Ranger Energy Services at Sidoti Conference: Strategic Growth Amid Challenges

On Thursday, 20 March 2025, Ranger Energy Services (NYSE: RNGR) presented at the Sidoti Small-Cap Virtual Conference 2025, offering insights into its strategic positioning and performance. The company highlighted its robust cash flow and stable earnings despite market challenges, while also addressing recent stock price fluctuations linked to macroeconomic factors.

Key Takeaways

• Ranger Energy Services focuses on maintaining existing wells, not drilling new ones, with a strong cash flow conversion rate of 60% of EBITDA.
• The company returned 40% of free cash flow to shareholders in 2023 and 2024, exceeding its 25% commitment.
• Ranger maintains a clean balance sheet with $120 million in liquidity and zero net debt.
• The company is actively pursuing M&A opportunities, despite challenges with bid-ask spreads.
• Recent stock price pullback is attributed to macroeconomic uncertainties like OPEC’s decisions and tariff issues.

Financial Results

• Revenue:

- 2023 revenue was nearly $600 million.

- 60% of revenue came from high-spec rigs.

- Wireline business contributed just under 20% of revenue.

- Revenue declines were limited to the wireline completions business; other service lines saw revenue growth.

- High-spec rigs revenue grew by 7% despite a declining rig count.

• Profitability:

- 2023 EBITDA was approximately $79 million.

- Cash flow for 2023 was $50 million.

- Free cash flow conversion rate averaged 60% of EBITDA over the past three years.

• Capital Returns:

- Returned 40% of free cash flow to investors in 2023 and 2024, surpassing the 25% commitment.

- Repurchased 15% of outstanding shares by the end of 2023.

• Balance Sheet:

- Zero net debt and $120 million in liquidity at year-end 2023.

- Blended hourly rates have steadily increased.

- Return on invested capital was 7% over the past year.

Operational Updates

• High-Spec Rigs:

- Anchor business with rising revenues and margins.

- Excess capacity available with some maintenance CapEx.

• Processing and Ancillary Services:

- Includes Quail tubing, rental, plugging and abandonment (P&A), and Torrent for infill gas processing.

- Growing P&A business due to customer demand and regulatory requirements.

• Wireline:

- Focus is shifting to conventional wireline for intervention work on existing wells.

- Challenges faced due to efficiencies in completions.

• Safety:

- Achieved the lowest Total Recordable Incident Rate (TRIR) on record, highlighting effective safety systems and training.

Future Outlook

• Growth Prospects:

- Anticipates growth from consolidation among major E&P operators.

- Can bring idle rigs to market at lower capital costs than peers if the market expands.

- Sees potential from LNG exports but is not relying solely on this catalyst.

• M&A Strategy:

- M&A is expected to play a significant role in Ranger’s future.

- More rational thinking observed in M&A discussions.

Q&A Highlights

• Stock Price Trends:

- Recent pullback linked to macro uncertainties like OPEC decisions and tariffs.

- Market does not fully appreciate the stability of Ranger’s earnings and cash flow.

• Stock Buyback:

- Systematic in returning at least 25% of cash flows to investors.

- Opportunistic buybacks when the stock is undervalued.

• M&A Environment:

- Bid-ask spread challenges remain, but optimism for opportunities this year.

• ROE Improvement:

- Focus on expanding well services and benefiting from E&P operator consolidation.

• Market Share Gains:

- Gaining market share from smaller regional players.

• High-Spec Rigs:

- Potential to add more packages as larger companies consolidate vendor lists.

For a detailed account of Ranger Energy Services’ performance and strategic insights, please refer to the full transcript below.

Full transcript - Sidoti Small-Cap Virtual Conference 2025:

Steve Farazani, Sidoti Analyst, Sidoti: Good afternoon, everyone. I’m just waiting for the the room to fill in a little bit here. I can see people are still coming in. But, as we have this pause, let me just remind everyone that, if you have any questions following, which should be an informative presentation, press that q and a button at the bottom of your screen and type them in at any point during the presentation, and we’ll get to, as many questions as we can, time permitting, following the presentation. With that said, I’m Steve Farazani of Sidoti.

I’m so pleased to welcome Ranger Energy Services, tickers RNGR, joined by CEO Stuart Bowden and CFO Melissa Kugel. And with that, let me turn it over to Stuart and Melissa.

Stuart Bowden, CEO, Ranger Energy Services: Great. Thanks, Steve. Thanks, everybody, for joining us today and thanks for your interest in Ranger Energy Services. As Steve said, we’ll go through a few slides, talk a little bit about the company and recent performance and then we’ll leave some time for Q and A at the end. So just a little bit about Ranger.

We are one of the largest well service providers in The United States. As Steve said, our ticker is RNGR, market cap of about $330,000,000 at recent stock prices. A couple of things that I would just highlight kind of go into the upper right of the slide. So, one is and we’ll talk a lot about this in the next few minutes, but being a production focused well service company. And what we really mean is we’re very much focused on maintaining existing wells.

We don’t drill new wells. We have a little bit of sort of some of our services support the completions of new wells. But really our bread and butter is focused on existing and maintaining existing wells. Second thing we would highlight is our cash flow conversion through the cycle. On average, we convert about 60% of our EBITDA to free cash flow.

So, we generate quite a bit of cash and we’ll talk about how we think we’ve used that quite wisely over the last couple of years. And that’s really leads into our balance sheet strength, returns focused strategy. We are very focused on dividends, on share repurchases, and we have a very clean balance sheet. Just to give you a size of the company, last year, we did just shy of $600,000,000 in revenue. About 60% of that was what we call high spec rigs.

These are well service rigs. Again, mobile rigs used to support the maintenance of existing wells. Our wireline business, which is just shy of 20%, and ancillary services. Ancillary services includes our plugging and abandonment business, Torrent, which is infill gas processing. Quill tubing business in there and a rental and fishing tool.

We did just shy of $79,000,000 of EBITDA last year, dollars 50,000,000 of cash flow. And as I said earlier, about 60% last year, a little bit more than that conversion of EBITDA to free cash. We really think there’s four things that I think we would again kind of highlight as we go through this. And I mentioned the first one, our cash flow generation, that’s been very stable over the last couple of years. We are in a leading position on the well services side.

We’re believers in consolidation. We’ve proven that we can do that very successfully, but we also have the capacity and the assets to grow organically. So we think that there’s a potential to grow, excuse me, both ways. Shareholder returns, we have a commitment to return 25 of our free cash flow to back to investors either through dividends or share repurchases. In 2023 and 2024, we actually returned 40% of free cash flow back to investors.

And the remaining cash, again, has been on the balance sheet. So, we sit in front of you today with zero net debt, about $120,000,000 in total liquidity at the end of last year. Just to talk a little bit about our service lines, and I’ll start with high spec rigs. As I mentioned earlier, it’s really our anchor business. We’ve been steadily increasing revenues and growing margins.

We do have excess capacity that we can deploy. It would take some maintenance CapEx to deploy that. We’re very disciplined about that. We’re just not gonna put assets in the market unless we think they can earn a fair return. But we do have that ability.

And again and last year, it was about just shy of 60% of our revenue and a little bit more than that on the EBITDA side. Processing and ancillary, as I mentioned, it’s a quilt tubing business, rental, P and A, and Torrent, just to spend a little bit of time on plugging and abandonment, which is P and A. That’s one of the things that we’ve actually been growing and investing in that business. We’re pretty excited about it for a couple of reasons. Our biggest customers feel like it’s an important part of their program.

They would say they’re licensed to operate if they need to responsibly plug existing wells at the end of their life. There are some regulatory requirements on them as well. Some states are really requiring that they PNA wells in order to get new drilling permits. And then there’s obviously the IRA money that was in the Inflation Reduction Act, for the Orphan Well program, and that would really be targeted to our P and A activities. And we think that that some of that money, has been flowing into The States a little slowly, but we think that there’s a chance that that will actually free up going forward.

And then I would highlight Torrent. Torrent is infill gas processing. You’ve heard a lot of infill about infill power, lately. If that power is, it is very often supported, whereas gas fired, if you have a high BTU content gas stream, our service lines, our mechanical refrigeration units, which is what these assets are, can take out the liquids liquids and provide a cleaner gas stream into the power gen and then use those liquids that can be monetized to offset any kind of rental needs for the equipment. And then on wireline, wireline, it’s primarily a northern business for us.

This one’s been a bit challenged. We’ve been moving it more to conventional wireline on the production side, but completions related wireline, really a lot of the efficiencies you hear about on completions have really sort of driven down frac crew counts. Our completion related wireline tends to follow those crews. So the reduction in frac crews is actually driven a reduction in wireline crews needed, which has actually created some surplus capacity, and pricing has been pretty challenged in that market as well. To combat that, we’re really, you know, taking those assets and deploying them more on what we’d say conventional wireline, so much more intervention related wireline or working on existing wells.

I mentioned again when I started that we’re a production focused well-service company. And, again, just to kind of put that into numbers, if you think about across this chart, across the top, the value chain. So you would drill in a well, you would complete it. Completing is when you actually put in all the tubing and actually do the fracking, then you would produce and then you would decommission the well. You know, during the production phase, which is most of our work happens, the way we kinda talk about it is once a well comes online, you need to maintain that well kind of the same way that you maintain your car.

And so that’s really a lot of the services that we provide. And we would tell you, which is coming up here in a slide or two, that as long as the industry drills more wells that are being plugged and abandoned, our addressable market is naturally is naturally growing. And that’s really where the bulk of our activity sits. We won’t say it’s completely immune from volatility, but certainly, I think you’ll see in the upcoming slides that we’ve really kind of bucked the trend. And even though drilling rig count because of efficiencies has come down, we’ve actually managed to grow through our business three times a week, which is exactly here on page seven.

So what we did just to give you a sense is we took we took, E and P spending and we kind of broke it into three into three buckets and indexed it over time. So production, which is really, again, sort of focused on spend after drilling and completions. Completion spill spending, which again is, you know, all the fracking and then exploration and drilling. And you kinda go back to 2010 in the index. What you’ll see is, yes, there’s some volatility, but exploration, drilling, and spending, you know, kind of through that time period has been it was, you know, it was lower as we kind of moved into a lot of the build out of the shale.

But, you know, it’s been relatively flat through the cycle, down a little bit. Completion spending, you know, has had some volatility, but has been up modestly. And production spending, there’s been a lot more money that’s actually been spent on production. We would tell you that our services are much more tied to tied to the OPEX cycle of our customers, whereas completion, exploration and drilling spending is much more tied to the CapEx cycle. And that’s something that we actually quite like in our profile.

So as I said earlier, we think it makes us a lot more resilient. As I mentioned earlier, and this on the left hand side, you you can see this is the growth of existing horizontal onshore wells in The US. There’s probably about 200,000 or so, well, you know, horizontal wells. And again, that’s that’s really kind of our bread and butter. As I mentioned earlier, as that market grows and it grows more than wells are being plugged and abandoned, we think our addressable market is growing.

And on the right hand side, you can see the yellow line of production revenues. These are Ranger revenues that are tied to the production stream, and you can see how they’ve roughly tracked along with lower 48 production. Again, I think we’re just trying to drive this point home that as production, you know, continues to grow, you know, we we think that’s a benefit to to to Ranger. I mentioned earlier, just about how we feel like that we have bucked the trend. And so I’ll kind of, you know, point you to the middle slide here and on the bars.

On the bars, you’ll see our high spec, rig revenue. So these are our high specification well service rigs. And you can see how we’ve actually grown it each quarter over the last five quarters. The line that you see through there starting at 6.22 and going down to 5.69, That is the drilling rig count. So these are sometimes you’ll you’ll you’ll hear it referred to as, you know, the Baker Hughes rig count.

These are land drilling rigs. These are rigs that are drilling new wells. And so that that has actually declined over time. However, even though land rig, land rigs have declined, we’ve grown our business again because you have to maintain these wells once they’re put into production and they’re pretty long lived. And then again on the right hand side, you can you can see just the EBITDA profile.

And we’ve really, you know, as we’ve more and more aligned ourselves with the biggest customers, what we have found is that those are stable work programs. It makes us manage our schedules a lot better. Also, they want more complete packages on location. And what I mean by that is it’s not just a rig, but it’s also the other equipment that sits around it, handling pipes, blowout preventers, things like that. That tends to be high margin.

And so again, that’s really sort of helped us continue to settle to grow the EBITDA and really improve margins. And Page 10, and I’m going to turn it over to Melissa after this page. But what you can see on the columns here is, so this is our blended hourly rate over the last several quarters. And what you can see is that we’ve steadily grown our rates over time. Recently, a lot of that has been, as I mentioned earlier, has been because we’re now putting more complete packages on location for our biggest customers.

And that gives us the ability to increase our revenue per hour. On the previous slide, you saw the benefit of that when you saw our margin profile. The last thing I’ll say about Ranger is all of this is really a testament to our customers. We work with the largest players onshore US. Our bread and butter customers are ExxonMobil, Chevron, ConocoPhillips, Oxy, again, the largest customers.

And the reason that they work with Ranger is because we have very robust safety systems. We train our people well. We invest in our equipment. We make sure that it’s properly certified, it’s properly maintained. And again, that really translates in us being the preferred provider for those customers and also letting us really earn a fair return going forward.

Melissa Kugel, CFO, Ranger Energy Services: So I’ll touch back on some of the financial highlights, in our capital returns program just for a couple of minutes. Sort of drawing together some of the the key themes that you’ve heard from Stuart, When you look at our consolidated annual revenues over the past few years, what you’ll see is just a lot of steadiness. The declines from ’23 to ’24 were really isolated into the wireline completions. If you actually look underneath the cover there, you’ll find all of our service lines actually increased revenue, including in the wireline segment and the more production focus that we talked about, save the wireline completion space. And in fact, the high spec rigs business are, if you will, flagship business actually grew 7% and this is all through the lens of a declining rig count profile.

Through that, you also can see in the bottom, in the bottom left hand corner where we’ve actually expanded margins through those revenue contractions. It was revenue that we had been holding on to and wireline completions that was fairly low margin. And at the same time, as we were packaging this equipment with the larger providers, we’re getting better pull through revenue and margins on that. We also we’re just in a pure operational. You just heard Stewart mention our work with the majors.

We actually achieved our lowest TRIR or total recordable incident rate on record for the company, which is really, an indication of the robustness of our safety systems, the training our crews go through and a real cultural mindset to be safe on the well side. And we’re quite proud of that and we feel like that is a differentiator on the margins dealing with these customers. When we look at this, we talked, Stuart, I think mentioned on at least a couple of slides earlier and you’ll see me mention it on at least a couple of these last slides. We really feel like our free cash flow profile is wildly underappreciated by the market. We have a really strong conversion rate.

We don’t have we have capital intensity in that these rooms when they were first purchased, create create some barriers to entry because they are a capital investment. That said, because they’re not destroying rot, because they’re not pulling and pushing intensively, they tend to be extraordinarily long lived. And so we have the opportunity to really harvest cash over them for an extended period of time. And you can see that evidence now. We posted really admirable conversion rates, of our EBITDA to free cash flow for the past three years in a row, averaging in the 60s.

So we can really manage down very prudently the capital that we’re spending to make sure we’re harvesting as much cash to give us as many opportunities to both return that cash and continue to grow the company. And in the bottom right hand corner, what you can see is effectively when we’ve chosen to spend the cash, where we have spent it. We feel very strongly that as a subscale or smaller oilfield service provider, maintaining an absolutely pristine balance sheet is really prudent. We actually do use debt. We have used it before to actually make acquisitions smartly.

And then we chose to pay them off because we thought, well, that’s the best thing we can do to insulate the company to give us and put us in the best position to make the next best use of our capital. We’ve also instituted base load dividends, which we’ll talk about in a second. We’ve done a few small capital acquisitions, over that time that we really felt like positioned the company better to continue to monetize the asset base. And we’ve posted an average return on invested capital of 7% over the past year. So so altogether, we feel like this really positions the company nicely from a financial health perspective.

Where we feel like this is underappreciated, we’ve we’ve built and demonstrated this slide to actually show that that conversion rate across our peer group. We get asked frequently who were your peers and we would tell you there’s not really another company that does well services. And so what that really leads you to is a peer group that more sits earlier in that drilling cycle we were talking about within drilling and within completions more so. But what you also notice in the top graph is that we actually have a much higher conversion rate than the vast majority of our competitors. And whenever you drop to the second one and you look at it’s a rarely looked at metric, but if you look at free cash flow multiple, you can see where our conversion rate is the highest and we’re getting you know, less credit on a relative basis according to our peer group as compared to our peer group.

Right? And so so when you look at and then the bottom, which is the more typical EBITDA multiple, what you see is we start to have a more competitive EBITDA multiple, but but then it starts to have that much more value appreciation opportunity set within the within the Ranger share price on free cash flow as well. So, we we really added this slide most recently because we had a several investors. The share price has moved. We’ve been very proud to see it move over the past twelve months.

And when we got to the fall, we sort of had a mindset and feedback that, oh, well, now you’ve lived into your share price. You’ve grown into your multiple. And that was true on an EBITDA multiple basis, but there’s so much room to move on a cash flow multiple basis. So we really wanted to call attention to that here. And we’ve talked before about the capital returns program and we really we’re really quite proud of what we’ve done in capital allocation in this area.

We decided two years ago in order to I apologize. We decided two years ago to sort of put our money where our mouth was and institute a base low dividend to show the market that we felt we could generate cash flows in any environment and cycle. And then we also instituted because our share price was so undervalued, a very active repurchase program. And over the past two years, we’ve actually given back 40% of our free cash flow to investors largely through share repurchases. We’ve repurchased 15% of the company as of outstanding shares, from December 31.

And we also have an ongoing commitment to at least give back 25%. And we think that with that mindset of at least 25%, there’s still plenty of room with the other 75% to grow and deploy capital wisely at Ranger. So sort of closing us out, you know, we wanted to highlight a few things that we really kind of revisiting through this deck, which is one, we really have some compelling investment fundamentals with strong free cash flow conversion and really strong return on invested capital. We think we actually have shown the ability to grow through the criticality. You see drilling rig count declines and Ranger is still growing.

And we expect that that will continue as the majors continue to consolidate and we benefit from that consolidation. We have asset capacity that we touched on a little bit. We have a fair number of idle rigs and those rigs take a small amount of CapEx to deploy. But as the market does grow again and as the cycle starts to expand again, we will be able to bring those rigs to market at a much lower capital cost than any peers would be able to do. And then we also have a really robust capital frame capital returns framework where we think our investors benefit from a variety of options in terms of how they get value creation underneath Ranger.

With that, I’ll stop and open it to Steve for any questions of the group.

Steve Farazani, Sidoti Analyst, Sidoti: Great. Thanks so much, Stuart and Melissa. Appreciate the informative presentation. Really appreciated the free cash flow slide. I didn’t think I’d ever seen that from an OFS name before.

So kudos to you for the addition. First question of coming in here is stock is up nicely over the last year, but could you talk about trends in the stock price over the last few months?

Stuart Bowden, CEO, Ranger Energy Services: Yes. So just to recap a little bit. So obviously in Q4, we had really, really nice runs. We had a really strong Q3. And then really on the back end of the election, continued the run.

I think we kind of view it in Q1. We had a really strong Q4. I think literally within hours of announcing that, we were kind of flirting with all time highs. And then I think, Steve, we just kind of feel like we kind of got caught up with everyone, and some of the uncertainty around the market, you know, the uncertainty about the, you know, long term potential impacts, if any, of tariffs. And so, you know, it’s just kind of a bit of a pullback as people, we think, are just kinda waiting to see what’s what’s what’s gonna happen.

I think the other thing too, as Melissa said, you know, as that was happening, we, you know, we continue to kinda point people to if you look at the stability of the earning stream and the stability of the cash flow generation and how we’re valued on a cash flow multiple, we think that there’s just strength in the in the in the performance of the business. It’s probably not kind of getting appreciated by the market. We’re just kind of getting swept up with everybody

Melissa Kugel, CFO, Ranger Energy Services: else. Yes. And I would only add to that, Steve. You can look at our earnings coinciding actually with the OPEC announcement that they were going to bring back online capacity and then tariffs the very next day. And so so really when you look at at the recent declines, they really that was the catalyst.

Steve Farazani, Sidoti Analyst, Sidoti: Macro used to macro driven.

Melissa Kugel, CFO, Ranger Energy Services: It’s a purely and and again, we would point back to our countercyclicality. Nonetheless, we’re an OFS company. So you go the way the macro grows, which is why we’re here to kinda say, hey, look. But we we we actually you know, not to say we feel nothing from that, but you can really look at our results and and see where where we don’t pull back nearly the extent

Stuart Bowden, CEO, Ranger Energy Services: kind of Absolutely.

Steve Farazani, Sidoti Analyst, Sidoti: Question about about your stock buyback. How opportunistic are you with it or is it more systematic and just general capital allocation thoughts?

Stuart Bowden, CEO, Ranger Energy Services: Yeah. I’ll I’ll I’ll I’ll start. You know, on on the cash flow, sort of the uses of that, you know, we we always felt like that because of the high cash flow conversion that we could, you know, I I would not say it’s a do it all strategy, but we could be opportunistic and we could do share repurchases, have a dividend and actually build some cash when the time was right, for for M and A. You know, as kind of Melissa alluded to, last year, certainly in the front part of the year when the stock was under pressure, we were very opportunistic, right? And we bought quite a number of shares.

I won’t so let’s just start with your Sheila to sort of give the stats that we bought quite a bit of stock at

Melissa Kugel, CFO, Ranger Energy Services: 10.37

Stuart Bowden, CEO, Ranger Energy Services: And I think during that time we really felt like it was just the best investment that we had was our own business, right? And, you know, when things ran in in the fall, we tend to quarter by quarter, establish a 10 b with with, you know, kind of our parameters. And then and then in that sense, it’s a set it and forget it sort of inside of a quarter. And obviously, in q four, we kind of ran past some of the parameters. But we’re really happy to see it.

Melissa Kugel, CFO, Ranger Energy Services: Yeah. Yeah. I mean, I think the systematic part of it, it is a both answer because I think the systematic part of it is, look, we’ve made a public commitment that we’re returning 25% of of cash flows. Right? So so one way or another, those are coming back eventually.

But I think we don’t wanna be so systematic that we’re always just buying 25% on autopilot because when you look at it, you you do have volatility and there’s great buying opportunities. So so we sort of have a combo approach of we try to be thoughtful about when we’re being more aggressive and when we’re letting the stock kind of play out on its own. Yeah. Just to try to be smart about the deployment.

Steve Farazani, Sidoti Analyst, Sidoti: Did the other side of that, any changes in the m and a environment?

Stuart Bowden, CEO, Ranger Energy Services: You know, we, appreciate the question. We we we we do get it fairly often, and, I sort of joke that I feel like I’m a broken record on it. We’ve seen over the last couple of years that there’s been a bid ask spread. We’re believers of consolidation. We think M and A ultimately will be a big part of the Ranger story.

Again, going forward, it has been in our past. It feels like things are a little bit better. You know, right now, you have a little more you know, I think there’s kind of probably more consensus that ’25 is a year of kind of steady as she goes. Right? We kind of which which puts a degree of just kind of rational thinking into the conversations.

Obviously, you know, we’ve had some strength in our stock price that maybe gives us a little bit more flexibility and we have some cash. So we’re we’re hopeful this is the year, Steve, but, I think I’ve been saying the same thing.

Steve Farazani, Sidoti Analyst, Sidoti: I’ll try to stop asking.

Melissa Kugel, CFO, Ranger Energy Services: Well, and and patience can be your friend. Right? What we we we we’re we’re certainly not desperate to do a deal.

Steve Farazani, Sidoti Analyst, Sidoti: Right. Right.

Melissa Kugel, CFO, Ranger Energy Services: I think we absolutely are convinced that it will free up for us eventually. And patience is our friend, frankly, because we’re best positioned and we have a great balance sheet.

Steve Farazani, Sidoti Analyst, Sidoti: I have a question about, opportunities. Are there levers to pull to further improve ROE? I yeah.

Melissa Kugel, CFO, Ranger Energy Services: I mean, I think that that’s fair. I think the levers really are continued expansion in the well services product lines. So, I mean, 7% growth in a declining rate count market is admirable. And and our E and P operator custom the biggest customers, they’re still consolidating. Whether it’s Chevron, whether it’s Exxon, whether it’s Oxy, that consolidation is still playing out and Ranger is anticipating to benefit from that.

And and so fall through on that will, I believe, expand return on equity over time. So I think that’s the biggest lever we would tell you. We always look at the smaller things on the margin, but I think that’s really barring a macro catalyst. Like, we look at LNG exports and we think there will eventually, because it’s a cyclical industry, there will eventually be a macro catalyst. But we’re not hinging our hopes on that, and we think we think the growth over the past couple of years has demonstrated we can still do something even when the macro is not favorable.

Steve Farazani, Sidoti Analyst, Sidoti: Okay. To ask about the gains in a in a well declining on the drilling and completion side, but given the current macro, your growth with the high spec rigs, fair to assume you’re picking up a lot of market share?

Stuart Bowden, CEO, Ranger Energy Services: Yeah. Yeah. I think that is fair. We think we’re doing it really at the expense of, you know, small regional players who had been working for some of the, basically, the targets that the larger companies had bought. Right?

So if you think about Exxon went to buy Pioneer, Pioneer is gonna shrink the vendor list, that will benefit us and some of the legacy providers to Pioneer, as an example, you know, could go away. I mean, that’s kind of what we’re saying, which also means we’re we’re we’re we’re gaining share. That’s right.

Steve Farazani, Sidoti Analyst, Sidoti: Gotcha. And then any other you know, you talked about adding packages to the high spec rigs, which I mean, that that that’s an impressive chart that the revenue, the per per rig in this market. Is there more to come there? Or

Stuart Bowden, CEO, Ranger Energy Services: is that We do think there’s more to come. What we’re seeing is I think there’s a trend of the larger companies to do that. They’re not all doing it. Right? So not all of our customers at the moment are doing that.

We do think that they’re they’re they’re starting to go that way. It it’s just another way for them to shrink their vendor list, and basically have more preferred partners going forward. And so it just it’s easier for them, and and, truthfully, it’s beneficial to us.

Steve Farazani, Sidoti Analyst, Sidoti: K. I think we’re just about wrapping up here. Very informative half hour. Any any closing thoughts before we say goodbye?

Stuart Bowden, CEO, Ranger Energy Services: No. Just just thank you very much for for your interest. I think we would obviously just remind everybody to to to follow the cash.

Steve Farazani, Sidoti Analyst, Sidoti: And we try to

Stuart Bowden, CEO, Ranger Energy Services: be very open with investors. If you have any questions, don’t hesitate to reach out to the company.

Steve Farazani, Sidoti Analyst, Sidoti: Okay. So it’s Stuart Bowden, CEO and Melissa Kugel, CFO of Ranger Energy Services. Thanks so much for being with with us and hope hopefully, everyone enjoys the remainder of Sidoti’s virtual investor conference. Thanks, everyone.

Melissa Kugel, CFO, Ranger Energy Services: Thank you. Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.