Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38183 | |
Entity Registrant Name | RANGER ENERGY SERVICES, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-5449572 | |
Entity Address, Address Line One | 10350 Richmond | |
Entity Address, Address Line Two | Suite 550 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77042 | |
City Area Code | 713 | |
Local Phone Number | 935-8900 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | RNGR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001699039 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 24,878,645 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 14.4 | $ 3.7 |
Accounts receivable, net | 78.5 | 91.2 |
Contract assets | 32.2 | 26.9 |
Inventory | 6.5 | 5.9 |
Prepaid expenses | 7.7 | 9.2 |
Assets held for sale | 1 | 3.2 |
Total current assets | 140.3 | 140.1 |
Property and equipment, net | 217.6 | 221.6 |
Intangible assets, net | 6.9 | 7.1 |
Operating leases, right-of-use assets | 10.6 | 11.2 |
Other assets | 0.1 | 1.6 |
Total assets | 375.5 | 381.6 |
Liabilities and Stockholders' Equity | ||
Accounts payable | 27.6 | 24.3 |
Accrued expenses | 23.8 | 36.1 |
Other financing liability, current portion | 0.7 | 0.7 |
Long-term debt, current portion | 8.5 | 6.8 |
Other current liabilities | 6.6 | 6.6 |
Total current liabilities | 67.2 | 74.5 |
Operating leases, right-of-use obligations | 9 | 9.6 |
Other financing liability | 11.4 | 11.6 |
Long-term debt, net | 7.1 | 11.6 |
Other long-term liabilities | 8.6 | 8.1 |
Total liabilities | 103.3 | 115.4 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock, $0.01 per share; 50,000,000 shares authorized; no shares issued or outstanding as of March 31, 2023 and December 31, 2022 | 0 | 0 |
Less: Class A Common Stock held in treasury at cost; 591,228 treasury shares as of March 31, 2023 and 551,828 treasury shares as of December 31, 2022 | (4.2) | (3.8) |
Retained earnings | 13.4 | 7.1 |
Additional paid-in capital | 262.7 | 262.6 |
Total stockholders' equity | 272.2 | 266.2 |
Total liabilities and stockholders' equity | $ 375.5 | $ 381.6 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A Common Stock | ||
Stockholders' equity | ||
Common stock A and B | $ 0.3 | $ 0.3 |
Class B Common Stock | ||
Stockholders' equity | ||
Common stock A and B | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 591,228 | 551,828 |
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) | 25,677,673 | 25,446,292 |
Common stock, shares outstanding (in shares) | 25,086,445 | 24,894,464 |
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) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | ||
Total revenue | $ 157.5 | $ 123.6 |
Cost of services (exclusive of depreciation and amortization): | ||
Cost of services | 130.9 | 108 |
General and administrative | 8.4 | 10.2 |
Depreciation and amortization | 10 | 11.6 |
Gain on sale of assets | (1) | (1) |
Total operating expenses | 148.3 | 128.8 |
Operating income (loss) | 9.2 | (5.2) |
Other expenses | ||
Interest expense, net | 1.2 | 2.1 |
Total other expenses | 1.2 | 2.1 |
Income (loss) before income tax (benefit) expense | 8 | (7.3) |
Tax expense (benefit) | 1.8 | (1.6) |
Net income (loss) | $ 6.2 | $ (5.7) |
Income (loss) per common share | ||
Basic (in dollars per share) | $ 0.25 | $ (0.31) |
Diluted (in dollars per share) | $ 0.25 | $ (0.31) |
Weighted average common shares outstanding | ||
Basic (in shares) | 24,940,335 | 18,472,909 |
Diluted (in shares) | 25,209,980 | 18,472,909 |
High specification rigs | ||
Revenue | ||
Total revenue | $ 77.5 | $ 64.9 |
Cost of services (exclusive of depreciation and amortization): | ||
Cost of services | 60.1 | 50.8 |
Wireline services | ||
Revenue | ||
Total revenue | 49.9 | 38.6 |
Cost of services (exclusive of depreciation and amortization): | ||
Cost of services | 45.7 | 40.4 |
Processing solutions and ancillary services | ||
Revenue | ||
Total revenue | 30.1 | 20.1 |
Cost of services (exclusive of depreciation and amortization): | ||
Cost of services | $ 25.1 | $ 16.8 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Class A Common Stock | Total controlling interest shareholders’ equity | Preferred Stock Series A Preferred Stock | Common Stock Class A Common Stock | Treasury Stock | Retained Earnings (accumulated deficit) | Additional paid-in capital |
Preferred stock, shares outstanding (in shares) at Dec. 31, 2021 | 6,000,001 | |||||||
Common stock, shares outstanding (in shares) at Dec. 31, 2021 | 18,981,172 | |||||||
Treasury stock, beginning (in shares) at Dec. 31, 2021 | (551,828) | |||||||
Balance, beginning of period at Dec. 31, 2021 | $ 248.7 | $ 0.1 | $ 0.2 | $ (3.8) | $ (8) | $ 260.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under share-based compensation plans (in shares) | 339,401 | |||||||
Shares withheld for taxes on equity transactions (in shares) | (97,384) | |||||||
Net income (loss) attributable to controlling interest | $ (5.7) | (5.7) | (5.7) | |||||
Equity based compensation | 0.8 | 0.8 | ||||||
Shares withheld for taxes on equity transactions | (1.1) | (1.1) | ||||||
Preferred stock, shares outstanding (in shares) at Mar. 31, 2022 | 6,000,001 | |||||||
Common stock, shares outstanding (in shares) at Mar. 31, 2022 | 19,223,189 | |||||||
Treasury stock, ending (in shares) at Mar. 31, 2022 | (551,828) | |||||||
Balance, end of period at Mar. 31, 2022 | 242.7 | $ 0.1 | $ 0.2 | $ (3.8) | (13.7) | 259.9 | ||
Preferred stock, shares outstanding (in shares) at Dec. 31, 2022 | 0 | 0 | ||||||
Common stock, shares outstanding (in shares) at Dec. 31, 2022 | 24,894,464 | 25,446,292 | ||||||
Treasury stock, beginning (in shares) at Dec. 31, 2022 | (551,828) | (551,828) | ||||||
Balance, beginning of period at Dec. 31, 2022 | 266.3 | $ 0 | $ 0.3 | $ (3.8) | 7.2 | 262.6 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under share-based compensation plans (in shares) | 318,482 | |||||||
Shares withheld for taxes on equity transactions (in shares) | (87,101) | |||||||
Repurchase of Class A Common Stock (in shares) | (39,400) | (39,400) | ||||||
Repurchase of Class A Common Stock | $ (0.4) | (0.4) | $ (0.4) | |||||
Net income (loss) attributable to controlling interest | $ 6.2 | 6.2 | 6.2 | |||||
Equity based compensation | 1.1 | 1.1 | ||||||
Shares withheld for taxes on equity transactions | (1) | (1) | ||||||
Preferred stock, shares outstanding (in shares) at Mar. 31, 2023 | 0 | 0 | ||||||
Common stock, shares outstanding (in shares) at Mar. 31, 2023 | 25,086,445 | 25,677,673 | ||||||
Treasury stock, ending (in shares) at Mar. 31, 2023 | (591,228) | (591,228) | ||||||
Balance, end of period at Mar. 31, 2023 | $ 272.2 | $ 0 | $ 0.3 | $ (4.2) | $ 13.4 | $ 262.7 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 6.2 | $ (5.7) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 10 | 11.6 |
Equity based compensation | 1.1 | 0.8 |
Gain on disposal of property and equipment | (1) | (1) |
Deferred income tax expense (benefit) | 1.9 | (1.6) |
Other expense, net | 1.1 | 0.2 |
Changes in operating assets and liabilities | ||
Accounts receivable | 12.3 | (7.8) |
Contract assets | (5.3) | (7.3) |
Inventory | (0.8) | (1.4) |
Prepaid expenses and other current assets | 1.5 | 4.2 |
Other assets | 0.3 | 0.9 |
Accounts payable | 3.3 | 2.4 |
Accrued expenses | (12.3) | (5.9) |
Other current liabilities | 0.2 | (0.2) |
Other long-term liabilities | (1.1) | (1.3) |
Net cash provided by (used in) operating activities | 17.4 | (12.1) |
Cash Flows from Investing Activities | ||
Purchase of property and equipment | (5.4) | (1.6) |
Proceeds from disposal of property and equipment | 4.3 | 6.6 |
Net cash provided by (used in) investing activities | (1.1) | 5 |
Cash Flows from Financing Activities | ||
Principal payments on financing lease obligations | (1.3) | (1.2) |
Principal payments on Secured Promissory Note | (0.6) | (2.1) |
Principal payments on other financing liabilities | (0.2) | (1.5) |
Shares withheld on equity transactions | (1) | (1.1) |
Payments on Installment Purchases | (0.1) | (0.1) |
Repurchase of Class A Common Stock | (0.4) | 0 |
Net cash provided by (used in) financing activities | (5.6) | 10.3 |
Increase in cash and cash equivalents | 10.7 | 3.2 |
Cash and cash equivalents, Beginning of Period | 3.7 | 0.6 |
Cash and cash equivalents, End of Period | 14.4 | 3.8 |
Supplemental Cash Flow Information | ||
Interest paid | 0.3 | 0.3 |
Supplemental Disclosure of Non-cash Investing and Financing Activities | ||
Additions to fixed assets through installment purchases and financing leases | (1.5) | (0.8) |
Senior Revolving Credit Facility | ||
Cash Flows from Financing Activities | ||
Borrowings under Credit Facility | 167.7 | 137.9 |
Principal payments on Credit Facility | (169.1) | (120) |
Term Loan B Facility | ||
Cash Flows from Financing Activities | ||
Principal payments on Credit Facility | 0 | (1.4) |
Eclipse M&E Term Loan, net | ||
Cash Flows from Financing Activities | ||
Principal payments on Credit Facility | $ (0.6) | $ (0.2) |
Organization and Business Opera
Organization and Business Operations | 3 Months Ended |
Mar. 31, 2023 | |
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,” “we,” “us” or the “Company”) is a provider of onshore high specification (“high-spec”) well service rigs, wireline services, and additional processing solutions and ancillary services in the United States (“U.S.”). 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. Our service offerings consist of well completion support, workover, well maintenance, wireline, fluid management, and 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 . Provides high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well. • Wireline Services. Provides services necessary to bring and maintain a well on production and consists of our wireline completion, wireline production, and pump down lines of business. • Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics hauling, snubbing and coil tubing, and processing solutions. The Company’s operations take place in most of the active oil and natural gas basins in the U.S., 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, and Canadian and Kingfisher Counties plays. Organization Ranger, Inc. was incorporated as a Delaware corporation in February 2017. Ranger, Inc. is a holding company, and its sole assets 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”), and the other 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, its subsidiaries, and Torrent Services’ business and consolidates the financial results of Ranger Services, its subsidiaries, and Torrent Services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Presentation The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. 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 information and disclosures have been condensed or omitted. The 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 our audited consolidated financial statements and related notes included in 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. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. 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 Condensed Consolidated 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. New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The Company adopted this standard on January 1, 2023. This adoption did not have a material impact on the Company’s 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, recently amended by ASU 2022-06 which has delayed the application date through December 31, 2024. On September 23, 2022, the Company entered into the Fourth Amendment to the Loan and Security Agreement (the Eclipse Loan and Security Agreement, as amended through and including the Fourth Amendment, the “Amended Loan Agreement”) with EBC and Eclipse Business Capital SPV, LLC where the Secured Overnight Financing Rate (“SOFR”) replaced LIBOR as the reference rate for interest on borrowings, effective October 1, 2022. With the exception of the standards above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s Consolidated Financial Statements. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Note 3 — Assets Held for Sale Assets held for sale includes the net book value of assets the Company plans to sell within the next 12 months and are related to excess assets acquired from the Basic Energy Services, Inc. (“Basic”) Acquisition. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value less estimated costs to sell. The Company intends to sell the excess assets to fund the repayments under the Amended Loan Agreement. Refer to “Note 9 — Debt” for further details. As of March 31, 2023, the Company classified $0.6 million and $0.4 million of land and buildings within our High Specification Rigs and Processing Solutions and Ancillary Services segments, respectively, as held for sale as they are being actively marketed. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 4 — Property and Equipment, Net Property and equipment, net include the following (in millions): Estimated Useful Life March 31, 2023 December 31, 2022 High specification rigs 15 $ 137.0 $ 138.0 Machinery and equipment 3 - 30 177.4 179.3 Vehicles 3 - 15 47.6 46.9 Other property and equipment 5 - 25 19.6 21.3 Property and equipment 381.6 385.5 Less: accumulated depreciation (170.7) (167.2) Construction in progress 6.7 3.3 Property and equipment, net $ 217.6 $ 221.6 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 5 — Intangible Assets, Net Definite lived intangible assets are comprised of the following (in millions): Estimated Useful Life March 31, 2023 December 31, 2022 Customer relationships 10-18 $ 11.4 $ 11.4 Less: accumulated amortization (4.5) (4.3) Intangible assets, net $ 6.9 $ 7.1 Amortization expense was $0.2 million and $0.2 million for the three months ended March 31, 2023 and 2022 respectively. Amortization expense for the future periods is expected to be as follows (in millions): For the twelve months ending March 31, Amount 2024 $ 0.7 2025 0.7 2026 0.7 2027 0.7 2028 0.7 Thereafter 3.4 Total $ 6.9 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Note 6 — Accrued Expenses Accrued expenses include the following (in millions): March 31, 2023 December 31, 2022 Accrued payables $ 11.4 $ 15.9 Accrued compensation 8.7 12.5 Accrued taxes 0.9 2.1 Accrued insurance 2.8 5.6 Accrued expenses $ 23.8 $ 36.1 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 7 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from one 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 and three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Short-term lease costs $ 5.3 $ 3.1 Operating lease costs $ 0.8 $ 0.6 Operating cash outflows from operating leases $ 0.8 $ 0.5 Weighted average remaining lease term 4.2 years 5.0 years Weighted average discount rate 8.1 % 8.9 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 3.2 2025 3.2 2026 3.1 2027 2.7 2028 1.1 Thereafter 0.2 Total future minimum lease payments 13.5 Less: amount representing interest (2.2) Present value of future minimum lease payments 11.3 Less: current portion of operating lease obligations (2.3) Long-term portion of operating lease obligations $ 9.0 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three Lease costs and other information related to finance leases for the three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Amortization of finance leases $ 0.8 $ 0.5 Interest on lease liabilities $ 0.3 $ 0.1 Financing cash outflows from finance leases $ 1.3 $ 1.2 Weighted average remaining lease term 1.7 years 1.4 years Weighted average discount rate 4.3 % 1.9 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 4.5 2025 2.5 2026 1.3 2027 0.3 Total future minimum lease payments 8.6 Less: amount representing interest (0.8) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.1) Long-term portion of finance lease obligations $ 3.7 Note 8 — Other Financing Liabilities The Company has sale, lease-back agreements for land and certain other fixed assets with terms that vary from eighteen months to thirteen years. The sales did not qualify for sale accounting, therefore these leases were classified as finance leases and no gain or loss was recorded. The net book value of the assets remained in Property and equipment, net and are depreciating over their original useful lives. As of March 31, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 0.7 2025 0.7 2026 0.7 2027 0.7 2028 0.8 Thereafter 8.5 Total future minimum lease payments $ 12.1 |
Leases | Note 7 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from one 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 and three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Short-term lease costs $ 5.3 $ 3.1 Operating lease costs $ 0.8 $ 0.6 Operating cash outflows from operating leases $ 0.8 $ 0.5 Weighted average remaining lease term 4.2 years 5.0 years Weighted average discount rate 8.1 % 8.9 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 3.2 2025 3.2 2026 3.1 2027 2.7 2028 1.1 Thereafter 0.2 Total future minimum lease payments 13.5 Less: amount representing interest (2.2) Present value of future minimum lease payments 11.3 Less: current portion of operating lease obligations (2.3) Long-term portion of operating lease obligations $ 9.0 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three Lease costs and other information related to finance leases for the three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Amortization of finance leases $ 0.8 $ 0.5 Interest on lease liabilities $ 0.3 $ 0.1 Financing cash outflows from finance leases $ 1.3 $ 1.2 Weighted average remaining lease term 1.7 years 1.4 years Weighted average discount rate 4.3 % 1.9 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 4.5 2025 2.5 2026 1.3 2027 0.3 Total future minimum lease payments 8.6 Less: amount representing interest (0.8) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.1) Long-term portion of finance lease obligations $ 3.7 |
Other Financing Liabilities
Other Financing Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Other Financing Liabilities | Note 7 — Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from one 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 and three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Short-term lease costs $ 5.3 $ 3.1 Operating lease costs $ 0.8 $ 0.6 Operating cash outflows from operating leases $ 0.8 $ 0.5 Weighted average remaining lease term 4.2 years 5.0 years Weighted average discount rate 8.1 % 8.9 % Aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 3.2 2025 3.2 2026 3.1 2027 2.7 2028 1.1 Thereafter 0.2 Total future minimum lease payments 13.5 Less: amount representing interest (2.2) Present value of future minimum lease payments 11.3 Less: current portion of operating lease obligations (2.3) Long-term portion of operating lease obligations $ 9.0 Finance Leases The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three Lease costs and other information related to finance leases for the three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Amortization of finance leases $ 0.8 $ 0.5 Interest on lease liabilities $ 0.3 $ 0.1 Financing cash outflows from finance leases $ 1.3 $ 1.2 Weighted average remaining lease term 1.7 years 1.4 years Weighted average discount rate 4.3 % 1.9 % Aggregate future minimum lease payments under finance leases are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 4.5 2025 2.5 2026 1.3 2027 0.3 Total future minimum lease payments 8.6 Less: amount representing interest (0.8) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.1) Long-term portion of finance lease obligations $ 3.7 Note 8 — Other Financing Liabilities The Company has sale, lease-back agreements for land and certain other fixed assets with terms that vary from eighteen months to thirteen years. The sales did not qualify for sale accounting, therefore these leases were classified as finance leases and no gain or loss was recorded. The net book value of the assets remained in Property and equipment, net and are depreciating over their original useful lives. As of March 31, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 0.7 2025 0.7 2026 0.7 2027 0.7 2028 0.8 Thereafter 8.5 Total future minimum lease payments $ 12.1 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 — Debt The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions): March 31, 2023 December 31, 2022 Eclipse Revolving Credit Facility $ — $ 1.4 Eclipse M&E Term Loan, net 9.6 10.4 Secured Promissory Note 5.6 6.1 Installment Purchases 0.4 0.5 Total Debt 15.6 18.4 Current portion of long-term debt (8.5) (6.8) Long term-debt, net $ 7.1 $ 11.6 Eclipse Loan and Security Agreement On September 27, 2021, the Company entered into a Loan and Security Agreement with Eclipse Business Capital LLC (“EBC”) and Eclipse Business Capital SPV, LLC, as administrative agent, providing the Company with a senior secured credit facility in an aggregate principal amount of $77.5 million (the “EBC Credit Facility”), consisting of (i) a revolving credit facility in an aggregate principal amount of up to $50.0 million (the “Revolving Credit Facility”), (ii) a machinery and equipment term loan facility in an aggregate principal amount of up to $12.5 million (the “M&E Term Loan Facility”) and (iii) a term loan B facility in an aggregate principal amount of up to $15.0 million (the “Term Loan B Facility”). Debt under the Eclipse Loan and Security Agreement is secured by a lien on substantially all of the Company’s assets. The Company was in compliance with the Eclipse Loan and Security Agreement covenant by maintaining a fixed charge coverage ratio of greater than 1.0 as of March 31, 2023. On January 7, 2022, the Company entered into the First Amendment to Loan and Security Agreement with EBC and Eclipse Business Capital SPV, LLC, which increased the Maximum Revolving Credit Facility Amount (as defined in the Amended Loan Agreement (as defined below)) to $65.0 million, among other things. On September 23, 2022, the Company entered into the Amended Loan Agreement with EBC and Eclipse Business Capital SPV, LLC, which, among other things, designated the change in reference rate from LIBOR to SOFR, and designated a Letter of Credit in the amount of $1.6 million to be utilized for working capital and general corporate purposes, as needed. Revolving Credit Facility The Revolving Credit Facility was drawn in part on September 27, 2021, to repay the indebtedness under the existing EBC Credit Facility, which was terminated in connection with such repayment, and to pay for the fees, costs and expenses incurred in connection with the EBC Credit Facility. The undrawn portion of the Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other-permitted uses, including the financing of permitted investments and restricted payments. The Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable less certain reserves. The Company’s eligible accounts receivable serve as collateral for the borrowings under the Revolving Credit Facility, which is scheduled to mature in September 2025. The Revolving Credit Facility includes a subjective acceleration clause and cash dominion provisions that permits the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Revolving Credit Facility. The borrowings of the Revolving Credit Facility, therefore, will be classified as Long-term debt, current portion on the Condensed Consolidated Balance Sheet. Under the Revolving Credit Facility, the total loan capacity was $55.6 million, which was based on a borrowing base certificate in effect as of March 31, 2023. The Company did not have any borrowings under the Revolving Credit Facility and a $1.6 million Letter of Credit, leaving a residual $54.0 million available for borrowings as of March 31, 2023. Borrowings under the Revolving Credit Facility bear interest at a rate per annum ranging from 4.5% to 5% in excess of SOFR and 3.5% to 4% in excess of the Base Rate, dependent on the fixed cost coverage ratio, through October 1, 2022. The weighted average interest rate for the loan was approximately 8.9% for the three months ended March 31, 2023. M&E Term Loan Facility Under the M&E Term Loan Facility, the Company had outstanding borrowings of $9.8 million where the monthly principal and interest installments commenced on March 1, 2022. Borrowings under the M&E Term Loan Facility bear interest at a rate per annum equal to 8% in excess of the SOFR Rate and 7% in excess of the Base Rate. The weighted average interest rate for the M&E Term Loan was 12.6% for the three months ended March 31, 2023. The M&E Term Loan Facility is scheduled to mature in September 2025. Any principal amounts repaid may not be reborrowed. Term Loan B On October 1, 2021, Term Loan B was finalized in connection with the closing of the Basic Acquisition. Borrowings under Term Loan B bore interest at a rate per annum equal to 13% in excess of the SOFR Rate and 11% in excess of the Base Rate. Term Loan B was scheduled to mature in September 2022. The weighted average interest rate for Term Loan B was 12.4% through the maturity date of August 16, 2022. On August 16, 2022, the remaining balance of the loan was $0.3 million, which was paid utilizing funds from the Revolving Credit Facility. Secured Promissory Note On July 8, 2021, the Company acquired the assets of PerfX Wireline Services (“PerfX”), a provider of wireline services that operated in Williston, North Dakota and Midland, Texas. In connection with the PerfX Acquisition, Bravo Wireline, LLC, a wholly owned subsidiary of Ranger, entered into a security agreement with Chief Investments, LLC, as administrative agent, for the financing of certain assets acquired. Certain of the assets acquired serve as collateral under the Secured Promissory Note. As of March 31, 2023, the aggregate principal balance outstanding was $5.6 million. Borrowings under the Secured Promissory Note bear interest at a rate of 8.5% per annum and is scheduled to mature in January 2024. Other Installment Purchases The Company entered into various Installment and Security Agreements (collectively, the “Installment Agreements”) in connection with the purchase of certain ancillary equipment, where such assets are being held as collateral. As of March 31, 2023, the aggregate principal balance outstanding under the Installment Agreements was $0.4 million and is payable ratably over 36 months from the time of each purchase. The monthly installment payments contain an imputed interest rate that are consistent with the Company’s incremental borrowing rate and is not significant to the Company. Debt Obligations and Scheduled Maturities As of March 31, 2023, aggregate future principal payments of total debt are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 8.5 2025 2.6 2026 4.7 Total $ 15.8 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Note 10 — Equity Equity-Based Compensation In 2017, the Company adopted the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan (the “2017 Plan”). The Company has granted shares of restricted stock (“restricted shares” or “RSAs”) and performance-based restricted stock units (“performance stock units” or “PSUs”) under the 2017 Plan. Restricted Stock Awards The Company has granted RSAs, which generally vest in three equal annual installments beginning on the first anniversary date of the grant. During the three months ended March 31, 2022, the Company granted approximately 385,400 RSAs, with an approximated aggregate value of $4.2 million. As of March 31, 2023, there was an aggregate $7.2 million of unrecognized expense related to restricted shares issued which is expected to be recognized over a weighted average period of 2.1 years. Performance Stock Units The performance criteria applicable to performance stock units that have been granted by the Company are based on relative total shareholder return, which measures the Company’s total shareholder return as compared to the total shareholder return of a designated peer group, and absolute total shareholder return. Generally, the performance stock units are subject to an approximated three-year performance period. During the three months ended March 31, 2023, the Company granted approximately 55,200 and 55,200 target shares of market-based performance stock units at a relative and absolute grant date fair value of approximately $15.71 and $13.12 per share, respectively. Additionally, the Company granted approximately 27,600 and 27,600 target shares of market-based performance stock units with a specified floor price per share at a relative and absolute grant date fair value of approximately $15.22 and $10.85 per share, respectively. Shares granted during the three months ended March 31, 2023 are expected to vest (if at all) following the completion of the applicable performance period on December 31, 2025. As of March 31, 2023, there was an aggregate $3.2 million of unrecognized compensation cost related to performance stock units which are expected to be recognized over a weighted average period of 2.0 years. Share Repurchases On March 7, 2023, the Company announced a share repurchase program allowing the Company to purchase Class A Common Stock held by non-affiliates, not to exceed $35.0 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 36 months. During the three months ended March 31, 2023, the Company repurchased 39,400 shares of the Company’s Class A Common Stock for an aggregate $0.4 million on the open market. Warrant from PerfX Acquisition The PerfX Acquisition purchase price included a warrant to acquire a 30% ownership in the XConnect Business (“XConnect”), which expires on July 8, 2031. XConnect is the manufacturer of a perforating gun system developed by the PerfX sellers alongside the PerfX wireline service business. The warrant requires the Company to maintain a specific minimum level of purchases of XConnect’s manufactured products. Should the Company fail to maintain the specified minimum level of purchases, a forfeiture event would occur; however, the Company may elect to cure the forfeiture event through a cash payment to XConnect. If the Company elects to not cure the forfeiture event, the ownership percentage would reduce to 15%. Upon the occurrence of a second uncured forfeiture event, the warrant is deemed to be cancelled. The value of the warrant by the Company is negligible as of March 31, 2023. The Company finalized the purchase price allocation in the fourth quarter of 2021. |
Risk Concentrations
Risk Concentrations | 3 Months Ended |
Mar. 31, 2023 | |
Risk Concentrations | |
Risk Concentrations | Note 11 — Risk Concentrations Customer Concentrations During the three months ended March 31, 2023, two customers each accounted for approximately 10% of the Company’s consolidated revenue. As of March 31, 2023, approximately 15% of the net accounts receivable balance, in aggregate, was due from these two customers. During the three months ended March 31, 2022, two customers accounted for approximately 11% and 10% each of the Company’s consolidated revenue. As of March 31, 2022, approximately 27% of the net accounts receivable balance, in aggregate, was due from these two customers. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 — Income Taxes The Company is a corporation and is subject to U.S. federal income tax. The Company uses an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating the estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and other income tax related estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. The effective U.S. federal income tax rate, excluding the impact of discrete items, applicable to the Company for the three months ended March 31, 2023 and 2022 was 24.0% and 22.5%, respectively. The Company is subject to the Texas Margin Tax, which 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. Historically, utilization of a portion of the Company's net operating loss ("NOL") carryforwards has been subject to limitations of utilization under Section 382 of the Internal Revenue Code of 1986, as amended. The Company may be subject to additional limitations due to ownership changes that could occur. The Company reviews changes in the ownership of its shares as such information becomes available to determine whether changes that would result in further limitation have occurred. Given the availability and timing of such ownership information and the underlying analysis required to evaluate such changes, there can be no assurance that existing NOL carry-forwards or credits will not be subject to limitation as of the end of a reporting period. A valuation allowance (“VA”) has been recorded to reduce the Company’s net deferred tax assets to an amount that is more likely than not to be realized. The VA 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, 2023 and 2022 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income or loss primarily due to the release of the valuation allowance on deferred tax assets, the impact of permanently non-deductible expenses, state income taxes and certain discreet tax benefits recognized during the three months ended March 31, 2023. The Company is subject to the following material taxing jurisdictions: the United States and Texas. As of March 31, 2023, 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 2016 through 2022. 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, 2023, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. In August 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA 2022”) (Public Law Number 117-169) into law. This legislation is not expected to have a material impact on our financial statements. |
Earnings (loss) per Share
Earnings (loss) per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per Share | Note 13 — Earnings (loss) per Share Earnings or 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. The numerator and denominator used to compute earnings or loss per share were as follows (in millions, except share and per share data): Three Months Ended March 31, 2023 2022 Income (loss) (numerator): Basic: Income (loss) attributable to Ranger Energy Services, Inc. $ 6.2 $ (5.7) Net income (loss) attributable to Class A Common Stock $ 6.2 $ (5.7) Diluted: Income (loss) attributable to Ranger Energy Services, Inc. $ 6.2 $ (5.7) Net income (loss) attributable to Class A Common Stock $ 6.2 $ (5.7) Weighted average shares (denominator): Weighted average number of shares - basic 24,940,335 18,472,909 Effect of share-based awards 269,645 — Weighted average number of shares - diluted 25,209,980 18,472,909 Basic income (loss) per share $ 0.25 $ (0.31) Diluted income (loss) per share $ 0.25 $ (0.31) During the three months ended March 31, 2022, the Company excluded 0.7 million of equity-based awards and 6.0 million shares of Series A Preferred Stock issuable upon an effective registration statement in calculating diluted loss per share, as the effect was anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 — 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. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting | Note 15 — Segment Reporting The Company’s operations are located in the United States and organized into three reportable segments: High Specification Rigs, Wireline Services and Processing Solutions and Ancillary Services. 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, rig hours and state counts. 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 . Provides high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well. Wireline Services . Provides services necessary to bring and maintain a well on production and consists of our wireline completion, wireline production and pump down lines of business. Processing Solutions and Ancillary Services . Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics hauling, processing solutions, as well as snubbing and coil tubing. 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. Certain segment information for the three months ended March 31, 2023 and 2022 is as follows (in millions): High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Three Months Ended March 31, 2023 Revenue $ 77.5 $ 49.9 $ 30.1 $ — $ 157.5 Cost of services 60.1 45.7 25.1 — 130.9 Depreciation and amortization 5.5 2.4 1.6 0.5 10.0 Operating income (loss) 11.9 1.8 3.4 (7.9) 9.2 Net income (loss) $ 11.9 $ 1.8 $ 3.4 $ (10.9) $ 6.2 Capital expenditures $ 2.1 $ 1.3 $ 4.3 $ — $ 7.7 High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Three Months Ended March 31, 2022 Revenue $ 64.9 $ 38.6 $ 20.1 $ — $ 123.6 Cost of services 50.8 40.4 16.8 — 108.0 Depreciation and amortization 6.4 2.7 2.0 0.5 11.6 Operating income (loss) 7.7 (4.5) 1.3 (9.7) (5.2) Net income (loss) $ 7.7 $ (4.5) $ 1.3 $ (10.2) $ (5.7) Capital expenditures $ 1.2 $ 0.9 $ 0.3 $ — $ 2.4 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to April 30, 2023. Based upon this review, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. 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 information and disclosures have been condensed or omitted. The 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 our audited consolidated financial statements and related notes included in 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 Condensed Consolidated Financial Statements in conformity with U.S. 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 Condensed Consolidated 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. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. The Company adopted this standard on January 1, 2023. This adoption did not have a material impact on the Company’s 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, recently amended by ASU 2022-06 which has delayed the application date through December 31, 2024. On September 23, 2022, the Company entered into the Fourth Amendment to the Loan and Security Agreement (the Eclipse Loan and Security Agreement, as amended through and including the Fourth Amendment, the “Amended Loan Agreement”) with EBC and Eclipse Business Capital SPV, LLC where the Secured Overnight Financing Rate (“SOFR”) replaced LIBOR as the reference rate for interest on borrowings, effective October 1, 2022. With the exception of the standards above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s Consolidated Financial Statements. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net include the following (in millions): Estimated Useful Life March 31, 2023 December 31, 2022 High specification rigs 15 $ 137.0 $ 138.0 Machinery and equipment 3 - 30 177.4 179.3 Vehicles 3 - 15 47.6 46.9 Other property and equipment 5 - 25 19.6 21.3 Property and equipment 381.6 385.5 Less: accumulated depreciation (170.7) (167.2) Construction in progress 6.7 3.3 Property and equipment, net $ 217.6 $ 221.6 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 December 31, 2022 Customer relationships 10-18 $ 11.4 $ 11.4 Less: accumulated amortization (4.5) (4.3) Intangible assets, net $ 6.9 $ 7.1 |
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 2024 $ 0.7 2025 0.7 2026 0.7 2027 0.7 2028 0.7 Thereafter 3.4 Total $ 6.9 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses | Accrued expenses include the following (in millions): March 31, 2023 December 31, 2022 Accrued payables $ 11.4 $ 15.9 Accrued compensation 8.7 12.5 Accrued taxes 0.9 2.1 Accrued insurance 2.8 5.6 Accrued expenses $ 23.8 $ 36.1 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of other information related to operating and finance leases | 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 and three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Short-term lease costs $ 5.3 $ 3.1 Operating lease costs $ 0.8 $ 0.6 Operating cash outflows from operating leases $ 0.8 $ 0.5 Weighted average remaining lease term 4.2 years 5.0 years Weighted average discount rate 8.1 % 8.9 % Lease costs and other information related to finance leases for the three months ended March 31, 2023 and 2022, are as follows (in millions): Three Months Ended March 31, 2023 2022 Amortization of finance leases $ 0.8 $ 0.5 Interest on lease liabilities $ 0.3 $ 0.1 Financing cash outflows from finance leases $ 1.3 $ 1.2 Weighted average remaining lease term 1.7 years 1.4 years Weighted average discount rate 4.3 % 1.9 % |
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 2024 $ 3.2 2025 3.2 2026 3.1 2027 2.7 2028 1.1 Thereafter 0.2 Total future minimum lease payments 13.5 Less: amount representing interest (2.2) Present value of future minimum lease payments 11.3 Less: current portion of operating lease obligations (2.3) Long-term portion of operating lease obligations $ 9.0 |
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 2024 $ 4.5 2025 2.5 2026 1.3 2027 0.3 Total future minimum lease payments 8.6 Less: amount representing interest (0.8) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.1) Long-term portion of finance lease obligations $ 3.7 As of March 31, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 0.7 2025 0.7 2026 0.7 2027 0.7 2028 0.8 Thereafter 8.5 Total future minimum lease payments $ 12.1 |
Other Financing Liabilities (Ta
Other Financing Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
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 2024 $ 4.5 2025 2.5 2026 1.3 2027 0.3 Total future minimum lease payments 8.6 Less: amount representing interest (0.8) Present value of future minimum lease payments 7.8 Less: current portion of finance lease obligations (4.1) Long-term portion of finance lease obligations $ 3.7 As of March 31, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 0.7 2025 0.7 2026 0.7 2027 0.7 2028 0.8 Thereafter 8.5 Total future minimum lease payments $ 12.1 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 December 31, 2022 Eclipse Revolving Credit Facility $ — $ 1.4 Eclipse M&E Term Loan, net 9.6 10.4 Secured Promissory Note 5.6 6.1 Installment Purchases 0.4 0.5 Total Debt 15.6 18.4 Current portion of long-term debt (8.5) (6.8) Long term-debt, net $ 7.1 $ 11.6 |
Schedule of future payments | As of March 31, 2023, aggregate future principal payments of total debt are as follows (in millions): For the twelve months ending March 31, Total 2024 $ 8.5 2025 2.6 2026 4.7 Total $ 15.8 |
Earnings (loss) per Share (Tabl
Earnings (loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per share | Earnings or 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. The numerator and denominator used to compute earnings or loss per share were as follows (in millions, except share and per share data): Three Months Ended March 31, 2023 2022 Income (loss) (numerator): Basic: Income (loss) attributable to Ranger Energy Services, Inc. $ 6.2 $ (5.7) Net income (loss) attributable to Class A Common Stock $ 6.2 $ (5.7) Diluted: Income (loss) attributable to Ranger Energy Services, Inc. $ 6.2 $ (5.7) Net income (loss) attributable to Class A Common Stock $ 6.2 $ (5.7) Weighted average shares (denominator): Weighted average number of shares - basic 24,940,335 18,472,909 Effect of share-based awards 269,645 — Weighted average number of shares - diluted 25,209,980 18,472,909 Basic income (loss) per share $ 0.25 $ (0.31) Diluted income (loss) per share $ 0.25 $ (0.31) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of segment information | Certain segment information for the three months ended March 31, 2023 and 2022 is as follows (in millions): High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Three Months Ended March 31, 2023 Revenue $ 77.5 $ 49.9 $ 30.1 $ — $ 157.5 Cost of services 60.1 45.7 25.1 — 130.9 Depreciation and amortization 5.5 2.4 1.6 0.5 10.0 Operating income (loss) 11.9 1.8 3.4 (7.9) 9.2 Net income (loss) $ 11.9 $ 1.8 $ 3.4 $ (10.9) $ 6.2 Capital expenditures $ 2.1 $ 1.3 $ 4.3 $ — $ 7.7 High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Three Months Ended March 31, 2022 Revenue $ 64.9 $ 38.6 $ 20.1 $ — $ 123.6 Cost of services 50.8 40.4 16.8 — 108.0 Depreciation and amortization 6.4 2.7 2.0 0.5 11.6 Operating income (loss) 7.7 (4.5) 1.3 (9.7) (5.2) Net income (loss) $ 7.7 $ (4.5) $ 1.3 $ (10.2) $ (5.7) Capital expenditures $ 1.2 $ 0.9 $ 0.3 $ — $ 2.4 |
Organization and Business Ope_2
Organization and Business Operations (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale - Land and Building $ in Millions | Mar. 31, 2023 USD ($) |
High specification rigs | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | $ 0.6 |
Processing solutions and ancillary services | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | $ 0.4 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment, Net | |||
Property and equipment | $ 381.6 | $ 385.5 | |
Less: accumulated depreciation | (170.7) | (167.2) | |
Construction in progress | 6.7 | 3.3 | |
Property and equipment, net | 217.6 | 221.6 | |
Depreciation expense | $ 9.8 | $ 11.4 | |
Change in assets held for sale | $ 5.7 | ||
High specification rigs | |||
Property, Plant and Equipment, Net | |||
Estimated Useful Life (years) | 15 years | ||
Property and equipment | $ 137 | 138 | |
Machinery and equipment | |||
Property, Plant and Equipment, Net | |||
Property and equipment | 177.4 | 179.3 | |
Vehicles | |||
Property, Plant and Equipment, Net | |||
Property and equipment | 47.6 | 46.9 | |
Other property and equipment | |||
Property, Plant and Equipment, Net | |||
Property and equipment | $ 19.6 | $ 21.3 | |
Minimum | 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 | 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 |
Intangible Assets, Net - Intang
Intangible Assets, Net - Intangibles (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Intangible assets | ||
Less: accumulated amortization | $ (4.5) | $ (4.3) |
Intangible assets, net | 6.9 | 7.1 |
Customer relationships | ||
Intangible assets | ||
Customer relationships | $ 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 |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.2 | $ 0.2 |
Intangible Assets, Net - Amorti
Intangible Assets, Net - Amortization (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 0.7 | |
2025 | 0.7 | |
2026 | 0.7 | |
2027 | 0.7 | |
2028 | 0.7 | |
Thereafter | 3.4 | |
Intangible assets, net | $ 6.9 | $ 7.1 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payables | $ 11.4 | $ 15.9 |
Accrued compensation | 8.7 | 12.5 |
Accrued taxes | 0.9 | 2.1 |
Accrued insurance | 2.8 | 5.6 |
Accrued expenses | $ 23.8 | $ 36.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term, operating leases | 1 year |
Lease term, finance leases | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term, operating leases | 9 years |
Lease term, finance leases | 5 years |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Short-term lease costs | $ 5.3 | $ 3.1 |
Operating lease costs | 0.8 | 0.6 |
Operating cash outflows from operating leases | $ 0.8 | $ 0.5 |
Weighted average remaining lease term | 4 years 2 months 12 days | 5 years |
Weighted average discount rate | 8.10% | 8.90% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
2024 | $ 3.2 | |
2025 | 3.2 | |
2026 | 3.1 | |
2027 | 2.7 | |
2028 | 1.1 | |
Thereafter | 0.2 | |
Total future minimum lease payments | 13.5 | |
Less: amount representing interest | (2.2) | |
Present value of future minimum lease payments | 11.3 | |
Less: current portion of operating lease obligations | (2.3) | |
Long-term portion of operating lease obligations | 9 | $ 9.6 |
Finance Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
2024 | 4.5 | |
2025 | 2.5 | |
2026 | 1.3 | |
2027 | 0.3 | |
Total future minimum lease payments | 8.6 | |
Less: amount representing interest | (0.8) | |
Present value of future minimum lease payments | 7.8 | |
Less: current portion of finance lease obligations | (4.1) | |
Long-term portion of finance lease obligations | $ 3.7 | |
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Other long-term liabilities | |
Finance lease, liability, current, statement of financial position [Extensible Enumeration] | Other current liabilities | |
Finance lease, liability, statement of financial position [Extensible Enumeration] | Other current liabilities, Other long-term liabilities |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Other Information Related to Financing Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of finance leases | $ 0.8 | $ 0.5 |
Interest on lease liabilities | 0.3 | 0.1 |
Financing cash outflows from finance leases | $ 1.3 | $ 1.2 |
Weighted average remaining lease term | 1 year 8 months 12 days | 1 year 4 months 24 days |
Weighted average discount rate | 4.30% | 1.90% |
Other Financing Liabilities - N
Other Financing Liabilities - Narrative (Details) - Other Fixed Asset | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Payment terms | 18 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Payment terms | 13 years |
Other Financing Liabilities (De
Other Financing Liabilities (Details) - Building $ in Millions | Mar. 31, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
2024 | $ 0.7 |
2025 | 0.7 |
2026 | 0.7 |
2027 | 0.7 |
2028 | 0.8 |
Thereafter | 8.5 |
Total future minimum lease payments | $ 12.1 |
Debt - Summary of Debt Outstand
Debt - Summary of Debt Outstanding (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total Debt | $ 15.6 | $ 18.4 |
Current portion of long-term debt | (8.5) | (6.8) |
Long term-debt, net | 7.1 | 11.6 |
Eclipse Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total Debt | 0 | 1.4 |
Eclipse M&E Term Loan, net | ||
Debt Instrument [Line Items] | ||
Total Debt | 9.6 | 10.4 |
Secured Promissory Note | ||
Debt Instrument [Line Items] | ||
Total Debt | 5.6 | 6.1 |
Installment Purchases | ||
Debt Instrument [Line Items] | ||
Total Debt | $ 0.4 | $ 0.5 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | ||||||
Aug. 16, 2022 USD ($) | Oct. 01, 2021 | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 23, 2022 USD ($) | Jan. 07, 2022 USD ($) | Sep. 27, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||
Remaining principal balance | $ 15,600,000 | $ 18,400,000 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal balance | 0 | 1,400,000 | |||||
Eclipse M&E Term Loan, net | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal balance | $ 9,600,000 | 10,400,000 | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 65,000,000 | ||||||
Covenant fixed charge coverage ratio | 1 | ||||||
Line of Credit | EBC Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 77,500,000 | ||||||
Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 55,600,000 | 50,000,000 | |||||
Remaining borrowing | 54,000,000 | ||||||
Line of Credit | Eclipse M&E Term Loan, net | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 9,800,000 | 12,500,000 | |||||
Weighted average interest rate | 12.60% | ||||||
Line of Credit | Term Loan B Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 15,000,000 | ||||||
Weighted average interest rate | 12.40% | ||||||
Exercise of right to stop payments on remaining principal balance, amount | $ 300,000 | ||||||
Line of Credit | Credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowings | $ 1,600,000 | $ 1,600,000 | |||||
Line of Credit | SOFR | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 8.90% | ||||||
Line of Credit | SOFR | Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 4.50% | ||||||
Line of Credit | SOFR | Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 5% | ||||||
Line of Credit | SOFR | Eclipse M&E Term Loan, net | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 8% | ||||||
Line of Credit | SOFR | Term Loan B Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 13% | ||||||
Line of Credit | Base Rate | Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 3.50% | ||||||
Line of Credit | Base Rate | Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 4% | ||||||
Line of Credit | Base Rate | Eclipse M&E Term Loan, net | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 7% | ||||||
Line of Credit | Base Rate | Term Loan B Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate margin (as a percent) | 11% | ||||||
Installment Purchases | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal balance | $ 400,000 | $ 500,000 | |||||
Secured Promissory Note | Notes payable | |||||||
Debt Instrument [Line Items] | |||||||
Remaining principal balance | $ 5,600,000 | ||||||
Interest rate (as a percent) | 8.50% | ||||||
Installment Purchases | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 36 months |
Debt - Schedule of Future Payme
Debt - Schedule of Future Payments (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 8.5 |
2025 | 2.6 |
2026 | 4.7 |
Total | $ 15.8 |
Equity (Details)
Equity (Details) | 3 Months Ended | ||||
Mar. 07, 2023 USD ($) | Mar. 31, 2023 USD ($) installment $ / shares shares | Mar. 31, 2022 USD ($) shares | Jul. 09, 2031 | Jul. 08, 2031 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ | $ 35,000,000 | ||||
Duration of share repurchase program | 36 months | ||||
Forecast | PerfX Wireline Services, LLC | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ownership (in percent) | 15% | 30% | |||
Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchased during the period (in shares) | 39,400 | ||||
Repurchase of Class A Common Stock | $ | $ 400,000 | ||||
Restricted Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equal annual installments | installment | 3 | ||||
Granted shares issued (in shares) | 385,400 | ||||
Value of shares granted | $ | $ 4,200,000 | ||||
Unrecognized expense related to restricted shares issued | $ | $ 7,200,000 | ||||
Weighted average period | 2 years 1 month 6 days | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized expense related to restricted shares issued | $ | $ 3,200,000 | ||||
Weighted average period | 2 years | ||||
Performance period | 3 years | ||||
Performance Shares, Relative Grant Date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted shares issued (in shares) | 55,200 | ||||
Number of target shares granted to employees (in dollars per share) | $ / shares | $ 15.71 | ||||
Performance Shares, Relative Grant Date | Scenario 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted shares issued (in shares) | 27,600 | ||||
Number of target shares granted to employees (in dollars per share) | $ / shares | $ 15.22 | ||||
Performance Shares, Absolute Grant Date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted shares issued (in shares) | 55,200 | ||||
Number of target shares granted to employees (in dollars per share) | $ / shares | $ 13.12 | ||||
Performance Shares, Absolute Grant Date | Scenario 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted shares issued (in shares) | 27,600 | ||||
Number of target shares granted to employees (in dollars per share) | $ / shares | $ 10.85 |
Risk Concentrations (Details)
Risk Concentrations (Details) - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | Customer One | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 10% | 11% |
Revenue | Customers Two | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 10% | 10% |
Accounts Receivable | Customer One and Customer Two | ||
Customer Concentrations | ||
Concentration risk (as a percent) | 15% | 27% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective federal income tax rate (as a percent) | 24% | 22.50% |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic: | ||
Income (loss) attributable to Ranger Energy Services, Inc. | $ 6.2 | $ (5.7) |
Net income (loss) attributable to Class A Common Stock | 6.2 | (5.7) |
Diluted: | ||
Income (loss) attributable to Ranger Energy Services, Inc. | 6.2 | (5.7) |
Net income (loss) attributable to Class A Common Stock | $ 6.2 | $ (5.7) |
Weighted average shares (denominator): | ||
Weighted average number of shares - basic (in shares) | 24,940,335 | 18,472,909 |
Effect of share-based awards (in shares) | 269,645 | 0 |
Weighted average number of shares - diluted (in shares) | 25,209,980 | 18,472,909 |
Basic income (loss) per share (in dollars per share) | $ 0.25 | $ (0.31) |
Diluted income (loss) per share (in dollars per share) | $ 0.25 | $ (0.31) |
Equity-Based awards | ||
Weighted average shares (denominator): | ||
Antidilutive securities (in shares) | 700,000 | |
Convertible Common Stock | ||
Weighted average shares (denominator): | ||
Antidilutive securities (in shares) | 6,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting | ||
Number of reportable segments | segment | 3 | |
Revenue | $ 157.5 | $ 123.6 |
Cost of services | 130.9 | 108 |
Depreciation and amortization | 10 | 11.6 |
Operating income (loss) | 9.2 | (5.2) |
Net income (loss) | 6.2 | (5.7) |
Capital expenditures | 7.7 | 2.4 |
Operating Segments | High specification rigs | ||
Segment Reporting | ||
Revenue | 77.5 | 64.9 |
Cost of services | 60.1 | 50.8 |
Depreciation and amortization | 5.5 | 6.4 |
Operating income (loss) | 11.9 | 7.7 |
Net income (loss) | 11.9 | 7.7 |
Capital expenditures | 2.1 | 1.2 |
Operating Segments | Wireline services | ||
Segment Reporting | ||
Revenue | 49.9 | 38.6 |
Cost of services | 45.7 | 40.4 |
Depreciation and amortization | 2.4 | 2.7 |
Operating income (loss) | 1.8 | (4.5) |
Net income (loss) | 1.8 | (4.5) |
Capital expenditures | 1.3 | 0.9 |
Operating Segments | Processing solutions and ancillary services | ||
Segment Reporting | ||
Revenue | 30.1 | 20.1 |
Cost of services | 25.1 | 16.8 |
Depreciation and amortization | 1.6 | 2 |
Operating income (loss) | 3.4 | 1.3 |
Net income (loss) | 3.4 | 1.3 |
Capital expenditures | 4.3 | 0.3 |
Segment Reconciling Items | ||
Segment Reporting | ||
Revenue | 0 | 0 |
Cost of services | 0 | 0 |
Depreciation and amortization | 0.5 | 0.5 |
Operating income (loss) | (7.9) | (9.7) |
Net income (loss) | (10.9) | (10.2) |
Capital expenditures | $ 0 | $ 0 |