Ranger Energy Services (RNGR) Q4 2023 earnings summary

Executive summary

• Record 2023 revenue of $636.6M and Adjusted EBITDA of $84.4M, up 5% and 6%, respectively, despite a 20% decline in U.S. land rig count.

• Full-year net income was $23.8M, or $0.95 per diluted share; free cash flow was $54.3M.

• Q4 revenue was $151.5M and Adjusted EBITDA was $18.4M, down YoY amid weaker activity, holiday effects and higher costs.

Financial highlights

• FY revenue increased from $608.5M in 2022 to $636.6M in 2023; Adjusted EBITDA increased from $79.5M to $84.4M.

• Q4 revenue was $151.5M versus $154.3M YoY and $164.4M QoQ; Adjusted EBITDA was $18.4M versus $21.6M YoY and $24.0M QoQ.

• Q4 net income was $2.1M and diluted EPS was $0.09; FY net income was $23.8M and diluted EPS was $0.95.

• FY operating cash flow was $90.8M; free cash flow was $54.3M versus $30.7M in 2022. Adjusted free cash flow after pump acquisition costs was $63.0M.

Outlook and guidance

• 2024 budget anticipates modest YoY growth, contingent on stable operator behavior; operator activity is not expected to grow meaningfully.

• Priorities include at least 60% EBITDA-to-free-cash-flow conversion, wireline margin expansion and profitable growth.

• 2024 capital priorities include lower-capital-intensity acquisitions, greater in-basin scale and production-focused lines, dividends and opportunistic repurchases.

• Wireline margins are expected to improve as the business shifts toward production-related work.