About Ranger Energy Services
Ranger Energy Services, Inc. is a provider of onshore high specification (high-spec) well service rigs, wireline services, and additional processing solutions and ancillary services in the United States. The company provides an extensive range of well site services to leading United States (U.S.) exploration and production (E&P) companies that are fundamental to establishing and enhancing the flow of oil and natural gas throughout the productive life of a well. The company’s focus has been positioning itself to serve a high-quality customer base by leveraging its young fleet, improving systems and streamlining processes, making Ranger an operator of choice for the U.S. E&P companies that require completion and production services. The company’s service offerings consist of well completion support, workover, well maintenance, wireline, fluid management, and other complementary services, as well as well installation, commissioning and operating of modular equipment. Segments The company operates through three segments: High Specification Rigs; Wireline Services; and Processing Solutions and Ancillary Services. High Specification Rigs. Provides high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well. Wireline Services. Provides services necessary to bring and maintain a well on production and consists of the company’s wireline completion, wireline production and pump down lines of business. Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with the company’s High Specification Rigs and Wireline Services segments. These services include equipment rentals, snubbing and coil tubing, plug and abandonment, logistics hauling, and processing solutions. The company’s operations take place in most of the active oil and natural gas basins in the U.S., including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend, Anadarko Basin, and Canadian and Kingfisher Counties plays. Segments The company’s services, when utilized in conjunction with one another, strategically enhance its operating footprint by creating operational efficiencies for its customers and allow it to capture a greater portion of their spending across the lifecycle of a well. As a result of three business combinations, coupled with executive management changes, the company re-evaluated the reportable segments accordingly. High Specification Rigs The company’s High Specification Rig segment provides high-spec well and complementary equipment and services to facilitate operations throughout the lifecycle of a well. The company provides services to E&P companies, particularly to those operating in unconventional oil and natural gas reservoirs and requiring technically and operationally advanced services. The company’s high-spec well service rigs are designed to support U.S. horizontal well demands. Specifically, the company’s high-spec rig services consist of the following: Well Completion Support: The company’s well completion support services are utilized subsequent to hydraulic fracturing operations but prior to placing a well into production, and primarily include unconventional well completion operations, including milling out composite plugs, frac sand or other downhole debris or obstructions that were introduced in the well as part of the completion process and installing production tubing and other permanent downhole equipment necessary to facilitate production. Workovers: The company’s workover services primarily facilitate major well repairs or modifications required to sustain the flow of oil and natural gas in a producing well. Workovers, which may require a few days to several weeks to complete and generally require additional auxiliary equipment, are typically more complex and more time- consuming than well maintenance operations. Workover operations include major subsurface repairs, such as the repair or replacement of well casing, recovery or replacement of tubing and removal of foreign objects from the wellbore. All of the company’s high-spec well service rigs are designed to perform complex workover operations. Well Maintenance: The company’s well maintenance services provide periodic maintenance required throughout the life of a well to sustain optimal levels of oil and natural gas production. The company’s well maintenance services primarily include the removal and replacement of downhole production equipment, including artificial lift components such as sucker rods and downhole pumps, the repair of failed production tubing and the repair and removal of other downhole production-related byproducts, such as frac sand or paraffin that impair well productivity. These and similar routine maintenance services involve relatively low-cost, short-duration operations that generally experience relatively stable demand notwithstanding changes in drilling activity. The composition of the company’s well service rig fleet makes it particularly well-suited to provide both completion-oriented services, the demand for which generally increases along with increased capital spending by E&P operators, and production-oriented services, the demand for which is less influenced, on a comparative basis, by such capital spending. The ability of the company’s well service rigs to accommodate the needs of its E&P customers in a variety of economic conditions has historically allowed it to maintain relatively high rig utilization. The company has a fleet of 428 well service rigs, which is to be among the newest and most advanced in the industry and are considered to be high-spec rigs, with high operating horsepower (HP) (450 HP or greater) and tall mast heights (102 feet or higher). Wireline Services The company’s Wireline Services segment provides wireline completion and production services necessary to bring a well on production. The company’s wireline services involve the use of wireline trucks equipped with a spool of cable that is unwound and lowered into oil and natural gas wells to convey specialized tools or equipment primarily for well completion, but also for well intervention, pipe recovery, and plugging and abandonment purposes. The company’s wireline services consist of the following: Production Services: The company’s wireline production and intervention services provide the information and the means to identify and resolve well production problems through its cased hole logging, perforating, mechanical, and pipe recovery services. The company’s cased hole logging services include cement bond evaluation, multi-arm calipers and ultrasonic logging services for casing and cement inspection. These are critical services to determine the integrity of the production casing, the cement outside of the production casing, and the production tubing. The company’s pipe recovery services are used to free drill pipe when it gets stuck in an open hole, or to cut tubing or casing for well intervention operations. Completion Services: The company’s wireline completion services are used primarily for pump down perforating operations to create perforations or entry holes through the production casing. These perforations are necessary to allow for hydraulic fracturing and producing from a hydrocarbon formation. In horizontal wellbores, the perforating guns are lowered into the vertical portion of the well and are then pumped out to the end of the horizontal wellbore. Then the perforating guns are detonated to perforate the casing and they are retrieved out of the well. This operation is typically repeated fifty to one hundred times to fully perforate, fracture and complete a one- or two-mile-long horizontal wellbore. Ranger uses innovative technologies to enable cleaner, safer, faster, and environmentally friendly operations. Pump Down: The company’s pumping services can be used during completion or intervention operations as a standalone service or in a comprehensive completion pump down perforating solution. Combining Ranger’s wireline perforating and pump down services maximizes operational efficiency through integrated safety, quality and communications systems. The company’s pumping services can be used during intervention operations for pressure testing casing, tubing and plugs, for injecting and pumping acid into the reservoir to stimulate production. The company’s pumping services can also be used in conjunction with its high-spec rigs or coiled tubing units to circulate composite frac plug cuttings, frac sand, and other debris out of the wellbore during completion operations. Ranger provides a range of high-pressure mobile pumps including ones that meet tier four emissions standards. The company has a fleet of 67 wireline units and 13 high-pressure pump trucks that are utilized in its wireline services. The company’s wireline services utilize high-pressure pump trucks to pump fracturing plugs and perforating guns into extended reach horizontal wells for pump down perforating completion purposes. From time-to-time the company wireline units will be used in conjunction with its Ancillary Services. Processing Solutions and Ancillary Services The company’s processing solutions and ancillary services, which are described below, are utilized in conjunction with its High Spec Rigs and Wireline Services to establish and enhance the productive life of a well. Specifically, in connection with the operations of its high-spec well service rigs, it also maintains a supply of additional service and rental equipment, including accumulators, acid and frac tanks, motor vehicles, trailers, tractors, catwalks, cementing units, pipe racks, power swivels, ram block assemblies, fluid pumps and related items. Well Service-Related Equipment Rentals: The company’s well service-related equipment rentals consist of a diverse fleet of rental items, including fluid pumps (various horsepower pumping equipment utilized to circulate fluid in and out of wellbores), power swivels (hydraulic motor-driven, pipe-rotating machines used to deliver shock-free torque to the workstring or tubing during well service rig operations), well control packages (equipment used to ensure formation pressure is maintained within the wellbore during well service rig operations), hydraulic catwalks (mechanized lifting devices used to raise and lower drill pipe and tubing to and from the well service rig work floor), frac tanks, pipe racks and pipe handling tools. The company’s well service-related equipment rentals are typically used in conjunction with the services provided by its high-spec well services. Coil Tubing: The company’s coiled tubing services utilize coiled tubing units to perform well intervention and other production services on a well by injecting small diameter steel pipe, unwound from a reel, into an existing production string. The company’s coiled tubing services provide operators with a cost-effective way to workover, drill, or convey tools in live, producing wells and other extended reach, high angle wellbores. Decommissioning: The company’s decommissioning services primarily include plugging and abandonment, in which its well service rigs and wireline and cementing equipment are used to prepare non-economic oil and natural gas wells to be permanently sealed or temporarily shut in. Decommissioning work is typically less sensitive to oil and natural gas prices than its other well service rig operations as a result of decommissioning obligations imposed by state regulations. Snubbing Services: The company’s snubbing services consist of using its snubbing units together with its well service rigs in order to perform well completion, workover or maintenance activities. The company’s snubbing services enable operators to safely run or remove pipe and other associated downhole tools into pressurized or highly deviated wellbores. Fluid Management Services: The company’s fluid management services utilize transport trucks, pumps and other tools and equipment to control and separate completion fluids and to haul oilfield fluids used in production. These services consist of the hauling of oilfield fluids, including drilling mud, fresh water and saltwater used or produced in well drilling, completion and production. Additionally, the company rents tanks to store such fluids at the wellsite. Processing Solutions: The company’s Processing Solutions services engage in the rental, installation, commissioning, start-up, operation and maintenance of Mechanical Refrigeration Units (MRU), Nitrogen Gas Liquid (NGL) stabilizer units, NGL storage units and related equipment. The company’s Processing Solutions segment provides a range of proprietary, modular equipment for the processing of rich natural gas streams at the wellhead or central gathering points in basins where drilling and completion activity has outpaced the development of permanent processing infrastructure. Other The company incurs general corporate and administrative costs that are not attributable to any of the operating segments or business lines, which are reported as Other. Competition The company’s largest competitors in the market include RCP, Inc., ProPetro Holding Corp., Select Energy Services, Inc., Oil States International, Inc., KLX Energy Services Holdings, Inc., Dril-Quip, Inc., Mammoth Energy Services, Inc. and Solaris Oilfield Infrastructure, Inc. Seasonality The company’s results of operations have historically reflected seasonal tendencies relating to holiday seasons, inclement weather and the conclusion of its customers’ annual drilling and completion of capital expenditure budgets. The company’s most notable declines generally occur in the fourth quarter of the calendar year (year ended December 31, 2022). Additionally, some of the areas in which the company has operations, including the Denver-Julesburg Basin and the Bakken Shale, are adversely affected by seasonal weather conditions, primarily during the winter months. Sales and Marketing The company’s sales and marketing activities are typically performed through local operations in each geographical region and are supported by sales representatives at its corporate headquarters. The company’s field sales personnel understand the region-specific issues and customer operating procedures. The company’s sales representatives work closely with its managers and field sales personnel to target market opportunities. Significant Customers During the year ended December 31, 2022, one customer accounted for approximately 10% of the company’s consolidated revenue. During the year ended December 31, 2021, two customers accounted for approximately 25% of the company’s consolidated revenue. The company has a diverse portfolio of customers which included approximately 350 distinct customers that it served during 2022. Environmental and Occupational Safety and Health Matters The company is subject to the requirements of the federal Occupational Safety and Health Act (OSHA), and comparable state statutes that regulate the protection of the health and safety of workers. The company operates as a motor carrier and therefore are subject to regulation by the U.S. Department of Transportation (DOT) and various state agencies. History Ranger Energy Services, Inc. was founded in 2017. The company was incorporated as a Delaware corporation in 2017.
