Q2 2024 Ranger Energy Services Inc Earnings Call Transcript
Key Points
- Ranger Energy Services Inc (RNGR) reported a strong performance in the second quarter of 2024, rebounding from a challenging start to the year.
- The High Specification Rig segment achieved record top-line revenue of $82.7 million and record adjusted EBITDA of $18.7 million.
- The company has returned nearly 70% of its free cash flow to shareholders through dividends and share repurchases since the inception of its capital return framework.
- Adjusted EBITDA for the quarter was $21 million, nearly double the first quarter results, with a consolidated EBITDA margin of 15.1%, the highest in nearly two years.
- The Processing and Ancillary Services segment saw a 27% increase in revenue over the first quarter and nearly tripled adjusted EBITDA to $7.2 million.
- Revenue for the second quarter was down 15% year-over-year, despite a slight increase from the first quarter of 2024.
- The Wireline segment experienced a 25% decline in revenue compared to the first quarter, with stage counts down 50% and revenue down 55% year-over-year.
- The cost of services for the quarter was $113.2 million, representing 82% of revenue, which is still a significant portion despite improvements.
- The company had to undertake restructuring activities, including headcount reductions, particularly in the Wireline segment.
- Capital expenditures were front-loaded this year, resulting in a higher first-half number of $21.8 million compared to $12.9 million in the prior-year period, impacting free cash flow.
Thank you. And welcome to Ranger Energy Services Second Quarter 2024 Results Conference Call. Ranger has issued a press release summarizing operating and financial results for the three months ended June 30, 2024. This press release, together with accompanying presentation materials, are available in the Investor Relations section of our website at www.rangerenergy.com.
Today's discussion may contain forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements.
Further, please note that the non-GAAP financial measures may be disclosed during this call. A full reconciliation of GAAP to non-GAAP measurements are available in our latest quarterly earnings release and
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