Wed, Apr 30, 8:27 PM (23 days ago)
**Ranger Energy Services, Inc. (RNGR) Q1 2025 Financial Summary** **Financial Health and Performance:** Ranger Energy Services, Inc. (RNGR) reported a slight decrease in revenue by 1% to $135.2 million for Q1 2025, compared to $136.9 million in Q1 2024. Despite this, the company achieved a net income of $0.6 million, a significant improvement from a net loss of $0.8 million in the same period last year. The operating income also turned positive, reaching $1.0 million, compared to a loss of $0.5 million in Q1 2024. **Revenue and Profit Margins:** - **High Specification Rigs:** Revenue increased by 10% to $87.5 million, driven by improved pricing and higher rig hours. - **Wireline Services:** Revenue decreased by 48% to $17.2 million due to reduced operational activity and competitive dynamics. - **Processing Solutions and Ancillary Services:** Revenue increased by 25% to $30.5 million, driven by higher demand for rentals, coil tubing, and plugging and abandonment services. **Cash Flow:** Net cash provided by operating activities decreased by 12% to $10.6 million. Net cash used in investing activities increased by 7% to $6.1 million, primarily due to capital expenditures. Net cash used in financing activities decreased by 53% to $5.1 million, with no share repurchases in Q1 2025. **Earnings Changes:** Earnings per share (EPS) turned positive, with basic and diluted EPS at $0.03 for Q1 2025, compared to a loss of $0.04 and $0.03, respectively, in Q1 2024. **Quarterly Performance Discussion:** RNGR maintained relatively consistent performance across most service lines despite drilling and completion activity declines in 2024. The Wireline segment faced weakness due to reduced completions activity and increased competition. The company expects seasonal improvements as weather conditions abate. Consolidation in the E&P sector is anticipated to benefit RNGR in the long term. **Trends and Uncertainties:** - **Geopolitical Events:** Ongoing conflicts and geopolitical tensions could impact commodity prices and demand for RNGR's services. - **Commodity Price Volatility:** Fluctuations in oil and natural gas prices could affect the activity levels of RNGR's E&P customers. - **Interest Rate Risk:** RNGR is exposed to interest rate risk due to its Wells Fargo Revolving Credit Facility, but the impact is currently minimal. **Future Operations Impact:** RNGR aims to maintain financial flexibility and monitor potential capital sources to meet investment and liquidity requirements. The company expects sufficient funds to meet short and long-term liquidity needs and comply with debt covenants. The share repurchase program and dividend payments are part of the capital returns strategy. **Summary:** RNGR demonstrated resilience in Q1 2025, with improved profitability and positive cash flow despite revenue challenges. The company's strategic focus on high-margin services and cost management positions it well for future growth amidst industry uncertainties.