Ranger Energy purchases American Well Services for $90.5 million
Acquisition Details: Ranger Energy Services has acquired American Well Services for approximately $90.5 million, enhancing its position as the largest well-servicing provider in the lower 48 states with a 25% increase in rig count.
Financial Impact: The acquisition is expected to be immediately accretive to earnings and cash flow, with identified synergies of $4 million and pro forma EBITDA projected to exceed $100 million as commodity prices recover.
Transaction Structure: The deal includes $60 million in cash, 2 million shares of Ranger common stock, and a $5 million earn-out contingent on future performance, structured as a cash-free, debt-free purchase.
Leverage and Advisory: Post-acquisition, Ranger's leverage is expected to be around $50 million, with a leverage ratio of approximately 0.4x, and the transaction was advised by Piper Sandler and King & Spalding LLP.
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Ranger Energy Services, Inc. to Showcase and Conduct One-on-One Meetings at the 17th Annual Southwest IDEAS Investor Conference in Dallas, TX on November 19th and 20th
Company Presentation: Ranger Energy Services, Inc. will present at the Southwest IDEAS Investor Conference on November 19, 2025, at 9:55 am CT in Dallas, TX, featuring CEO Stuart Bodden and CFO Melissa Cougle.
Webcast Access: The presentation will be available via webcast on the conference host's website and Ranger's investor relations page.
Company Overview: Ranger is the largest provider of high specification mobile rig well services and related services in the U.S. oil and gas industry, supporting various phases of well operations.
IDEAS Conference Mission: The IDEAS Investor Conferences aim to offer quality companies a platform to present their investment opportunities to influential investment professionals.
Ranger Energy Reports Decrease in Q3 Profit and Revenue; Purchases American Well Services for Approximately $90.5 Million
Financial Performance: Ranger Energy Services reported a significant decline in profit for Q3, with net income dropping to $1.2 million from $8.7 million a year earlier, and revenue falling 16% to $128.9 million.
Acquisition Announcement: The company announced the acquisition of American Well Services for approximately $90.5 million, which is expected to enhance earnings and cash flow, with projected annual synergies of about $4 million.
Dividend Declaration: Ranger declared a cash dividend of $0.06 per share, set to be paid on December 5 to shareholders of record as of November 21.
Stock Market Reaction: Following the earnings report and acquisition news, Ranger's stock experienced a decline of over 2% in pre-market trading after a slight drop of 0.22% to $13.75 on the previous Friday.
