Ranger Energy Services, Inc. Announces Q4 2024 and Full Year 2024 Results

Ranger Energy Services, Inc. (NYSE:RNGR) ("Ranger" or the "Company") announced today its fourth quarter and full year 2024 results, highlighting record performance in High-Specification Rigs, growth in Ancillary Services, and significant shareholder returns for the year through both dividends and share repurchases. Ranger also announced an increase of its quarterly dividend by 20% to $0.06 per share, reflecting continued confidence in the underlying strength and future cash flow of the business.

Financial & Operational Highlights

• Full year 2024 revenue of $571.1 million and net income of $18.4 million, or $0.81 per fully diluted share
• Full year 2024 Adjusted EBITDA⁽¹⁾ of $78.9 million with 13.8% Adjusted EBITDA margin compared to $84.4 million for full year 2023 with 13.3% Adjusted EBITDA margin
• Adjusted EBITDA⁽¹⁾ of $21.9 million in the fourth quarter with 15.3% Adjusted EBITDA margin compared to $25.1 million in the third quarter of 2024 and $18.4 million in fourth quarter of 2023
• Full year 2024 Free Cash Flow⁽²⁾ of $50.4 million, or $2.24 per share, with fourth quarter and year end cash of $40.9 million with $112.1 million of total liquidity
• Returned over 40% of 2024 Free Cash Flow⁽²⁾ through dividends and repurchases far exceeding minimum commitment
• Increase of 20% in the Company's dividend to $0.06 per share going forward, reflecting continued confidence in the underlying strength and future cash flow of the business
• High-Specification Rigs delivered record performance reaching new highs and reinforcing Ranger's leadership in the sector
• Ancillary Services expanded profitability meaningfully with strong growth in Plugging and Abandonment (P&A), Rentals and Torrent underpinned by improved execution

Management Comments

Stuart Bodden, Ranger's Chief Executive Officer, commented, "Ranger again demonstrated its resilience and execution excellence, with strong performance despite the challenges presented in the broader market. We posted our highest fourth quarter profitability ever, reflecting the ongoing strength and potential of our Company in spite of a challenging market backdrop the past two years. In addition to record profitability levels, we also achieved our best Total Recordable Incident Rate (‘TRIR') on record. Our achievements in 2025 prove the effectiveness of our production-focused business model with record revenue levels in our core business and supporting service lines in the face of declining rig and frac crew counts. This performance allowed us to pursue aggressive stock buybacks at very attractive prices and allocate capital to high return projects. Our confidence in the business and our commitment to capital returns is best illustrated by the announcement today of an increase in our quarterly dividend.

"The Ranger team is able to achieve new heights consistently when we live our ‘Leads the Way' mantra. Our core High Specification Rigs business once again exceeded expectations, delivering another record quarter of revenue with robust asset utilization through the holiday season. This continued strength underscores the effectiveness of our production focus, quality assets and exceptional execution in a competitive industry.

"Our Ancillary Services segment also continues to perform very well, supported by increased operational activity in key service lines such as P&A, Torrent, and Rentals. All three of these service lines posted significantly improved margins for the year driving incremental profitability. We expect to see both the P&A and Torrent service lines continue to grow revenue meaningfully in 2025 as market conditions remain supportive for this work."

Mr. Bodden continued, "As anticipated, our Wireline Services segment experienced typical seasonal decline during the fourth quarter, driven by our Northern operations exposure with a reduction in operating leverage pressuring margins. The unusually cold weather thus far in 2025 will keep this segment depressed in the first quarter before an expected rebound in the second quarter. The more production-focused conventional wireline product line grew revenues by 10% year-over-year and we intend to build on this growth in 2025.

"Looking ahead, we remain confident in Ranger's ability to drive growth and create value. Despite a largely flat industry backdrop expected this year, we expect key service lines will achieve modest year-over-year growth, reflecting the strength of our differentiated offerings and disciplined execution. Through these opportunities, we will continue to prioritize safety, operational excellence, cost control, and service quality. The dedication of the Ranger team is unmatched and we look forward to continuing to Lead the Way in 2025."

CAPITAL RETURNS AND GOVERNANCE UPDATE

Ranger exceeded its commitment of returning at least 25% of Free Cash Flow⁽²⁾ to shareholders this year. In 2024, the Company repurchased 1,520,300 shares of stock for a total value of $15.5 million, net of tax at an average price of $10.11 per share. Since the share repurchase program's inception in 2023, the Company has repurchased a total of 3,325,800 shares, representing over 15% of shares outstanding as of December 31, 2024, for a total value of $34.8 million, at an average price of $10.37 per share. The Board of Directors has increased the quarter cash dividend to $0.06 per share formally declared and payable March 28, 2025 to common stockholders of record at the close of business on March 14, 2025. With this increase, Ranger's annualized dividend now stands at $0.24 per share, reflecting management's confidence in its sustained free cash flow generation.

PERFORMANCE SUMMARY

For the fourth quarter of 2024, revenue was $143.1 million, a decrease from the third quarter of $153.0 million and a decrease from $151.5 million in the prior year period. Quarter over quarter decreases in revenue are attributable to reduced activity in wireline service lines. Cost of services for the fourth quarter of 2024 was $116.8 million, or 82% of revenue, compared to $129.7 million, or 86% of revenue in the prior year period. The decrease in cost of services as a percentage of revenue from the prior year quarter was primarily attributable to increased operational efficiencies and higher margin service line growth primarily within Processing Solutions and Ancillary Services segment. General and administrative expenses were $7.1 million for the fourth quarter of 2024, flat with the prior quarter and slightly higher than $6.8 million in the prior year period.

Net income totaled $5.8 million for the fourth quarter of 2024 compared to $8.7 million in the prior quarter and $2.1 million in the prior year period. Fully diluted earnings per share was $0.25 for the fourth quarter of 2024 compared to $0.39 in the prior quarter and $0.09 in the prior year period.

Adjusted EBITDA of $21.9 million for the fourth quarter of 2024 decreased $3.2 million from $25.1 million in the prior quarter and increased $3.5 million from $18.4 million in the prior year period. Quarter over quarter decreases were driven by decreased margins within the Wireline Services segment. The year over year increases were driven by stronger revenue and margins in High-Specification Rigs and Processing Solutions and Ancillary Services.

BUSINESS SEGMENT FINANCIAL RESULTS

High Specification Rigs

High Specification Rigs segment revenue was $87.0 million in the fourth quarter of 2024, an increase of $0.3 million relative to prior quarter revenue of $86.7 million and an increase of $8.0 million relative to the prior year period. Rig hours decreased by 1% to 115,900 from 116,900 in the prior quarter and increased from 107,900 in the prior year period. Hourly rig rates increased by 1% to $751 from $741 per hour in the prior quarter, due to asset mix reflecting relatively consistent pricing levels quarter over quarter. Hourly rig rates increased by 3% from $733 in the prior year period largely due to the addition of ancillary equipment attached rig packages that are included in base rig hourly rates in 2024.

Operating income was $13.4 million in the fourth quarter of 2024, a decrease of $0.4 million, or 3% compared to $13.8 million in the prior quarter, and an increase of $3.4 million, or 34% compared to $10.0 million in the prior year period. Adjusted EBITDA was $19.0 million in the fourth quarter, down from $19.2 million in the prior quarter and up from $15.4 million in the prior year period.

Wireline Services

Wireline Services segment revenue was $22.6 million in the fourth quarter of 2024, down $7.7 million, or 25% compared to $30.3 million in the prior quarter and down $18.9 million, or 46% compared to $41.5 million in the prior year period. Wireline Completions service line reported completed stage counts of 1,800, a decrease of 28% compared to 2,500 for the prior quarter and 64% compared to 5,000 in the prior year period. The decrease in revenue and stage count from the prior year periods is indicative of lower operational activity as the Company adjusted its service mix in response to market conditions.

Operating loss was $3.0 million in the fourth quarter, down $3.0 million from break-even levels in the prior quarter and down $1.2 million, from an operating loss of $1.8 million in the prior year period. Adjusted EBITDA was $0.2 million, down from $2.7 million for the prior quarter and down from $2.8 million in the prior year period. Losses are reflective of pricing pressures within the service line and negative operating leverage from activity declines.

Processing Solutions and Ancillary Services

Processing Solutions and Ancillary Services segment revenue was $33.5 million in the fourth quarter of 2024, down $2.5 million, or 7% from $36.0 million in the prior quarter and up $2.5 million, or 8% from $31.0 million for the prior year period. The decrease from the prior quarter was largely attributable to decreased operational activity in our P&A service line due to typical seasonality. The increase from the prior year period was largely attributable to increased operational activity in several service lines with the largest contribution coming from the Torrent business.

Operating income in this segment was $5.5 million in the fourth quarter, down from $6.6 million in the prior quarter and up from $3.4 million in the prior year period. Adjusted EBITDA was $8.0 million, a decrease compared to $8.8 million in the prior quarter and increase compared to $5.3 million in the prior year period.

BALANCE SHEET, CASH FLOW AND LIQUIDITY

As of December 31, 2024, the Company had $112.1 million of liquidity, consisting of $71.2 million of capacity on its revolving credit facility and $40.9 million of cash on hand. This compares to the prior year period end of December 31, 2023 when the Company had $85.1 million of liquidity, consisting of $69.4 million of capacity on its revolving credit facility and $15.7 million of cash on hand.

Cash provided by Operating Activities for 2024 is $84.5 million, compared to $90.8 million in 2023. The Company's Free Cash Flow⁽²⁾ of $50.4 million for 2024 is a slight decrease from Free Cash Flow⁽²⁾ of $54.3 million in the prior year period primarily due to a reduction in wireline revenues and profitability.

In 2024, the Company had capital expenditures of $34.1 million, down from $36.5 million in 2023 including approximately $10 million of growth related purchases for newer generation and ancillary equipment. These investments enhance our service capabilities, strengthen our customer relationships and provide improved returns in future periods.

Conference Call and Investor Meetings

The Company will host a conference call to discuss its fourth quarter 2024 results on Tuesday, March 4, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To join the conference call from within the United States, participants may dial 1-833-255-2829, or participants may dial 1-412-902-6710 from outside the United States. To listen via live webcast, please visit the Investor Relations section of the Company's website, www.rangerenergy.com. Participants are encouraged to login to the webcast or dial in to the conference call prior to the start time. An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days through the Investor Relations section of the Company's website.

Ranger Management will be participating in the following upcoming industry and investor conferences and welcome the opportunity to meet with investors.

• Daniel Energy Partners THRIVE Energy Conference – March 4-6
• Sidoti Small-Cap Virtual Conference – March 20
• Piper Sandler 25^th Annual Energy Conference – March 17-19

About Ranger Energy Services, Inc.

Ranger is one of the largest providers of high specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry. Our services facilitate operations throughout the lifecycle of a well, including the completion, production, maintenance, intervention, workover and abandonment phases.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words "may," "should," "intend," "could," "believe," "anticipate," "estimate," "expect," "outlook," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements represent Ranger's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ranger's control. Should one or more of these risks or uncertainties described occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

Our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in our current and past filings with the U.S. Securities and Exchange Commission ("SEC"). These documents are available through our website or through the SEC's Electronic Data Gathering and Analysis Retrieval system at www.sec.gov. These risks include, but are not limited to, the risks described under "Part I, Item 1A, Risk Factors" in our Annual Report on 10-K filed with the SEC on March 4, 2024, and those set forth from time-to-time in other filings by the Company with the SEC.

All forward looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law any forward-looking statement speaks only as of the date on which is it made. We disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this cautionary statement, to reflect events or circumstances after the date of this press release.

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Company Contact:

Melissa Cougle

Chief Financial Officer

(713) 935-8900

[email protected]