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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' Q3 2025 Earnings: A Strategic Acquisition and Promising Outlook

Ranger Energy Services reported revenue of $128.9 million for the third quarter, a 16% decrease from $153 million in the same period last year. Despite the decline, the company achieved an adjusted EBITDA margin of 13%, with adjusted EBITDA reaching $16.8 million. Earnings per share (EPS) came in at $0.32, beating estimates of $0.24. The high-spec rig segment was a significant contributor, generating $80.9 million in revenue and $15.7 million in adjusted EBITDA, with a margin of 19.4%. The company's financial performance was respectable, considering the challenging market conditions.

Publication Date: Nov -26

📋 Highlights
  • AWS Acquisition Details: $90.5M purchase price, <2.5x EBITDA, 25% rig count expansion, 39 active workover rigs, 550+ employees acquired.
  • Q3 2025 Financials: Revenue $128.9M (-16% YoY), adjusted EBITDA $16.8M (13% margin), high-spec rigs driving $80.9M revenue and 19.4% margin.
  • Future EBITDA Projections: >$100M adjusted EBITDA expected in 2026, $4M annual AWS integration synergies by Q3 2026.
  • ECHO Rig Deployment: 2 ECHO rigs delivered (1 in Bakken, 1 in Permian), 1:2 displacement ratio vs. conventional rigs, 2026 build expectations: over/under 10 rigs.
  • Cost Savings & Synergies: $6M annualized cost savings from AWS acquisition, minimal leverage increase (<1/2 turn pro forma debt).

Acquisition of American Well Services: Strategic Expansion

The acquisition of American Well Services (AWS) for $90.5 million represents a strategic expansion for Ranger Energy Services, increasing its market share in the Permian Basin by approximately 25%. The deal is expected to be immediately accretive to earnings and cash flow, with minimal dilution. AWS brings a fleet of 39 active workover rigs, new service lines, and over 550 employees, complementing Ranger's existing operations. As management noted, "the deal is expected to be accretive, with $6 million in annualized cost savings."

Outlook and Valuation

Ranger Energy Services expects to generate over $100 million in adjusted EBITDA in 2026, driven by the integration of AWS and the continued momentum of its ECHO hybrid electric rig program. Analysts estimate revenue growth of 15.5% for the next year. With a current P/E Ratio of 19.31 and EV/EBITDA of 3.8, the market appears to have priced in a moderate growth trajectory. The company's ROIC of 4.67% and ROE of 5.45% indicate a relatively efficient use of capital. As the integration of AWS progresses and the ECHO rig program continues to gain traction, investors can expect updates on the company's progress.

ECHO Rig Program: A Promising Innovation

The ECHO hybrid electric rig program is gaining momentum, with two rigs delivered to the field and undergoing final testing. Customers have shown robust interest, viewing the ECHO rigs as additive to Ranger's existing fleet, with potential to displace competitors over time. The company expects that for every two ECHO rigs deployed, they might displace one conventional rig. With management suggesting an over or under of 10 ECHO rig builds in 2026, the program is poised to drive future growth and innovation.

3. NewsRoom

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Ranger Energy Services, Inc. to Present and Host 1x1 Meetings at 17th Annual Southwest IDEAS Investor Conference on November 19th & 20th in Dallas, TX

Nov -12

Source: businesswire.com

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Ranger Energy Services, Inc. (RNGR) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

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Ranger Energy (RNGR) Lags Q3 Earnings and Revenue Estimates

Nov -10

Source: zacks.com

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Ranger Energy Services, Inc. Announces Q3 2025 Results & Acquisition of American Well Services

Nov -10

Source: businesswire.com

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Ranger Energy Services Announces Agreement to Acquire American Well Services

Nov -10

Source: businesswire.com

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HAL vs. RNGR: Which Oilfield Service Stock Fits Your Portfolio?

Oct -29

Source: zacks.com

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Ranger Energy Services, Inc. Announces Date for Third Quarter 2025 Earnings Conference Call

Oct -28

Source: businesswire.com

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Is Ranger Energy's Business Highly Vulnerable to Oil & Gas Prices?

Oct -15

Source: zacks.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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Profire Energy

A-Score: 5.6/10

Value: 5.2

Growth: 7.1

Quality: 8.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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Ranger Energy Services

A-Score: 5.6/10

Value: 7.8

Growth: 6.3

Quality: 5.5

Yield: 2.0

Momentum: 7.5

Volatility: 4.3

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NOW

A-Score: 5.2/10

Value: 6.4

Growth: 5.9

Quality: 6.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

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Select Energy Services

A-Score: 4.6/10

Value: 6.6

Growth: 5.9

Quality: 4.2

Yield: 3.0

Momentum: 4.0

Volatility: 4.0

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U.S. Silica Holdings

A-Score: 4.6/10

Value: 8.0

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

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RPC

A-Score: 4.5/10

Value: 7.0

Growth: 5.8

Quality: 5.1

Yield: 4.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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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

14.03$

Current Price

14.03$

Potential

-0.00%

Expected Cash-Flows