Ranger Energy Services (RNGR) 16th Annual East Coast IDEAS Conference summary

Business overview and market position

• Largest well service provider in the U.S., focused on maintenance and production services for existing wells, not drilling new ones.

• Market cap over $400 million, with a trailing 12-month adjusted EBITDA of $80 million and guidance for over $100 million this year.

• Revenue for 2025 was about $570 million, with guidance for $650–$700 million this year.

• Major customers include ExxonMobil, Chevron, ConocoPhillips, and Oxy, with a trend toward vendor consolidation among large clients.

• Industry consolidation has led to the top three players holding about 50% market share, with further consolidation expected.

Financial performance and capital allocation

• Historically converts about 60% of EBITDA to free cash flow, with a three-year track record of strong cash generation.

• Achieved zero net debt in 2023, then initiated a capital returns program with dividends and aggressive share repurchases (about 18% of shares bought back).

• Recent $90 million acquisition funded by $40 million cash, revolver draw, and $25 million equity issuance.

• Free cash flow conversion expected to be closer to 50% this year due to ECHO rig program timing, returning to historical levels next year.

• 27% CAGR on EBITDA over the past 10 years, with $50 million average annual free cash flow over the last three years.

Strategic initiatives and growth drivers

• ECHO hybrid rig program introduces new-generation electric rigs with customer co-investment, offering emissions and safety benefits.

• Two ECHO rigs currently in the market, with an order for 15 more, all underpinned by customer commitments and take-or-pay-like features.

• ECHO rigs expected to deliver a 5% price increase and incremental EBITDA, with demand signals for up to 35 rigs.

• Technology enhancements include AI-driven safety systems and automation for improved operational consistency.

• Production-related spending by customers has increased 80% since 2010, supporting a naturally growing market as long as new wells outpace abandonments.