- Earnings call transcript Q3 2022

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Shelley Weimer

Welcome to the Ranger Energy Services Third Quarter 2022 Investor Conference Call. I am Shelley Weimer, Vice President of Reporting and Finance. All participants will be in listen-only mode until the question-and-answer portion of this call. Please note this event is being recorded. I would now like to turn the conference over to Melissa Cougle, Chief Financial Officer of Ranger.

Melissa Cougle

everyone. morning, Good

is who today, new our and CEO Counsel. Joining joined Stuart us Whitley, is our at Justin me Bodden, Ranger General as

We onboard. have are excited to him

of I cause may include and and matters statements, These participants results company begin, Before future to to remind company from from involve uncertainties forward-looking like or prospects, materially current our filings. today reflect that based earnings the actual detailed beliefs of risks conditions our forward-looking revenues, on reflecting public our statements certain all expenses the statements. we comments that and would risks the some could that differ about views that are to in other These release subject profits. and are uncertainties

operational of also non-GAAP turn is these A measures, on now and items Stuart. the Our include These which is will not substitute comparable and call our be other our presented measures not available website. in financial non-GAAP to for I measures. a to today similar over companies. they GAAP earnings are release, measures of comments reconciliation may

Stuart Bodden

to you, and us Thank today. Melissa, joining everyone morning good

mentioned, very General Ranger has Whitley and we onboard. Counsel, are As joined just excited Melissa him Justin have to is

us. Justin for I Again, to oil welcome know Justin. brings a the a and And fit wealth to experience the he's be company. of gas service great going to team,

the revenue to all another our you thoughts performance for morning margins strategic outline with segments with three All look of the the and expanded quarter. speak delivered Ranger quarter during in share showing QX business we of and some results, as Ranger strong us excited are increased of our QX, to sector and this our of discuss outlook to future. our

of quality work on result hard Our our disciplined our and focus and direct the of service continuous teams is execution. the strong performance

to in years from fundamental Due execute performance getting Ranger first spent improved a the acquired during and efforts, even XXXX year. this financial blocks company's have of building prior to We those and the place the at with much half year integrating is excellence.

multi-year acquisitions have on Our shows provided and which several a team first shared company We and upcycle. hosted leadership for performance in created this incremental meeting to positioned opportunities leverage, quarter our valuable our shareholder is find efficiencies and to developed the and scale have team across expected to operating past and capitalize segments. that new objectives growth in our value years, what be QX XXXX

new to such a that and as brought changes, one wave initiatives We of organizational are the Justin creating our team.

Ranger our help positive these toward drive vision our energy As states, enhance new efforts culture. will thinking and new us

quarter-over-quarter, our XX% Looking company specific of doubling the the levels results, at revenue grew pre-COVID company. nearly the by revenue

than with $XX.X back as prices of EBITDA well just basis million XX% operating points leverage. Our adjusted improving increased by EBITDA increasing strong XX%, and as over to XXX to more margins on the activity

and capacity are Our the yet to and the into have that EBITDA tap have assets we historically, levels ever seen revenue and operating future. we highest

anytime let's its to quarter-over-quarter to higher to total talk stands quarter, on load continue increase balance minutes we focus rig XX%. about year, than This $XX be moved allowed nearly possibility regrets one per to approximately current sales hour half stable by Rigs, spend its total worked, that reducing ongoing currently able the totaled capital managing continued few Specification the going is High number our has leverage our of these been times which moderate at hours performance, XXXX. anticipate surplus and working rates of during forward will We the a increase has run-rate. for record XXX,XXX had to on hours debt assets deleverage In debt a at segments. gains our basis. with operating Our EBITDA and below for X% had at a Ranger well on and Ranger this Ranger, quarter, be now of $XXX million by some level I blended additional

but has count rig stayed active maintenance steady the the into customers in Our past between rigs takes yards and puts quarter, for certifications. and and for

notably Our received teams feel of more margins. the operating focused cost Natural key Quarter several award from the on this quarter, management We've which with Pioneer be relationship customer proud expanding and partnership Resources continue penetration in of the customer. and to acknowledgments we continue been Permian We efficiency, market drive execution, and this strong will most the region. Rig

acknowledgement quarter this accountability. use We in from effective stockwork safety outstanding operations majors also received for of two our separate and super

which program, call are stresses your that accountability that stopping of and the got the got importance stockwork six, knowledge Our has we confident unsafe, I your management activities back.

do in our typical we seasonality impacts. For QX, business expect rigs holiday and

have that been We have impacts the some largely budget customers. are with other been seeing other exhaustion, rigs redeployed isolated released few of

rigs earlier quality, including short, we our significant this with are made improving over strides made to business. appropriately Moving segment of to is business of in the on changes This in increasing million changes margins this year, more in QX. twofold service redeployment of revenue to than a segment, XX%, EBITDA XX% improvement and of result ensuring we Wireline with have series profitable. assets increased $XX focus leadership, in our a In

quarter and in the to seasonality, We the We to the segment. are some and latter expect believe more of part encounter in northern Wireline operations early this continue XXXX. proud too do of during potential of that our into there's this first progress year

pushing begins growth quarter our assets. year, next in activity Wireline be of first for to and will we additional As of the utilization back up pick

margins had and a quarter-over-quarter. revenue in gas strong our Well, Torrent, EBITDA level tubing, merchants very P&A, level EBITDA Ancillary above than more realizing businesses, and processing level rentals saw we in segment segment Services -- Finally, doubling our quarter all fishing segment and XX% division, increased field

QX, margins tuning XX% Our realizing is and showing XX%, rental and grown and has year business while year-to-date end, business as and fishing XXX% grown coiled since promise XX% well. of has as our produced margins in EBITDA

on the And and active end acquisitions the that product and We opportunities look actively believe on consolidation returns, our create Ranger ways board front. where go dialogues to last year existing field partners inbound is accomplishments the and for value here, remains company's this it be value reflect team we management that and The approach consolidation an demonstrating from strong strategy ongoing at delivering executed to the for and for we to As now sector process and year of our Ranger adjacent are clear essential within maintain company broadly. we more engaged potential regularly lines. with both continue together.

our We group our results. have shares investor about this quarter's excitement

business been worked effort, hard I'm our company, to incredible has a segments and Our and teams all across It accomplished. the and our strategic proud financial results team Melissa dedication up. they've our some outlook three walk truly have results. shown back talk of of more the details turn But through financial what of call our shortly, over of priorities I'll about to here now to and the I'll them

Melissa Cougle

efforts I was here the really of for quarter of see demonstrated Thank our financially. Ranger the at and great gratifying a results to you, team all Stuart. It think

the million second to income And increasing over of the from quarter's of and gains QX. all Our our service financial third net reviewing earlier showing revenue details the consolidated excellent, increasing $XXX.X lines third in grew were results, an $XX.X experienced $XX our activity and quarter the pricing improvement results quarter quarter $XXX XX% company year your The the quarter in for posted in quarter loss. second with of million million, effect. million net full

$XX.X stage revenue the EBITDA by X,XXX in in $XX in levels High charges In strong $XX.X Rigs Wireline was forward, our activity in increased bps for the to the Adjusted as $XX million top-line. anticipate XX% Going the quarter. generating quarter in million due from to $XX.X High as counts in quarter. XX for effective the during XX% for and million business, over in third quarter and EBITDA million quarter-over-quarter in positive segment from position as activity stages third Rig improved revenue from of expanded second Segment prior XX% completions stages segment quarter we gains. earnings in quarter the quarter, -- million to $XX.X in driving both in quarter second quarter. second production third from should increase business. that second increased rig the X,XXX over quarter to compared XX% QX increasing the unplanned periods in retained period XX% a third second an within expanding that to year. net income XX% was and Specification in both from the XX% increase in in same increase The positive $XX the end were levels non-recurring. with in to to during the well with to levels to third by million $XX.X X% At quarter, due the revenues the QX our to Rigs third some the during quarter prior increase full million be in activity during from Specification this quarter segment hours margins rates QX, the million attributable quarter an at the the a the from XXX Margins do improvement the in level the pricing future increased

We during third also the in pricing gained in quarter segment. incremental improvements this

business nearly ancillary strongest the $X.X coil of in from and tubing in EBITDA rate. a quarter-over-quarter second increased quarter All additional coming the the $XX.X the $XX.X third quarter million for growth product in XX% XXX% deployment to processing from Adjusted QX $XX.X to revenue XX% from by attributable Our services segment QX. prior grid our lines this with with from to quarter, revenue coiled ancillary in million million an increased unit. of growth the million

the decreased to during settlements million all largely $X.X decline from $XX.X quarter-over-quarter second $XX million and million changes expect G&A, severance, integration the by legal continue front, to of period the costs, during fourth in On quarter. over third related in to the G&A the The quarter. we to quarter which costs

balance the flow million Stuart, million asset the $XX.X reporting or debt at reduced and and to of net operating load outlook its this by of the Turning the was to down debt the proceeds that, million, With $XX.X of $XX.X with strategy back cash over company for net address third pay million. sheet, turn sale adjusted it able quarter the over company end the and The quarter, debt, totaling thoughts I'll quarter. on to is $X.X our front. XX% debt to

Stuart Bodden

clarity XXXX. into QX then Thanks for Melissa. business the more and like provide into our about thinking and would to now detail I moving

see to across continue and resilience demand We lines. pricing service our of all

those our picking up been to isolated pockets early market already back work programs, seen rigs rigs exhaustion, although for have customers committed been that We customers, budget many services increased released few tightness other setting to for likely had The early up of in XXXX. have in have extended XXXX. redeployed

Although revenue during XXXX adjusted and be XXXX. margin to targets be $XXX we Full expected levels recently at customers of EBITDA the opportunities $XXX and year, our our have a mindful of with end to $XXX And the year anticipate year for we million incremental around demand full guidance now a potential updated recession, hold full to throughout and XX%. full growth. the prior are year million which year prior indicated activity they steady for production We for $XXX intend maintain are between see to guidance top guidance margins exceeds near million million.

on fourth But are percentages. digit believe we seasonality seasonality customer that impacts that decline affected will revenues individual as and holiday adjusted expecting well. by dependent EBITDA mid-to-high each by and be typical quarter, will could be likely During highly single the consolidated the

that highly great target those harnessed specific the EBITDA down and upon XXXX XXXX. pin year. through that half we momentum during our to near develop believe teams We next And of right we Although the do targets team now at in with build back remains XX% budgetary staying we for are can focused opportunities QX. have margin working

believe is and utilization to baseline there grow details these additional we provide second grow to using to year levels. light during of the we'll does and business plans first in quarter. across developing shed more the a results all and half opportunities budget are XXXX our out XXXX We be company segments, additional are ready The as that full report when

deploy facilitate to focus are to these Our discussions make assets improvements teams budget be through expansion. our will sufficient incremental demand and there additional operating margin where push efficiency to market to

the steps of our next drive thinking management I time desire you value would those thoughts light board the with successful spent acquisitions to company, Finally, like and of and in about team integration share of significant some now. for XXXX creation. this shareholder to have the quarter our

economic cycle, the our the in quarter, as without and investors gathering strategic and to ensure of should the our go are of forward discussions and we've number and paydown at and balance well. environment this to we company The vital, strength that believes company. and our The company company looking continue majority Over any the a thinking. team sheet the a There commonalities forming resiliency as part that spent are priorities balance time a of commodity any believes these that have the and absolutely foundation deleverage sheet vast echoed belief. board investor perspectives that debt is during debt should Ranger management of

that company coming appropriate opportunities an and remains be in company's to company the fragmented of Growing the long-term. essential active years. generate an a scale part sector is smaller highly in the additional should pursuit in public over shareholder of a the the and gaining returns the As space competitive, company consolidation strategy

front. an advantage maximizing We to balance will engaged have these and discussions. financial us we sheet And be provides and in flexibility strength believe on actively this continue

focused Finally, and to we be decisions. need remain investment flexible making on sound

With continue consider and return the shareholder This will prepared or and dynamic to our remarks. our sector backdrop, concludes evaluate framework appropriate we to either buyback time share the dividend. the market

for open your questions. we We time it And appreciated will have today. up now

Shelley Weimer

phone XXXX, please your the ask [Operator We caller Instructions] with begin The the question. question-and-answer number will session. now

John Fichthorn

Yes. John Thanks. Hi, this Stuart, Fichthorn. is

Stuart Bodden

morning, John. Good are you? How

John Fichthorn

you? Good. How are

Stuart Bodden

you. Good. Thank

John Fichthorn

out numbers today. Great

little currently yet You around time, done debt, net love sheet, to you quote, And would speak debt You flow? at your on the business. running guys bit really balance you all rock intend EBITDA. down the if you talked have well a cash of a below what with same paying job do solid how could kind times excellent I just it, expand is guys explicitly about one the

sheet. So much balance is pretty I say would that solid rock a

your currency further your a I'd competitors shareholders. cash love would are to on as form you like as of of or in both seemingly do it thing well thoughts returning it. And would stock, All the seems do use fashion. kind something your which But some currently give that acquisitions, to shareholders right support for to

Stuart Bodden

John, much thanks Great, very for for thanks the the question, appreciated.

lot of between As we and board. said, the there's management been a discussion the

I couple the through number really focus really, large for investors with their We things those perspectives of a our quarters get also a came to as think of out. well. conversations, And

a the So been net zero. just that thing have first debt is to really strong desire

we So our strong, do you target as have very clear to think, a be sheet that zero. net balance we said but is very

go So forward. that's first as kind the we of priority

need We're just be there's to current We also and our consolidation sector, if we in of develops. lot feel lot segments our like that, to act and opportunity. something adjacent like segments, opportunistically the current financially, having we feel conversations a still of a flexible

is an to coming discussion. that ongoing would and in conversation board and be framework quarters. the expect of with we Again, return investors going lots months the and will that cover Our continue

John Fichthorn

continue And just with if will arguably with EBITDA, EBITDA million million, next for net of net of in months, you that quarter level $XX you zero, was achieved, target four have your this run-rate. debt the adjusted the be debt $XX this

imagine. getting stocks three obviously accretive mean, And you when what stock price equity is consolidation times a in to it do? How consideration fashion Your buy for cashflow company you trading your up? intend I do I is at further can your without would not, an

Stuart Bodden

lot the be best could term discussion dialogue to be value we again flexible but of for was was board. with on reach. a we But And company get where the opportunities. this to it discussion. of we an that the really of that again, not broken Again, and thought is We it to zero, a thing kind going ongoing John, long the net record, had Yeah. maximizing like do on -- be to is

to going this to develop, our as So I think conditions framework. market continue just don't is, we're reevaluate think I again,

John Fichthorn

Thank you.

Shelley Weimer

The go next come the caller question ahead. Please of from XXXX. with the number phone will

John Daniel

It's is this and new person nice good system guys. balance like in call from too Hey, for and someone Hey, lived cycles. if the Really heard about many way rates remarks, through strategy on confusing quarter me. The I prepared in 'XX. who's John old the an results Daniel. you've in debt for call I forward Stuart, talked going expectation stable think correctly, an paydown

is year. which which for XX you 'XX. As call there cited positive, from customer now another on would quite through yesterday may their for rigs are instance, activity know, it survey, actually next views levels different internal call Patterson,

they move would you Let's upside are there'd still plus a right. drilling in that rates being And it do In from see assume think stable? the rig that's call Or further recounts. scenario, here? XX% count you be

Stuart Bodden

I absolutely further think scenario, that be would upside in John. absolutely that the

John Daniel

Okay.

we enterprises, further to interest still and industry lot seems be of a to consolidation. there various As speak LFS

that noted with consolidation. you to You though And for would low, as take I'm what a more think sellers reasonable EBIT, the asset point going on than unappealing valuation multiples given on prepared of logic the But da valuations look the it's I differences, to the going the screen disagree what getting feels overpaying continue high. to expectations? inquiries coming even value nothing like more would steward start value. to had to there's -- don't think And deals what to just might we're have guess I industrial where replacement an in inbound your you still anyone further further in. from But comments, kind happening. think it do keeps said you see you I of just

thoughts, So your just

Stuart Bodden

thinking conversations our been of I'd equity about question, say And majority thanks a for the would deals. the John. How it. Again, be primarily really we've

than rather raising, debt going of get of to as paid and So something. bunch kind a for

discussions. in again, those themselves potentially think, some the debt have do a have way, ultra-conservative that's most why sheet. targets Because would balance being been that we absorb. So with that's of I some that of And the we're to

So, the deals. again, generally, but equity be think I it would

John Daniel

tough, then there. Okay. just might it one here. one, And And this might two I'll I be out throw squeeze last a more but

deals that in In the teams, greatest or management the to the is done? M&A, incumbent private terms getting the equity who tend of be people obstructionist

Stuart Bodden

these one. Yeah, companies I have that and say -- tough some social I that overcome, realistic the are of issues that definitely think personal the is So but not a more I going duration say been is held just think firms, many true. to that speak PE they're do it that, by to think I'll easy people appear. just experience from I that think of conversations. having I'm given

John Daniel

going the there. the granular points data back by to I'm I really great. the of to operations you tubing, comments improvement. rate your any on in Okay, have go because here coiled impressed was To extent notes

Just if opportunities as your there. in we or want see your me give us give thoughts and market on you -- to range that participate don't

Stuart Bodden

we our fourth in coil the put large So, quarter, to unit out work.

that So some At quarter intend liked unit. leading a of supporting business, that's At equipment been the said, on That but that out moment, the do have moment, reflect results I the business. supporting don't seasonality. focused expect DJ. DJ-focused we we really to the fully be to the moment, pretty we The the it. don't we think have have the that it, full this we team DJ. utilization Again, we I've it's intend go at been fourth I

John Daniel

quarter. good Really letting for me one. Thanks that great. Hey,

Stuart Bodden

it. Yeah. Appreciate Thanks, John.

Shelley Weimer

XXXXX. with of go ahead. from call Next Please come will caller phone number the the

Luke Lemoine

have And potential active Lemoine your available from you Hey, 'XX? wireline in and along quarter in Sandler. from improvement count talk Piper during trucks trucks XQ. here improved the bit much many Stuart highlighting good back trucks, Stuart about a efficiency results how increase maybe you saw you've for the active.Can how work this with little you just morning, to how could and I'll go to maybe been XQ Luke nice progressed stage versus flipping, Melissa.

Stuart Bodden

it. about low-XXs. probably a would Sure, kind that results, the call average, on operating, we're of Right couple now just comments I of

that On the have upper-XXs. number we're of units wireline right operating now, we

expansion. plug run still in in So in the revenue things of segment increase both particular, we perf Really, Basin, are around The Midland yet, it we levels, into more made had been have a we Pricing It's feel showed Permian some in is have on both couple over. and challenged but or there. particular, really like we unlike think coming that there's but to we in perf and really some to are quarter. plug a we production obviously, still want And the where completions all think and are rigs pre-COVID below nice our QX that drove we progress margin, our to the we north in not there. margin room completion and that be segment I through way we the in do. pricing and -- -- and

really So do the But North a a quarter. great opportunity had there's there. still think you some had we

Luke Lemoine

Thank bunch. a you. Thanks

Shelley Weimer

will question Please phone color a from XXXX. next the ahead. The with go number come

Derek Podhaizer

Hey, calling I me. system, is from Barclays. feel thank I you [indiscernible]. the Derek number John like Podhaizer like This for

Stuart Bodden

Good How you? are morning, Derek.

Derek Podhaizer

quarter budget not just pressure to your side. good. hit quarter your a first surprised exhaustion then first on thoughts And comment this I'm and in might good. extend bit. I wanted like peers Obviously, will the getting you me and your land that little here. my or I'm on within much from little really you're a guess I'm drilling I the bit. stride. mentioned the hitting that planning

be Just different your around versus how little expect thing? that that Is should peers? of some bit? there'll in As quarter, you a be view think some their would coiled the I mix more can we me program? walk the be a some through I far hit complete a and Is for would that that quarter, we operators but that ground first drill first that would weather just spring know helpful? more running. Maybe like as seeing something call why and

Stuart Bodden

we're were lot the I The just we seeing is seeing it materially is exposure again, out there's it Sure. -- wells always wanted say production that High-Spec said they QX. Rig to in some to They business. of drill what have stop rigs a a thing mid-QX back -- that of And were an pick of out is budget, wanted amount as And up to have. complete. we're of couple our they kind because that that, of customers and of out then them in they of

Now been we've demand building of kind had that's up behind.

And so most of those rigs have already been redeployed.

we're maybe though now was situation we spring in with have XXXX. so, in to put now on and the your where backside And a situation We're and now demand rigs comment. this some those And quote, work. goes exhaustion, we a know coming there are even being budget

it we XXXX. pretty as So exit interesting could get

Melissa Cougle

your I'll kind on heard I different think phenomenon to what is just on. trying add question, what going convey And from of Yeah. Derek, we're I there's actually two

not exhaustion there. into talk extending next of point, effect that's budget, Stuart's exhaustion about budget backside we When the heard you that's isolated the of on winter QX clearing, really that. to year, So the really

different to winter add on So a events, just QX don't the as I that little seen phenomenon more of we're exhaustion. each not into comment at the connected could we as pockets. really on a and the Stuart's them isolated and of really to nothing think budget But same next one we depression really if it's Looking that of other, phenomenon we've connected not there's hard winter bit two just think there's see year. sort continuing sort

Derek Podhaizer

okay. That's

the color Now there. that's helpful. I appreciate

could some you what that'd you have walk So important that assets increase as to maybe guidance and on that through. bookends more memories month, to I look if out current XXXX, And you XXXX might then there, put think refresh last you currently stable, our some soft of you the be like given what where thinking be thoughts base? have? then far your preliminary Could as some, you're asset

Stuart Bodden

Yeah.

to capacity. thought I mean, Relations referencing that I what And if stack So was at you'd the our of we of Investor know, revenue potential be XX%, were is the experience QX. clear present of kind guidance. run tends was growth our additional there, early there process from part the you kind seasonality about to budgeting where was wasn't be we're kind realize. I we think you're How that that think could think of current in that's trying base there that asset we our rates, QX XX% we necessarily thinking is, still to website. we there looked our and on with But

and we're had of makes the of think kind of is way take in And of take around then we and if sort why those half, baseline to that as, to revenue opportunities for second and season, QX So we looking the the off which taking the budgeting We And really combined, two take as as quote I margins grow baseline. QX when you what it think quarters sense. is kind expect that think and about we we of kind that. guided do we into that. about that's move

Melissa Cougle

back to these customers, bit How guidance online those it's doing wrapped the year the us to the we to conversations baseline not look we up, a that year. as that like early of much a will think very think saw of feel expect going programs, can better that in a much. district from around next just and We of that reasonably we're are half I year. fully We're be next I say don't confident ready saying Yeah, how the just are to a just arms you We after. get at I up next grow really the how we give tell growth If with through deck? every think investor little utilization much very we in can of take to deck. just ready here's very that this what all get going get that you much can was is bottoms We you that we're just feel what of of it. for around time to really for And year. is

Derek Podhaizer

all it. I understood appreciate the Fair Thanks color, and turn enough. it for

Stuart Bodden

Derek. Thanks,

Melissa Cougle

Thanks.

Shelley Weimer

next color will from go ahead. The Please the come XXXX. question

Unidentified Analyst

Citi. Well, this How for [indiscernible] so is you guys? are

Stuart Bodden

are morning, Good Bill? how you,

Unidentified Analyst

quarter. Good. Good

Just lot wanted those is the active up QX? the color progress some thing there's I items. give there to many to I units and see couple how think on because potential of But, could assets. first in were earnings wireline you in the guess, operating follow on it's a wireline good untapped a side,

Stuart Bodden

say include Yeah, work, trucks. XX-XX that does running and guess really backup kind in low-XXs. depending a kind I obviously, but those in that's the was on to -- depending it time, on average the send But of sometimes would now, think XX-XX, truck And and to going no, trucks, was about numbers. to QX, we active of have on I

Unidentified Analyst

But wireline big I call last From from so. quarters. what gap were where couple those that's or average say is to numbers, active where a you closer XX

Stuart Bodden

can higher have kind that. It check with up we don't should Why been We of follow than it? go you.

Melissa Cougle

We We up. could -- consistent. follow would been it's pretty with argue

was depressed really information. you largely QX just back up and level there, we So been think make I with follow in the-XXs the be had sure you've more through certainly. there got can But and But right across our running QX wires kind might of but QX. the trucks

Unidentified Analyst

it. Got

Okay, on great. follow up can a call. Yeah, we

mean, I regarding somewhat from although question quarter. G&A. previous Next elevated, down it's staying it's

we wonder reset forward related been there's as done are guiding that's a million integration If integration this and that once And going here. year the if expenses. these can last expectations reset million from some bit you and management, there? expenses rate annum maybe understand around related year, I somewhere we to I to per But, as what of all the run here for looked quite gone late you're can $XX expect transaction beginning up $XX at Now,

Melissa Cougle

Bill. don't Yeah, actually then was I XX do where that I a question. within good the low. of no, that that before. showing and does have and will seem you transaction of that's a aware XX pretty say lot kind What the comes it's guide a I back is, annum that I G&A, up integration think, of know phenomenon per out. goes to

will. gets you've ultimately see give is is if the more quarter seen. $X the And up and of much look little probably G&A, that's I us EBITDA. But integration bit that's and think XX, been kind the probably is and than out is if of the all you back be $X all of which housed, that but of run-rate that on When adjusted pure for then million I you again, probably conservative, $X G&A, and So lower million between we transaction where more $X at a We've XX sort per tracking of meaningfully million. around wouldn't sort that than we year. higher to million just XX edging I this think XX about was where I growth the

Unidentified Analyst

you assets exactly Great. items. of the on there describe contract prebuild Or have yet? sheet? How really would cost the item offsetting an an your Is liability That's doesn't side? balance Couple this helpful. offsetting just sheet on balance revenue, is that

Melissa Cougle

Yeah, it revenue. really is unbilled

first question, showed a bit as we same little team So really is when revenue. -- our call it asked took I because unbilled the it's up. I contract it but well, the me assets, it

Unidentified Analyst

okay. Great. Okay,

point. of our I to guess, my and question So leads final, that me kind

to As know, the say no I'm camp in you the kind other sheet. or way. is this reason conservative both of at one necessarily there's way balance of right think, point, I the But

capital I because with quarter, exclude if paid the point, think your at at costs since the the of, you how aren't yet. last look has kind working the And if this of there evolved, you down. debt contracted kind assets, in your,

point capital is next increased AR in to there's quarters, a some the the just lot here. back place a seasonal good of a that see to a you it's going released have you're your or point, a I don't Perhaps where debt, of of debt covers you to of easy declines because answer kind which you. now to down now back to about of some an good equity, booked. not if And see buying necessarily just be, paying You've couple maybe lot think do working it think

at is low stock How and up price. debt bit, worth. maybe hybrid split Your back a maybe stock to looking bit a price of a you buy But it do given can equity, assets what the of you the of too paydown about with kind cash some these start then attractive little for feel kind little are flow, approach?

Stuart Bodden

of again, is those and about, kind time I think, I think actively -- Yeah, depending appreciate be point flexible, kind And absolutely horses points really We're comments questions similar your board to I with all courses, and the for may on and though. of the right. is, discussing be of at John's to management. needing that understanding it

to engaged evaluate think topic. this I just we're The is continuing it. very again, in board So,

Melissa Cougle

quarter-over-quarter. is that. And sheet balance The recognize meaningfully we moving

So that means move. positions could our

to like getting what's in feedback as our right the discussions. level coming having listening the is what think board away is sure of making ever the we'd with others. we're investors to And sure and you to we're we're dynamically I and that making along all kind for important take

So appreciate the feedback.

Unidentified Analyst

has Okay, at time. I just certainly near it's perhaps might It's great. you should think debt. where it but in that appreciate down that the capital stock I stand on That's be some prices. that moved return I continue, not not mean, a And get helpful. that stock you I paying current care -- on the goes at the where decent term, given

Melissa Cougle

Understand.

Stuart Bodden

understood. much very Yeah,

Unidentified Analyst

Great, you. thank

Stuart Bodden

Bill. Thanks,

Shelley Weimer

the go next with ahead Crist Don next from The Don Rice. Johnson call comes question

Don Crist

all you Hey, guys, how today? are

Stuart Bodden

How Good. Hey, Don. you? are

Don Crist

as Hanging color. Thanks best in in the the all Ohio? for

about Sorry, driving margins, But quarter-over-quarter. of dig line. that coil, 'XX of you move what's sustainable XX%, of of Can on in income into think? one a kind particularly And talk on in I'm that last wanted as we kind I is high-XXs to little bit that? the you up

Stuart Bodden

sustainable. do again, that we, think thanks the is that for We Yeah, questions.

great. as getting we pricing, of yard So, utilization. out kind really when we the feel cost that I lot a of far which the pretty sustainable. But at had unit and a so wasn't as units good all, is think sort our whitespace, lot of this of much and is at was look margin have didn't kind base in we of fourth There just a

Don Crist

But much pretty done. has and for modeling question been one else everything Okay, me, Melissa.

As we the have NOLs sufficient as far cash as of move cover taxes go next taxes through year? kind year, you to do

Melissa Cougle

Yes.

Don Crist

we shouldn't next so cash on taxes year. shouldn't Okay, any plan we

Melissa Cougle

mean with into the in a position have little tax income as Not our cash net taxes, no. move the pretty a we're tax see advisers noise we sheet to territory, but going NOLs. line we're start the assured on balance good us to I

Don Crist

guys. I the color. quarter, appreciate all Great

Stuart Bodden

Don. Thanks,

Melissa Cougle

Thank you.

Shelley Weimer

have with remarks. completed We to back Bodden conference turn closing Stuart call all now questions. I to would like for the

Stuart Bodden

Thanks, today. how Again, for our is running. for sense thanks, Shelley. joining Hopefully excitement the everyone, a got of you business us

of for XX. party pleased just the things team. availability. everyone. just to in intends week out where would also would New to we meetings Chicago to Have November encourage a of And really and just like everyone management So proud thanks the interested investor really great York weekend. stand remind We management any Again, with that to reach conduct during scheduling and

Shelley Weimer

The attending for you conference concluded now thank today's has presentation.

may You now disconnect.

Ranger Energy Services (RNGR) 28 Oct 222022 Q3 Earnings call transcript