period.
The company ended the fourth quarter with $0.1 million of debt and $15.7 million of cash and cash equivalents and liquidity in excess of $85 million.
Revenue by Segment
Forward Guidance
Ranger expects that operator activity levels are unlikely to grow meaningfully during 2024 while supply and demand dynamics and future global economic activity remain uncertain.
Positive Outlook
- Activity began to ramp in the back half of February after a slow start to the year due to weather impacts and non-Ranger related safety events and shutdowns.
- Ranger has also expanded work with the key blue-chip customer agreement announced in 2023 and is optimistic that additional growth opportunities will result from this work and other opportunities.
- Ranger’s production focused business model demonstrated its cyclical resilience in 2023 and underpins a 2024 budget that includes modest growth year over year dependent on operator behavior remaining stable.
- Converting 60% of EBITDA to free cash flow(1) through efficient use of capital expenditures will continue to allow Ranger to provide strong return of capital to shareholders during the year.
Challenges Ahead
- Operator activity levels are unlikely to grow meaningfully during 2024.
- Supply and demand dynamics and future global economic activity remain uncertain.
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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