Ranger Energy Services (RNGR) 17th Annual Southwest IDEAS Conference summary

Strategic overview and market positioning

• Announced acquisition of American Well Services (AWS), adding $180 million in revenue and $35–$40 million EBITDA, reinforcing market leadership in well services.

• Focused on production and maintenance services, with minimal exposure to drilling and completion volatility, ensuring consistent revenue streams.

• Maintains strong relationships with major oil companies, benefiting from their consistent work programs and preference for bundled service packages.

• Consolidation in the sector has favored the company, as majors seek fewer, more capable vendors for multi-basin operations.

• Revenue per hour has remained steady, with only minor pullbacks due to service mix changes.

Financial performance and capital allocation

• 2023 revenue was just under $550 million, with $75 million EBITDA and 60% EBITDA-to-free cash flow conversion.

• Over 15% of shares repurchased in recent years; average 40% of free cash flow returned to shareholders since 2023.

• Recent $90 million AWS acquisition funded mostly with balance sheet cash, maintaining strong financial flexibility and low leverage.

• Pro forma leverage post-acquisition is under 0.5x, with $80 million in free cash flow over the last 12 months.

• Share repurchases have reduced outstanding shares from nearly 25 million to 21.8 million, with significant value capture.

Acquisition details and synergies

• AWS acquisition completed at a 2.1x trailing EBITDA multiple, below the company's own trading multiple.

• AWS brings 40 rigs, 550 employees, and higher margins (23%) due to complementary service lines like mixing plants and tubing rental.

• New service lines from AWS can be cross-sold to existing customers, enhancing bundled offerings and margin potential.

• Pro forma EBITDA expected to exceed $100 million in 2026, marking a significant inflection point.

• Consistent and growing revenue and EBITDA profiles for both companies, with integration expected to unlock further synergies.