RNGR - Earnings call transcript Q4 2019 | Ranger Energy Services, Inc.

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Operator

Good morning and welcome to the Ranger Energy Fourth Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Darron Anderson, Chief Executive Officer. Please go ahead.

Darron Anderson

operator. you, Thank welcome earnings and Energy fourth Services' Good call. to XXXX conference quarter morning Ranger

Joining Brandon today comments me is in offer who a his will moment. Blossman, our CFO,

and like to of the the is our focused of While highlighting this full XXXX. spend for and our today's would QX year operational beginning call accomplishments results I XXXX, sharing call on some of outlook for metrics

this strategies -- would I last To set we to you communicated a for early the like few early remind year. XXXX, backdrop

Our wanted entering using was exposure also by the level only but to flow our that our were to wellhead, our cash cash carried modest we we balance debt not primary the within seeking increasing XXXX focus new customer efficiencies existing base generation processes to sheet. top-tier customers. and and Operationally, to our and back-office at broaden systems. further finally, of drive on And paydown

rig U.S. activity XX% of while and team XXXX execution. XX%, know, respectively. land execution to with you XXXX. As compared strategy XX% oil finished of be spite year-over-year I'm count these produced XXXX particular levels. On completion In very conditions, our by as The headwind and below met One market a headwinds. prices proud basis, strategy the drilling market and dropped gas of average will results was softening natural can dropped XX%, the our often successful

strategies. the of speaking So,

revenue business growth. a EBITDA strategy an the XX% First, drive in year-over-year Ranger’s efficiencies. to and delivered softness, Defined XX% growth markets combined adjusted

more but achieving only efficiently. bringing was equally real at value ourselves, to operating not with Efficiency while our important the While these delivered we're pleased the growth wellhead, accomplishment results, gains to customers. were this

performance we through and back-office our achieve processes systems. improved Additionally,

few highlight To a metrics.

X%, delivered XX% Completion workforce, Within stages to the increase down employee per team truck, more use and efficient revenue driver due revenue year-over-year a for our business, XX%. our performance. of but was Mallard customers' our a our definite growth headcount per average Our increased in our

did within and job already Brandon reduction processes, field, structure efficiencies in excellent an resulting his driving cost the G&A back-office XXXX. Outside versus low team in an our X% our

can I through an of metrics supporting and staff. results indication operationally efforts the achievements, more both are several these delivered point our While to and

Our familiar strategy existing second with, exposure one strategy, increasing to last new about and the customers. our talked it we've probably you're of top-tier on calls. most as couple This that is

large high a were important maintained base, quality few a integrated missing has Ranger companies. Although, and we customer all

strategy asset with XXXX As performance, missing our sound high gain pursue it these share. and we balance safety began on across we and efficiency to combined IOCs our market strong quality executed based their and sheet,

multi the expenses with contracts multiyear, per increase during came penalize and income utilization. year, higher upfront in we asset wins. statement types But also resulting contract our with During one-time two to rig they these opportunity hour came of high-end rig spoke revenue of full packages, back for the earnings deploy half the rigs Deploying year. of that the

was rig grow quarter seasonal of fourth result is This low quarter the period, fourth exhaustion. accomplished strategy tangible -- our to budget in was ability as hours traditional activity third the to severe compared further most achievement The during this impacted XXXX. which the team's quarter by year-end which of further

hours rig strategy successful challenges, these of execution to increasing X%. spite led In fourth quarter

full driven of by the packages. also Our high-end rig deployment revenue increased per X%, hour

capital disciplined approach flow And with to our focus third spending, cash discussed, in and operational our on finally, The cash previously generation fuel definitely team's expectations XXXX. our combined generation.

XXXX, totaled ofmaintenance completed, half two once $X spilled XXXX means While first certain capital. the XXXX spend second growth CapEx included million, capital in over mere of a commitments which our half

of some return, growth quick direct to was our new CapEx incremental high smaller, to ancillary wins. modest contract Our support payback assets

high base totaling $X.X to Our with million. year CapEx dividends pay maintenance young quality, asset continue full

The capital net after led debt growth of. we're $XX cash million. proud to reduction XXXX of XX% CapEx, of corresponding flow $XX which year, free All million demonstrated cash in flow figures a stewardship and quite of implies a

our Now, I highlights. starting focus to fourth would few the like specifically, a to with turn quarter

XX%. to count Our market activity Wireline continues of gain a slight against more completion Stage drop an share. increase saw industry-wide than

quarter However, The netting increase stage drop impact continued ongoing revenue. pricing to count our again pressure disciplined more margins on in costs once and labor focus highly an operations. and than this X% offset offset to by was input the efficient

Rig customer base Next continued. Spec highlight. our High-grading High

rigs and associated additional of normal deployed other hours than These our six hours offset more and new wins quarter, in seasonal rig the the resulting demand. During rig decline, rig to satisfy year. highest contract additions we quarterly rig the

Within we our of saw some in line specific Other Other under-performance Services last a quarter our within business segment. Services,

expected full we During of a revenue this with to the structure cost our completed third near-term restructuring quarter, better offering stream. the align service

to our impact result, segment's a the results. positive had a quarter efforts restructuring As fourth

Processing Solutions. finally, And

this quarter quickly during was not While off rolled has limited performance the were MRU’s contract historically or volatility, over segment quarter coming exception. this seen an redeployed.

down For sequentially. QX, revenue XX% was

performance to this are first as half look levels XXXX. well, later we While likely and itself impact expecting to return forward to reverse a QX to of in is this under-performance trend historic the

on you the quarter. to Now details a little give more

in Growth Solutions. to a Specifically for declines QX was the X% and more Spec by was Processing modest offset $XX million. $XX revenue our High from Other segment within Services million than down quarter, Rig

rates. revenue and our revenue High a Rig, rig increase X% This by experienced within was of Specifically, growth X%. driven we hours of both increases Spec hourly in

did not to with per the a revenue the regards the we equipment resulted in service But support mix. hourly higher ancillary additional achieve rigs deployment quarter. during of increases to placed hour In accurate price rates,

year we types in at second stated largely which of the assets, As directed to utilization. the deploy amount modest these was earlier, capital spend half of immediately of full the

our Other Moving Completion and onto segment. Services

revenue fourth with driven by tempered to in count record by to conditions, X% ongoing sources decline just seasonality. Quite fourth of an pricing levels down Our and accomplishment XX% Mallard-branded activity. decrease This calculate quarter saw somewhat was the revenue a stage eclipsed completion a pressure, expected during as backdrop business Wireline completion for decline previous overall the in to which modest market our peak. given significant quarter be

step market efficiencies, achieved This a stages delivering It through up per during more also rather gains in result field. in units material the was truck quarter. more the implies day some than share

pricing are As in pressure business. seeing previous quarters, this in we

that offsetting However, with to success reductions. per continue we have cost unit pressure

services lines quarter line in from down expectations. were within segment with for quarter, holiday this impact decline for our Revenues showing service the remaining reporting several captured the with

business a and revenue, undertaken changes align our last in costs revenue we quarter, flat discussed quarter line dividends of to However, fourth better segment well-testing in environment. in declining the structural margins supporting as the paid

into I Processing not and this our finally, rolled Solutions are being with immediately segment Solutions but built stumbled the as terms, temporary as mentioned we we And course Processing for ending results view quarter. this units several a disappointed contract in earlier, terms the QX new during nonetheless, issue,

offset uptick revenue in an XX% cooler Here, gas segment decline. overall MRU a An was provided utilization decrease count increasing down the in MRU to modest on MRU and rate a utilization.

for deploy various are space and to applications several idle quarter first improvements our call. hope other on on this our in contract potential into to We or share MRUs opportunities new stages front of current back

demonstration tough QX, margins good XX.X%. to very X% modestly XX.X% business from will as earnings. quarter, EBITDA Moving and $XX.X of while decreased you resiliency of million Adjusted detail from market. solid million consolidated were $XX.X very a provide it decreased now, Brandon can a a see, onto further our overall, but in to was in the

Brandon, I the will over call now you. turn

Brandon Blossman

Thanks, Darron on morning and everybody the good to call.

right incremental into detail. covered highlights the for numbers add some jump I'll a the reiterate through Let's the and full walk Darron quarter.

X% a to relative revenue overall and EBITDA million, or from XX.X% million. or to QX's Adjusted tick million to from $XX just on X% EBITDA basis, Again, consolidated $XXX,XXX $XX XX.X% from down resulting slightly down to XX.X%. was $XX.X $X margins quarter, million last down

revenues starting we by Services. segment Processing and that segment. partially the to at moving decreases declines at Other were offset with details revenue. Spec both saw Rig High Quarter-over-quarter Solutions growth Those Completion saw the and Now and

in $XX XX,XXX QX. rig $XX an $X.X moving up both QX rig revenue Specifically X% to in period increase segment, Rig QX, million a healthy hour from $XXX High $XXX to and hour rates a from was went Hourly while hours. on our hours revenue rates in up Spec million in were million, rig in X% themselves to or an XX,XXX hours

given been seasonality down the notable This impacts. rig about revenue hours and revenue expectations at level holiday the where have XX% single is hour that more quarter-over-quarter, increase -- given our other revenue for even this rig

gain percentage bumped fourth rig against on gain basis. in So rig rig XX increase the completion in the our quarter average hours quarter. down a up that share rigs low-teens a expectation, XX% implies for Also one to market count the

which than a quarter. Wireline more X% increase offset in revenues per was a services slight declines X% the sequentially, X% the count In driven from QX, other Wireline Completion down partially reduction and during stage $XX million down non-Wireline or by both in sequentially. was revenue revenue to fourth $XX Other the with million themselves in were seeing $X.X stage, and Services segment, by period million

declines and our just again Darron other count our lines expectations, was line overall in activity. The occurred seasonal record non-Wireline given this previous drop-off quarter. stages four service per in with in lines As stage business exceeded quarter’s the noted, quarterly across largely

And Solutions finally moving to -- Processing segment. process our

sequentially. our MRU count the higher Here, off million. a as average was -- MRUs units reduction deployed was were up XX% in of and contribution fleet, the revenues XX million remaining service XX-unit units million a pricing from XX eight The were contract units average rate, the in revenue offsetting in utilization a not this with QX quarter. to entire Also coming bringing up full $X.X the at modestly in The $X.X unit Darron being partially quarter from during MRUs QX X% to down decline gas with QX. MRU for deploy mentioned, from cooler driver or redeployed moving decrease, material coming $X average

segment corporate moving million X% -- onto consolidated -- million QX. G&A moving adjusted saw in is level EBITDA to Now $XX level EBITDA decline Overall, this segment quarter-over-quarter, before $XX.X of and a level and margins. modest segment from

High Processing at segment was the Other segments. by sequential increase Rig segment, Spec a declines and Solutions Completion Services at and level, offset Here EBITDA

million segment Rig million an and Spec High Completion of EBITDA Solutions saw and $X.X offset a quarter $X.X the decline decline in $X.X EBITDA was Processing for Other increase Services. which Specifically at by million

front, sequentially margins the that flat revenue before XX% -- XX%. at decline margin around segment Completions again overall consolidated margins Disaggregating is at and the Other segment. Services -- margin that held despite in this On were we XX%, level, flat this segment corporate the approximately to G&A saw

sequential a XX%. on cost High margins driven Here, margins from uplift basis. in particularly to management by XX% well-testing help increase This to rig an Spec in successes, hourly primarily sequential Rig maintain saw rates. the

margins to MRU For by move of the driven XX% the Processing higher here segment, was XX% and decline the contribution from Solutions margin from the down reduction rentals.

onto Moving expense. G&A

some year-end of with against As which EBITDA payments. loss offset of professional This $XXX,XXX the non-cash loss a QX’s that adjusted up G&A decline. change full expense, up recorded the was We line of sequentially tax non-reoccurrence income, by along largely $X.X an quarter-over-quarter QX year true improvement the improvement. in QX’s driven just year-end $XXX,XXX million was in partially by $XXX,XXX income quarter-over-quarter items on Net reported was fee $XXX,XXX.

balance and metrics. Now, onto move the let's cash sheet flow

million year full million net of net XXXX, of XXXX exit of reduced For $XX we nearly produced from an the to the cash QX XX%, year-end $XX moving flow by and XXXX. nearly our debt from million $XX year balance debt for operations --

from of During the fourth quarter, reduced million. net $XX flow and debt million cash operations $XX further we produced

QX, million usual $X.X to the schedule. combined netted At net quarter’s from QX was balance which reduction term $XX amortization reduction. of per million, down cash, slightly end $XX our million our in reduction debt revolver stood $X.X debt in at in our $X that was million with debt a quarterly by $XX term million draw this as reduction million That offset

and new for recorded customers. for integrated High to Rig, related upgrades That CapEx assets breaks quarter $X.X quarter rig spend and new Now million $X.X $X.X solely almost moving million. down this was preparation into onto our to Rig work for similar to Total packages was the to High Spec CapEx. million attributable in existing last and Spec

And $X.X then was a of fairly add vehicles bit which another new CapEx leased fleet. number. low quarter’s a catch-up light to last after did duty Maintenance our of worth $XXX,XXX million, reflects we $XXX,XXX

$XXX,XXX shares or Our worth of about stock another the quarter did shares stock. buyback program, we buyback handful during of XX,XXX

to And liquidity. finally, moving

million million revolver -- $XX revolver – $X a million of and draw decrease with an in offset liquidity, $X draw million offset quarter-end from $X that's base, sorry, worth reduction decrease we borrowing an QX, $XX $X million slightly which QX’s a by that’s For ended on was no, hand. million reduction up in a decrease $XX cash by in on million on

my and for turn back I'll to Darron. it comments, That's over it

Darron Anderson

Thank you, Brandon.

So, first fashion locations has page happy turn the looking be, move I'm would And the customers started forward, XXXX in to to XXXX. as answer year XXXX, a started? the XX have service some to it we how for as is similar budgets. question sure we geographical lines start slow My

such are our our stage into Additionally, such we the exposure locations with seeing we've Year. positive as rate greater we for offsetting results and full our these packages. dynamics move Mid-Con pleased be by to continue count New January driven as Completions early But region rig bar in Mallard even position as higher XXXX. the Spec business challenges raising natural again gas improvement experienced High in with our together, Rig continued Netting yet

Moving into a first to couple with continue our is the strategies. of successful objective already year,

goals pursue commitment the We work customers share for value both quality, common efficiency to parties. and for safety, and of are maintaining our who

still While reporting XXXX, was have across gains room segments. progress market we made share improvement of each for and our further in ample

with XXXX are incremental or very a alone, two High and completion Solutions added in maintains dialogue far bidding Rig Mallard Spec So who new Permian brand new Groups calendar processes customer active our Processing LOCs. has our and an dedicated active a

will again a Efficiency focus primary XXXX. for be

industry and continue to driving combined technology continue effort drive to will further customers the by ourselves. will business. the We This of at one collection ourselves best leads into data challenge assets and wellhead for our efficiencies for with of the our in

to similar balance XXXX focused sheet. our Another is

all we to our we To must year maintain to when our to the us cannot. plan was that leverage balance affords time, an sheet the strong competitive a withstand on sheet, fronts. While can fortress for and solidify year conditions market as balance do that a this, others moves last of current balance flow extended used period sheet strategic cash this one opportunity make advantage

sheet or met needs in asset their their cases, is unsolicited is to coming strength clients. for cannot some While customers concerned get early, about it current calls balance leading supplier are These market the are of our quality. sustainability they from to opportunities service who due

one-off, built strong Additionally, This with that acquiring around XXXX lines, balance payback sheet to our complements may service half of be ancillary an capital asset asset quick allows to complimentary our core to spend assets current base second opportunistically a us low service investments do our or line of arise. as the or additional offering. opportunities executed one similar

Please growth do not comments take aggressive implying these an year. capital of

environment this when balance will simply total is with to plan conservative We conservative allows be mix our flexibility will remain strong CapEx, spend our plan. in Including sheet but market the CapEx a us become low opportunities XXXX of in available. service A current adjust attractive operating, double-digits. our capital XXXX maintenance the for prudent

We similar cash last free execution to repeat expect strong itself in operational with flow to generation year. our XXXX,

While have help that continued pricing Spec and full is on hours results, impact negative pressure packages negative Mallard with stage a offset will growing strong likely a impact. High to to Rig count

of and performance newly our our further we customers. Solutions our have rig service we continue upside improve Additionally, into Processing smallest as integrate lines to some acquired

over year. very All will with reduced this albeit free cash produce projected EBITDA performance into capital modest macro a XXXX much spend given of again strong flow the current environment. a translates this a growth XXXX, Achieving

will this At the of my our be XXXX. finally, at use level, looking board flow. we balanced final objective cash free me a to brings And

full to conservative Here take again, approach is maintain strong the balance market cycle. sheet we and plan as our a desire to a cyclical we through

However, cash plan dividends more know will our to success opportunity And XXXX do in we to yield allows the board board progresses. consider even year return aggressive buybacks the shareholders. conversations of our include as that that stock to cash execution the or generations modest

highly what's to would of entire for In our I us. is ahead closing, that team motivated say like

We have year. position solidified advancing forward our across look it to and market the

is While to another forward year we exists the tough, opportunity and sharing the for look successful you. our progress market us with for

prepared and the our open concludes now for will operator remarks, questions. This call

Operator

now the Instructions] will We [Operator begin question-and-answer session.

with Jacob Our is Suisse. Lundberg from first go Credit question Please ahead.

Jacob Lundberg

good Hey, guys. morning,

Darron Anderson

Morning Jacob.

Jacob Lundberg

just guess, customer had recent just on kind I to prepared the this of perhaps little decline in a we've remarks, conversations in year. beginning $XX about start and since you Darron but more touched off the oil of on prices your crude your

will sensitive base sense prices? You the in budgets crude prices, be their customer guys get crude less a you in what's towards operators is light is in done anybody change. the XXXX but a oil job good dramatic rethinking FY -- -- it fairly reorienting have happened changes of Do a to that little the with

Darron Anderson

Yeah.

great very So, is a I my question. tough market, mean, as in I comments. opening very, said it

started certain bit had got start. as expectations. as significantly starts the think we budget little activity part we've a up. think, pick February, I XXXX was to we level early and a of into operators, we slow today, here say But as I January of

call XX% last a count dropped as a got recently and was operator freq from pretty as of healthy about a spread. their who running particular Now, phone night

rethinking first example that seeing dynamic next market no So, of of of, a impact any their operators here January. Again, outside plans. impact not Ranger, an think be to within and the I I be softness weeks going the think we saw over three to quarter, we're but just it's very will the

on that we've February, rig revenue on side. seen rate producing over back we're the to side, highest year past in rig run Specifically our

of the strong. very, of They month set for again Our Mallard very business, count the January. a started record off side

we're difficult our But be will that to have that excited deliver So, hard very a to have aware about very very and very present work we it to very, and to year, we're we planned. going going is this challenges business. market be results the continued

Jacob Lundberg

it. Got then, allocation That's capital the on And front. one helpful.

as your in lower another strong are for release you set as flow year with earnings generation. on in going free be and comments cash well, the CapEx to it obviously of So, year-over-year EBITDA stated you're touched growing if

the the available returns also So your you on shareholder of M&A touched But market. for curious I'm increased terms in potential in take on on in XXXX. what's

there appealing near could you being it are you shareholder would If to just I'm that growth of markets curious appealing Is -- -- they you of over And just kind interested what that be kind at returns? incentivize prices out guys what the an market are sort anywhere assets generally shopped? of are to you're there look seeing in speak in? today? guys assets would inorganic

Darron Anderson

cash the acquisition approach is the that's objectives up be if cap Coming back but level, into board type to one on we and We on sheet, positioned balance to turned like that to this expand, at build clean level, I generating opportunities. feel Well, board whole think our fortress the of cash to the balanced balanced when XXXX the shareholders act the conservative and business. also grow being at was so to discussed return be balance market continued sheet, that's the could free of comment, that like the build flow. do we a would approach

there's see can upon. think, we to, opportunity a continue we'll I opportunities So, if act and we review great

-- assets acquiring I not anytime think, to we're have straight to new having the we assets values there are we out assets, look and market. at going specific for

of shape on. that what are high good We quality that at in existing are bring looking can we out assets

a couple give you I'll examples.

process. from drill reduced X,XXX had will rigs, very a that online our frac up horsepower at of to that to to value with horsepower We come were shape There's compared horsepower pick out pair new in XXX up has sales and from X,XXX lot out assets The pumps struggles. great horsepower seen going to able very, a some rig. drill were we X,XXX market a horsepower. the On we've needs now

like sheet balance itself. be we allows a those present do, having when to opportunities opportunistic us So

point. are very at low this values Asset

continue identify opportunities we'll so, to XXXX. those across And

Jacob Lundberg

there business? And would to are -- to lines Okay. would actual service new you the existing you new -- or augment service follow-up just Are there a there. or mostly product enter, look look

Darron Anderson

both. It’s of the combination

our our think around. you a really at business I business, you that's look build strong when look Completion if and Mallard to platform at

what operation. that So, Mallard and service that additional that inside offered do would conjunction type of service lines provide how we we lines can these augment the with business are platform in be and operationally Mallard

again, So in same the around rig core? on thing build we the but two side, how parts. The do

our high to well rigs, out way what we those drill case? rigs? talked Is can horsepower with come augment as are service the Our X,XXX as pumps, out lines the some like rigs drill there of with our team a out services offer I about pressure

same rig thing what our P&A into. get side, can alongside provided then operations operations the And with services or that production are production on service well we

-- it it's but they more adding augmented, a just of if So, that, combination, not service go I detail lines. into won't additional also it's than maybe

Jacob Lundberg

helpful. my taking questions. All right. Thanks Very for

Operator

Burke Daniel Please from is question next go ahead. - Johnson The Rice.

Daniel Burke

Yeah. morning, guys. Hey, good

Darron Anderson

Daniel. morning Good

Brandon Blossman

Daniel. Good morning

Daniel Burke

Hey, meaningful Darron, your and -- heavily feels like opportunistic too into you've opportunities or to reasons into -- purchases reference is, much to word of asset And potential of I wondering ancillary in if more or States? I'm level reading sort service interest expand but and if features what the what prepared it consolidation of in in and lines, that, was of sort some the sort comments. made current consolidation your

Darron Anderson

just about consolidation market do well we of and We've are the getting asset we we're of that, getting services -- and do they're are asset service the -- haven't us have there of we're In quality consolidation reaching us are be and quality pursuing cost gotten to specifically takes providers. and cautious to part IOCs, because time needs yet share to to that other out I've we calls. have a getting us these or my think be think it's process list what definitely to that wanted efforts. those our prepared relative said gains about from customers their us even targeting we're us phone occur. as made some frankly always customers we to are we comments, We group is We who customers of notes but

We our be sheet, that, of quality, to are So, we're asset bringing we we don't hinder balance direction to we that customers of consolidation. want want part change that organization. do conservative, the being the support our because but to and value

Brandon, that? do want to you to anything add

Brandon Blossman

So, into focus one, absolutely not intend read did versus a of change consolidation to terms of in anybody anything not.

So front, we the are, if in anything redoubling term. to center is fund of that thinking our efforts XXXX this still terms year on our M&A longer transformative relative so for

that just a the I have to one a still the some a to when and expected to think at at. that of XXXX combined entity. terms we perhaps kind it's of candidates cash relative when Darron's of look absolutely, stops quality we're contribution is it's adding of of while metrics for merger deal we looking in flow cash And to the a comments, good first combinations, asset look bit problem hurdle potential have, beyond our flow at we

makes that's so, of to or even process, that we backdrop get challenging, through last macro given part it week so and as have current And the date harder. in to the been that

to the on deals getting but generation generation So, cash absolutely a also want some it shareholders -- roadblocks here cash absolutely, and creates perspective don't done opportunities a being current market so dynamic easily. we flow our from create dynamic flow

Daniel Burke

kind more in overarching we -- revenue helpful think per -- QX year It heard helpful. certainly fill the that of question. hear pieces. in to That's to But of to XXXX full High for may the all Rigs be I specific was reference great that you then, the And will XXXX in it. the again hour Got hear expectations XXXX, higher it more EBITDA could and I I Spec guess QX versus tick a sort thought specifically XXXX.

been of to the a comes hours is had start impediment markets look full -- weather big gas but have the there's opportunities more in there in QX. been I’d just but and XXXX hasn't as you'll an gain I’m what also the year, and to recognizing curious was challenged, this like a also of understand along, capture QX, slow bit too quarter some share captured imagine little

just hours possible, So, or I was if well type way or mid in XX% ambitious? as increase a too single-digit wondering service that's

Brandon Blossman

and to line so by the indication to with rig and going down, March, is increase increase of to side. rig in top the So for due everything Rig for here full side said revenue the which And start for the Spec two month that packages of rig a that being rates be the given that combination the that we're we with February. out quarter. packages, the no utilization will you quite the are slow to agree say even getting into up we're expecting we're on in the High we're hours. is January that's there's I happy fueled what the Again go with driver -- slow months trending on

revenues, and out with that be it, cost. relative its rigs quite costs, associated labor rigs they'll the will additional both these of costs out I -- and because time. putting subdued think increase that's bringing maintenance repair to haven't that but that's margin, not there, be from may literally may challenged, we're worked as for We're a the period

So, rig crews, during that on-boarding of across that just investment we'll so statement. on will cost side. us additional that expensed the There's that an rig income upfront QX hit and most into get does there's the have

contracts the that that of get the of full the for to benefit new will had the full have business, direction optimistic So, for year partial XXXX. XXXX from for optimistic that only we

Daniel Burke

CapEx it one little is to the maybe just you guys extend, $X a last one quicker maybe with one. And bit it. But if rate Got like million run -- for this probably seems maintenance year's in we maybe growth XXXX? small what's I'm -- figure off budget, budget that me and the or look at know, growth what in what's budget, albeit cap if warrants last CapEx let for

Brandon Blossman

expectation, won't off too I so it room figures, maintenance double-digits and I you saying probably much talk about mean, CapEx you're the dollar but low far with specifics, when into leave there. not we’re doesn't go your

just So, capital of share, But we've I but going identified. contracts. earmarked supporting a future ancillaryequipment, to exactly for assets be to contracts it's it's that know say win to to -- support we needed really grow market we're wouldn't continue that would needed continue

Daniel Burke

Got it.

time. for thanks the Guys, Okay.

Darron Anderson

Daniel. Thank you. Thanks questions, for

Operator

[Operator instructions]

is go with Wells ahead. Fargo. The next question Chris Voie Please from

Chris Voie

Morning, guys.

Darron Anderson

Good morning, Chris.

Chris Voie

you the is sudden pretty in thus rig have customers understand But and backdrop out on side price asking any recent. So, for shift the the break? reaching far, had

Brandon Blossman

seeing price very and hours seeing hour at point. what higher. we're say at out had are for. a early that price will we're return that I we can margin across the those been growth done looking in So, But job get our point the have defending rig QX, even you at could a the good that we rigs that When look we we're QX only

Wireline aggressively it's is the it rig price in the pressure defending it's market. pricing there a results. But side. and So, exists we're that point, very The difficult I definitely in side, definitely think, on the showing

we So, with we're happy there. stand where

Chris Voie

that kind service certain kind rig In the of pretty in then, or to in consolidating rig impressive basins to their in basins general, are facilitate And you the of business, competitors hours. exiting Okay. gain quarter, growth? seeing core

Darron Anderson

shutting the Yes, It's we're seeing a basins. some competitors doors combination. basically in

bit a most the leader shut little [ph] where I Mid-Con. so driver. competitors the definitely Mid-Con a -- in is doors, prevalent We've that's the seen seen definitely but area think we've definitely is

relative a the to young -- we're competitor. Ranger remember, company to fairly that think you got I still

the penetrating we're So, still time. first customers for

share of the picking the I we're higher differentiating think out market pressure So the equipment doing especially up rating drill horsepower XX-hour ourselves, really market we're type and there, higher on there. or efforts requiring some internal

market it's in is them doors. competitors money that those So, the some one losing at breakeven combination are and this of were of are a shutting and attributes

Chris Voie

could I if sneak one in. more And just Okay.

right Wireline much pricing side, the flat On the where the to much just would pricing right you for is now leading In pricing on activity? mentioned other lower pressure, edge Wireline average where be How based in compared revenues how is now? XQ? the words, assuming for

Brandon Blossman

overall the won't pricing Mallard for competitors, Yeah. our it's that's And low. and or price I relative the a is Wireline lot of ticket other to whether Again, numbers. I because side, variability completion business give that think Wireline there's any specific

efficiency, you to allow an can can't stages will and your execute And you're price day, pay higher get more point. operator perform going so typically to per operator bring and if see

we yes, of have been So, all XXXX. impacted across

good to a very price getting executing the us the market, in while we market. available the have us get team allowed think available has our I best done in job been hindered the price best

don't you give specifics to numbers. want So, on absolute again,

Chris Voie

Okay. it. Thank you. Got

Operator

I Darron like This the to back concludes for would session. any our turn remarks. conference closing to Anderson question-and-answer over

Darron Anderson

our of all the participation. have want Well, future performance start delivering you. XXXX. thank to want I forward on our them for thank to to calls want for just sharing for we thank across brands look results everyone I to good And this their I XXXX. we with

So, everyone. thank much you very

Operator

attending you presentation. concluded. is today's now conference The for Thank

You may now disconnect.

Ranger Energy Services (RNGR) 28 Feb 202019 Q4 Earnings call transcript