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1. Company Snapshot

1.a. Company Description

Ranger Energy Services, Inc.provides onshore high specification well service rigs, wireline completion services, and complementary services to exploration and production companies in the United States.It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services.


The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services.This segment also has a fleet of 540 well service rigs.The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services are used primarily for pump-down perforating operations to create perforations or entry holes through the production casing; and pumping services.


This segment also has a fleet of 68 wireline units and four high-pressure pump trucks.The Processing Solutions and Ancillary Services segment rents well service-related equipment consisting of fluid pumps, power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, and pipe handling tools; decommissioning services; fluid management services; offers proprietary and modular equipment for the processing of natural gas; coil tubing services; and snubbing services.This segment also engages in the rental, installation, commissioning, start up, operation, and maintenance of mechanical refrigeration units, nitrogen gas liquid stabilizer units, nitrogen gas liquid storage units, and related equipment.


Ranger Energy Services, Inc.was incorporated in 2014 and is based in Houston, Texas.

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1.b. Last Insights on RNGR

Negative drivers behind Ranger Energy Services' recent performance include the Wireline Services segment's ongoing pressure, which has hindered the company's overall growth. Additionally, the downturn in completion activity has impacted the company's revenue streams. Furthermore, the recent announcement of a first quarter earnings conference call, while positive in the short term, may not necessarily address the underlying challenges facing the company.

1.c. Company Highlights

2. Ranger Energy Services' 2025 Earnings: A Year of Strategic Progress

Ranger Energy Services, Inc. reported total company revenue of $547,000,000 for 2025, with adjusted EBITDA of $73,200,000. The fourth quarter saw revenue of $142,200,000, up from $128,900,000 in the third quarter, and adjusted EBITDA of $20,300,000, representing a 14.3% margin. However, the actual EPS came out at $0.1411, missing estimates of $0.2. The company's free cash flow conversion rate remained strong, posting at nearly 60% for a third straight year.

Publication Date: Mar -06

📋 Highlights
  • AWS Acquisition & Integration:: Strengthened Permian Basin presence with AWS acquisition, enhancing scale and service offerings; integration progressing with team alignment and best practices.
  • ECO Rig Program Momentum:: Signed 15 ECO rig contract with a key operator in Lower 48; ECO rigs expected to constitute ~10% of active fleet.
  • 2025 Financial Performance:: Total revenue $547M, adjusted EBITDA $73.2M; Q4 revenue $142.2M (+8.8% QoQ), adjusted EBITDA margin 14.3% ($20.3M).
  • Shareholder Returns & Liquidity:: Returned >40% of free cash flow to shareholders via dividends/buybacks; ended 2025 with $67.7M liquidity ($57.4M revolver + $10.3M cash).
  • 2026 CapEx & Growth:: ECO program CapEx concentrated in H2 2026; 50% conversion rate expected, with potential for incremental contracts (<10 rigs). Plug-and-abandonment contract to utilize ~3 rigs initially.

Operational Highlights

The company's legacy core businesses continued to perform well, with the high-spec rig fleet benefiting from operational consistency and steady workload. The ECO rig program has also seen significant progress, with a contract signed for 15 ECO rigs with a key operator in the Lower 48. Stuart Bodden, Chief Executive Officer, expressed excitement about the momentum generated by the ECO platform and its potential to drive incremental value.

Integration of American Well Services (AWS)

The acquisition of AWS has strengthened the company's position in the Permian Basin and enhanced its scale and service offerings. Stuart emphasized that the integration of AWS is progressing well, with a focus on ensuring a cohesive operation, aligning teams, and implementing shared best practices.

Outlook and Valuation

The company expects the operating environment to remain generally stable in 2026, with a focus on execution and strategic evaluation. Analysts estimate next year's revenue growth at 10.8%. With a P/E Ratio of 30.9 and an EV/EBITDA of 6.23, the market is pricing in a certain level of growth. The company's commitment to maintaining operational discipline and its track record of consistent financial performance are positives. The Dividend Yield stands at 1.41%, providing some support to the stock.

Future Growth Prospects

The ECO rig buildout is expected to contribute to future growth, with the new rigs representing around 10% of the active fleet. Melissa Cougle discussed the capital expenditures for the ECO rig program, stating that most of the CapEx would show up in the back half of the year and that they expect a 50% conversion rate for the year. As the company continues to integrate AWS and advance the rollout of the ECO platform, it remains focused on maintaining operational discipline and exploring opportunities to strengthen its service offerings.

3. NewsRoom

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Acuitas Investments LLC Boosts Stock Holdings in Ranger Energy Services, Inc. $RNGR

Mar -18

Source: defenseworld.net

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Ranger Energy Services Q4 Earnings Call Highlights

Mar -08

Source: defenseworld.net

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Ranger Energy Services, Inc. (RNGR) Q4 2025 Earnings Call Transcript

Mar -05

Source: seekingalpha.com

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Ranger Energy (RNGR) Lags Q4 Earnings and Revenue Estimates

Mar -05

Source: zacks.com

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Ranger Energy Services, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

Mar -05

Source: businesswire.com

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Ranger Energy Services, Inc. Announces Date for Fourth Quarter and Full Year 2025 Earnings Conference Call

Feb -20

Source: businesswire.com

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Comparing Petrofac (OTCMKTS:POFCY) & Ranger Energy Services (NYSE:RNGR)

Jan -19

Source: defenseworld.net

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Ranger Energy: Built For The Downcycle, Levered To The Upside

Jan -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.46%)

6. Segments

High Specification Rigs

Expected Growth: 4.5%

Ranger Energy Services, Inc.'s high-specification rigs' 4.5% growth is driven by increasing demand for efficient drilling, rising oil prices, and growing E&P capital expenditures. Additionally, the company's strategic expansion into new basins, improved operational efficiency, and strong customer relationships contribute to its growth momentum.

Wireline Services

Expected Growth: 4.2%

Ranger Energy Services' Wireline Services segment growth of 4.2% is driven by increasing demand for oil and gas exploration, rising drilling activities, and growing need for efficient well intervention services. Additionally, the company's strategic expansion into new regions, investments in technology, and strong customer relationships have contributed to the segment's growth.

Processing Solutions and Ancillary Services

Expected Growth: 4.8%

Ranger Energy Services' Processing Solutions and Ancillary Services segment growth of 4.8% is driven by increasing demand for efficient oil and gas production, expansion into new basins, and strategic acquisitions. Additionally, the company's focus on technology advancements, cost savings initiatives, and strong customer relationships contribute to its growth momentum.

7. Detailed Products

Well Intervention Services

Ranger Energy Services, Inc. provides well intervention services, including wireline, pumping, and fishing operations to help customers optimize well performance and extend the life of their wells.

Wireline Services

Ranger Energy Services, Inc. offers wireline services, including logging, perforating, and pipe recovery, to help customers gather data, optimize well performance, and improve recovery.

Pumping Services

Ranger Energy Services, Inc. provides pumping services, including cementing, acidizing, and fracturing, to help customers stimulate and optimize well production.

Fishing and Rental Services

Ranger Energy Services, Inc. offers fishing and rental services, including fishing tools and equipment rental, to help customers recover from well control events and optimize operations.

8. Ranger Energy Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Ranger Energy Services, Inc. is medium due to the availability of alternative energy sources and services.

Bargaining Power Of Customers

The bargaining power of customers for Ranger Energy Services, Inc. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Ranger Energy Services, Inc. is medium due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

The threat of new entrants for Ranger Energy Services, Inc. is high due to the relatively low barriers to entry and the attractiveness of the energy services market.

Intensity Of Rivalry

The intensity of rivalry for Ranger Energy Services, Inc. is high due to the presence of several established competitors and the high stakes in the energy services market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.09%
Debt Cost 7.23%
Equity Weight 88.91%
Equity Cost 7.23%
WACC 7.23%
Leverage 12.47%

11. Quality Control: Ranger Energy Services, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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U.S. Silica Holdings

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Value: 8.1

Growth: 6.7

Quality: 5.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

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RPC

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Value: 6.3

Growth: 5.8

Quality: 5.1

Yield: 4.0

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A-Score: 4.6/10

Value: 7.2

Growth: 5.9

Quality: 6.2

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Ranger Energy Services

A-Score: 4.6/10

Value: 7.7

Growth: 6.3

Quality: 5.2

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

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Value: 2.6

Growth: 7.1

Quality: 6.9

Yield: 0.0

Momentum: 7.0

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A-Score: 4.5/10

Value: 6.7

Growth: 5.9

Quality: 3.7

Yield: 5.0

Momentum: 1.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.63$

Current Price

16.63$

Potential

-0.00%

Expected Cash-Flows