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Ranger Energy Services (RNGR) investor relations material
Ranger Energy Services 17th Annual Southwest IDEAS Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Strategic overview and market positioning
Largest well service provider in the U.S., focused on production and maintenance rather than drilling or completion, with a diversified service offering and strong relationships with major oil companies.
Revenue in the last year was just under $550 million with $75 million EBITDA, converting about 60% of EBITDA to free cash flow.
Consistent revenue and margin performance, even as land drilling activity declines, due to the essential nature of well servicing and maintenance.
Focus on safety, executional excellence, and capacity for growth as market conditions improve.
Market leadership reinforced by recent acquisitions and ability to offer bundled service packages, increasing customer loyalty and pricing power.
Financial strategy and shareholder returns
Committed to returning at least 25% of free cash flow to shareholders via dividends and share repurchases, with a historical average of 40%.
Over 15% of shares repurchased in recent years, with continued buybacks supported by strong cash flow and financial flexibility.
Maintains a healthy balance sheet, using cash reserves for acquisitions and keeping leverage below half a turn post-transaction.
Since instituting a capital returns framework in 2023, 48% of free cash flow has been returned to shareholders.
Recent acquisition and integration
Acquired American Well Services (AWS), a Permian-based provider, for $90 million ($60 million cash, minimal debt), adding $180 million revenue and $35–$43 million EBITDA.
AWS brings 40 rigs, 550 employees, and higher margins (23%) due to complementary service lines like mixing plants and tubing rental.
Acquisition priced at 2.1x trailing EBITDA, below the acquirer's own multiple, and expected to be accretive with synergy and cross-selling opportunities.
Pro forma, the combined company expects to exceed $100 million EBITDA in 2026, with $80 million free cash flow over the last 12 months.
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