Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 24, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Ranger Energy Services, Inc. | |
Entity Central Index Key | 0001699039 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | true | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,717,026 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,866,154 |
UNAUDITED INTERIM CONDENSED CON
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 1.7 | $ 2.6 |
Accounts receivable, net | 54 | 45.4 |
Contract assets | 6 | 3.1 |
Inventory | 7.7 | 4.9 |
Prepaid expenses | 3.7 | 5.1 |
Total current assets | 73.1 | 61.1 |
Property and equipment, net | 227.7 | 229.8 |
Intangible assets, net | 9.7 | 10 |
Operating lease right-of-use assets | 6.7 | 0 |
Other assets | 0.7 | 1.6 |
Total assets | 317.9 | 302.5 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 15 | 17.2 |
Accrued expenses | 19.8 | 18.5 |
Finance lease obligations, current portion | 4.8 | 4.4 |
Long-term debt, current portion | 15.8 | 15.8 |
Other current liabilities | 2.5 | 3 |
Total current liabilities | 57.9 | 58.9 |
Long-term portion of operating lease obligations | 4.6 | 0 |
Finance lease obligations | 4.8 | 6.6 |
Long-term debt, net | 47.8 | 44.7 |
Other long-term liabilities | 0.7 | 0.3 |
Total liabilities | 115.8 | 110.5 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Preferred stock | 0 | 0 |
Accumulated deficit | (6.9) | (9.9) |
Additional paid-in capital | 119.9 | 111.6 |
Total stockholders' equity | 113.2 | 101.9 |
Non-controlling interest | 88.9 | 90.1 |
Total stockholders' equity | 202.1 | 192 |
Total liabilities and stockholders' equity | 317.9 | 302.5 |
Class A Common Stock | ||
Stockholders' equity | ||
Common stock A and B | 0.1 | 0.1 |
Class B Common Stock | ||
Stockholders' equity | ||
Common stock A and B | $ 0.1 | $ 0.1 |
UNAUDITED INTERIM CONDENSED C_2
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 8,717,026 | 8,448,527 |
Common stock, shares outstanding (in shares) | 8,717,026 | 8,448,527 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 6,866,154 | 6,866,154 |
Common stock, shares outstanding (in shares) | 6,866,154 | 6,866,154 |
UNAUDITED INTERIM CONDENSED C_3
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Total revenues | $ 84.3 | $ 73.1 | $ 172.6 | $ 135.7 |
Cost of services (exclusive of depreciation and amortization): | ||||
Total cost of services | 65.6 | 57.3 | 133.1 | 108.6 |
General and administrative | 6.3 | 7.8 | 13.5 | 14.8 |
Depreciation and amortization | 8.4 | 7 | 16.8 | 13.1 |
Impairment of goodwill | 0 | 0 | 0 | 9 |
Total operating expenses | 80.3 | 72.1 | 163.4 | 145.5 |
Operating income (loss) | 4 | 1 | 9.2 | (9.8) |
Other expenses | ||||
Interest expense, net | 1.9 | 0.5 | 3.2 | 0.9 |
Total other expenses | 1.9 | 0.5 | 3.2 | 0.9 |
Income (loss) before income tax expense | 2.1 | 0.5 | 6 | (10.7) |
Tax expense | 0.3 | 1.7 | 0.6 | 0.8 |
Net income (loss) | 1.8 | (1.2) | 5.4 | (11.5) |
Less: Net income (loss) attributable to non-controlling interests | 0.8 | (0.5) | 2.4 | (5.1) |
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1 | $ (0.7) | $ 3 | $ (6.4) |
Earnings (loss) per common share | ||||
Basic (in dollars per share) | $ 0.12 | $ (0.08) | $ 0.35 | $ (0.76) |
Diluted (in dollars per share) | $ 0.11 | $ (0.08) | $ 0.32 | $ (0.76) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 8,514,495 | 8,414,557 | 8,481,788 | 8,413,871 |
Diluted (in shares) | 9,491,684 | 8,414,557 | 9,458,977 | 8,413,871 |
High specification rigs | ||||
Revenues | ||||
Total revenues | $ 33.1 | $ 39.6 | $ 64.8 | $ 75.9 |
Cost of services (exclusive of depreciation and amortization): | ||||
Total cost of services | 28.7 | 33.6 | 56.1 | 65.1 |
Completion and other services | ||||
Revenues | ||||
Total revenues | 46.3 | 29.5 | 97.9 | 52.9 |
Cost of services (exclusive of depreciation and amortization): | ||||
Total cost of services | 35 | 21.8 | 72.9 | 40.2 |
Processing solutions | ||||
Revenues | ||||
Total revenues | 4.9 | 4 | 9.9 | 6.9 |
Cost of services (exclusive of depreciation and amortization): | ||||
Total cost of services | $ 1.9 | $ 1.9 | $ 4.1 | $ 3.3 |
UNAUDITED INTERIM CONDENSED C_4
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Accumulated deficit | Additional paid-in capital | Total controlling interest shareholders’ equity | Noncontrolling interest |
Balance, beginning of period (shares) at Dec. 31, 2017 | 8,413,178 | 6,866,154 | |||||||
Balance, beginning of period at Dec. 31, 2017 | $ 195,700,000 | $ 100,000 | $ 100,000 | $ (6,600,000) | $ 110,100,000 | $ 103,700,000 | $ 92,000,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of shares under share-based compensation plans (in shares) | 4,648 | ||||||||
Shares withheld for taxes on equity transactions (in shares) | (1,185) | ||||||||
Net income (loss) | (11,500,000) | (6,400,000) | (6,400,000) | (5,100,000) | |||||
Equity based compensation amortization | 900,000 | 400,000 | 400,000 | 500,000 | |||||
Balance, end of period (shares) at Jun. 30, 2018 | 8,416,641 | 6,866,154 | |||||||
Balance, end of period at Jun. 30, 2018 | 185,100,000 | $ 100,000 | $ 100,000 | (13,000,000) | 110,500,000 | 97,700,000 | 87,400,000 | ||
Balance, beginning of period (shares) at Mar. 31, 2018 | 8,413,178 | 6,866,154 | |||||||
Balance, beginning of period at Mar. 31, 2018 | 185,600,000 | $ 100,000 | $ 100,000 | (12,300,000) | 110,100,000 | 98,000,000 | 87,600,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of shares under share-based compensation plans (in shares) | 4,648 | ||||||||
Shares withheld for taxes on equity transactions (in shares) | (1,185) | ||||||||
Net income (loss) | (1,200,000) | (700,000) | (700,000) | (500,000) | |||||
Equity based compensation amortization | 700,000 | 400,000 | 400,000 | 300,000 | |||||
Balance, end of period (shares) at Jun. 30, 2018 | 8,416,641 | 6,866,154 | |||||||
Balance, end of period at Jun. 30, 2018 | 185,100,000 | $ 100,000 | $ 100,000 | (13,000,000) | 110,500,000 | 97,700,000 | 87,400,000 | ||
Balance, beginning of period (shares) at Dec. 31, 2018 | 8,448,527 | 6,866,154 | 8,448,527 | 6,866,154 | |||||
Balance, beginning of period at Dec. 31, 2018 | 192,000,000 | $ 100,000 | $ 100,000 | (9,900,000) | 111,600,000 | 101,900,000 | 90,100,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of shares under share-based compensation plans (in shares) | 101,621 | ||||||||
Shares withheld for taxes on equity transactions (in shares) | (40,019) | ||||||||
Issuance of Class A Common Stock to related party (in shares) | 206,897 | ||||||||
Issuance of Class A Common Stock to related party | 3,000,000 | 3,000,000 | 3,000,000 | ||||||
Net income (loss) | 5,400,000 | 3,000,000 | 3,000,000 | 2,400,000 | |||||
Benefit from reversal of valuation allowance | 600,000 | 600,000 | 600,000 | ||||||
Equity based compensation amortization | 1,500,000 | 1,400,000 | 1,400,000 | 100,000 | |||||
Shares withheld for taxes on equity transactions | (400,000) | (400,000) | (400,000) | ||||||
Impact of transactions affecting noncontrolling interest | 3,700,000 | 3,700,000 | (3,700,000) | ||||||
Balance, end of period (shares) at Jun. 30, 2019 | 8,717,026 | 6,866,154 | 8,717,026 | 6,866,154 | |||||
Balance, end of period at Jun. 30, 2019 | 202,100,000 | $ 100,000 | $ 100,000 | (6,900,000) | 119,900,000 | 113,200,000 | 88,900,000 | ||
Balance, beginning of period (shares) at Mar. 31, 2019 | 8,454,273 | 6,866,154 | |||||||
Balance, beginning of period at Mar. 31, 2019 | 196,200,000 | $ 100,000 | $ 100,000 | (7,900,000) | 112,200,000 | 104,500,000 | 91,700,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of shares under share-based compensation plans (in shares) | 93,621 | ||||||||
Shares withheld for taxes on equity transactions (in shares) | (37,765) | ||||||||
Issuance of Class A Common Stock to related party (in shares) | 206,897 | ||||||||
Issuance of Class A Common Stock to related party | 3,000,000 | 3,000,000 | 3,000,000 | ||||||
Net income (loss) | 1,800,000 | 1,000,000 | 1,000,000 | 800,000 | |||||
Benefit from reversal of valuation allowance | 600,000 | 600,000 | 600,000 | ||||||
Equity based compensation amortization | 900,000 | 800,000 | 800,000 | 100,000 | |||||
Shares withheld for taxes on equity transactions | (400,000) | (400,000) | (400,000) | ||||||
Impact of transactions affecting noncontrolling interest | 3,700,000 | 3,700,000 | (3,700,000) | ||||||
Balance, end of period (shares) at Jun. 30, 2019 | 8,717,026 | 6,866,154 | 8,717,026 | 6,866,154 | |||||
Balance, end of period at Jun. 30, 2019 | $ 202,100,000 | $ 100,000 | $ 100,000 | $ (6,900,000) | $ 119,900,000 | $ 113,200,000 | $ 88,900,000 |
UNAUDITED INTERIM CONDENSED C_5
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||||
Net income (loss) | $ 1.8 | $ (1.2) | $ 5.4 | $ (11.5) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation and amortization | 8.4 | 7 | 16.8 | 13.1 | |
Impairment of goodwill | 0 | 0 | 0 | 9 | $ 9 |
Equity based compensation | 1.5 | 1 | |||
(Gain) loss on sale of property, plant and equipment | (0.3) | 0.4 | |||
Other costs, net | 0.3 | 0.2 | |||
Changes in operating assets and liabilities, net of effect of acquisitions | |||||
Accounts receivable | (8.6) | (11.4) | |||
Contract assets | (2.9) | 2.6 | |||
Inventory | (2.8) | (2.3) | |||
Prepaid expenses | 1.4 | 1.1 | |||
Other assets | 0.9 | 0.7 | |||
Accounts payable | (0.6) | 3.7 | |||
Accrued expenses | 2 | 5.8 | |||
Other long-term liabilities | 1.1 | (0.3) | |||
Net cash provided by operating activities | 14.2 | 12.1 | |||
Cash Flows from Investing Activities | |||||
Purchase of property, plant and equipment | (16) | (34.1) | |||
Proceeds from sale of property, plant and equipment | 0.5 | 3.6 | |||
Acquisitions, net of cash received | 0 | (4) | |||
Net cash used in investing activities | (15.5) | (34.5) | |||
Cash Flows from Financing Activities | |||||
Borrowings under line of credit facility | 25.1 | 27.7 | |||
Principal payments on line of credit facility | (17.3) | 0 | |||
Borrowings on Encina Master Financing Agreement, net of deferred financing costs | 0 | 22 | |||
Principal payments on Encina Master Financing Agreement | (4.8) | (13.5) | |||
Principal payments on financing lease obligations | (1.2) | (2.2) | (8.6) | ||
Shares withheld on equity transactions | (0.4) | 0 | |||
Net cash provided by financing activities | 0.4 | 27.6 | |||
Increase (decrease) in Cash and Cash equivalents | (0.9) | 5.2 | |||
Cash and Cash Equivalents, Beginning of Period | 2.6 | 5.3 | 5.3 | ||
Cash and Cash Equivalents, End of Period | $ 1.7 | $ 10.5 | 1.7 | 10.5 | $ 2.6 |
Supplemental Cash Flows Information | |||||
Interest paid | 2.3 | 0.4 | |||
Supplemental Disclosure of Non-cash Investing and Financing Activity | |||||
Non-cash capital expenditures | (2.3) | (10.2) | |||
Non-cash additions to fixed assets through financing leases | (0.8) | (5.9) | |||
Initial non-cash operating lease right-of-use asset additions | (8.3) | 0 | |||
Issuance of Class A Common Stock to related party | $ 3 | $ 0 |
Organization and Business Opera
Organization and Business Operations | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Note 1 — Organization and Business Operations Organization Ranger Energy Services, Inc. (“Ranger” or the “Company”) was incorporated as a Delaware corporation in February 2017. Ranger is a holding company, the sole material assets of which consist of membership interests in RNGR Energy Services, LLC, a Delaware limited liability company (“Ranger LLC”). Ranger LLC owns all of the outstanding equity interests in Ranger Energy Services, LLC (“Ranger Services”) and Torrent Energy Services, LLC (“Torrent Services”), the subsidiaries through which it operates its assets. Ranger LLC is the sole managing member of Ranger Services and Torrent Services, and is responsible for all operational, management and administrative decisions relating to Ranger Services and Torrent Services’ business and consolidates the financial results of Ranger Services and Torrent Services and their subsidiaries. Reorganization On August 10, 2017, Ranger Services, entered into a Master Reorganization Agreement with, among others, Ranger LLC, Ranger Energy Holdings LLC, Ranger Energy Holdings II, LLC, Torrent Energy Holdings, LLC and Torrent Energy Holdings II, LLC. In connection with the Master Reorganization Agreement, an aggregate of $3.0 million to be paid by the Company to CSL Energy Holdings I, LLC, a Delaware limited liability company and CSL Energy Holdings II, LLC, a Delaware limited liability company, on or prior to the 18 -month anniversary of the Company’s initial public offering (the “Offering”) in, at the Company’s option, cash, shares of Class A Common Stock (with such shares to be valued based on the greater of the price of the Class A Common Stock in the Offering and a 30 -day weighted average price) or a combination thereof (included within Other current liabilities on the accompanying consolidated balance sheet as of December 31, 2018). During the three and six months ended June 30, 2019, the Company settled the $3.0 million liability. See Note 9 — Equity for further details of the Company’s equity position. Business The Company is one of the largest providers of high specification (“high‑spec”) well service rigs and associated services in the United States, with a focus on technically demanding unconventional horizontal well completion and production operations. We believe that our fleet of 141 well service rigs is among the newest and most advanced in the industry and, based on our historical rig utilization and feedback from our customers, we believe that we are an operator of choice for U.S. onshore exploration and production (“E&P”) companies that require completion and production services at increasing lateral lengths. Our high‑specification well service rigs facilitate operations throughout the lifecycle of a well, including (i) completion services, such as milling out composite plugs after the hydraulic fracturing process and the installation of downhole production equipment; (ii) workover, including retrieval and replacement of existing production tubing; (iii) well maintenance, including replacement of downhole artificial lift components; and (iv) decommissioning, such as plugging and abandonment operations. The Company also provides Completion and Other Services, which provides services necessary to bring and maintain a well on production and primarily includes (i) wireline perforating and pumpdown services and (ii) snubbing services often utilized in conjunction with our high-spec rigs to convey equipment in and out of a well during completion and workover activities. The Company provides rental equipment, including well control packages, hydraulic catwalks and other equipment that are often deployed with our well service rigs. In addition, the Company owns and operates a fleet of proprietary, modular natural gas processing equipment that processes rich natural gas streams at the wellhead or central gathering points. The Company has operations in most of the active oil and natural gas basins in the United States, including the Permian Basin, the Denver‑Julesburg Basin, the Bakken Shale, the Eagle Ford Shale, the Haynesville Shale, the Gulf Coast and the South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher counties plays. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Presentation The consolidated balance sheet as of December 31, 2018 has been derived from audited financial statements and the unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“US GAAP”) for interim financial information and the Securities and Exchange Commission’s (the “SEC”) instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly certain notes and other information have been condensed or omitted. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results of operations for the interim periods. These interim financial statements, should be read in conjunction with the consolidated financial statements and related notes for the years ended December 31, 2018 and 2017 , included in the Annual Report filed on Form 10-K for the years ended December 31, 2018 and 2017 (the “Annual Report”). Interim results for the periods presented may not be indicative of results that will be realized for future periods. The Company has made certain reclassifications to our prior period operating revenue, cost of sales and general and administrative amounts due to the change in reportable segments whereby our High Specification Rig and Completion and Other Services segments were bifurcated from our legacy Well Services segment as a result of our fourth quarter 2018 operating segment changes. None of these reclassifications have an impact on our condensed consolidated operations results, cash flows or financial position. The Company has made certain reclassifications to our prior period Additional Paid-In Capital and Accumulated Deficit amounts. None of these reclassifications have an impact on our condensed consolidated operations results, cash flows or financial position. Significant Accounting Policies The Company’s significant accounting policies are disclosed in Note 2 — Summary of Significant Accounting Policies of the Annual Report. There have been no changes in such policies or the application of such policies during the six months ended June 30, 2019 , except as discussed in Note 7 — Leases and below. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: • Depreciation and amortization of property, plant and equipment and intangible assets; • Impairment of property, plant and equipment, goodwill and intangible assets; • Allowance for doubtful accounts; • Fair value of assets acquired and liabilities assumed in an acquisition; and • Equity‑based compensation. Emerging Growth Company status The Company is an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). The Company will remain an emerging growth company until the earlier of (1) the last day of its fiscal year (a) following the fifth anniversary of the completion of the Offering, (b) in which its total annual gross revenue is at least $1.07 billion , or (c) in which the Company is deemed to be a large accelerated filer, which means the market value of the Company’s common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of its most recently completed second fiscal quarter, or (2) the date on which the Company has issued more than $1.0 billion in non-convertible debt securities during the prior three -year period. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. The Company has irrevocably opted out of the extended transition period and, as a result, the Company will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies. New Accounting Pronouncements Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, Leases , amending the current accounting for leases. Under the new provisions, all lessees will report a right‑of‑use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) a financing lease or (ii) an operating lease. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. Effective January 1, 2019, the Company has adopted ASU 2016-02 and elected the following practical expedients and accounting policy elections for recognition, measurement and presentation: • The optional transition method, therefore will not adjust comparative period financial information or make the new required lease disclosures for periods prior to the effective date; • the package of practical expedients to not reassess prior conclusions related to (i) contracts containing leases, (ii) lease classification and (iii) initial direct costs; • to make the accounting policy election for short-term leases, or leases with terms of 12 months or less, therefore the lease payments will be recorded as an expense on a straight line basis over the lease term; and • to combine lease and non-lease components. The Company did not apply the practical expedient to utilize hind-sight in applying the standard. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease, discounted at our annual incremental borrowing rate (“IBR”). ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU asset and lease liabilities and are recognized in the period in which the obligation for those payments are incurred. For certain leases, where variable lease payments are incurred and relate primarily to common area maintenance, in substance fixed payments are included in the ROU asset and lease liability. For those leases that do not provide an implicit rate, we use our IBR based on the information available at the lease commencement date in determining the present value of lease payments. ROU assets also include any lease payments made and exclude lease incentives. Lease terms do not include options to extend or terminate the lease, as management does not consider them reasonably certain to exercise. The Company has a related party lease, which is included within the ROU asset and liability. Please see Note 14 — Related Party Transactions of the Annual Report for further discussion of the Company’s related parties. As of January 1, 2019, the Company recognized an operating lease right-of-use asset and corresponding liability of $8.3 million on our condensed consolidated Balance Sheet. See Note 7 — Leases , for further details of the Company’s operating and financing leases. Recently Issued Accounting Standards With the exception of the standard above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s condensed consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3 — Acquisitions MVCI Acquisition On January 31, 2018, the Company closed on the acquisition of MVCI Energy Services (“MVCI Acquisition”) for a total consideration of $4.0 million in cash. The MVCI Acquisition assets were primarily engaged in well testing services for its customers. The MVCI Acquisition is being accounted for as a business combination. The Company evaluated its purchase allocation and has reported $4.0 million on its consolidated balance sheets as property, plant and equipment. The pro forma results of operations for the MVCI Acquisition is not presented because the pro forma effects, individually and in the aggregate, are not material to the Company’s consolidated results of operations. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 4 — Property, Plant and Equipment, Net Property, plant and equipment include the following (in millions): Estimated Useful Life (years) June 30, 2019 December 31, 2018 Machinery and equipment 5 - 30 $ 42.3 $ 42.0 Vehicles 3 - 5 18.8 17.9 Mechanical refrigeration units 30 21.8 20.9 Natural gas liquid storage tanks 15 5.9 5.9 High specification rigs 5 - 20 178.4 175.7 Other property, plant and equipment 3 - 30 16.1 12.7 Property, plant and equipment 283.3 275.1 Less: accumulated depreciation (68.7 ) (52.5 ) Construction in progress 13.1 7.2 Property, plant and equipment, net $ 227.7 $ 229.8 Depreciation expense was $ 8.2 million and $6.8 million for the three months ended June 30, 2019 and 2018 , respectively, and $16.5 million and $12.7 million for the six months ended June 30, 2019 and 2018 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5 — Goodwill and Intangible Assets During the year ended December 31, 2018 , the Company noted a sustained decrease in the stock price, which was an indication that the fair value of goodwill could have fallen below its carrying amount. As a result, the Company performed a quantitative impairment test and determined the goodwill was impaired. The Company estimated the implied fair value of the goodwill using a variety of valuation methods, including the income and market approaches. During the year ended December 31, 2018 , the Company recognized an impairment loss of $9.0 million associated with the remaining balance of our goodwill. The estimate of fair value required the use of significant unobservable inputs, representative of a Level 3 fair value measurement. Definite lived intangible assets are comprised of the following (in millions): Estimated Useful Life (years) June 30, 2019 December 31, 2018 Tradenames 3 $ 0.1 $ 0.1 Customer relationships 10-18 11.4 11.4 Less: accumulated amortization (1.8 ) (1.5 ) Intangible assets, net $ 9.7 $ 10.0 Amortization expense was $0.2 million and $0.2 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.3 million and $0.4 million for the six months ended June 30, 2019 and 2018 , respectively. Amortization expense for the future periods is expected to be as follows (in millions): For the twelve months ending June 30, Amount 2020 $ 0.7 2021 0.7 2022 0.7 2023 0.7 2024 0.8 Thereafter 6.1 $ 9.7 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Note 6 — Accrued Expenses Accrued expenses include the following (in millions): June 30, 2019 December 31, 2018 Accrued payables $ 7.1 $ 5.6 Accrued compensation 10.2 6.2 Accrued taxes 2.0 2.9 Accrued insurance 0.5 3.8 Accrued expenses $ 19.8 $ 18.5 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases, Capital [Abstract] | |
Leases | Note 7 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from less than 12 months , included in Short-term leases costs in the table below, to eight years , included in Operating lease costs in the table below. The operating leases are included in Operating lease right-of-use assets, Other current liabilities and Operating lease right-of-use obligations in our Condensed Consolidated Balance Sheet. Lease costs and other information related to operating leases for the three and six months ended June 30, 2019 , is as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Short-term lease costs $ 1.1 $ 3.3 Operating lease cost $ 0.6 $ 1.3 Operating cash flows from operating leases $ (0.6 ) $ (1.4 ) Weighted average remaining lease term 5.7 years Weighted average discount rate 9.35 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 2.7 2021 1.4 2022 0.8 2023 0.7 2024 0.7 Thereafter 2.6 Total future minimum lease payments 8.9 Less: amount representing interest (2.2 ) Present value of future minimum lease payments 6.7 Less: current portion of operating lease obligations (2.1 ) Long-term portion of operating lease obligations $ 4.6 Aggregate future minimum rental payments as of December 31, 2018, were as follows (in millions): For the year ending December 31, Total 2019 $ 2.9 2020 2.3 2021 0.9 2022 0.7 2023 0.7 Thereafter 3.0 Total future minimum lease payments $ 10.5 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases which are generally three to five years . The assets and liabilities under finance leases are recorded at the lower of present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Finance lease obligations, current portion and Finance lease obligations in our Condensed Consolidated Balance Sheet. Lease costs and other information related to finance leases for the three and six months ended June 30, 2019 , is as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Amortization of finance leases $ 1.2 $ 2.5 Interest on lease liabilities $ 0.2 $ 0.4 Financing cash flows from finance leases $ (1.2 ) $ (2.2 ) Weighted average remaining lease term 1.8 years Weighted average discount rate 4.5 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 5.1 2021 3.7 2022 1.4 2023 0.2 Thereafter — Total future minimum lease payments 10.4 Less: amount representing interest (0.8 ) Present value of future minimum lease payments 9.6 Less: current portion of finance lease obligations (4.8 ) Long-term portion of finance lease obligations $ 4.8 Aggregate future minimum rental payments as of December 31, 2018, were as follows (in millions): For the year ending December 31, Total 2019 $ 5.0 2020 4.6 2021 2.1 2022 0.2 2023 0.1 Thereafter — Total future minimum lease payments 12.0 Less: amount representing interest (1.0 ) Present value of future minimum lease payments 11.0 Less: current portion of capital lease obligations (4.4 ) Total capital lease obligations, less current portion $ 6.6 |
Leases | Note 7 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from less than 12 months , included in Short-term leases costs in the table below, to eight years , included in Operating lease costs in the table below. The operating leases are included in Operating lease right-of-use assets, Other current liabilities and Operating lease right-of-use obligations in our Condensed Consolidated Balance Sheet. Lease costs and other information related to operating leases for the three and six months ended June 30, 2019 , is as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Short-term lease costs $ 1.1 $ 3.3 Operating lease cost $ 0.6 $ 1.3 Operating cash flows from operating leases $ (0.6 ) $ (1.4 ) Weighted average remaining lease term 5.7 years Weighted average discount rate 9.35 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 2.7 2021 1.4 2022 0.8 2023 0.7 2024 0.7 Thereafter 2.6 Total future minimum lease payments 8.9 Less: amount representing interest (2.2 ) Present value of future minimum lease payments 6.7 Less: current portion of operating lease obligations (2.1 ) Long-term portion of operating lease obligations $ 4.6 Aggregate future minimum rental payments as of December 31, 2018, were as follows (in millions): For the year ending December 31, Total 2019 $ 2.9 2020 2.3 2021 0.9 2022 0.7 2023 0.7 Thereafter 3.0 Total future minimum lease payments $ 10.5 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases which are generally three to five years . The assets and liabilities under finance leases are recorded at the lower of present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Finance lease obligations, current portion and Finance lease obligations in our Condensed Consolidated Balance Sheet. Lease costs and other information related to finance leases for the three and six months ended June 30, 2019 , is as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Amortization of finance leases $ 1.2 $ 2.5 Interest on lease liabilities $ 0.2 $ 0.4 Financing cash flows from finance leases $ (1.2 ) $ (2.2 ) Weighted average remaining lease term 1.8 years Weighted average discount rate 4.5 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 5.1 2021 3.7 2022 1.4 2023 0.2 Thereafter — Total future minimum lease payments 10.4 Less: amount representing interest (0.8 ) Present value of future minimum lease payments 9.6 Less: current portion of finance lease obligations (4.8 ) Long-term portion of finance lease obligations $ 4.8 Aggregate future minimum rental payments as of December 31, 2018, were as follows (in millions): For the year ending December 31, Total 2019 $ 5.0 2020 4.6 2021 2.1 2022 0.2 2023 0.1 Thereafter — Total future minimum lease payments 12.0 Less: amount representing interest (1.0 ) Present value of future minimum lease payments 11.0 Less: current portion of capital lease obligations (4.4 ) Total capital lease obligations, less current portion $ 6.6 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 — Debt The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions): June 30, 2019 December 31, 2018 ESCO Notes Payable due February 2019 $ 5.8 $ 5.8 Wells Fargo Credit Facility due August 2022 25.8 17.9 Encina Master Financing Agreement due June 2023 32.0 36.8 Total Debt 63.6 60.5 Current portion of long-term debt (15.8 ) (15.8 ) Long term-debt, net $ 47.8 $ 44.7 ESCO Notes Payable In connection with the Company’s initial public offering (the “Offering”) and the ESCO Acquisition, both of which occurred on August 16, 2017, the Company issued $7.0 million of seller’s notes as partial consideration for the ESCO Acquisition. These notes include a note for $1.2 million , which was paid in August 2018 and a note for $5.8 million due in February 2019. Both of these notes bear interest at 5.0% payable quarterly until their respective maturity dates. During the year ended December 31, 2018, the Company provided notice to ESCO Leasing, LLC that the Company sought to be indemnified for breach of contract. The Company exercised its right to stop payments of the remaining principal balance of $5.8 million on the Seller’s Notes and any unpaid interest, pending resolution of certain indemnification claims. Credit Facility On August 16, 2017 , in connection with the Offering, Ranger entered into a $50.0 million senior revolving credit facility (the “Credit Facility”) by and among certain of Ranger’s subsidiaries, as borrowers, each of the lenders party thereto and Wells Fargo Bank, N.A., as administrative agent (the “Administrative Agent”). The Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the value of the Company’s eligible accounts receivable less certain reserves. The Credit Facility permits extensions of credit up to the lesser of $50.0 million and a borrowing base that is determined by calculating the amount equal to the sum of (i) 85% of the Eligible Accounts (as defined in the Credit Facility), less the amount, if any, of the Dilution Reserve (as defined in the Credit Facility), minus (ii) the aggregate amount of Reserves (as defined in the Credit Facility), if any, established by the Administrative Agent from time to time pursuant to the Credit Facility. The borrowing base is calculated on a monthly basis pursuant to a borrowing base certificate delivered by the Company to the Administrative Agent. Borrowings under the Credit Facility bear interest, at the Company’s election, at either the (a) one-, two-, three- or six-month LIBOR or (b) the greatest of (i) the federal funds rate plus ½%, (ii) the one-month LIBOR plus 1% and (iii) the Administrative Agent’s prime rate (the “Base Rate”), in each case plus an applicable margin, and interest shall be payable monthly in arrears. The applicable margin for LIBOR loans ranges from 1.50% to 2.00% and the applicable margin for Base Rate loans ranges from 0.50% to 1.00% , in each case, depending on the Company’s average excess availability under the Credit Facility. The applicable margin for LIBOR loans was 1.75% and the applicable margin for Base Rate loans were 0.75% as of June 30, 2019 . During the continuance of a bankruptcy event of default, automatically and during the continuance of any other default, upon the Administrative Agent’s or the required lenders’ election, all outstanding amounts under the Credit Facility bears interest at 2.00% plus the otherwise applicable interest rate. The Credit Facility is scheduled to mature on August 16, 2022 and has a weighted average interest rate of 4.7% as of June 30, 2019 . In addition, the Credit Facility restricts the Company’s ability to make distributions on, or redeem or repurchase, its equity interests, except for certain distributions, including distributions of cash so long as, both at the time of the distribution and after giving effect to the distribution, no default exists under the Credit Facility and either (a) excess availability at all times during the preceding 90 consecutive days, on a pro forma basis and after giving effect to such distribution, is not less than the greater of (1) 22.5% of the lesser of (A) the maximum revolver amount and (B) the then-effective borrowing base and (2) $10.0 million or (b) if the fixed charge coverage ratio is at least 1.0 x on a pro forma basis, excess availability at all times during the preceding 90 consecutive days, on a pro forma basis and after giving effect to such distribution, is not less than the greater of (1) 17.5% of the lesser of (A) the maximum revolver amount and (B) the then-effective borrowing base and (2) $7.0 million . If the foregoing threshold under clause (b) is met, the Company may not make such distributions (but may make certain other distributions, including under clause (a) above) prior to the earlier of the date that is (a) 12 months from closing or (b) the date that the Company’s fixed charge coverage ratio is at least 1.0 x for two consecutive quarters. The Credit Facility generally permits the Company to make distributions required under the Tax Receivable Agreement (‘‘TRA’’), but a ‘‘Change of Control’’ under the TRA constitutes an event of default under the Credit Facility, and the Credit Facility does not permit the Company to make payments under the TRA upon acceleration of its obligations thereunder unless no event of default exists or would result therefrom and the Company has been in compliance with the fixed charge coverage ratio for the most recent 12-month period on a pro forma basis. The Credit Facility also requires the Company to maintain a fixed charge coverage ratio of at least 1.0 x if the Company’s liquidity is less than $10.0 million until the Company’s liquidity is at least $10.0 million for 30 consecutive days. The Company is not to be subject to a fixed charge coverage ratio if it has no drawings under the Credit Facility and has at least $20.0 million of qualified cash. The Credit Facility contains events of default customary for facilities of this nature, including, but not limited, to: • events of default resulting from the Company’s failure or the failure of any guarantors to comply with covenants and financial ratios; • the occurrence of a change of control; • the institution of insolvency or similar proceedings against the Company or any guarantor; and • the occurrence of a default under any other material indebtedness the Company or any guarantor may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the Credit Facility, the lenders are able to declare any outstanding principal of the Credit Facility debt, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies. As of June 30, 2019 , the Company has borrowed $26.3 million under the Credit Facility. The Company has a borrowing capacity of approximately $40.3 million under the Credit Facility, with approximately $14.0 million available as of June 30, 2019 . The Company was in compliance with the Credit Facility covenants as of June 30, 2019 . The Company capitalized fees of $0.7 million associated with the Credit Facility, which are included in the unaudited interim condensed consolidated balance sheets as a discount to the Credit Facility, and will be amortized through maturity. Unamortized debt issuance costs as of June 30, 2019 approximated $0.5 million . Encina Master Financing and Security Agreement ( “ Financing Agreement ” ) On June 22, 2018, the Company entered into a Master Financing and Security Agreement with Encina Equipment Finance SPV, LLC (the “Lender”). The amount available to be provided by the Lender to the Company under the Financing Agreement was contemplated to be not less than $35.0 million , and not to exceed $40.0 million . The first financing was required to be in an amount up to $22.0 million , or $21.3 million , net of expenses, which was used by the Company to acquire certain capital equipment. Subsequent to the first financing, the Company borrowed an additional $18.0 million , or $17.8 million , net of expenses, under the Financing Agreement. We utilized the additional net proceeds to acquire certain capital equipment. The Financing Agreement is secured by a lien on certain high specification rig assets. At June 30, 2019 , the aggregate principal balance outstanding was $32.7 million under the Financing Agreement with a weighted average interest rate of 10.5% . Borrowings under the Financing Agreement bear interest at a rate per annum equal to the sum of 8.0% plus the London Interbank Offered Rate (“LIBOR”), which was 2.4% as of June 30, 2019 . The Financing Agreement requires that the Company maintain leverage ratios of 2.50 to 1.00 as of June 30, 2019 and for periods thereafter. The Company was in compliance with the covenants under the Financing Agreement as of June 30, 2019 . The Company capitalized fees of $0.9 million associated with the Financing Agreement, which are included on the unaudited interim condensed consolidated balance sheets as a discount to the long term debt, and will be amortized through maturity. Unamortized debt issuance costs as of June 30, 2019 approximated $0.7 million . Scheduled Maturities As of June 30, 2019 , aggregate principal repayments of total debt for the next five years are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 15.8 2021 10.0 2022 36.3 2023 2.7 Total $ 64.8 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Equity Equity-Based Compensation Time-Based Units During the six months ended June 30, 2019 and 2018 there were 495,750 and 498,302 restricted shares granted, respectively. The aggregate value of awards granted during six months ended June 30, 2019 and 2018 was $3.9 million and $4.1 million , respectively. As of June 30, 2019 , there was an aggregate $5.6 million of unrecognized expense related to restricted shares issued which is expected to be recognized over a weighted average period of 2.2 years . Performance Stock Units During the six months ended June 30, 2019 , the Company granted 105,920 target shares of market based performance restricted stock units at a relative and absolute grant date fair value of approximately $11.96 per share and $9.50 per share, respectively, to certain employees. The market based performance restricted stock units cliff vest on March 21, 2022. As defined in the LTIP, the performance criteria applicable to the performance awards is measured at a relative and absolute shareholder return, which measures the Company’s total shareholder return as compared to the total shareholder return of the defined peer group. As of June 30, 2019 , there was approximately $1.0 million of unrecognized compensation cost related to shares of market based performance restricted stock units which is expected to be recognized over a weighted average period of 2.5 years . During the three and six months ended June 30, 2018, the Company granted 79,430 target shares of market based performance restricted stock units at a relative and absolute grant date fair value of approximately $8.59 per share and $4.38 per share, respectively, to certain employees. The market based performance restricted stock units cliff vest on December 31, 2020. As defined in the LTIP, the performance criteria applicable to the performance awards is measured at a relative and absolute shareholder return, which measures the Company’s total shareholder return as compared to the total shareholder return of the defined peer group. As of June 30, 2019 , there was $0.3 million of unrecognized compensation cost related to shares of market based performance restricted stock units which is expected to be recognized over a weighted average period of 1.5 years . Share Issuance to Related Party In connection with the Master Reorganization Agreement, an aggregate of $3.0 million (included within other current liabilities on the accompanying consolidated balance sheet as of December 31, 2018) was settled by the Company and CSL Energy Holdings I, LLC and CSL Energy Holdings II, LLC during the three and six months ended June 30, 2019 . At the Company’s discretion the liability was settled with the issuance of 206,897 Class A Common Stock. Refer to Note 1 — Organization and Business Operations for further details. Share Repurchase Program In June 2019, the Board of Directors approved a share repurchase program, authorizing the Company to purchase up to 10% of the outstanding Class A Common Stock held by non-affiliates, not to exceed 580,000 shares or $5.0 million in aggregate value. Share repurchases may take place from time to time on the open market or through privately negotiated transactions. The duration of the share repurchase program is 12 months and may be accelerated, suspended or discontinued at any time without notice. During the three months ended June 30, 2019, the Company did not repurchase any Class A Common Stock. Refer to “Part II, Item 2. Unregistered Sales of Securities” for further information. |
Risk Concentrations
Risk Concentrations | 6 Months Ended |
Jun. 30, 2019 | |
Risk Concentrations | |
Risk Concentrations | Note 10 — Risk Concentrations Customer Concentrations For the three months ended June 30, 2019 , two customers, EOG Resources and Concho Resources, Inc., accounted for 17% and 15% , respectively, of the Company’s total revenue. For the six months ended June 30, 2019 , two customers, EOG Resources and Concho Resources, Inc., accounted for 17% and 14% , respectively, of the Company’s total revenues. At June 30, 2019 , approximately 19% of the accounts receivable balance was due from these customers. For the three months ended June 30, 2018 , one customer, EOG Resources, accounted for approximately 23% of the Company’s total revenues. For the six months ended June 30, 2018 , one customer, EOG Resources, accounted for approximately 22% , of the Company’s total revenues. At June 30, 2018 , approximately 18% of the accounts receivable balance was due from this customer. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 — Income Taxes The Company is a corporation and is subject to U.S. federal income tax. The effective U.S. federal income tax rate applicable to the Company for the six months ended June 30, 2019 and 2018 was 11.3% and 7.3% , respectively. The Company is subject to the Texas Margin Tax that requires tax payments at a maximum statutory effective rate of 0.75% on the taxable margin of each taxable entity that does business in Texas. As a result of the Offering and subsequent reorganization, the Company recorded a deferred tax asset; however, a full valuation allowance has been recorded to reduce the Company’s net deferred tax assets to an amount that is more likely than not to be realized and is based upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes. The Company currently believes that it is reasonably possible to achieve a three-year cumulative level of profitability within the next 12 months, and as early as the third quarter of 2019 , which would enhance the ability to conclude that is it more likely than not that the deferred tax assets would be realized and support a release of a portion or substantially all of the valuation allowance. A release of the valuation allowance would result in the recognition of an increase in deferred tax assets and an income tax benefit in the period in which the release occurs, although the exact timing and amount of the release is subject to change based on numerous factors, including projections of future taxable income, which continues to be assessed based on available information each reporting period. Total income tax expense for the three and six months ended June 30, 2019 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income primarily due to the release of the valuation allowance related to current period pre-tax book income and the impact of permanent differences between book and taxable income attributable to non-controlling interest. The effective tax rate includes a rate benefit attributable to the fact that Ranger LLC operates as a limited liability company treated as a partnership for federal and state income tax purposes and as such, is not subject to federal and state income taxes, except for the State of Texas for which Ranger LLC files with the Company. Accordingly, the portion of earnings attributable to non-controlling interest is subject to tax when reported as a component of the non-controlling interest’s taxable income. The Company is subject to the following material taxing jurisdictions: the United States and Texas. As of June 30, 2019 , the Company has no current tax years under audit. The Company remains subject to examination for federal income taxes and state income taxes for tax years 2017 and 2016. The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained upon examination. Therefore, as of June 30, 2019 , the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Note 12 — Earnings (Loss) per Share Earnings (loss) per share is based on the amount of net income or loss allocated to the shareholders and the weighted average number of shares outstanding during the period for each class of Common Stock. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Income (loss) (numerator): Basic: Net income (loss) attributable to Ranger Energy Services, Inc. $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Less: Undistributed earnings allocable to Class B Common Stock — — — — Net income (loss) attributable to Class A Common Stock $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Diluted: Net income (loss) attributable to Ranger Energy Services, Inc. $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Less: Undistributed earnings allocable to Class B Common Stock — — — — Net income (loss) attributable to Class A Common Stock $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Weighted average shares (denominator): Weighted average number of shares - basic 8,514,495 8,414,557 8,481,788 8,413,871 Weighted average number of shares - diluted 9,491,684 8,414,557 9,458,977 8,413,871 Basic income (loss) per share $ 0.12 $ (0.08 ) $ 0.35 $ (0.76 ) Diluted income (loss) per share $ 0.11 $ (0.08 ) $ 0.32 $ (0.76 ) During the three and six months ended June 30, 2019 and 2018 , the Company excluded 6.9 million shares of Common Stock issuable upon conversion of the Company’s Class B Common Stock in calculating diluted loss per share, as the effect was anti-dilutive. During the three and six months ended June 30, 2018, the Company excluded 0.5 million equity-based compensation awards in calculating diluted loss per share, as the effect was anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Legal Matters From time to time, the Company is involved in various legal matters arising in the normal course of business. The Company does not believe that the ultimate resolution of these currently pending matters will have a material adverse effect on its condensed consolidated financial position or results of operations. During the year ended December 31, 2018, the Company provided notice to ESCO Leasing, LLC that the Company sought to be indemnified for breach of contract. The Company exercised the right to stop payments of the remaining principal balance of $5.8 million on the Seller's Notes and any unpaid interest, pending resolution of certain indemnification claims. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting | Note 14 — Segment Reporting Historically, the Company reported two segments, with corporate general and administrative expense categorized as other. During the fourth quarter of 2018, the Company bifurcated the legacy Well Services segment into High Specification Rigs and Completion and Other Services due to the modifications made to its internal reporting and responsibilities of those reporting to the Chief Operating Decision Maker (“CODM”). As a result, the financial information being provided to the CODM has been updated to align with our new internal organization, which resulted in a new reportable segment discussed further below. The Company’s operations are all located in the United States and organized into three reportable segments: High Specification Rigs, Completion and Other Services and Processing Solutions. Our reportable segments comprise the structure used by our CODM to make key operating decisions and assess performance during the years presented in the accompanying condensed consolidated financial statements. Our CODM evaluates the segments’ operating performance based on multiple measures including Operating income (loss), Adjusted EBITDA, rig hours and rig utilization. The tables below present the operating income (loss) measurement, as the Company believes this is most consistent with the principals used in measuring the condensed consolidated financial statements. We have made certain reclassifications to our prior period operating revenue, cost of sales and general and administrative amounts due to the change in reportable segments whereby our High Specification Rig and Completion and Other Services segments were bifurcated from our legacy Well Services segment as a result of our fourth quarter 2018 operating segment changes. None of these reclassifications have an impact on our condensed consolidated operations results, cash flows or financial position. The following is a description of each operating segment: High Specification Rigs. The Company’s High Specification Rigs facilitate operations throughout the lifecycle of a well, including (i) completion, (ii) workover, (iii) well maintenance and (iv) decommissioning. The Company provides these advanced well services to exploration & production (“E&P”) companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services. Our high specification rigs are designed to support growing U.S. horizontal well demands. Completion and Other Services. Our Completion and Other Services segment provides services necessary to bring and maintain a well on production and consists primarily of our wireline and snubbing lines of business along with other, non-rig well services, such as fluid management and well services-related equipment rentals. Processing Solutions. The Company provides a range of proprietary, modular equipment for the processing of rich natural gas streams at the wellhead or central gathering points in basins where drilling and completion activity has outpaced the development of permanent processing infrastructure. Other. The Company incurs costs, indicated as Other, that are not allocable to any of the operating segments, and includes mostly corporate general and administrative expenses as well as depreciation of office furniture and fixtures and other corporate assets. Segment information as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 is as follows (in millions): Three months ended June 30, 2019 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 33.1 $ 46.3 $ 4.9 $ — $ 84.3 Cost of services 28.7 35.0 1.9 — 65.6 Depreciation and amortization 4.8 2.9 0.5 0.2 8.4 Operating income (loss) (0.4 ) 8.4 2.5 (6.5 ) 4.0 Interest expense, net — — — (1.9 ) (1.9 ) Net income (loss) (0.4 ) 8.4 2.5 (8.7 ) 1.8 Capital expenditures $ 1.2 $ 1.8 $ 2.4 $ — $ 5.4 Six months ended June 30, 2019 Revenues $ 64.8 $ 97.9 $ 9.9 $ — $ 172.6 Cost of services 56.1 72.9 4.1 — 133.1 Depreciation and amortization 9.6 5.7 1.0 0.5 16.8 Operating income (loss) (0.9 ) 19.3 4.8 (14.0 ) 9.2 Interest expense, net — — — (3.2 ) (3.2 ) Net income (loss) (0.9 ) 19.3 4.8 (17.8 ) 5.4 Capital expenditures $ 4.0 $ 3.6 $ 6.5 $ 0.5 $ 14.6 As of June 30, 2019 Property, plant and equipment, net $ 134.7 $ 47.6 $ 39.8 $ 5.6 $ 227.7 Total assets $ 196.7 $ 69.5 $ 43.5 $ 8.2 $ 317.9 Three Months Ended June 30, 2018 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 39.6 $ 29.5 $ 4.0 $ — $ 73.1 Cost of services 33.6 21.8 1.9 — 57.3 Depreciation and amortization 4.6 1.8 0.4 0.2 7.0 Impairment of goodwill — — — — — Operating income (loss) 1.4 5.9 1.7 (8.0 ) 1.0 Interest expense, net — — — (0.5 ) (0.5 ) Net income (loss) 1.4 5.9 1.7 (10.2 ) (1.2 ) Capital expenditures $ 16.7 $ 3.7 $ 0.9 $ 0.5 $ 21.8 Six Months Ended June 30, 2018 Revenues $ 75.9 $ 52.9 $ 6.9 $ — $ 135.7 Cost of services 65.1 40.2 3.3 — 108.6 Depreciation and amortization 8.6 3.5 0.6 0.4 13.1 Impairment of goodwill 9.0 — — — 9.0 Operating income (loss) (6.8 ) 9.2 3.0 (15.2 ) (9.8 ) Interest expense, net — — — (0.9 ) (0.9 ) Net income (loss) (6.8 ) 9.2 3.0 (16.9 ) (11.5 ) Capital expenditures $ 25.0 $ 5.5 $ 3.1 $ 0.5 $ 34.1 As of December 31, 2018 Property, plant and equipment, net $ 159.2 $ 35.0 $ 34.3 $ 1.3 $ 229.8 Total assets $ 214.1 $ 47.0 $ 40.1 $ 1.3 $ 302.5 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet as of December 31, 2018 has been derived from audited financial statements and the unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“US GAAP”) for interim financial information and the Securities and Exchange Commission’s (the “SEC”) instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly certain notes and other information have been condensed or omitted. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results of operations for the interim periods. These interim financial statements, should be read in conjunction with the consolidated financial statements and related notes for the years ended December 31, 2018 and 2017 , included in the Annual Report filed on Form 10-K for the years ended December 31, 2018 and 2017 (the “Annual Report”). Interim results for the periods presented may not be indicative of results that will be realized for future periods. |
Reclassifications | The Company has made certain reclassifications to our prior period operating revenue, cost of sales and general and administrative amounts due to the change in reportable segments whereby our High Specification Rig and Completion and Other Services segments were bifurcated from our legacy Well Services segment as a result of our fourth quarter 2018 operating segment changes. None of these reclassifications have an impact on our condensed consolidated operations results, cash flows or financial position. The Company has made certain reclassifications to our prior period Additional Paid-In Capital and Accumulated Deficit amounts. None of these reclassifications have an impact on our condensed consolidated operations results, cash flows or financial position. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: • Depreciation and amortization of property, plant and equipment and intangible assets; • Impairment of property, plant and equipment, goodwill and intangible assets; • Allowance for doubtful accounts; • Fair value of assets acquired and liabilities assumed in an acquisition; and • Equity‑based compensation. |
Emerging Growth Company status | Emerging Growth Company status The Company is an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). The Company will remain an emerging growth company until the earlier of (1) the last day of its fiscal year (a) following the fifth anniversary of the completion of the Offering, (b) in which its total annual gross revenue is at least $1.07 billion , or (c) in which the Company is deemed to be a large accelerated filer, which means the market value of the Company’s common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of its most recently completed second fiscal quarter, or (2) the date on which the Company has issued more than $1.0 billion in non-convertible debt securities during the prior three -year period. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. The Company has irrevocably opted out of the extended transition period and, as a result, the Company will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies. |
New Accounting Pronouncements and Recently Issued Accounting Standards | New Accounting Pronouncements Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, Leases , amending the current accounting for leases. Under the new provisions, all lessees will report a right‑of‑use asset and a liability for the obligation to make payments for all leases with the exception of those leases with a term of 12 months or less. All other leases will fall into one of two categories: (i) a financing lease or (ii) an operating lease. Lessor accounting remains substantially unchanged with the exception that no leases entered into after the effective date will be classified as leveraged leases. Effective January 1, 2019, the Company has adopted ASU 2016-02 and elected the following practical expedients and accounting policy elections for recognition, measurement and presentation: • The optional transition method, therefore will not adjust comparative period financial information or make the new required lease disclosures for periods prior to the effective date; • the package of practical expedients to not reassess prior conclusions related to (i) contracts containing leases, (ii) lease classification and (iii) initial direct costs; • to make the accounting policy election for short-term leases, or leases with terms of 12 months or less, therefore the lease payments will be recorded as an expense on a straight line basis over the lease term; and • to combine lease and non-lease components. The Company did not apply the practical expedient to utilize hind-sight in applying the standard. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease, discounted at our annual incremental borrowing rate (“IBR”). ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU asset and lease liabilities and are recognized in the period in which the obligation for those payments are incurred. For certain leases, where variable lease payments are incurred and relate primarily to common area maintenance, in substance fixed payments are included in the ROU asset and lease liability. For those leases that do not provide an implicit rate, we use our IBR based on the information available at the lease commencement date in determining the present value of lease payments. ROU assets also include any lease payments made and exclude lease incentives. Lease terms do not include options to extend or terminate the lease, as management does not consider them reasonably certain to exercise. The Company has a related party lease, which is included within the ROU asset and liability. Please see Note 14 — Related Party Transactions of the Annual Report for further discussion of the Company’s related parties. As of January 1, 2019, the Company recognized an operating lease right-of-use asset and corresponding liability of $8.3 million on our condensed consolidated Balance Sheet. See Note 7 — Leases , for further details of the Company’s operating and financing leases. Recently Issued Accounting Standards With the exception of the standard above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s condensed consolidated financial statements. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment include the following (in millions): Estimated Useful Life (years) June 30, 2019 December 31, 2018 Machinery and equipment 5 - 30 $ 42.3 $ 42.0 Vehicles 3 - 5 18.8 17.9 Mechanical refrigeration units 30 21.8 20.9 Natural gas liquid storage tanks 15 5.9 5.9 High specification rigs 5 - 20 178.4 175.7 Other property, plant and equipment 3 - 30 16.1 12.7 Property, plant and equipment 283.3 275.1 Less: accumulated depreciation (68.7 ) (52.5 ) Construction in progress 13.1 7.2 Property, plant and equipment, net $ 227.7 $ 229.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of definite lived intangible assets | Definite lived intangible assets are comprised of the following (in millions): Estimated Useful Life (years) June 30, 2019 December 31, 2018 Tradenames 3 $ 0.1 $ 0.1 Customer relationships 10-18 11.4 11.4 Less: accumulated amortization (1.8 ) (1.5 ) Intangible assets, net $ 9.7 $ 10.0 |
Schedule of aggregated amortization expense for future periods | expense for the future periods is expected to be as follows (in millions): For the twelve months ending June 30, Amount 2020 $ 0.7 2021 0.7 2022 0.7 2023 0.7 2024 0.8 Thereafter 6.1 $ 9.7 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses | Accrued expenses include the following (in millions): June 30, 2019 December 31, 2018 Accrued payables $ 7.1 $ 5.6 Accrued compensation 10.2 6.2 Accrued taxes 2.0 2.9 Accrued insurance 0.5 3.8 Accrued expenses $ 19.8 $ 18.5 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases, Capital [Abstract] | |
Schedule of other information related to operating and finance leases | Lease costs and other information related to operating leases for the three and six months ended June 30, 2019 , is as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Short-term lease costs $ 1.1 $ 3.3 Operating lease cost $ 0.6 $ 1.3 Operating cash flows from operating leases $ (0.6 ) $ (1.4 ) Weighted average remaining lease term 5.7 years Weighted average discount rate 9.35 % Lease costs and other information related to finance leases for the three and six months ended June 30, 2019 , is as follows (in millions): Three Months Ended Six Months Ended June 30, 2019 Amortization of finance leases $ 1.2 $ 2.5 Interest on lease liabilities $ 0.2 $ 0.4 Financing cash flows from finance leases $ (1.2 ) $ (2.2 ) Weighted average remaining lease term 1.8 years Weighted average discount rate 4.5 % |
Schedule of future minimum leases payments for operating leases | Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 2.7 2021 1.4 2022 0.8 2023 0.7 2024 0.7 Thereafter 2.6 Total future minimum lease payments 8.9 Less: amount representing interest (2.2 ) Present value of future minimum lease payments 6.7 Less: current portion of operating lease obligations (2.1 ) Long-term portion of operating lease obligations $ 4.6 |
Schedule of future minimum rental payments for operating leases under Topic 840 | Aggregate future minimum rental payments as of December 31, 2018, were as follows (in millions): For the year ending December 31, Total 2019 $ 2.9 2020 2.3 2021 0.9 2022 0.7 2023 0.7 Thereafter 3.0 Total future minimum lease payments $ 10.5 |
Schedule of future minimum leases payments for finances leases | Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 5.1 2021 3.7 2022 1.4 2023 0.2 Thereafter — Total future minimum lease payments 10.4 Less: amount representing interest (0.8 ) Present value of future minimum lease payments 9.6 Less: current portion of finance lease obligations (4.8 ) Long-term portion of finance lease obligations $ 4.8 |
Schedule of future minimum lease payments for capital leases | Aggregate future minimum rental payments as of December 31, 2018, were as follows (in millions): For the year ending December 31, Total 2019 $ 5.0 2020 4.6 2021 2.1 2022 0.2 2023 0.1 Thereafter — Total future minimum lease payments 12.0 Less: amount representing interest (1.0 ) Present value of future minimum lease payments 11.0 Less: current portion of capital lease obligations (4.4 ) Total capital lease obligations, less current portion $ 6.6 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions): June 30, 2019 December 31, 2018 ESCO Notes Payable due February 2019 $ 5.8 $ 5.8 Wells Fargo Credit Facility due August 2022 25.8 17.9 Encina Master Financing Agreement due June 2023 32.0 36.8 Total Debt 63.6 60.5 Current portion of long-term debt (15.8 ) (15.8 ) Long term-debt, net $ 47.8 $ 44.7 |
Schedule of future payments | As of June 30, 2019 , aggregate principal repayments of total debt for the next five years are as follows (in millions): For the twelve months ending June 30, Total 2020 $ 15.8 2021 10.0 2022 36.3 2023 2.7 Total $ 64.8 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted loss per share | Earnings (loss) per share is based on the amount of net income or loss allocated to the shareholders and the weighted average number of shares outstanding during the period for each class of Common Stock. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Income (loss) (numerator): Basic: Net income (loss) attributable to Ranger Energy Services, Inc. $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Less: Undistributed earnings allocable to Class B Common Stock — — — — Net income (loss) attributable to Class A Common Stock $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Diluted: Net income (loss) attributable to Ranger Energy Services, Inc. $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Less: Undistributed earnings allocable to Class B Common Stock — — — — Net income (loss) attributable to Class A Common Stock $ 1.0 $ (0.7 ) $ 3.0 $ (6.4 ) Weighted average shares (denominator): Weighted average number of shares - basic 8,514,495 8,414,557 8,481,788 8,413,871 Weighted average number of shares - diluted 9,491,684 8,414,557 9,458,977 8,413,871 Basic income (loss) per share $ 0.12 $ (0.08 ) $ 0.35 $ (0.76 ) Diluted income (loss) per share $ 0.11 $ (0.08 ) $ 0.32 $ (0.76 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of segment information | Segment information as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 is as follows (in millions): Three months ended June 30, 2019 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 33.1 $ 46.3 $ 4.9 $ — $ 84.3 Cost of services 28.7 35.0 1.9 — 65.6 Depreciation and amortization 4.8 2.9 0.5 0.2 8.4 Operating income (loss) (0.4 ) 8.4 2.5 (6.5 ) 4.0 Interest expense, net — — — (1.9 ) (1.9 ) Net income (loss) (0.4 ) 8.4 2.5 (8.7 ) 1.8 Capital expenditures $ 1.2 $ 1.8 $ 2.4 $ — $ 5.4 Six months ended June 30, 2019 Revenues $ 64.8 $ 97.9 $ 9.9 $ — $ 172.6 Cost of services 56.1 72.9 4.1 — 133.1 Depreciation and amortization 9.6 5.7 1.0 0.5 16.8 Operating income (loss) (0.9 ) 19.3 4.8 (14.0 ) 9.2 Interest expense, net — — — (3.2 ) (3.2 ) Net income (loss) (0.9 ) 19.3 4.8 (17.8 ) 5.4 Capital expenditures $ 4.0 $ 3.6 $ 6.5 $ 0.5 $ 14.6 As of June 30, 2019 Property, plant and equipment, net $ 134.7 $ 47.6 $ 39.8 $ 5.6 $ 227.7 Total assets $ 196.7 $ 69.5 $ 43.5 $ 8.2 $ 317.9 Three Months Ended June 30, 2018 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 39.6 $ 29.5 $ 4.0 $ — $ 73.1 Cost of services 33.6 21.8 1.9 — 57.3 Depreciation and amortization 4.6 1.8 0.4 0.2 7.0 Impairment of goodwill — — — — — Operating income (loss) 1.4 5.9 1.7 (8.0 ) 1.0 Interest expense, net — — — (0.5 ) (0.5 ) Net income (loss) 1.4 5.9 1.7 (10.2 ) (1.2 ) Capital expenditures $ 16.7 $ 3.7 $ 0.9 $ 0.5 $ 21.8 Six Months Ended June 30, 2018 Revenues $ 75.9 $ 52.9 $ 6.9 $ — $ 135.7 Cost of services 65.1 40.2 3.3 — 108.6 Depreciation and amortization 8.6 3.5 0.6 0.4 13.1 Impairment of goodwill 9.0 — — — 9.0 Operating income (loss) (6.8 ) 9.2 3.0 (15.2 ) (9.8 ) Interest expense, net — — — (0.9 ) (0.9 ) Net income (loss) (6.8 ) 9.2 3.0 (16.9 ) (11.5 ) Capital expenditures $ 25.0 $ 5.5 $ 3.1 $ 0.5 $ 34.1 As of December 31, 2018 Property, plant and equipment, net $ 159.2 $ 35.0 $ 34.3 $ 1.3 $ 229.8 Total assets $ 214.1 $ 47.0 $ 40.1 $ 1.3 $ 302.5 |
Organization and Business Ope_2
Organization and Business Operations - Reorganization (Details) - USD ($) $ in Millions | Aug. 10, 2017 | Jun. 30, 2019 | Jun. 30, 2019 |
Organization and Business Operations | |||
Issuance of Class A Common Stock to related party | $ 3 | $ 3 | |
C S L Energy Holdings I L L C And C S L Energy Holdings I I L L C | Master Reorganization Agreement | |||
Organization and Business Operations | |||
Payment made to CSL Holdings I and CSL Holdings II in exchange for equity interests contributed to the Company | $ 3 | $ 3 | |
Time period from consummation of the Offering in which payment is to be made to CSL Holdings I and CSL Holdings II | 18 months | ||
Period to determine volume-weighted average price | 30 days |
Organization and Business Ope_3
Organization and Business Operations - Business (Details) | Jun. 30, 2019service_rig |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of well service rigs | 141 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Right-of-use asset | $ 6.7 | $ 8.3 | $ 0 |
Operating lease liability | $ 6.7 | $ 8.3 |
Acquisitions (Details)
Acquisitions (Details) - MVCI Energy Services $ in Millions | Jan. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Total consideration | $ 4 |
Property, plant and equipment | $ 4 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net | |||||
Less: accumulated depreciation | $ (68.7) | $ (68.7) | $ (52.5) | ||
Property, plant and equipment, net | 227.7 | $ 229.8 | 227.7 | $ 229.8 | 229.8 |
Depreciation expense | 8.2 | $ 6.8 | 16.5 | $ 12.7 | |
Machinery and equipment | |||||
Property, Plant and Equipment, Net | |||||
Property, plant and equipment | 42.3 | 42.3 | 42 | ||
Vehicles | |||||
Property, Plant and Equipment, Net | |||||
Property, plant and equipment | 18.8 | $ 18.8 | 17.9 | ||
Mechanical refrigeration units | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 30 years | ||||
Property, plant and equipment | 21.8 | $ 21.8 | 20.9 | ||
Natural gas liquid storage tanks | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 15 years | ||||
Property, plant and equipment | 5.9 | $ 5.9 | 5.9 | ||
High specification rigs | |||||
Property, Plant and Equipment, Net | |||||
Property, plant and equipment | 178.4 | 178.4 | 175.7 | ||
Other property, plant and equipment | |||||
Property, Plant and Equipment, Net | |||||
Property, plant and equipment | 16.1 | 16.1 | 12.7 | ||
Property, plant and equipment | |||||
Property, Plant and Equipment, Net | |||||
Property, plant and equipment | 283.3 | 283.3 | 275.1 | ||
Construction in progress | |||||
Property, Plant and Equipment, Net | |||||
Property, plant and equipment | $ 13.1 | $ 13.1 | $ 7.2 | ||
Minimum | Machinery and equipment | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 5 years | ||||
Minimum | Vehicles | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 3 years | ||||
Minimum | High specification rigs | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 5 years | ||||
Minimum | Other property, plant and equipment | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 3 years | ||||
Maximum | Machinery and equipment | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 30 years | ||||
Maximum | Vehicles | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 5 years | ||||
Maximum | High specification rigs | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 20 years | ||||
Maximum | Other property, plant and equipment | |||||
Property, Plant and Equipment, Net | |||||
Estimated Useful Life (years) | 30 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | $ 9 | $ 9 |
Amortization expense | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangibles (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Intangible assets | ||
Less: accumulated amortization | $ (1.8) | $ (1.5) |
Intangible assets, net | $ 9.7 | $ 10 |
Tradenames | ||
Intangible assets | ||
Estimated Useful Life (years) | 3 years | 3 years |
Intangible assets, gross | $ 0.1 | $ 0.1 |
Customer relationships | ||
Intangible assets | ||
Intangible assets, gross | $ 11.4 | $ 11.4 |
Minimum | Customer relationships | ||
Intangible assets | ||
Estimated Useful Life (years) | 10 years | 10 years |
Maximum | Customer relationships | ||
Intangible assets | ||
Estimated Useful Life (years) | 18 years | 18 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 0.7 | |
2021 | 0.7 | |
2022 | 0.7 | |
2023 | 0.7 | |
2024 | 0.8 | |
Thereafter | 6.1 | |
Intangible assets, net | $ 9.7 | $ 10 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payables | $ 7.1 | $ 5.6 |
Accrued compensation | 10.2 | 6.2 |
Accrued taxes | 2 | 2.9 |
Accrued insurance | 0.5 | 3.8 |
Accrued expenses | $ 19.8 | $ 18.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term, operating leases | 12 months |
Lease term, finance leases | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term, operating leases | 8 years |
Lease term, finance leases | 5 years |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating and Finance Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | |||
Short-term lease costs | $ 1.1 | $ 3.3 | |
Operating lease cost | 0.6 | 1.3 | |
Operating cash flows from operating leases | $ (0.6) | $ (1.4) | |
Weighted average remaining lease term | 5 years 8 months 19 days | 5 years 8 months 19 days | |
Weighted average discount rate | 9.35% | 9.35% | |
Amortization of finance leases | $ 1.2 | $ 2.5 | |
Interest on lease liabilities | 0.2 | 0.4 | |
Financing cash flows from finance leases | $ (1.2) | $ (2.2) | $ (8.6) |
Weighted average remaining lease term | 1 year 9 months 18 days | 1 year 9 months 18 days | |
Weighted average discount rate | 4.50% | 4.50% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Leases, Operating [Abstract] | ||||
2020 | $ 2.7 | |||
2021 | 1.4 | |||
2022 | 0.8 | |||
2023 | 0.7 | |||
2024 | 0.7 | |||
Thereafter | 2.6 | |||
Total future minimum lease payments | 8.9 | |||
Less: amount representing interest | (2.2) | |||
Present value of future minimum lease payments | 6.7 | $ 8.3 | ||
Less: current portion of operating lease obligations | (2.1) | |||
Long-term portion of operating lease obligations | 4.6 | $ 0 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 2.9 | |||
2020 | 2.3 | |||
2021 | 0.9 | |||
2022 | 0.7 | |||
2023 | 0.7 | |||
Thereafter | 3 | |||
Total future minimum lease payments | 10.5 | |||
Leases, Capital [Abstract] | ||||
2020 | $ 5.1 | |||
2021 | 3.7 | |||
2022 | 1.4 | |||
2023 | 0.2 | |||
Thereafter | 0 | |||
Total future minimum lease payments | 10.4 | |||
Less: amount representing interest | (0.8) | |||
Present value of future minimum lease payments | 9.6 | |||
Less: current portion of finance lease obligations | (4.8) | (4.4) | (4.8) | |
Long-term portion of finance lease obligations | $ 4.8 | 6.6 | $ 4.8 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2019 | 5 | |||
2020 | 4.6 | |||
2021 | 2.1 | |||
2022 | 0.2 | |||
2023 | 0.1 | |||
Thereafter | 0 | |||
Total future minimum lease payments | 12 | |||
Less: amount representing interest | (1) | |||
Present value of future minimum lease payments | 11 | |||
Less: current portion of capital lease obligations | (4.4) | |||
Total capital lease obligations, less current portion | $ 6.6 |
Debt - Summary of Debt Outstand
Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total Debt | $ 63.6 | $ 60.5 |
Current portion of long-term debt | (15.8) | (15.8) |
Long term-debt, net | 47.8 | 44.7 |
ESCO Notes Payable due February 2019 | ||
Debt Instrument [Line Items] | ||
Total Debt | 5.8 | 5.8 |
Wells Fargo Credit Facility due August 2022 | ||
Debt Instrument [Line Items] | ||
Total Debt | 25.8 | 17.9 |
Encina Master Financing Agreement due June 2023 | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 32 | $ 36.8 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 22, 2018USD ($) | Aug. 16, 2017USD ($)quarter | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Financing amount (up to) | $ 64,800,000 | |||||
Financing amount, net of expenses | 63,600,000 | $ 60,500,000 | $ 60,500,000 | |||
Borrowings under line of credit facility | 25,100,000 | $ 27,700,000 | ||||
Credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings | $ 40,300,000 | |||||
Current borrowing capacity | 26,300,000 | |||||
Remaining borrowing | 14,000,000 | |||||
ESCO Notes Payable due February 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Exercise of right to stop payments on remaining principal balance, amount | 5,800,000 | |||||
Financing amount, net of expenses | $ 5,800,000 | 5,800,000 | $ 5,800,000 | |||
Seller's Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 7,000,000 | |||||
Interest rate (as a percent) | 5.00% | |||||
Seller's Note Due August 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 1,200,000 | |||||
Seller's Note Due February 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | 5,800,000 | |||||
Senior Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings | $ 50,000,000 | |||||
Percentage of eligible accounts receivable used in determining the borrowing base | 85.00% | |||||
Interest rate margin in event of default (as a percent) | 2.00% | |||||
Weighted average interest rate | 4.70% | |||||
Fixed charge coverage ratio requirement | 1 | |||||
Liquidity requirement that is used in determining whether the Company has to maintain a certain fixed charge coverage ratio | $ 10,000,000 | |||||
Time period in which the Company must maintain a certain level of liquidity | 30 days | |||||
Amount of qualified cash the Company must have in determining whether the Company is subject to a fixed charge coverage ratio requirement | $ 20,000,000 | |||||
Unamortized debt issuance costs | $ 700,000 | $ 500,000 | ||||
Senior Revolving Credit Facility | Credit Facility Restrictions, clause (a) | ||||||
Debt Instrument [Line Items] | ||||||
Measurement period of time used in the calculation of excess availability in determining any restrictions on the Company's ability to make distributions | 90 days | |||||
Percentage used in the calculation of excess availability in determining any restrictions on the Company's ability to make distributions | 22.50% | |||||
Amount used in the calculation of excess availability in determining any restrictions on the Company's ability to make distributions | $ 10,000,000 | |||||
Senior Revolving Credit Facility | Credit Facility Restrictions, clause (b) | ||||||
Debt Instrument [Line Items] | ||||||
Measurement period of time used in the calculation of excess availability in determining any restrictions on the Company's ability to make distributions | 90 days | |||||
Percentage used in the calculation of excess availability in determining any restrictions on the Company's ability to make distributions | 17.50% | |||||
Amount used in the calculation of excess availability in determining any restrictions on the Company's ability to make distributions | $ 7,000,000 | |||||
Fixed charge ratio used in the calculation in determining any restrictions on the Company's ability to make distributions | 1 | |||||
Period of time from closing in determining when distributions can be made, if the threshold under clause (b) is met | 12 months | |||||
Fixed charge coverage ratio used in determining when distributions can be made, if the threshold under clause (b) is met | 1 | |||||
Number of quarters the fixed charge coverage ratio is required to be maintained | quarter | 2 | |||||
Senior Revolving Credit Facility | Base Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 0.75% | |||||
Senior Revolving Credit Facility | Base Rate Loans | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 0.50% | |||||
Senior Revolving Credit Facility | Base Rate Loans | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 1.00% | |||||
Senior Revolving Credit Facility | Base Rate Loans | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 0.50% | |||||
Senior Revolving Credit Facility | Base Rate Loans | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 1.00% | |||||
Senior Revolving Credit Facility | LIBOR Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 1.75% | |||||
Senior Revolving Credit Facility | LIBOR Rate Loans | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 1.50% | |||||
Senior Revolving Credit Facility | LIBOR Rate Loans | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 2.00% | |||||
Financing Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percent) | 8.00% | |||||
Maximum borrowings | $ 40,000,000 | |||||
Weighted average interest rate | 10.50% | |||||
Unamortized debt issuance costs | 900,000 | $ 700,000 | ||||
Financing amount (up to) | 22,000,000 | $ 32,700,000 | ||||
Financing amount, net of expenses | $ 21,300,000 | |||||
Borrowings under line of credit facility | 18,000,000 | |||||
Borrowings, net of expenses | $ 17,800,000 | |||||
Required leverage ratio | 250.00% | |||||
Financing Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings | $ 35,000,000 | |||||
Financing Agreement | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin (as a percent) | 2.40% |
Debt - Schedule of Future Payme
Debt - Schedule of Future Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 15.8 |
2021 | 10 |
2022 | 36.3 |
2023 | 2.7 |
Total | $ 64.8 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share repurchase program, authorized percentage of outstanding Class A Common Stock held by non-affiliates | 10.00% | ||
Stock repurchase program, number of shares authorized to be repurchased (in shares) | 580,000 | ||
Stock repurchase program, authorized amount | $ 5,000,000 | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares issued (in shares) | 495,750 | 498,302 | |
Total value of grant | $ 4,100,000 | $ 3,900,000 | $ 4,100,000 |
Unrecognized expense | $ 5,600,000 | ||
Weighted average period | 2 years 2 months 12 days | ||
Market Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total value of grant | $ 79,430 | $ 105,920 | $ 79,430 |
Weighted average period | 2 years 5 months 18 days | 1 year 6 months | |
Market Based Restricted Stock Units, Relative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of target shares granted to employees (in dollars per share) | $ 8.59 | $ 11.96 | |
Market Based Restricted Stock Units, Absolute | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of target shares granted to employees (in dollars per share) | $ 4.38 | $ 9.50 | |
C S L Energy Holdings I L L C And C S L Energy Holdings I I L L C | Master Reorganization Agreement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment made to CSL Holdings I and CSL Holdings II in exchange for equity interests contributed to the Company | $ 3,000,000 | ||
C S L Energy Holdings I L L C And C S L Energy Holdings I I L L C | Master Reorganization Agreement | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issuance (in shares) | 206,897 | ||
Awards Granted During the Six Months Ended June 30, 2019 | Market Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized expense | $ 1,000,000 | ||
Awards Granted During the Three and Six Months Ended June 30, 2018 | Market Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized expense | $ 300,000 |
Risk Concentrations (Details)
Risk Concentrations (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | EOG Resources | ||||
Customer Concentrations | ||||
Concentration risk (as a percent) | 17.00% | 23.00% | 17.00% | 22.00% |
Revenue | Concho Resources, Inc. | ||||
Customer Concentrations | ||||
Concentration risk (as a percent) | 15.00% | 14.00% | ||
Accounts Receivable | ||||
Customer Concentrations | ||||
Concentration risk (as a percent) | 19.00% | 18.00% |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective federal income tax rate (as a percent) | 11.30% | 7.30% |
Texas Margin Tax, maximum statutory effective rate | 0.75% |
Earnings (Loss) per Share (Deta
Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic: | ||||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1 | $ (0.7) | $ 3 | $ (6.4) |
Diluted: | ||||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1 | $ (0.7) | $ 3 | $ (6.4) |
Weighted average shares (denominator): | ||||
Weighted average number of shares - basic (in shares) | 8,514,495 | 8,414,557 | 8,481,788 | 8,413,871 |
Weighted average number of shares - diluted (in shares) | 9,491,684 | 8,414,557 | 9,458,977 | 8,413,871 |
Basic income (loss) per share (in dollars per share) | $ 0.12 | $ (0.08) | $ 0.35 | $ (0.76) |
Diluted income (loss) per share (in dollars per share) | $ 0.11 | $ (0.08) | $ 0.32 | $ (0.76) |
Antidilutive securities (in shares) | 500,000 | 500,000 | ||
Class B Common Stock | ||||
Basic: | ||||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted: | ||||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares (denominator): | ||||
Antidilutive securities (in shares) | 6,900,000 | 6,900,000 | 6,900,000 | 6,900,000 |
Class A Common Stock | ||||
Basic: | ||||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1 | $ (0.7) | $ 3 | $ (6.4) |
Diluted: | ||||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1 | $ (0.7) | $ 3 | $ (6.4) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Remaining principal balance | $ 63.6 | $ 60.5 |
ESCO Notes Payable due February 2019 | ||
Other Commitments [Line Items] | ||
Remaining principal balance | $ 5.8 | $ 5.8 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)segment | |
Segment Reporting | |||||
Number of reportable segments | segment | 3 | 2 | |||
Revenues | $ 84.3 | $ 73.1 | $ 172.6 | $ 135.7 | |
Cost of services | 65.6 | 57.3 | 133.1 | 108.6 | |
Depreciation and amortization | 8.4 | 7 | 16.8 | 13.1 | |
Impairment of goodwill | 0 | 0 | 0 | 9 | $ 9 |
Operating income (loss) | 4 | 1 | 9.2 | (9.8) | |
Interest expense, net | (1.9) | (0.5) | (3.2) | (0.9) | |
Net income (loss) | 1.8 | (1.2) | 5.4 | (11.5) | |
Capital expenditures | 5.4 | 21.8 | 14.6 | 34.1 | |
Property, plant and equipment, net | 227.7 | 229.8 | 227.7 | 229.8 | 229.8 |
Total assets | 317.9 | 302.5 | 317.9 | 302.5 | $ 302.5 |
Operating Segments | High specification rigs | |||||
Segment Reporting | |||||
Revenues | 33.1 | 39.6 | 64.8 | 75.9 | |
Cost of services | 28.7 | 33.6 | 56.1 | 65.1 | |
Depreciation and amortization | 4.8 | 4.6 | 9.6 | 8.6 | |
Impairment of goodwill | 0 | 9 | |||
Operating income (loss) | (0.4) | 1.4 | (0.9) | (6.8) | |
Interest expense, net | 0 | 0 | 0 | 0 | |
Net income (loss) | (0.4) | 1.4 | (0.9) | (6.8) | |
Capital expenditures | 1.2 | 16.7 | 4 | 25 | |
Property, plant and equipment, net | 134.7 | 159.2 | 134.7 | 159.2 | |
Total assets | 196.7 | 214.1 | 196.7 | 214.1 | |
Operating Segments | Completion and other services | |||||
Segment Reporting | |||||
Revenues | 46.3 | 29.5 | 97.9 | 52.9 | |
Cost of services | 35 | 21.8 | 72.9 | 40.2 | |
Depreciation and amortization | 2.9 | 1.8 | 5.7 | 3.5 | |
Impairment of goodwill | 0 | 0 | |||
Operating income (loss) | 8.4 | 5.9 | 19.3 | 9.2 | |
Interest expense, net | 0 | 0 | 0 | 0 | |
Net income (loss) | 8.4 | 5.9 | 19.3 | 9.2 | |
Capital expenditures | 1.8 | 3.7 | 3.6 | 5.5 | |
Property, plant and equipment, net | 47.6 | 35 | 47.6 | 35 | |
Total assets | 69.5 | 47 | 69.5 | 47 | |
Operating Segments | Processing Solutions | |||||
Segment Reporting | |||||
Revenues | 4.9 | 4 | 9.9 | 6.9 | |
Cost of services | 1.9 | 1.9 | 4.1 | 3.3 | |
Depreciation and amortization | 0.5 | 0.4 | 1 | 0.6 | |
Impairment of goodwill | 0 | 0 | |||
Operating income (loss) | 2.5 | 1.7 | 4.8 | 3 | |
Interest expense, net | 0 | 0 | 0 | 0 | |
Net income (loss) | 2.5 | 1.7 | 4.8 | 3 | |
Capital expenditures | 2.4 | 0.9 | 6.5 | 3.1 | |
Property, plant and equipment, net | 39.8 | 34.3 | 39.8 | 34.3 | |
Total assets | 43.5 | 40.1 | 43.5 | 40.1 | |
Segment Reconciling Items | |||||
Segment Reporting | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of services | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0.2 | 0.2 | 0.5 | 0.4 | |
Impairment of goodwill | 0 | 0 | |||
Operating income (loss) | (6.5) | (8) | (14) | (15.2) | |
Interest expense, net | (1.9) | (0.5) | (3.2) | (0.9) | |
Net income (loss) | (8.7) | (10.2) | (17.8) | (16.9) | |
Capital expenditures | 0 | 0.5 | 0.5 | 0.5 | |
Property, plant and equipment, net | 5.6 | 1.3 | 5.6 | 1.3 | |
Total assets | $ 8.2 | $ 1.3 | $ 8.2 | $ 1.3 |