Ranger Energy Services, Inc. Q3 FY2025 earnings call

• Announced acquisition of American Well Services, a Permian Basin-focused well services provider with 39 active workover rigs, complementary service lines, and over 550 employees. The purchase price is ~$90.5 million, less than 2.5x trailing 12 months EBITDA, with an earn-out tied to AWS' assets. Anticipates $4 million in annual cost and revenue synergies post-integration. • Executing ECHO hybrid electric rig program, with first 2 rigs delivered; one in Bakken undergoing final testing to work on live wells within the week, the other in Permian Basin to follow soon. • Third quarter revenue was $128.9 million, down from prior periods due to reduced completions and activity declines in certain districts. Adjusted EBITDA was $16.8 million with a 13% margin.

High-spec rigs generated $80.9 million in revenue, with adjusted EBITDA of $15.7 million and a margin of 19.4%. Processing Solutions and Ancillary Services delivered $30.8 million in revenue, with adjusted EBITDA of $5.5 million. Wireline services reported $17.2 million in revenue, with adjusted EBITDA of $400,000.

• Pro forma, Ranger expected to produce over $100 million in adjusted EBITDA in 2026 under current market conditions, with higher potential when commodity prices recover. • Anticipates $4 million in annual cost and revenue synergies once AWS integration is complete. • Expect rebound in certain businesses in back half of 2026 as commodity supply concerns resolve. • 2026 expected to be first year with over $100 million in adjusted EBITDA for Ranger.

Q: Congrats on getting the AWS transaction across the finish line. Wanted to ask about the geographic footprint of AWS. Is it mostly in the Permian? And about the service lines.

A: Everything is in the Permian Basin. From revenue perspective, about 55% is direct overlap with Ranger and 45% is unique service lines, with opportunity to expand into existing customers.

Q: On ECHO rigs, where are we in the process?

A: There are 2 ECHO rigs. One in Bakken undergoing final testing expected to work on live wells within the week, the other in Permian Basin right after. Everyone up close to it is blown away.

Q: Customer base for American. Can you give color?

A: They have similar customers to Ranger, with some overlap and some new customers for Ranger to work with.

Q: On ECHO rig adoption, are customers looking to replace existing rigs, displace competitors?

A: Right now additive, over time could replace existing rigs of ours or competitors, not one for one.

Q: Over or under on how many ECHO rigs get built in '26?

A: Said over or under at 10.