Ranger Reports Q1 Revenue of $159.1M, Beating Expectations
Reports Q1 revenue $159.1M, consensus $156.5M. Stuart Bodden, Ranger's Chief Executive Officer, commented, "Ranger ended the first quarter with strong financial results and a meaningful pick-up in activity over the past 6 weeks. As winter came to a close, operators have been increasing activity levels and conversations are trending positively. We are pleased with our first quarter performance on every front including the first full quarter of operating results from the legacy American Well Services ("AWS") organization. Our results reflect the continued strong execution of our operations teams who maintain the highest level of safety and service quality. This year, we set our strategic priorities early and have meaningfully advanced them already, including the integration of AWS into the Ranger portfolio and starting the construction of fifteen ECHO Hybrid Electric Rigs that were contracted during the quarter. The AWS acquisition is driving our top and bottom line results higher, and we expect our disciplined focus on utilization, cost control, customer service and operational consistency from both organizations will continue to push margins higher in future periods. Our High Spec Rig segment continued its trend of strong performance during the quarter with margins over 20% and pricing that remained resilient. The expanded Ancillary segment saw improving contribution from new service lines from the AWS acquisition as well as the commencement of our new contract with the Texas Railroad Commission for Plug & Abandonment work. Wireline segment activity remains depressed, but we are encouraged with a team that is able to operate efficiently. Winter is always our most challenging quarter within Wireline and our ability to exit the first quarter with positive EBITDA suggests further improvement in the coming quarters. At the outset of this year, the macroeconomic sentiment and expectations for crude oil pricing remained subdued and we were braced for another flat to down year. In spite of significant commodity volatility related to geopolitical events, our customer base has generally held to a steady course of activity, which we believe will place Ranger in strong position over the remaining fiscal year to achieve our financials goals. Our production-focused business thesis is aligned with these developments, since workovers and optimization of production from existing wells present both the fastest delivery time and the lowest incremental cost for a barrel of crude oil. Additionally, our long-lived capital equipment base and domestic operations insulate us from broader international macro and supply chain pressures. As the largest well services provider in the Lower 48, we have the capacity within our fleet and organization to efficiently scale activity while preserving service quality and returns. Anticipated benefits to US production will be additive to the deployment of our ECHO rigs that will begin entering the field later this year. We believe Ranger is uniquely suited to meet any potential increase in U.S. activity levels and we are prepared to respond quickly as customer demand evolves."
