Ranger Energy Services Inc (RNGR, Financial) released its Q3 2023 earnings report on October 31, 2023. The company reported a 1% increase in revenue from the previous quarter, with a total revenue of $164.4 million. Net income also saw a significant rise, reaching $9.4 million, up from $6.1 million in Q2 2023. Adjusted EBITDA also increased by 10% from the previous quarter, reaching $24.0 million.
Financial Performance and Highlights
Ranger Energy Services Inc (RNGR, Financial) reported a 7% increase in year-to-date 2023 revenue, reaching $485.1 million from $454.2 million in the prior year. The company's net income for the same period was $21.7 million, a significant increase from $7.5 million in the prior year. Adjusted EBITDA also saw a 14% increase, reaching $66.0 million from $57.9 million in the prior year.
CEO Stuart Bodden commented on the company's performance, stating,
In the third quarter of 2023, Ranger continued to deliver strong financial performance despite lower U.S. onshore drilling and completions activity and sustained weakness in the natural gas basins."
Financial Tables and Analysis
The company's High Specification Rigs segment reported a slight decrease in revenue, reaching $79.2 million in Q3 2023, a decrease of $0.5 million from the prior year period. However, the Wireline Services segment saw a decrease in revenue, reporting $53.2 million in Q3 2023, down $7.4 million from the prior year period. The Processing Solutions and Ancillary Services segment also reported a decrease in revenue, reaching $32.0 million in Q3 2023, down $4.7 million from the prior year period.
Despite these decreases, the company's net income totaled $9.4 million for Q3 2023, a significant increase from $6.1 million in Q2 2023. The increase in net income is primarily due to the increase in profit margins in the wireline and ancillary segments.
Future Outlook
Ranger Energy Services Inc (RNGR, Financial) expects incremental growth from larger integrated customers in its High Specification Rigs business. The company also plans to focus on high grading work and customers in its High Specification Rigs business, pivoting its Wireline business to be more production-focused, and enhancing pull-through in its Ancillary service lines next year.
Despite the challenges, the company remains optimistic about the future, with Bodden concluding,
Our unwavering commitment to creating value for our shareholders is evident in the continued execution of our four-pillar strategy. These strategic updates, alongside our strong financial performance, emphasize our dedication to delivering value to our shareholders and our optimism as we anticipate a positive shift in industry activity in the coming year."
Explore the complete 8-K earnings release (here) from Ranger Energy Services Inc for further details.
