On March 3, 2025, Ranger Energy Services Inc (RNGR, Financial) released its 8-K filing detailing its fourth quarter and full year 2024 financial results. The company, a leading provider of onshore high-specification well service rigs, wireline services, and ancillary services in the United States, reported notable achievements in its High-Specification Rigs segment and increased shareholder returns through dividends and share repurchases.
Performance Overview and Challenges
Ranger Energy Services Inc reported a full year 2024 revenue of $571.1 million, surpassing the annual estimate of $558.40 million. The net income for the year was $18.4 million, or $0.81 per fully diluted share, slightly exceeding the estimated annual earnings per share of $0.80. However, the fourth quarter revenue of $143.1 million exceeded the quarterly estimate of $142.60 million, while the earnings per share of $0.25 exceeded the estimated $0.18.
The company faced challenges in its Wireline Services segment, which experienced a significant decline in revenue due to reduced operational activity and seasonal factors. This decline was partially offset by strong performance in the High-Specification Rigs and Ancillary Services segments.
Financial Achievements and Industry Impact
Ranger Energy Services Inc achieved record performance in its High-Specification Rigs segment, reinforcing its leadership in the sector. The company also expanded profitability in Ancillary Services, driven by growth in Plugging and Abandonment (P&A), Rentals, and Torrent services. These achievements are crucial for the oil and gas industry, as they demonstrate the company's ability to adapt and thrive in a competitive market.
The company returned over 40% of its 2024 Free Cash Flow through dividends and share repurchases, far exceeding its minimum commitment. The quarterly dividend was increased by 20% to $0.06 per share, reflecting confidence in the company's future cash flow.
Key Financial Metrics
Ranger Energy Services Inc reported an Adjusted EBITDA of $78.9 million for the full year 2024, with a margin of 13.8%, compared to $84.4 million and a 13.3% margin in 2023. The fourth quarter Adjusted EBITDA was $21.9 million, with a margin of 15.3%, down from $25.1 million in the previous quarter but up from $18.4 million in the same period last year.
Free Cash Flow for 2024 was $50.4 million, or $2.24 per share, with year-end cash of $40.9 million and total liquidity of $112.1 million. These metrics highlight the company's strong cash generation capabilities and financial stability.
Income Statement and Balance Sheet Highlights
| Metric | Q4 2024 | Q3 2024 | Q4 2023 |
|---|---|---|---|
| Revenue | $143.1 million | $153.0 million | $151.5 million |
| Net Income | $5.8 million | $8.7 million | $2.1 million |
| EPS (Diluted) | $0.25 | $0.39 | $0.09 |
As of December 31, 2024, Ranger Energy Services Inc had total assets of $381.6 million and total liabilities of $107.8 million. The company's liquidity position was strong, with $112.1 million available, including $71.2 million in revolving credit facility capacity and $40.9 million in cash.
Analysis and Outlook
Ranger Energy Services Inc's performance in 2024 underscores its resilience and operational excellence in a challenging market environment. The company's focus on high-specification rigs and ancillary services has driven record profitability and positioned it well for future growth. However, the decline in wireline services revenue highlights the need for strategic adjustments to mitigate seasonal and market-related impacts.
Looking ahead, Ranger Energy Services Inc remains confident in its ability to drive growth and create value, with expectations of modest year-over-year growth in key service lines. The company's commitment to capital returns and operational excellence will be crucial in navigating the evolving industry landscape.
Explore the complete 8-K earnings release (here) from Ranger Energy Services Inc for further details.
