Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Ranger Energy Services, Inc. | |
Entity Central Index Key | 0001699039 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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 | 8,477,425 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,866,154 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 11.4 | $ 6.9 |
Accounts receivable, net | 42.2 | 41.5 |
Contract assets | 3.7 | 1.2 |
Inventory | 4.1 | 3.8 |
Prepaid expenses | 3.3 | 5.3 |
Total current assets | 64.7 | 58.7 |
Property and equipment, net | 216.1 | 218.9 |
Intangible assets, net | 9.1 | 9.3 |
Operating leases, right-of-use assets | 5.9 | 6.5 |
Other assets | 0.5 | 0.1 |
Total assets | 296.3 | 293.5 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 13.2 | 13.8 |
Accrued expenses | 19.6 | 18.4 |
Finance lease obligations, current portion | 4.9 | 5.1 |
Long-term debt, current portion | 31.6 | 15.8 |
Other current liabilities | 1.7 | 2 |
Total current liabilities | 71 | 55.1 |
Operating leases, right-of-use obligations | 4.4 | 4.5 |
Finance lease obligations | 2.9 | 3.6 |
Long-term debt, net | 13.9 | 26.6 |
Other long-term liabilities | 0.7 | 0.7 |
Total liabilities | 92.9 | 90.5 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity | ||
Preferred stock, $0.01 per share; 50,000,000 shares authorized; no shares issued or outstanding as of March 31, 2020 and December 31, 2019 | 0 | 0 |
Less: Class A Common Stock held in treasury, at cost (551,827 shares) | (3.8) | (0.7) |
Accumulated deficit | (6.6) | (8.1) |
Additional paid-in capital | 120.2 | 121.8 |
Total controlling stockholders' equity | 110 | 113.2 |
Non-controlling interest | 93.4 | 89.8 |
Total stockholders' equity | 203.4 | 203 |
Total liabilities and stockholders' equity | 296.3 | 293.5 |
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 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 |
Treasury stock (in shares) | 551,827 | 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) | 8,947,830 | 8,839,788 |
Common stock, shares outstanding (in shares) | 8,396,003 | 8,725,851 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 81 | $ 88.3 |
Cost of services (exclusive of depreciation and amortization): | ||
Total cost of services | 63.1 | 67.5 |
General and administrative | 5 | 7.2 |
Depreciation and amortization | 8.9 | 8.4 |
Total operating expenses | 77 | 83.1 |
Operating income | 4 | 5.2 |
Other expenses | ||
Interest expense, net | 1.1 | 1.3 |
Total other expenses | 1.1 | 1.3 |
Income before income tax expense | 2.9 | 3.9 |
Tax expense | 0.1 | 0.3 |
Net income | 2.8 | 3.6 |
Less: Net income attributable to non-controlling interests | 1.3 | 1.6 |
Net income attributable to Ranger Energy Services, Inc. | $ 1.5 | $ 2 |
Earnings per common share | ||
Basic (in dollars per share) | $ 0.17 | $ 0.24 |
Diluted (in dollars per share) | $ 0.15 | $ 0.19 |
Weighted average common shares outstanding | ||
Basic (in shares) | 8,617,781 | 8,448,719 |
Diluted (in shares) | 15,549,684 | 15,614,429 |
High specification rigs | ||
Revenues | ||
Total revenues | $ 34.9 | $ 31.7 |
Cost of services (exclusive of depreciation and amortization): | ||
Total cost of services | 29.9 | 27.4 |
Completion and other services | ||
Revenues | ||
Total revenues | 43.3 | 51.6 |
Cost of services (exclusive of depreciation and amortization): | ||
Total cost of services | 31.7 | 37.9 |
Processing solutions | ||
Revenues | ||
Total revenues | 2.8 | 5 |
Cost of services (exclusive of depreciation and amortization): | ||
Total cost of services | $ 1.5 | $ 2.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Treasury Stock | Accumulated deficit | Additional paid-in capital | Total controlling interest shareholders’ equity | Non-controlling interest |
Balance, beginning of period (shares) at Dec. 31, 2018 | 8,448,527 | 6,866,154 | ||||||||
Balance, beginning of period at Dec. 31, 2018 | $ 192 | $ 0.1 | $ 0.1 | $ (9.9) | $ 111.6 | $ 101.9 | $ 90.1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares under share-based compensation plans (in shares) | 8,000 | |||||||||
Shares withheld for taxes on equity transactions (in shares) | (2,254) | |||||||||
Net income attributable to controlling interest | 3.6 | 2 | 2 | 1.6 | ||||||
Equity based compensation amortization | 0.6 | 0.6 | 0.6 | |||||||
Balance, end of period (shares) at Mar. 31, 2019 | 8,454,273 | 6,866,154 | ||||||||
Balance, end of period at Mar. 31, 2019 | 196.2 | $ 0.1 | $ 0.1 | (7.9) | 112.2 | 104.5 | 91.7 | |||
Balance, beginning of period (shares) at Dec. 31, 2019 | 8,839,788 | 6,866,154 | 8,839,788 | 6,866,154 | 113,937 | |||||
Balance, beginning of period at Dec. 31, 2019 | 203 | $ 0.1 | $ 0.1 | $ (0.7) | (8.1) | 121.8 | 113.2 | 89.8 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of shares under share-based compensation plans (in shares) | 152,633 | |||||||||
Shares withheld for taxes on equity transactions (in shares) | (44,591) | |||||||||
Repurchase of Class A Common Stock (in shares) | (344,827) | (437,890) | ||||||||
Repurchase of Class A Common Stock | (3.1) | $ (2.4) | $ (3.1) | (3.1) | ||||||
Net income attributable to controlling interest | 2.8 | 1.5 | 1.5 | 1.3 | ||||||
Equity based compensation amortization | 0.8 | 0.7 | 0.7 | 0.1 | ||||||
Shares withheld for taxes on equity transactions | (0.1) | (0.1) | (0.1) | |||||||
Impact of transactions affecting non-controlling interest | (2.2) | (2.2) | 2.2 | |||||||
Balance, end of period (shares) at Mar. 31, 2020 | 8,947,830 | 6,866,154 | 8,947,830 | 6,866,154 | 551,827 | |||||
Balance, end of period at Mar. 31, 2020 | $ 203.4 | $ 0.1 | $ 0.1 | $ (3.8) | $ (6.6) | $ 120.2 | $ 110 | $ 93.4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 2.8 | $ 3.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8.9 | 8.4 |
Equity based compensation | 0.8 | 0.6 |
Gain on debt retirement | (2.1) | 0 |
Other costs, net | 0.1 | (0.1) |
Changes in operating assets and liabilities | ||
Accounts receivable | (0.7) | (6.4) |
Contract assets | (2.5) | (4.5) |
Inventory | (0.3) | (1) |
Prepaid expenses | 2 | 1.4 |
Operating leases, right-of-use assets | 0.6 | |
Other assets | (0.4) | 0.9 |
Accounts payable | (1.3) | 2.9 |
Accrued expenses | 1.2 | 3.8 |
Other long-term liabilities | (0.6) | 0.3 |
Net cash provided by operating activities | 8.5 | 9.9 |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (4.7) | (10.8) |
Proceeds from disposal of property and equipment | 0.1 | 0.3 |
Net cash used in investing activities | (4.6) | (10.5) |
Cash Flows from Financing Activities | ||
Borrowings under line of credit facility | 16.9 | 12.3 |
Principal payments on line of credit facility | (5.6) | (5.2) |
Principal payments on Encina Master Financing Agreement | (2.5) | (2.3) |
Principal payments on ESCO Note Payable | (3.7) | 0 |
Principal payments on financing lease obligations | (1.3) | (1.1) |
Repurchase of Class A Common Stock | (3.1) | 0 |
Shares withheld on equity transactions | (0.1) | 0 |
Net cash provided by financing activities | 0.6 | 3.7 |
Increase in Cash and Cash equivalents | 4.5 | 3.1 |
Cash and Cash Equivalents, Beginning of Period | 6.9 | 2.6 |
Cash and Cash Equivalents, End of Period | 11.4 | 5.7 |
Supplemental Cash Flow Information | ||
Interest paid | 1 | 1.4 |
Supplemental Disclosure of Non-cash Investing and Financing Activities | ||
Capital expenditures | (0.8) | (2) |
Additions to fixed assets through financing leases | (0.5) | (0.5) |
Initial non-cash operating lease right-of-use asset additions | $ 0 | $ (8.3) |
Organization and Business Opera
Organization and Business Operations | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Note 1 — Organization and Business Operations Business Ranger Energy Services, Inc. (“Ranger, Inc.,” “Ranger,” or the “Company”) is a provider of onshore high specification (“high-spec”) well service rigs and complementary services in the United States. The Company provides an extensive range of well site services to leading U.S. exploration and production (“E&P”) companies that are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well. The Company offers services that consist of well completion support, workover, well maintenance, wireline, fluid management, other complementary services, as well as installation, commissioning and operating of modular equipment, which are conducted in three reportable segments, as follows: • High Specification Rigs . Provider of high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well. • Completion and Other Services . Provider of wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with the high-spec rig services to enhance the production of a well. • Processing Solutions . Provider of proprietary, modular equipment for the processing of natural gas. The Company’s operations take place in most of the active oil and natural gas basins in the United States, including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays. Organization Ranger, Inc. was incorporated as a Delaware corporation in February 2017. Ranger, Inc. 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. Rec e nt Events The recent outbreak of the novel coronavirus (“COVID-19”) has spread across the globe and has been declared a public health emergency by the World Health Organization and a National Emergency by the President of the United States. The COVID-19 pandemic has resulted, and is likely to continue to result, in significant economic disruption and has, and will likely continue to, adversely affect the operations of the Company’s business, as the significantly reduced global and national economic activity has resulted in reduced demand for oil and natural gas. Federal, state and local governments mobilized to implement containment mechanisms to minimize impacts to their populations and economies. Various containment measures, which included the quarantining of cities, regions and countries, while aiding in the prevention of further outbreak, have resulted in a severe drop in general economic activity and a resulting decrease in energy demand. In addition, the global economy has experienced a significant disruption to global supply chains. The extent of the COVID-19 outbreak on the Company’s operational and financial performance will significantly depend on certain developments, including the duration and spread of the outbreak and its continued impact on customer activity and third-party providers. The direct impact to the Company’s operations began to take affect at the close of the first quarter ended March 31, 2020, however the full extent to which the COVID-19 outbreak may affect the Company’s financial conditions, results of operations or liquidity subsequent to the issuance of these financial statements is uncertain. In addition to the COVID-19 outbreak, in March 2020, OPEC, Russia and certain other oil producing states, commonly referred to as “OPEC Plus,” failed to agree on a plan to cut production of oil and natural gas. Subsequently, Saudi Arabia announced plans to increase production to record levels and reduce the prices at which they sell oil and, in turn, Russia responded with threats to also increase production. Collectively, these events created an unprecedented global oil and natural gas supply and demand imbalance, reduced global oil and natural gas storage capacity, caused oil prices to decline significantly and resulted in continued volatility in oil, natural gas and NGLs prices into the second quarter of 2020. On April 12, 2020 , OPEC Plus agreed to cut oil production by 9.7 million barrels per day in May and June 2020. Due to the significantly reduced demand for oil and natural gas as a result of the COVID-19 pandemic and the current oversupply of oil and natural gas in the market, available storage and capacity for the Company’s customers’ production may be limited or completely unavailable in the future. In April 2020 , extreme shortages of transportation and storage capacity caused the WTI oil futures price to go as low as a negative $37.63 per Bbl. This negative pricing resulted from the holders of expiring front month oil purchase contracts being unable or unwilling to take physical delivery of crude oil and accordingly forced to make payments to purchasers of such contracts in order to transfer the corresponding purchase obligations. In addition, companies in the United States have recently encouraged regulatory intervention to prorate production among operators to stabilize hydrocarbon production in the United States. The Company cannot predict whether any of these activities will reduce the global supply and demand imbalance or whether, or when, oil and natural gas production and economic activities will return to normalized levels. In the absence of additional reductions to global production, oil, natural gas and NGLs prices could remain at current levels, or decline further, for an extended period of time. Factors deriving from the COVID-19 response, as well as the oil oversupply, that have or may negatively impact sales, liquidity and gross margins in the future include, but are not limited to: limitations on the ability of the Company’s customers to conduct business, which would result in a decrease in demand for services and lower utilization of the Company’s assets; limitations on the ability of suppliers to provide materials or equipment, limitations on the ability of the Company’s employees to perform their work due to illness caused by the pandemic or local, state or federal orders requiring employees to remain at home; reduction of capital expenditures and discretionary spend; and limitations on the ability of customers to pay us on a timely basis. If prolonged, such factors may also negatively affect the carrying values of the Company’s property and equipment and intangible assets. We will continue to actively monitor the situation and may take further actions that alter business operations as may be required by federal, state or local authorities, or that we determine are in the best interests of the Company’s employees, customers and stakeholders. On March 12, 2020 , the Company received a non-binding offer from CSL Capital Management, L.P. and Bayou Holdings, proposing to acquire all of the outstanding shares of common stock of the Company not owned by CSL, Bayou Holdings and T. Rowe Price Associates, Inc. in a cash merger transaction for $6.00 per share (the “Take Private Proposal”). The Take Private Proposal continues to be reviewed, evaluated and negotiated by members of an independent special committee of the board of directors of the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 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, 2019 and 2018 , included in the Annual Report filed on Form 10-K for the year ended December 31, 2019 (the “Annual Report”). Interim results for the periods presented may not be indicative of results that will be realized for future periods. 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 three months ended March 31, 2020 . 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 and equipment and intangible assets; • Impairment of property and equipment and intangible assets; • Revenue recognition; • Income taxes; and • Equity‑based compensation. Emerging Growth Company Status and Smaller Reporting 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 its initial public offering (“IPO”), (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. The Company is also a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act. Smaller reporting company means an issuer that is not an investment company, an asset-back issuer, or a majority-owned subsidiary of a parent that is not a smaller reporting company and that has (i) market value of common stock held by non-affiliates of less than $250 million; or (ii) annual revenues of less than $100 million and either no common stock held by non-affiliates or a market value of common stock held by non-affiliates of less than $700 million. Smaller reporting company status is determined on an annual basis. New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses , which replaces the incurred loss impairment methodology to reflect expected credit losses. The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date to be performed based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the effect of this accounting standard on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for accounting contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be discontinued due to the reference rate reform. ASU 2020-04 became effective as of March 12, 2020 and can be applied through December 31, 2022. The Company has not made any contract modifications as of the date of this report to transition to a different reference rate, however it will consider this guidance as future modifications are made. 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 and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 3 — Property and Equipment, Net Property and equipment, net include the following (in millions): Estimated Useful Life (years) March 31, 2020 December 31, 2019 High specification rigs 20 $ 127.6 $ 127.2 High specification rigs machinery and equipment 5 - 10 39.1 38.3 Completions and other services machinery and equipment 5 - 10 56.0 55.8 Processing solutions machinery and equipment 3 - 30 40.8 40.8 Vehicles 3 - 15 26.1 25.9 Other property and equipment 5 - 25 10.2 10.1 Property and equipment 299.8 298.1 Less: accumulated depreciation (93.4 ) (85.5 ) Construction in progress 9.7 6.3 Property and equipment, net $ 216.1 $ 218.9 Depreciation expense was $8.7 million and $8.3 million for the three months ended March 31, 2020 and 2019 , respectively. As of March 31, 2020, the Company noted a decline in stock price due to the reduced demand and oversupply of oil and natural gas, which was an indication that the fair value of the Company’s long-lived assets could have fallen below their carrying values. As a result, an impairment analysis was performed and it was determined that no impairment existed. Please see “ Note 1 — Organization and Business Operations —Recent Events” for additional information regarding reduced demand and oversupply of oil and “Part I, Item 8. Financial Statements and Supplementary Data — Note 2 — Summary of Significant Accounting Policies — Significant Accounting Policies — Long-Lived Asset Impairment” of the Annual Report for the policy of testing long-lived assets for impairment. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4 — Intangible Assets Definite lived intangible assets are comprised of the following (in millions): Estimated Useful Life (years) March 31, 2020 December 31, 2019 Customer relationships 10-18 11.4 11.4 Less: accumulated amortization (2.3 ) (2.1 ) Intangible assets, net $ 9.1 $ 9.3 Amortization expense was $0.2 million and $0.1 million for the three months ended March 31, 2020 and 2019 , respectively. Amortization expense for the future periods is expected to be as follows (in millions): For the twelve months ending March 31, Amount 2021 $ 0.7 2022 0.7 2023 0.7 2024 0.7 2025 0.8 Thereafter 5.5 Total $ 9.1 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Note 5 — Accrued Expenses Accrued expenses include the following (in millions): March 31, 2020 December 31, 2019 Accrued payables $ 8.7 $ 8.3 Accrued compensation 8.2 6.3 Accrued taxes 1.6 1.8 Accrued insurance 1.1 2.0 Accrued expenses $ 19.6 $ 18.4 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases, Capital [Abstract] | |
Leases | Note 6 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from 12 months to seven years , included in Operating lease costs in the table below. The operating leases are included in Operating leases, right-of-use assets, Other current liabilities and Operating leases, right-of-use obligations in the Condensed Consolidated Balance Sheet. Lease costs associated with yard and field offices are included in Cost of Services and executive offices are included in General and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 2019 Short-term lease costs $ 0.8 $ 2.2 Operating lease cost $ 0.7 $ 0.7 Operating cash outflows from operating leases $ 0.7 $ 0.8 Weighted average remaining lease term 5.8 years 5.5 years Weighted average discount rate 9.3 % 9.4 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending March 31, Total 2021 $ 2.1 2022 1.1 2023 0.9 2024 0.8 2025 0.8 Thereafter 2.2 Total future minimum lease payments 7.9 Less: amount representing interest (1.8 ) Present value of future minimum lease payments 6.1 Less: current portion of operating lease obligations (1.7 ) Long-term portion of operating lease obligations $ 4.4 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to four years . The assets and liabilities under finance leases are recorded at the lower of the 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 the Condensed Consolidated Balance Sheet. Lease costs and other information related to finance leases for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 2019 Amortization of finance leases $ 1.4 $ 1.3 Interest on lease liabilities $ 0.2 $ 0.2 Financing cash outflows from finance leases $ 1.3 $ 1.1 Weighted average remaining lease term 1.5 years 2.0 years Weighted average discount rate 4.2 % 4.6 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending March 31, Total 2021 $ 5.3 2022 2.2 2023 0.6 2024 0.2 Total future minimum lease payments 8.3 Less: amount representing interest (0.5 ) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.9 ) Long-term portion of finance lease obligations $ 2.9 |
Leases | Note 6 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from 12 months to seven years , included in Operating lease costs in the table below. The operating leases are included in Operating leases, right-of-use assets, Other current liabilities and Operating leases, right-of-use obligations in the Condensed Consolidated Balance Sheet. Lease costs associated with yard and field offices are included in Cost of Services and executive offices are included in General and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 2019 Short-term lease costs $ 0.8 $ 2.2 Operating lease cost $ 0.7 $ 0.7 Operating cash outflows from operating leases $ 0.7 $ 0.8 Weighted average remaining lease term 5.8 years 5.5 years Weighted average discount rate 9.3 % 9.4 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending March 31, Total 2021 $ 2.1 2022 1.1 2023 0.9 2024 0.8 2025 0.8 Thereafter 2.2 Total future minimum lease payments 7.9 Less: amount representing interest (1.8 ) Present value of future minimum lease payments 6.1 Less: current portion of operating lease obligations (1.7 ) Long-term portion of operating lease obligations $ 4.4 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to four years . The assets and liabilities under finance leases are recorded at the lower of the 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 the Condensed Consolidated Balance Sheet. Lease costs and other information related to finance leases for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 2019 Amortization of finance leases $ 1.4 $ 1.3 Interest on lease liabilities $ 0.2 $ 0.2 Financing cash outflows from finance leases $ 1.3 $ 1.1 Weighted average remaining lease term 1.5 years 2.0 years Weighted average discount rate 4.2 % 4.6 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending March 31, Total 2021 $ 5.3 2022 2.2 2023 0.6 2024 0.2 Total future minimum lease payments 8.3 Less: amount representing interest (0.5 ) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.9 ) Long-term portion of finance lease obligations $ 2.9 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 — Debt The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions): March 31, 2020 December 31, 2019 ESCO Notes Payable $ — $ 5.8 Credit Facility 20.9 9.5 Encina Master Financing Agreement 24.6 27.1 Total Debt 45.5 42.4 Current portion of long-term debt (31.6 ) (15.8 ) Long term-debt, net $ 13.9 $ 26.6 ESCO Notes Payable In connection with the IPO and the ESCO Leasing, LLC (“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 included 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 bore interest at 5.0% payable quarterly until their respective maturity dates. During the year ended December 31, 2018, the Company provided notice to ESCO 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. Interest on the outstanding principal balance was accrued through the maturity date of the Note Payable. During the three months ended March 31, 2020 , the Company paid $3.8 million to settle the note and any unpaid interest, and recognized a gain on the retirement of debt of $2.1 million , which is included in the unaudited interim Condensed Consolidated Statement of Operations within General and administrative expenses. Please see Note 12 — Commitments and Contingencies for further details. Credit Facility On August 16, 2017 , Ranger Energy Services, LLC, (“Ranger, LLC”) entered into a $50.0 million senior unsecured 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. During the three months ended March 31, 2020, the Company borrowed against the Credit Facility such that the available borrowings were less than $6.25 million , causing dominion to revert to the Administrative Agent. For 30 consecutive days, the Company was required to either (a) maintain available borrowings of no less than the greater of $6.25 million and 12.5% of the lesser of (x) the maximum revolver amount and (y) the borrowing base (which approximated $3.9 million as of March 31, 2020 ) or (b) have no revolver drawings and available cash of at least $20.0 million for dominion to revert back to the Company. While the Company is subject to cash dominion, the Administrative Agent is permitted to take control of the Company’s bank accounts and sweep cash to an account of the Administrative Agent on a daily basis. Therefore, the total borrowings under the Credit Facility, and related issuance costs, were reclassified to current maturities of long-term debt as of March 31, 2020. The Credit Facility is scheduled to mature on August 16, 2022 . See Note 14 — Subsequent Events for further details. The applicable margin for the London Interbank Offered Rate (“LIBOR”) loans ranges from 1.5% to 2.0% and the applicable margin for Base Rate loans ranges from 0.5% to 1.0% , in each case, depending on Ranger LLC’s average excess availability under the Credit Facility. The applicable margin for the LIBOR loan was 1.75% and the applicable margin for Base Rate loans was 0.75% as of March 31, 2020 . The weighted average interest rate for the borrowings under the Credit Facility was 3.4% as of March 31, 2020 . As of March 31, 2020 , under the Credit Facility, the Company borrowed $21.3 million , had a borrowing capacity of $31.5 million , with a residual $10.2 million available for borrowing. The Company was in compliance with the Credit Facility covenants as of March 31, 2020 . 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. Such fees will be amortized through maturity and are included in Interest Expense, net on the Condensed Consolidated Statement of Operations. Unamortized debt issuance costs as of March 31, 2020 was $0.4 million . Encina Master Financing and Security Agreement ( “ Financing Agreement ” ) On June 22, 2018, the Company entered into a Financing 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 , which was used by the Company to acquire certain capital equipment. Subsequent to the first financing, the Company borrowed an additional $17.8 million , net of expenses and in two tranches, under the Financing Agreement. The Company utilized the additional net proceeds to acquire certain capital equipment. The Financing Agreement is secured by a lien on certain high-spec rig assets. As of March 31, 2020 , the aggregate principal balance outstanding under the Financing Agreement was $25.2 million . The total borrowings under the Financing Agreement were borrowed in three tranches, where the amounts outstanding are payable ratably over 48 months from the time of each borrowing. The three tranches mature in July 2022 , November 2022 and January 2023 . Borrowings under the Financing Agreement bear interest at a rate per annum equal to the sum of 8.0% plus LIBOR, which was 1.5% , as of March 31, 2020 . Under the terms of the Financing Agreement, in no event will LIBOR fall below 1.5% and it requires that the Company maintain leverage ratios of 2.5 to 1.0 . The Company was in compliance with the covenants under the Financing Agreement as of March 31, 2020 . The Company capitalized fees of $0.9 million associated with the Financing Agreement, which are included in the unaudited Interim Condensed Consolidated Balance Sheets as a discount to the long term debt. Such fees will be amortized through maturity and are included in Interest Expense, net in the unaudited interim Condensed Consolidated Statements of Operations. Unamortized debt issuance costs as of March 31, 2020 was $0.6 million . Debt Obligations and Scheduled Maturities As of March 31, 2020 , aggregate future principal payments of total debt are as follows (in millions): For the twelve months ending March 31, Total 2021 $ 31.3 2022 10.0 2023 5.2 Total $ 46.5 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Note 8 — Equity Equity-Based Compensation Restricted Stock Awards During the three months ended March 31, 2019, there were 495,750 restricted shares granted with an aggregate value of $3.9 million . As of March 31, 2020 , there was an aggregate $3.5 million of unrecognized expense related to restricted shares issued which is expected to be recognized over a weighted average period of 1.5 years . Performance Stock Units During the three months ended March 31, 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 Ranger Energy Services, Inc. 2017 Long Term Incentive Plan, 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 March 31, 2020 , there was an aggregate $0.9 million of unrecognized compensation cost related to performance stock units which is expected to be recognized over a weighted average period of 1.5 years . Share Repurchases During the three months ended March 31, 2020, the Company repurchased 344,827 shares of the Company’s Class A Common Stock for an aggregate $2.4 million in a privately negotiated transaction with ESCO. Please see Note 12 — Commitments and Contingencies for further details. 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 March 31, 2020, the Company repurchased 93,063 shares of the Company’s Class A Common Stock for an aggregate $0.7 million under the previously announced share repurchase program. Refer to “Part II, Item 2. Unregistered Sales of Securities” for further information. |
Risk Concentrations
Risk Concentrations | 3 Months Ended |
Mar. 31, 2020 | |
Risk Concentrations | |
Risk Concentrations | Note 9 — Risk Concentrations Customer Concentrations For the three months ended March 31, 2020 , two customers, EOG Resources and Concho Resources, Inc., accounted for 18% and 17% of the Company’s consolidated revenue, respectively. As of March 31, 2020 , approximately 28% of the accounts receivable balance was due from these customers. For the three months ended March 31, 2019 , three customers, EOG Resources, Concho Resources, Inc. and Sable Resources Land, LLC, accounted for 16% , 12% and 12% of the Company’s consolidated revenues, respectively. As of March 31, 2019 , approximately 49% of the accounts receivable balance was due from these customers. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 — 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 three months ended March 31, 2020 and 2019 was 5.9% and 7.1% , 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 IPO 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. Total income tax expense for the three months ended March 31, 2020 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income primarily due to changes in 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 March 31, 2020 , 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 2018, 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 March 31, 2020 , the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. The Coronavirus, Aid, Relief and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. For the three months ended March 31, 2020, there were no material tax impacts to the unaudited interim condensed consolidated financial statements as it relates to COVID-19 measures. The Company will continue to monitor additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 11 — Earnings per Share Earnings per share is based on the amount of net income allocated to the shareholders and the weighted average number of shares outstanding during the period for each class of Common Stock. Three Months Ended March 31, 2020 2019 Income (numerator): Basic: Net income attributable to Ranger Energy Services, Inc. $ 1.5 $ 2.0 Net income attributable to Class A Common Stock $ 1.5 $ 2.0 Diluted: Net income attributable to Ranger Energy Services, Inc. $ 1.5 $ 2.0 Effect of noncontrolling interest, net of tax 0.9 0.9 Net income attributable to Class A Common Stock $ 2.4 $ 2.9 Weighted average shares (denominator): Weighted average number of shares - basic 8,617,781 8,448,719 Effect of share-based awards 65,749 299,556 Effect of noncontrolling interest, net of tax 6,866,154 6,866,154 Weighted average number of shares - diluted 15,549,684 15,614,429 Basic income per share $ 0.17 $ 0.24 Diluted income per share $ 0.15 $ 0.19 During the three months ended March 31, 2020 and 2019, the Company excluded 0.7 million and 1.0 million equity-based awards in calculating diluted earnings per share, as the effect was anti-dilutive. During the three months ended March 31, 2019, included in the diluted earnings per share are 206,897 shares associated with a related party liability. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 — 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 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. During the three months ended March 31, 2020 , the Company paid an aggregate of $6.2 million to ESCO, of which $3.8 million was paid to settle the Seller’s Note, and any unpaid interest, and $2.4 million was paid to repurchase shares of the Company’s Class A Common Stock. Please see “ Note 7 — Debt ” and “ Note 8 — Equity ” for further details of the debt and equity settlements. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting | Note 13 — Segment Reporting 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. The reportable segments comprise the structure used by the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance during the years presented in the accompanying condensed consolidated financial statements. The CODM evaluates the segments’ operating performance based on multiple measures including Operating income, Adjusted EBITDA, rig hours and rig utilization. The tables below present the operating income measurement, as the Company believes this is most consistent with the principals used in measuring the condensed consolidated financial statements. 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 E&P companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services. The Company’s high-spec rigs are designed to support growing U.S. horizontal well demands. In addition to the core well service rig operations, the Company offers a suite of complementary services. Completion and Other Services. The Completion and Other Services segment provides wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with the high-spec rig services to enhance the production of a well. 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 or lines of business and include corporate general and administrative expenses as well as depreciation of office furniture and fixtures and other corporate assets. Segment information as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 is as follows (in millions): Three months ended March 31, 2020 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 34.9 $ 43.3 $ 2.8 $ — $ 81.0 Cost of services 29.9 31.7 1.5 — 63.1 Depreciation and amortization 5.3 2.7 0.6 0.3 8.9 Operating income (0.3 ) 8.9 0.7 (5.3 ) 4.0 Interest expense, net — — — 1.1 1.1 Net income (0.3 ) 8.9 0.7 (6.5 ) 2.8 Capital expenditures $ 4.6 $ 1.2 $ 0.2 $ — $ 6.0 As of March 31, 2020 Property and equipment, net $ 132.8 $ 38.1 $ 40.0 $ 5.2 $ 216.1 Total assets $ 191.6 $ 55.1 $ 42.0 $ 7.6 $ 296.3 Three Months Ended March 31, 2019 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 31.7 $ 51.6 $ 5.0 $ — $ 88.3 Cost of services 27.4 37.9 2.2 — 67.5 Depreciation and amortization 4.8 2.8 0.5 0.3 8.4 Operating income (0.5 ) 10.9 2.3 (7.5 ) 5.2 Interest expense, net — — — 1.3 1.3 Net income (0.5 ) 10.9 2.3 (9.1 ) 3.6 Capital expenditures $ 2.8 $ 1.8 $ 4.1 $ 0.5 $ 9.2 As of December 31, 2019 Property and equipment, net $ 132.2 $ 40.8 $ 40.5 $ 5.4 $ 218.9 Total assets $ 186.1 $ 57.4 $ 42.6 $ 7.4 $ 293.5 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 — Subsequent Events As of April 29, 2020, the Company maintained available borrowings under the Credit Facility of at least $6.25 million for 30 consecutive days; therefore cash dominion has reverted back to the Company. As of April 29, 2020 the Company had borrowings of $8.9 million with available borrowings of $15.8 million under the Credit Facility. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet as of December 31, 2019 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, 2019 and 2018 , included in the Annual Report filed on Form 10-K for the year ended December 31, 2019 (the “Annual Report”). Interim results for the periods presented may not be indicative of results that will be realized for future periods. |
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 and equipment and intangible assets; • Impairment of property and equipment and intangible assets; • Revenue recognition; • Income taxes; and • Equity‑based compensation. |
Emerging Growth Company status | Emerging Growth Company Status and Smaller Reporting 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 its initial public offering (“IPO”), (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. |
Recently Adopted and Issued Accounting Standards | New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses , which replaces the incurred loss impairment methodology to reflect expected credit losses. The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date to be performed based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the effect of this accounting standard on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for accounting contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be discontinued due to the reference rate reform. ASU 2020-04 became effective as of March 12, 2020 and can be applied through December 31, 2022. The Company has not made any contract modifications as of the date of this report to transition to a different reference rate, however it will consider this guidance as future modifications are made. 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 and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net include the following (in millions): Estimated Useful Life (years) March 31, 2020 December 31, 2019 High specification rigs 20 $ 127.6 $ 127.2 High specification rigs machinery and equipment 5 - 10 39.1 38.3 Completions and other services machinery and equipment 5 - 10 56.0 55.8 Processing solutions machinery and equipment 3 - 30 40.8 40.8 Vehicles 3 - 15 26.1 25.9 Other property and equipment 5 - 25 10.2 10.1 Property and equipment 299.8 298.1 Less: accumulated depreciation (93.4 ) (85.5 ) Construction in progress 9.7 6.3 Property and equipment, net $ 216.1 $ 218.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) March 31, 2020 December 31, 2019 Customer relationships 10-18 11.4 11.4 Less: accumulated amortization (2.3 ) (2.1 ) Intangible assets, net $ 9.1 $ 9.3 |
Schedule of aggregated amortization expense for future periods | Amortization expense for the future periods is expected to be as follows (in millions): For the twelve months ending March 31, Amount 2021 $ 0.7 2022 0.7 2023 0.7 2024 0.7 2025 0.8 Thereafter 5.5 Total $ 9.1 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses | Accrued expenses include the following (in millions): March 31, 2020 December 31, 2019 Accrued payables $ 8.7 $ 8.3 Accrued compensation 8.2 6.3 Accrued taxes 1.6 1.8 Accrued insurance 1.1 2.0 Accrued expenses $ 19.6 $ 18.4 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases, Capital [Abstract] | |
Schedule of other information related to operating and finance leases | Lease costs and other information related to finance leases for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 2019 Amortization of finance leases $ 1.4 $ 1.3 Interest on lease liabilities $ 0.2 $ 0.2 Financing cash outflows from finance leases $ 1.3 $ 1.1 Weighted average remaining lease term 1.5 years 2.0 years Weighted average discount rate 4.2 % 4.6 % Lease costs associated with yard and field offices are included in Cost of Services and executive offices are included in General and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three months ended March 31, 2020 and 2019 , are as follows (in millions): Three Months Ended March 31, 2020 2019 Short-term lease costs $ 0.8 $ 2.2 Operating lease cost $ 0.7 $ 0.7 Operating cash outflows from operating leases $ 0.7 $ 0.8 Weighted average remaining lease term 5.8 years 5.5 years Weighted average discount rate 9.3 % 9.4 % |
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 March 31, Total 2021 $ 2.1 2022 1.1 2023 0.9 2024 0.8 2025 0.8 Thereafter 2.2 Total future minimum lease payments 7.9 Less: amount representing interest (1.8 ) Present value of future minimum lease payments 6.1 Less: current portion of operating lease obligations (1.7 ) Long-term portion of operating lease obligations $ 4.4 |
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 March 31, Total 2021 $ 5.3 2022 2.2 2023 0.6 2024 0.2 Total future minimum lease payments 8.3 Less: amount representing interest (0.5 ) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.9 ) Long-term portion of finance lease obligations $ 2.9 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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): March 31, 2020 December 31, 2019 ESCO Notes Payable $ — $ 5.8 Credit Facility 20.9 9.5 Encina Master Financing Agreement 24.6 27.1 Total Debt 45.5 42.4 Current portion of long-term debt (31.6 ) (15.8 ) Long term-debt, net $ 13.9 $ 26.6 |
Schedule of future payments | As of March 31, 2020 , aggregate future principal payments of total debt are as follows (in millions): For the twelve months ending March 31, Total 2021 $ 31.3 2022 10.0 2023 5.2 Total $ 46.5 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted loss per share | Earnings per share is based on the amount of net income allocated to the shareholders and the weighted average number of shares outstanding during the period for each class of Common Stock. Three Months Ended March 31, 2020 2019 Income (numerator): Basic: Net income attributable to Ranger Energy Services, Inc. $ 1.5 $ 2.0 Net income attributable to Class A Common Stock $ 1.5 $ 2.0 Diluted: Net income attributable to Ranger Energy Services, Inc. $ 1.5 $ 2.0 Effect of noncontrolling interest, net of tax 0.9 0.9 Net income attributable to Class A Common Stock $ 2.4 $ 2.9 Weighted average shares (denominator): Weighted average number of shares - basic 8,617,781 8,448,719 Effect of share-based awards 65,749 299,556 Effect of noncontrolling interest, net of tax 6,866,154 6,866,154 Weighted average number of shares - diluted 15,549,684 15,614,429 Basic income per share $ 0.17 $ 0.24 Diluted income per share $ 0.15 $ 0.19 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of segment information | Segment information as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 is as follows (in millions): Three months ended March 31, 2020 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 34.9 $ 43.3 $ 2.8 $ — $ 81.0 Cost of services 29.9 31.7 1.5 — 63.1 Depreciation and amortization 5.3 2.7 0.6 0.3 8.9 Operating income (0.3 ) 8.9 0.7 (5.3 ) 4.0 Interest expense, net — — — 1.1 1.1 Net income (0.3 ) 8.9 0.7 (6.5 ) 2.8 Capital expenditures $ 4.6 $ 1.2 $ 0.2 $ — $ 6.0 As of March 31, 2020 Property and equipment, net $ 132.8 $ 38.1 $ 40.0 $ 5.2 $ 216.1 Total assets $ 191.6 $ 55.1 $ 42.0 $ 7.6 $ 296.3 Three Months Ended March 31, 2019 High Specification Rigs Completion and Other Services Processing Solutions Other Total Revenues $ 31.7 $ 51.6 $ 5.0 $ — $ 88.3 Cost of services 27.4 37.9 2.2 — 67.5 Depreciation and amortization 4.8 2.8 0.5 0.3 8.4 Operating income (0.5 ) 10.9 2.3 (7.5 ) 5.2 Interest expense, net — — — 1.3 1.3 Net income (0.5 ) 10.9 2.3 (9.1 ) 3.6 Capital expenditures $ 2.8 $ 1.8 $ 4.1 $ 0.5 $ 9.2 As of December 31, 2019 Property and equipment, net $ 132.2 $ 40.8 $ 40.5 $ 5.4 $ 218.9 Total assets $ 186.1 $ 57.4 $ 42.6 $ 7.4 $ 293.5 |
Organization and Business Ope_2
Organization and Business Operations - Business (Details) | 3 Months Ended | |
Mar. 31, 2020segment | Mar. 12, 2020$ / shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | segment | 3 | |
Non-binding offer, cash received per share (in dollars per share) | $ / shares | $ 6 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net | |||
Property and equipment | $ 299.8 | $ 298.1 | |
Less: accumulated depreciation | (93.4) | (85.5) | |
Construction in progress | 9.7 | 6.3 | |
Property and equipment, net | 216.1 | 218.9 | |
Depreciation expense | $ 8.7 | $ 8.3 | |
High specification rigs | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 20 years | ||
Property and equipment | $ 127.6 | 127.2 | |
High specification rigs machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Property and equipment | 39.1 | 38.3 | |
Completions and other services machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Property and equipment | 56 | 55.8 | |
Processing solutions machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Property and equipment | 40.8 | 40.8 | |
Vehicles | |||
Property, Plant and Equipment, Net | |||
Property and equipment | 26.1 | 25.9 | |
Other property and equipment | |||
Property, Plant and Equipment, Net | |||
Property and equipment | $ 10.2 | $ 10.1 | |
Minimum | High specification rigs machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 5 years | ||
Minimum | Completions and other services machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 5 years | ||
Minimum | Processing solutions machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 3 years | ||
Minimum | Vehicles | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 3 years | ||
Minimum | Other property and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 5 years | ||
Maximum | High specification rigs machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 10 years | ||
Maximum | Completions and other services machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 10 years | ||
Maximum | Processing solutions 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) | 15 years | ||
Maximum | Other property and equipment | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 25 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangibles (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Intangible assets | ||
Less: accumulated amortization | $ (2.3) | $ (2.1) |
Intangible assets, net | 9.1 | 9.3 |
Customer relationships | ||
Intangible assets | ||
Intangible assets, gross | $ 11.4 | $ 11.4 |
Minimum | Customer relationships | ||
Intangible assets | ||
Estimated Useful Life (years) | 10 years | |
Maximum | Customer relationships | ||
Intangible assets | ||
Estimated Useful Life (years) | 18 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.2 | $ 0.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 0.7 | |
2022 | 0.7 | |
2023 | 0.7 | |
2024 | 0.7 | |
2025 | 0.8 | |
Thereafter | 5.5 | |
Intangible assets, net | $ 9.1 | $ 9.3 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payables | $ 8.7 | $ 8.3 |
Accrued compensation | 8.2 | 6.3 |
Accrued taxes | 1.6 | 1.8 |
Accrued insurance | 1.1 | 2 |
Accrued expenses | $ 19.6 | $ 18.4 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2020 |
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 | 7 years |
Lease term, finance leases | 4 years |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating and Finance Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Short-term lease costs | $ 0.8 | $ 2.2 |
Operating lease cost | 0.7 | 0.7 |
Operating cash outflows from operating leases | $ 0.7 | $ 0.8 |
Weighted average remaining lease term | 5 years 9 months 18 days | 5 years 6 months |
Weighted average discount rate | 9.30% | 9.40% |
Amortization of finance leases | $ 1.4 | $ 1.3 |
Interest on lease liabilities | 0.2 | 0.2 |
Financing cash flows from finance leases | $ 1.3 | $ 1.1 |
Weighted average remaining lease term | 1 year 6 months | 2 years |
Weighted average discount rate | 4.20% | 4.60% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Leases, Operating [Abstract] | ||
2021 | $ 2.1 | |
2022 | 1.1 | |
2023 | 0.9 | |
2024 | 0.8 | |
2025 | 0.8 | |
Thereafter | 2.2 | |
Total future minimum lease payments | 7.9 | |
Less: amount representing interest | (1.8) | |
Present value of future minimum lease payments | 6.1 | |
Less: current portion of operating lease obligations | (1.7) | |
Long-term portion of operating lease obligations | 4.4 | $ 4.5 |
Leases, Capital [Abstract] | ||
2021 | 5.3 | |
2022 | 2.2 | |
2023 | 0.6 | |
2024 | 0.2 | |
Total future minimum lease payments | 8.3 | |
Less: amount representing interest | (0.5) | |
Present value of future minimum lease payments | 7.8 | |
Less: current portion of finance lease obligations | (4.9) | (5.1) |
Long-term portion of finance lease obligations | $ 2.9 | $ 3.6 |
Debt - Summary of Debt Outstand
Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Total Debt | $ 45.5 | $ 42.4 | |
Current portion of long-term debt | (31.6) | (15.8) | |
Long term-debt, net | 13.9 | 26.6 | |
ESCO Notes Payable due February 2019 | |||
Debt Instrument [Line Items] | |||
Total Debt | 0 | 5.8 | $ 5.8 |
Credit Facility | |||
Debt Instrument [Line Items] | |||
Total Debt | 20.9 | 9.5 | |
Encina Master Financing Agreement | |||
Debt Instrument [Line Items] | |||
Total Debt | $ 24.6 | $ 27.1 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jun. 22, 2018 | Aug. 16, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||||
Gain on debt retirement | $ 2,100,000 | $ 0 | |||||
Financing amount (up to) | 46,500,000 | ||||||
Financing amount, net of expenses | 45,500,000 | $ 42,400,000 | |||||
Credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | 31,500,000 | ||||||
Current borrowing capacity | 21,300,000 | ||||||
Remaining borrowing | 10,200,000 | ||||||
ESCO Notes Payable due February 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Exercise of right to stop payments on remaining principal balance, amount | $ 5,800,000 | ||||||
Payment for retirement of debt | 3,800,000 | ||||||
Gain on debt retirement | 2,100,000 | ||||||
Financing amount, net of expenses | $ 0 | $ 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 | ||||||
Weighted average interest rate | 3.40% | ||||||
Percentage of compliance | 12.50% | ||||||
Covenant borrowing base | $ 3,900,000 | ||||||
Minimum available cash | 20,000,000 | ||||||
Unamortized debt issuance costs | $ 700,000 | 400,000 | |||||
Senior Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing | $ 6,250,000 | ||||||
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 | 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] | |||||||
Maximum borrowings | $ 40,000,000 | ||||||
Unamortized debt issuance costs | 900,000 | $ 600,000 | |||||
Financing amount (up to) | $ 22,000,000 | $ 25,200,000 | |||||
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) | 8.00% | 1.50% |
Debt - Schedule of Future Payme
Debt - Schedule of Future Payments (Details) $ in Millions | Mar. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 31.3 |
2022 | 10 |
2023 | 5.2 |
Total | $ 46.5 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of Class A Common Stock | $ 3.1 | ||
Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares issued (in shares) | 495,750 | ||
Total value of grant | $ 3.9 | ||
Unrecognized expense | $ 3.5 | ||
Weighted average period | 1 year 6 months | ||
Market Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares issued (in shares) | 105,920 | ||
Unrecognized expense | $ 0.9 | ||
Weighted average period | 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) | $ 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) | $ 9.50 | ||
Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of Class A Common Stock (in shares) | 344,827 | ||
Repurchase of Class A Common Stock | $ 2.4 | ||
2019 Share Repurchase Plan | |||
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 | ||
2019 Share Repurchase Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Repurchase of Class A Common Stock (in shares) | 93,063 | ||
Repurchase of Class A Common Stock | $ 0.7 |
Risk Concentrations (Details)
Risk Concentrations (Details) - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | EOG Resources | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 18.00% | 16.00% |
Revenue | Concho Resources, Inc. | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 17.00% | 12.00% |
Revenue | Sable Resources Land, LLC | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 12.00% | |
Accounts Receivable | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 28.00% | 49.00% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective federal income tax rate (as a percent) | 5.90% | 7.10% |
Texas Margin Tax, maximum statutory effective rate | 0.75% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic: | ||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1.5 | $ 2 |
Diluted: | ||
Net income (loss) attributable to Ranger Energy Services, Inc. | 1.5 | 2 |
Effect of noncontrolling interest, net of tax | $ (1.3) | $ (1.6) |
Weighted average shares (denominator): | ||
Weighted average number of shares - basic (in shares) | 8,617,781 | 8,448,719 |
Effect of share-based awards (in shares) | 65,749 | 299,556 |
Effect of noncontrolling interest, net of tax (in shares) | 6,866,154 | 6,866,154 |
Weighted average number of shares - diluted (in shares) | 15,549,684 | 15,614,429 |
Basic income (loss) per share (in dollars per share) | $ 0.17 | $ 0.24 |
Diluted income (loss) per share (in dollars per share) | $ 0.15 | $ 0.19 |
Related party liability shares (in shares) | 206,897 | |
Class A Common Stock | ||
Basic: | ||
Net income (loss) attributable to Ranger Energy Services, Inc. | $ 1.5 | $ 2 |
Diluted: | ||
Net income (loss) attributable to Ranger Energy Services, Inc. | 1.5 | 2 |
Effect of noncontrolling interest, net of tax | 0.9 | 0.9 |
Net income attributable to Class A Common Stock | $ 2.4 | $ 2.9 |
Equity-Based awards | ||
Weighted average shares (denominator): | ||
Antidilutive securities (in shares) | 700,000 | 1,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Commitments [Line Items] | ||||
Remaining principal balance | $ 45.5 | $ 42.4 | ||
Payment to ESCO for debt repayment and repurchase of shares | 6.2 | |||
Gain on debt retirement | 2.1 | $ 0 | ||
Repurchase of Class A Common Stock | 3.1 | |||
ESCO Notes Payable due February 2019 | ||||
Other Commitments [Line Items] | ||||
Remaining principal balance | 0 | $ 5.8 | $ 5.8 | |
Payment for retirement of debt | 3.8 | |||
Gain on debt retirement | 2.1 | |||
Class A Common Stock | ||||
Other Commitments [Line Items] | ||||
Repurchase of Class A Common Stock | $ 2.4 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting | |||
Number of reportable segments | segment | 3 | ||
Revenues | $ 81 | $ 88.3 | |
Total cost of services | 63.1 | 67.5 | |
Depreciation and amortization | 8.9 | 8.4 | |
Operating income | 4 | 5.2 | |
Interest expense, net | 1.1 | 1.3 | |
Net income | 2.8 | 3.6 | |
Capital expenditures | 6 | 9.2 | |
Property and equipment, net | 216.1 | $ 218.9 | |
Total assets | 296.3 | 293.5 | |
Operating Segments | High specification rigs | |||
Segment Reporting | |||
Revenues | 34.9 | 31.7 | |
Total cost of services | 29.9 | 27.4 | |
Depreciation and amortization | 5.3 | 4.8 | |
Operating income | (0.3) | (0.5) | |
Interest expense, net | 0 | 0 | |
Net income | (0.3) | (0.5) | |
Capital expenditures | 4.6 | 2.8 | |
Property and equipment, net | 132.8 | 132.2 | |
Total assets | 191.6 | 186.1 | |
Operating Segments | Completion and other services | |||
Segment Reporting | |||
Revenues | 43.3 | 51.6 | |
Total cost of services | 31.7 | 37.9 | |
Depreciation and amortization | 2.7 | 2.8 | |
Operating income | 8.9 | 10.9 | |
Interest expense, net | 0 | 0 | |
Net income | 8.9 | 10.9 | |
Capital expenditures | 1.2 | 1.8 | |
Property and equipment, net | 38.1 | 40.8 | |
Total assets | 55.1 | 57.4 | |
Operating Segments | Processing Solutions | |||
Segment Reporting | |||
Revenues | 2.8 | 5 | |
Total cost of services | 1.5 | 2.2 | |
Depreciation and amortization | 0.6 | 0.5 | |
Operating income | 0.7 | 2.3 | |
Interest expense, net | 0 | 0 | |
Net income | 0.7 | 2.3 | |
Capital expenditures | 0.2 | 4.1 | |
Property and equipment, net | 40 | 40.5 | |
Total assets | 42 | 42.6 | |
Segment Reconciling Items | |||
Segment Reporting | |||
Revenues | 0 | 0 | |
Total cost of services | 0 | 0 | |
Depreciation and amortization | 0.3 | 0.3 | |
Operating income | (5.3) | (7.5) | |
Interest expense, net | 1.1 | 1.3 | |
Net income | (6.5) | (9.1) | |
Capital expenditures | 0 | $ 0.5 | |
Property and equipment, net | 5.2 | 5.4 | |
Total assets | $ 7.6 | $ 7.4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Apr. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Remaining principal balance | $ 45,500 | $ 42,400 | |
Senior Revolving Credit Facility | Subsequent event | |||
Subsequent Event [Line Items] | |||
Remaining borrowing | $ 15,800 | ||
Remaining principal balance | $ 8,900 | ||
Maximum | Senior Revolving Credit Facility | |||
Subsequent Event [Line Items] | |||
Remaining borrowing | $ 6,250 |