Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 001-38183

RANGER ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)


Delaware			81-5449572
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

10350 Richmond, Suite 550

Houston, Texas 77042

(Address of principal executive offices) (Zip Code)

(713) 935-8900

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.01 par value

RNGR

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated Filer ☒

Non-accelerated Filer ☐

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 25, 2023, the registrant had 24,412,713 shares of Class A Common Stock and zero shares of Class B Common Stock outstanding.

RANGER ENERGY SERVICES, INC.

TABLE OF CONTENTS


						Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets						5
Condensed Consolidated Statements of Operations						6
Condensed Consolidated Statements of Stockholders’ Equity						7
Condensed Consolidated Statements of Cash Flows						8
Notes to Condensed Consolidated Financial Statements
Note 1 — Organization and Business Operations						9
Note 2 — Summary of Significant Accounting Policies						9
Note 3 — Assets Held for Sale						10
Note 4 — Property and Equipment, Net						11
Note 5 — Intangible Assets						11
Note 6 — Accrued Expenses						12
Note 7 — Leases						12
Note 8 — Other Financing Liabilities						13
Note 9 — Debt						13
Note 10 — Equity						15
Note 11 — Risk Concentrations						16
Note 12 — Income Taxes						16
Note 13 — Earnings per Share						17
Note 14 — Commitments and Contingencies						17
Note 15 — Segment Reporting						17
Note 16 — Subsequent Events						19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations						20
Item 3. Quantitative and Qualitative Disclosures About Market Risks						33
Item 4. Controls and Procedures						34

PART II – OTHER INFORMATION
Item 1. Legal Proceedings						36
Item 1A. Risk Factors						36
Item 2. Unregistered Sales of Securities and Use of Proceeds						36
Item 6. Exhibits						37

SIGNATURES						38

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The information in this Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Quarterly Report, the words “may,” “should,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “outlook,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events.

We caution you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, the risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”), those set forth from time-to-time in other filings by the Company with the SEC, and those in this Form 10-Q, including the following factors:

•interest rate risk as a result of our revolving credit facility and financing agreement to fund operations;

•credit risk associated with our trade receivables;

•commodity price risk due to fluctuations in the prices of oil and natural gas, and resulting impacts on the activity levels of our E&P customers;

•general economic conditions or a weakening of the broader energy industry, including as a result of inflation or recession;

•volatility of oil and natural gas prices;

•reductions in capital spending by the oil and natural gas industry;

•reduced demand for our services due to fuel conservation measures and resulting reduction in demand for oil and natural gas;

•accidents, blowouts, explosions, craterings, fires, oil spills and releases of drilling, completion or fracturing fluids or hazardous materials or pollutants into the environment;

•seasonal weather conditions, severe weather events and natural disasters that could severely disrupt normal operations and harm our business;

•capital expenditures for new equipment as we grow our operations and capital expenditures resulting from environmental initiatives, new regulatory requirements, and advancements in oilfield services technologies;

•intense competition that may cause us to lose market share and could negatively affect our ability to market our services and expand our operations;

•increasing competition for workers, as well as labor shortages;

•customer concentrations and reliance upon a few large customers that may adversely affect our revenue and operating results;

•unsatisfactory safety performance that may negatively affect our current and future customer relationships, and adversely impact our revenue;

•claims for personal injury and property damage, or for catastrophic events, which could materially and adversely affect our financial condition, results of operations and prospects;

•environmental and occupational health and safety laws and regulations that may expose us to significant costs and liabilities;

•federal and state legislative and regulatory initiatives that could result in increased costs and additional operating restrictions or delays, as well as adversely affect demand for our support services;

•risks arising from climate change, and increased attention to environmental, social, and governance (“ESG”) matters and conservation measures, which may adversely impact our or our customers’ business;

•the impact of geopolitical, economic and market conditions on our industry and commodity prices;

•cybersecurity and data privacy risks;

•risks associated with growth of our business through potential future acquisitions or mergers;

•our ability or intention to pay dividends or to effectuate repurchases of our Class A Common Stock; and

•risks related to our ownership and capital structure.

Our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in our current and past filings with the SEC, Those documents are available through our website or through the SEC’s Electronic Data Gathering and Analysis Retrieval (“EDGAR”) system at www.sec.gov. Should one or more of the risks or uncertainties described occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Quarterly Report.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

RANGER ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except share amounts)


	September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	8.2	$	3.7
Accounts receivable, net	89.9		91.2
Contract assets	35.6		26.9
Inventory	7.7		5.9
Prepaid expenses	8.6		9.2
Assets held for sale	1.0		3.2
Total current assets	151.0		140.1

Property and equipment, net	225.0		221.6
Intangible assets, net	6.5		7.1
Operating leases, right-of-use assets	9.8		11.2
Other assets	1.2		1.6
Total assets	$	393.5	$	381.6

Liabilities and Stockholders' Equity
Accounts payable	$	32.6	$	24.3
Accrued expenses	29.6		36.1
Other financing liability, current portion	0.6		0.7
Long-term debt, current portion	10.3		6.8
Other current liabilities	6.5		6.6
Total current liabilities	79.6		74.5

Operating leases, right-of-use obligations	8.0		9.6
Other financing liability	11.1		11.6
Long-term debt, net	—		11.6
Other long-term liabilities	14.3		8.1
Total liabilities	113.0		115.4

Commitments and contingencies (Note 14)

Stockholders' equity
Preferred stock, $0.01 per share; 50,000,000 shares authorized; no shares issued or outstanding as of September 30, 2023 and December 31, 2022	—		—
Class A Common Stock, $0.01 par value, 100,000,000 shares authorized; 25,744,069 shares issued and 24,411,241 shares outstanding as of September 30, 2023; 25,446,292 shares issued and 24,894,464 shares outstanding as of December 31, 2022	0.3		0.3
Class B Common Stock, $0.01 par value, 100,000,000 shares authorized; no shares issued or outstanding as of September 30, 2023 and December 31, 2022	—		—
Less: Class A Common Stock held in treasury at cost; 1,332,828 treasury shares as of September 30, 2023 and 551,828 treasury shares as of December 31, 2022	(12.4)		(3.8)
Retained earnings	27.6		7.1
Additional paid-in capital	265.0		262.6
Total stockholders' equity	280.5		266.2
Total liabilities and stockholders' equity	$	393.5	$	381.6

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

RANGER ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in millions, except share and per share amounts)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Revenue
High specification rigs	$	79.2	$	79.7	$	234.3	$	220.6
Wireline services	53.2		60.6		157.6		148.7
Processing solutions and ancillary services	32.0		36.7		93.2		84.9
Total revenue	164.4		177.0		485.1		454.2

Operating expenses
Cost of services (exclusive of depreciation and amortization):
High specification rigs	63.5		62.7		185.6		175.3
Wireline services	45.8		49.2		140.3		134.8
Processing solutions and ancillary services	25.5		26.2		76.1		66.0
Total cost of services	134.8		138.1		402.0		376.1
General and administrative	7.0		11.0		22.7		32.4
Depreciation and amortization	10.6		10.8		29.3		33.8
Impairment of fixed assets	0.4		0.2		0.4		1.3
Gain on sale of assets	(0.1)		(1.1)		(1.6)		—
Total operating expenses	152.7		159.0		452.8		443.6

Operating income	11.7		18.0		32.3		10.6

Other (income) expenses
Interest expense, net	0.7		1.8		2.8		5.7
Loss on debt retirement	—		—		2.4		—
Gain on bargain purchase, net of tax	—		(0.8)		—		(3.6)
Total other (income) expenses	0.7		1.0		5.2		2.1

Income before income tax expense	11.0		17.0		27.1		8.5
Income tax expense	1.6		3.4		5.4		1.0
Net income	9.4		13.6		21.7		7.5



Income per common share
Basic	$	0.38	$	0.55	$	0.88	$	0.34
Diluted	$	0.38	$	0.54	$	0.86	$	0.33
Weighted average common shares outstanding
Basic	24,500,607		24,845,517		24,758,890		22,323,308
Diluted	24,887,275		25,184,067		25,149,415		22,637,457

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

RANGER ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(in millions, except share amounts)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023	2022	2023		2022		2023	2022	2023		2022
	Quantity		Amount				Quantity		Amount
Shares, Series A Preferred Stock
Balance, beginning of period	—	—	$	—	$	—	—	6,000,001	$	—	$	0.1
Shares converted to Class A Common Stock	—	—	—		—		—	(6,000,001)	—		(0.1)
Balance, end of period	—	—	$	—	$	—	—	—	$	—	$	—

Shares, Class A Common Stock
Balance, beginning of period	25,689,807	25,268,856	$	0.3	$	0.3	25,446,292	18,981,172	$	0.3	$	0.2
Issuance of shares under share-based compensation plans	59,996	57,263	—		—		390,612	457,030	—		—
Shares withheld for taxes on equity transactions	(5,734)	(365)	—		—		(92,835)	(112,449)	—		—
Issuance of shares from Series A Preferred Stock conversion	—	—	—		—		—	6,000,001	—		0.1
Issuance in connection with acquisitions	—	100,000	—		—		—	100,000	—		—
Balance, end of period	25,744,069	25,425,754	$	0.3	$	0.3	25,744,069	25,425,754	$	0.3	$	0.3





Treasury Stock
Balance, beginning of period	(1,099,928)	(551,828)	$	(9.7)	$	(3.8)	(551,828)	(551,828)	$	(3.8)	$	(3.8)
Repurchase of Class A Common Stock	(232,900)	—	(2.7)		—		(781,000)	—	(8.6)		—
Balance, end of period	(1,332,828)	(551,828)	$	(12.4)	$	(3.8)	(1,332,828)	(551,828)	$	(12.4)	$	(3.8)

Retained Earnings (accumulated deficit)
Balance, beginning of period			$	19.5	$	(14.1)			$	7.2	$	(8.0)
Net income			9.4		13.6				21.7		7.5
Dividends declared			(1.3)		—				(1.3)		—
Balance, end of period			$	27.6	$	(0.5)			$	27.6	$	(0.5)

Additional paid-in capital
Balance, beginning of period			$	263.9	$	260.7			$	262.6	$	260.2
Equity based compensation			1.1		0.9				3.4		2.6
Shares withheld for taxes on equity transactions			—		0.1				(1.0)		(1.1)




Balance, end of period			$	265.0	$	261.7			$	265.0	$	261.7

Total shareholders’ equity
Balance, beginning of period			$	274.0	$	243.1			$	266.3	$	248.7
Net income			9.4		13.6				21.7		7.5
Dividends declared			(1.3)		—				(1.3)		—
Equity based compensation			1.1		0.9				3.4		2.6
Shares withheld for taxes on equity transactions			—		0.1				(1.0)		(1.1)




Repurchase of Class A Common Stock			(2.7)		—				(8.6)		—
Balance, end of period			$	280.5	$	257.7			$	280.5	$	257.7

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

RANGER ENERGY SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in millions)


	Nine Months Ended September 30,
	2023		2022
Cash Flows from Operating Activities
Net income	$	21.7	$	7.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	29.3		33.8
Equity based compensation	3.6		2.8
Gain on disposal of property and equipment	(1.6)		—
Impairment of fixed assets	0.4		1.3
Gain on bargain purchase, net of tax	—		(3.6)
Deferred income tax expense	4.8		—
Loss on debt retirement	2.4		—
Other expense, net	2.3		0.9
Changes in operating assets and liabilities
Accounts receivable	0.1		(14.3)
Contract assets	(8.7)		(25.7)
Inventory	(2.0)		(2.9)
Prepaid expenses and other current assets	0.6		(4.2)
Other assets	1.2		(3.6)
Accounts payable	8.3		16.0
Accrued expenses	(7.7)		3.7
Other current liabilities	—		0.8
Other long-term liabilities	(1.6)		6.0
Net cash provided by operating activities	53.1		18.5

Cash Flows from Investing Activities
Purchase of property and equipment	(27.9)		(8.7)
Proceeds from disposal of property and equipment	4.9		20.4
Purchase of businesses, net of cash received	—		0.8
Net cash provided by (used in) investing activities	(23.0)		12.5

Cash Flows from Financing Activities
Borrowings under Revolving Credit Facility	315.6		431.0
Principal payments on Revolving Credit Facility	(308.1)		(433.2)
Principal payments under Eclipse Term Loan B Facility	—		(12.4)
Principal payments on financing lease obligations	(4.0)		(3.4)
Principal payments on Secured Promissory Note	(6.2)		(3.3)
Principal payments on other financing liabilities	(0.7)		(2.2)
Principal payments on Eclipse M&E Term Loan Facility	(10.4)		(1.5)
Dividends paid to Class A Common Stock shareholders	(1.2)		—
Shares withheld on equity transactions	(1.0)		(1.1)
Payments on Other Installment Purchases	(0.3)		(0.3)

Repurchase of Class A Common Stock	(8.6)		—

Deferred financing costs on Wells Fargo	(0.7)		—


Net cash used in financing activities	(25.6)		(26.4)

Increase in cash and cash equivalents	4.5		4.6
Cash and cash equivalents, Beginning of Period	3.7		0.6
Cash and cash equivalents, End of Period	$	8.2	$	5.2

Supplemental Cash Flow Information
Interest paid	$	1.0	$	0.8
Supplemental Disclosure of Non-cash Investing and Financing Activities
Capital expenditures included in accounts payable and accrued liabilities	$	—	$	(0.7)
Additions to fixed assets through installment purchases and financing leases	$	(5.6)	$	(3.5)
Additions to fixed assets through asset trades	$	(1.1)	$	—

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

RANGER ENERGY SERVICES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 — Organization and Business Operations

Business

Ranger Energy Services, Inc. (“Ranger, Inc.,” “Ranger,” “we,” “us” or the “Company”) is a provider of onshore high specification well service rigs, wireline services, and additional processing solutions and ancillary services in the United States (“U.S.”). The Company provides an extensive range of well site services to leading U.S. exploration and production (“E&P”) companies that are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well.

Our service offerings consist of well completion support, workover, well maintenance, wireline, and other complementary services, as well as installation, commissioning and operating of modular equipment, which are conducted in three reportable segments, as follows:

•High Specification Rigs. Provides high specification 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 our wireline completion, wireline production, and pump down lines of business.

•Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics, snubbing and coil tubing, 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.

Organization

Ranger, Inc. was incorporated as a Delaware corporation in February 2017. Ranger, Inc. is a holding company, and its sole assets consist of membership interests in RNGR Energy Services, LLC, a Delaware limited liability company (“Ranger LLC”). Ranger LLC owns all of the outstanding equity interests in Ranger Energy Services, LLC (“Ranger Services”) and Torrent Energy Services, LLC (“Torrent Services”), and the other subsidiaries through which it operates its assets. Ranger LLC is the sole managing member of Ranger Services and Torrent Services, and is responsible for all operational, management and administrative decisions relating to Ranger Services, its subsidiaries, and Torrent Services’ business and consolidates the financial results of Ranger Services, its subsidiaries, and Torrent Services.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the Securities and Exchange Commission’s (the “SEC”) instructions to Form 10-Q. Accordingly, certain information and disclosures have been condensed or omitted. The Condensed Consolidated Financial Statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results of operations for the interim periods. These interim financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in the Annual Report. Interim results for the periods presented may not be indicative of results that will be realized for future periods.

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in Note 2 — Summary of Significant Accounting Policies of the Annual Report.

Use of Estimates

The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from such estimates.

Areas where critical accounting estimates are made by management include:

•Depreciation and amortization of property and equipment and intangible assets;

•Impairment of property and equipment and intangible assets;

•Revenue recognition;

•Income taxes; and

•Equity-based compensation.

New Accounting Pronouncements

Recently Adopted Accounting Standards

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology to reflect expected credit losses. The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date to be performed based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2022. The Company adopted this standard on January 1, 2023. This adoption did not have a material impact on the Company’s Consolidated Financial Statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for accounting contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be discontinued due to the reference rate reform. ASU 2020-04 became effective as of March 12, 2020 and can be applied through December 31, 2022, recently amended by ASU 2022-06 which has delayed the application date through December 31, 2024. On September 23, 2022, the Company entered into the Fourth Amendment to the Loan and Security Agreement (the Eclipse Loan and Security Agreement, as amended through and including the Fourth Amendment, the “Amended Loan Agreement”) with Eclipse Business Capital LLC (“EBC”) and Eclipse Business Capital SPV, LLC where the Secured Overnight Financing Rate (“SOFR”) replaced LIBOR as the reference rate for interest on borrowings, effective October 1, 2022. On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo, NA. with SOFR as the reference rate for interest on borrowings.

New Accounting Standards

With the exception of the standards above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s Consolidated Financial Statements.

Note 3 — Assets Held for Sale

Assets held for sale include the net book value of assets the Company plans to sell within the next 12 months and are related to excess assets acquired from the Basic Energy Services, Inc. (“Basic”) acquisition. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value less estimated costs to sell.

As of September 30, 2023, the Company classified $1.0 million of land and buildings within our High Specification Rigs and Processing Solutions and Ancillary Services segments as held for sale as they are being actively marketed. For the nine months ended September 30, 2023, the Company recognized a gain on assets previously classified as held for sale of $1.8 million and recognized a loss on the sale of assets previously held in Property and equipment, net of $0.2 million, which nets to the $1.6 million gain on sale of assets on the Condensed Consolidated Statements of Operations.

Note 4 — Property and Equipment, Net

Property and equipment, net include the following (in millions):


	Estimated Useful Life (years)	September 30, 2023		December 31, 2022
High specification rigs	15	$	138.9	$	138.0
Machinery and equipment	3 - 30	185.6		179.3
Vehicles	3 - 15	50.4		46.9
Other property and equipment	5 - 25	19.7		21.3
Property and equipment		394.6		385.5
Less: accumulated depreciation		(188.0)		(167.2)
Construction in progress		18.4		3.3
Property and equipment, net		$	225.0	$	221.6

On August 9, 2023, pursuant to an asset purchase agreement dated August 4, 2023, the Company closed on the acquisition of certain fixed assets from Pegaso Energy Services, LLC (“Pegaso acquisition”) for consideration of $7.3 million paid in cash. The fixed assets acquired from Pegaso were primarily engaged in pump down services for its customers. Under ASC 805 Business Combination, the Company accounted for the Pegaso acquisition as an asset acquisition. The consideration paid is similar to the fair value of the assets acquired and the Company allocated the consideration paid to each of the assets following the cost accumulation model. As of September 30, 2023, two of the acquired pumps are in service. Given the materiality of these assets to the overall acquisition, all acquired assets are classified as construction in progress.

Depreciation expense was $10.4 million and $10.5 million for the three months ended September 30, 2023 and 2022, respectively and $28.7 million and $33.2 million for the nine months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023, the Company reclassified $0.6 million of property and equipment to Assets held for sale.

Impairment expense on fixed assets consists of non-cash impairment charges relating to long-lived assets. Impairments are determined using management’s judgment about our anticipated ability to continue to use fixed assets in-service and under development, current economic and market conditions and their effects based on information available as of the date of these unaudited interim condensed financial statements. During the three and nine months ended September 30, 2023, the Company recognized a fixed assets impairment charge of $0.4 million to reduce the carrying value of the property to estimated net realizable value.

Note 5 — Intangible Assets, Net

Definite lived intangible assets are comprised of the following (in millions):


	Estimated Useful Life (years)	September 30, 2023		December 31, 2022
Customer relationships	10-18	$	11.4	$	11.4
Less: accumulated amortization		(4.9)		(4.3)
Intangible assets, net		$	6.5	$	7.1

Amortization expense was $0.2 million and $0.3 million for the three months ended September 30, 2023 and 2022, respectively and $0.6 million and $0.6 million for the nine months ended September 30, 2023 and 2022. Amortization expense for the future periods is expected to be as follows (in millions):


For the twelve months ending September 30,	Amount
2024	$	0.7
2025	0.7
2026	0.7
2027	0.7
2028	0.6
Thereafter	3.1
Total	$	6.5

Note 6 — Accrued Expenses

Accrued expenses include the following (in millions):


	September 30, 2023		December 31, 2022
Accrued payables	$	14.6	$	15.9
Accrued compensation	12.6		12.5
Accrued taxes	1.8		2.1
Accrued insurance	0.6		5.6
Accrued expenses	$	29.6	$	36.1

Note 7 — Leases

Operating Leases

The Company has operating leases, primarily for real estate and equipment, with terms that vary from one to nine years, included in operating lease costs in the table below. The operating leases are included in Operating leases, right-of-use assets, Other current liabilities and Operating leases, right-of-use obligations in the Condensed Consolidated Balance Sheets.

Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and nine months ended September 30, 2023 and 2022, are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Short-term lease costs	$	3.4	$	3.3	$	13.0		$	10.0
Operating lease costs	$	0.8	$	1.1	$	2.4		$	2.2
Operating cash outflows from operating leases	$	0.7	$	0.7	$	2.3		$	1.9

Weighted average remaining lease term					3.7 years			4.7 years
Weighted average discount rate					8.2		%	7.9		%

Aggregate future minimum lease payments under operating leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	3.3
2025	3.4
2026	3.0
2027	2.3
2028	0.2

Total future minimum lease payments	12.2
Less: amount representing interest	(1.7)
Present value of future minimum lease payments	10.5
Less: current portion of operating lease obligations	(2.5)
Long-term portion of operating lease obligations	$	8.0

Finance Leases

The Company leases certain assets, primarily automobiles, under finance leases with terms that are generally three to five years. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair value of the assets. The assets are amortized over the shorter of the estimated useful lives or over the lease term. The finance leases are included in Property and equipment, net, Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets.

Lease costs and other information related to finance leases for the nine months ended September 30, 2023 and 2022, are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Amortization of finance leases	$	1.0	$	0.5	$	2.7		$	1.5
Interest on lease liabilities	$	0.5	$	0.2	$	1.1		$	0.6
Financing cash outflows from finance leases	$	1.3	$	1.1	$	4.0		$	3.4

Weighted average remaining lease term					2.1 years			1.4 years
Weighted average discount rate					5.2		%	2.6		%

Aggregate future minimum lease payments under finance leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	4.7
2025	3.3
2026	1.7
2027	0.8


Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$	5.3

Note 8 — Other Financing Liabilities

The Company has sale, lease-back agreements for land and certain other fixed assets with terms that vary from 18 months to 13 years. The sales did not qualify for sale accounting, therefore these leases were classified as finance leases and no gain or loss was recorded. The net book value of the assets remained in Property and equipment, net and are depreciating over their original useful lives.

As of September 30, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	0.6
2025	0.7
2026	0.7
2027	0.8
2028	0.8
Thereafter	8.1
Total future minimum lease payments	$	11.7

Note 9 — Debt

The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions):


	September 30, 2023		December 31, 2022
Wells Fargo Revolving Credit Facility	$	10.1	$	—
Eclipse Revolving Credit Facility	—		1.4
Eclipse M&E Term Loan, net	—		10.4
Secured Promissory Note	—		6.1
Installment Purchases	0.2		0.5
Total Debt	10.3		18.4
Current portion of long-term debt	(10.3)		(6.8)
Long term-debt, net	$	—	$	11.6

Wells Fargo Bank, N.A. Credit Agreement

On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A., providing the Company with a secured credit facility (“Wells Fargo Revolving Credit Facility”) in an aggregate principal amount of $75 million. Debt under the Credit Agreement is secured by a lien on substantially all of the Company’s assets. The Company was in compliance with the Credit Agreement covenant by maintaining a fixed charge coverage ratio of greater than 1.0 as of September 30, 2023.

In addition, on September 25, 2023, the Company entered into an agreement with Wells Fargo Bank, N.A. which designated an additional Letter of Credit in the amount of $1.6 million to be utilized for insurance deductibles, as needed. This line of credit falls under the Wells Fargo Revolving Credit Facility aggregate principal amount and matures on September 25, 2024. The interest rate for this Letter of Credit was approximately 1.8% for the month ended September 30, 2023.

The Wells Fargo Revolving Credit Facility was drawn in part on May 31, 2023, to repay the Revolving Credit Facility, M&E Term Loan Facility, and the Secured Promissory Note, as defined below. The undrawn portion of the Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other-permitted uses, including the financing of permitted investments and restricted payments. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable less certain reserves. The Company’s eligible accounts receivable serve as collateral for the borrowings under the Wells Fargo Revolving Credit Facility, which is scheduled to mature on May 31, 2028. The Wells Fargo Revolving Credit Facility includes an acceleration clause whereby certain restrictions and covenants become applicable beginning when excess availability is 20% or less. The most significant associated restriction is cash dominion, which permits the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Revolving Credit Facility, to be instituted if excess availability is 12.5% or less.

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, which was based on a borrowing base certificate in effect as of September 30, 2023. The Company had $10.1 million in borrowings under the Wells Fargo Revolving Credit Facility and $3.2 million of Letters of Credit open under the facility, leaving a residual $61.7 million available for borrowings as of September 30, 2023. Borrowings under the Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability. The weighted average interest rate for the loan was approximately 7.0% for the nine months ended September 30, 2023.

Eclipse Loan and Security Agreement

On September 27, 2021, the Company entered into a Loan and Security Agreement with EBC and Eclipse Business Capital SPV, LLC, as administrative agent, providing the Company with a senior secured credit facility in an aggregate principal amount of $77.5 million (the “EBC Credit Facility”), consisting of (i) a revolving credit facility in an aggregate principal amount of up to $50.0 million (the “Revolving Credit Facility”), (ii) a machinery and equipment term loan facility in an aggregate principal amount of up to $12.5 million (the “M&E Term Loan Facility”) and (iii) a term loan B facility in an aggregate principal amount of up to $15.0 million (the “Term Loan B Facility”). On September 23, 2022, the Company entered into the Fourth Amendment to the Loan and Security Agreement pursuant to which, SOFR replaced LIBOR as the reference rate for interest on borrowings, effective October 1, 2022.

On May 31, 2023, the Company extinguished the Eclipse Revolving Credit Facility and Eclipse M&E Term Loan Facility, paying the remaining principal amount of $10.4 million associated with the Eclipse M&E Term Loan Facility for the five months ended May 31, 2023. Of this amount, $8.4 million was outstanding at the time of debt extinguishment, and repaid utilizing funds from the Wells Fargo Revolving Credit Facility. The Company recognized a loss on the retirement of debt of $2.4 million in connection with the initiation of the Wells Fargo Revolving Credit Facility.

For the nine months ended September 30, 2022, the Company made principal payments totaling $12.4 million towards the Eclipse Term Loan B Facility, which was fully repaid on August 16, 2022, and $1.5 million towards the Eclipse M&E Term Loan Facility.

Secured Promissory Note

On July 8, 2021, the Company acquired the assets of PerfX Wireline Services (“PerfX”), a provider of wireline services that operated in Williston, North Dakota and Midland, Texas. In connection with the PerfX acquisition, Bravo Wireline, LLC, a wholly owned subsidiary of Ranger, entered into a security agreement with Chief Investments, LLC, as administrative agent, for the financing of certain assets acquired (the “Secured Promissory Note”). Borrowings under the Secured Promissory Note bore interest at a rate of 8.5% per annum and was scheduled to mature in January 2024.

For the five months ended May 31, 2023, the Company made principal payments to the Secured Promissory Note totaling $6.2 million, of which $5.4 million was related to the debt extinguishment and was repaid utilizing funds from the Wells Fargo Revolving Credit Facility.

Other Installment Purchases

The Company entered into various Installment and Security Agreements (collectively, the “Installment Agreements”) in connection with the purchase of certain ancillary equipment, where such assets are being held as collateral. As of September 30, 2023, the aggregate principal balance outstanding under the Installment Agreements was $0.2 million and is payable ratably over 36 months from the time of each purchase. For the nine months ended September 30, 2023, the Company paid down the Installment Agreements by $0.3 million. The monthly installment payments contain an imputed interest rate that are consistent with the Company’s incremental borrowing rate and is not significant to the Company.

Debt Obligations and Scheduled Maturities

As of September 30, 2023, aggregate future principal payments of total debt are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	10.3




Total	$	10.3

Note 10 — Equity

Equity-Based Compensation

In 2017, the Company adopted the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan (the “2017 Plan”). The Company has granted shares of restricted stock (“restricted shares” or “RSAs”) and performance-based restricted stock units (“performance stock units” or “PSUs”) under the 2017 Plan.

Restricted Stock Awards

The Company has granted RSAs, which generally vest in three equal annual installments beginning on the first anniversary date of the grant. During the nine months ended September 30, 2022, the Company granted approximately 436,200 RSAs, with an approximated aggregate value of $4.7 million. As of September 30, 2023, there was an aggregate $5.0 million of unrecognized expense related to restricted shares issued which is expected to be recognized over a weighted average period of 1.8 years.

Performance Stock Units

The performance criteria applicable to performance stock units that have been granted by the Company are based on relative total shareholder return, which measures the Company’s total shareholder return as compared to the total shareholder return of a designated peer group, and absolute total shareholder return. Generally, the performance stock units are subject to an approximated three-year performance period. During the nine months ended September 30, 2023, the Company granted approximately 110,400 target shares of market-based performance stock units, of which 55,200 were granted at a relative grant date fair value of approximately $15.71 per share and 55,200 were granted at an absolute grant date fair value of approximately $13.12 per share. Additionally, the Company granted approximately 55,200 target shares of market-based performance stock units with a specified floor price per share, of which 27,600 were granted a relative grant date fair value of approximately $15.22 and 27,600 were granted at an absolute grant date fair value of approximately $10.85 per share. Shares granted during the nine months ended September 30, 2023 are expected to vest (if at all) following the completion of the applicable performance period on December 31, 2025. As of September 30, 2023, there was an aggregate $2.5 million of unrecognized compensation cost related to performance stock units which are expected to be recognized over a weighted average period of 1.5 years.

Share Repurchases

On March 7, 2023, the Company announced a share repurchase program allowing the Company to purchase Class A Common Stock held by non-affiliates, not to exceed $35.0 million in aggregate value. Share repurchases may take place in any transaction form as allowable by the Securities and Exchange Commission. Approval of the program by the Board of Directors of the Company is specific for the next 36 months.

During the three and nine months ended September 30, 2023, the Company repurchased 232,900 and 781,000 shares, respectively, of the Company’s Class A Common Stock for an aggregate $2.7 million and $8.6 million, respectively, on the open market.

Dividends

On August 7, 2023, the Company’s Board of Directors declared a cash dividend of $0.05 per share of Class A Common Stock. On September 8, 2023, the Company paid dividend distributions totaling $1.2 million to stockholders of record as of the close of business on August 18, 2023. The declaration of any future dividends is subject to the Board of Directors’ discretion and approval.

Warrant from PerfX Acquisition

The PerfX acquisition purchase price included a warrant to acquire a 30% ownership in the XConnect Business (“XConnect”), which expires on July 8, 2031. XConnect is the manufacturer of a perforating gun system developed by the PerfX sellers alongside the PerfX wireline service business. The warrant requires the Company to maintain a specific minimum level of purchases of XConnect’s manufactured products. Should the Company fail to maintain the specified minimum level of purchases, a forfeiture event would occur; however, the Company may elect to cure the forfeiture event through a cash payment to XConnect. If the Company elects to not cure the forfeiture event, the ownership percentage would reduce to 15%. Upon the occurrence of a second uncured forfeiture event, the warrant is deemed to be cancelled. The value of the warrant by the Company is negligible as of September 30, 2023. The Company finalized the purchase price allocation in the fourth quarter of 2021.

Note 11 — Risk Concentrations

Customer Concentrations

During the three and nine months ended September 30, 2023, one customer accounted for approximately 11% and 10%, respectively, of the Company’s consolidated revenues. As of September 30, 2023, approximately 7% of the net accounts receivable balance was due from this customer.

During the three and nine months ended September 30, 2022, one customer accounted for approximately 11% and 10%, respectively, of the Company’s consolidated revenue. As of September 30, 2022, approximately 15% of the net accounts receivable balance, in aggregate, was due from this customer.

Note 12 — Income Taxes

Effective Tax Rate

The Company is a corporation and is subject to U.S. federal income tax. The Company uses an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating the estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and other income tax related estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. The effective U.S. federal income tax rate applicable to the Company for the nine months ended September 30, 2023 and 2022 was 20.0% and 11.6%, respectively. The Company is subject to the Texas Margin Tax, which requires tax payments at a maximum statutory effective rate of 0.75% on the taxable margin of each taxable entity that does business in Texas.

Tax Attributes

Historically, utilization of a portion of the Company's net operating loss carryforwards has been subject to limitations of utilization under Section 382 of the Internal Revenue Code of 1986 (“Section 382”), as amended. The Company incurred an ownership change, triggering another Section 382 loss limitation, during the three months ended June 30, 2023. The Company is currently in the process of conducting an analysis to determine the full tax consequence of such limitation and does not expect this will have a material cash impact to taxes for the remainder of 2023.

As the Company continues to experience increasing profits and no longer has a trailing 3-year cumulative taxable loss, we currently believe that it is more likely than not to fully utilize all deferred tax assets including those associated with the net operating loss carry-forward. Accordingly, the Company released all valuation allowances previously recorded resulting in a discrete tax benefit for the period ended September 30, 2023.

Other Tax Matters

Total income tax expense for the nine months ended September 30, 2023 and 2022 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income or loss primarily due to the release of the VA on deferred tax assets, the impact of permanently non-deductible expenses, state income taxes and certain discrete tax benefits recognized during the nine months ended September 30, 2023.

The Company is subject to the following material taxing jurisdictions: the United States and Texas. As of September 30, 2023, the Company has no current tax years under audit. The Company remains subject to examination for federal income taxes and state income taxes for tax years 2016 through 2022.

The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained upon examination. Therefore, as of September 30, 2023, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions.

In August 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA 2022”) (Public Law Number 117-169) into law. The Company is still evaluating the impact of this legislation as it relates to the Employee Retention Credit.

Note 13 — Earnings per Share

Earnings or loss per share is based on the amount of net income or loss allocated to the shareholders and the weighted average number of shares outstanding during the period for each class of Common Stock. The numerator and denominator used to compute earnings or loss per share were as follows (in millions, except share and per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Income (numerator):
Basic:
Income attributable to Ranger Energy Services, Inc.	$	9.4	$	13.6	$	21.7	$	7.5
Net income attributable to Class A Common Stock	$	9.4	$	13.6	$	21.7	$	7.5

Diluted:
Income attributable to Ranger Energy Services, Inc.	$	9.4	$	13.6	$	21.7	$	7.5

Net income attributable to Class A Common Stock	$	9.4	$	13.6	$	21.7	$	7.5

Weighted average shares (denominator):
Weighted average number of shares - basic	24,500,607		24,845,517		24,758,890		22,323,308
Effect of share-based awards	386,668		338,550		390,525		314,149

Weighted average number of shares - diluted	24,887,275		25,184,067		25,149,415		22,637,457

Basic income per share	$	0.38	$	0.55	$	0.88	$	0.34
Diluted income per share	$	0.38	$	0.54	$	0.86	$	0.33

During the three and nine months ended September 30, 2022, the Company excluded 0.1 million of equity-based awards in calculating diluted income per share, as the effect was anti-dilutive.

Note 14 — Commitments and Contingencies

Legal Matters

From time to time, the Company is involved in various legal matters arising in the normal course of business. The Company does not believe that the ultimate resolution of these currently pending matters will have a material adverse effect on its condensed consolidated financial position or results of operations.

Note 15 — Segment Reporting

The Company’s operations are located in the United States and organized into three reportable segments: High Specification Rigs, Wireline Services and Processing Solutions and Ancillary Services. The reportable segments comprise the structure used by the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance during the years presented in the accompanying Condensed Consolidated Financial Statements. The CODM evaluates the segments’ operating performance based on multiple measures including operating income, rig hours and stage counts. The tables below present the operating income measurement, as the Company believes this is most consistent with the principals used in measuring the Condensed Consolidated Financial Statements.

The following is a description of each operating segment:

High Specification Rigs. Provides high specification 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 our wireline completion, wireline production and pump down lines of business.

Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics, processing solutions, as well as snubbing and coil tubing.

Other. The Company incurs costs, indicated as Other, that are not allocable to any of the operating segments or lines of business and include corporate general and administrative expenses as well as depreciation of office furniture and fixtures and other corporate assets.

Certain segment information for the three and nine months ended September 30, 2023 and 2022 is as follows (in millions):


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2023
Revenue	$	79.2	$	53.2	$	32.0	$	—	$	164.4
Cost of services	63.5		45.8		25.5		—		134.8

Depreciation and amortization	5.1		3.1		2.0		0.4		10.6


Operating income (loss)	10.6		4.3		4.5		(7.7)		11.7



Net income (loss)	$	10.6	$	4.3	$	4.5	$	(10.0)	$	9.4

Capital expenditures	$	5.6	$	9.2	$	2.4	$	—	$	17.2

	Nine Months Ended September 30, 2023
Revenue	$	234.3	$	157.6	$	93.2	$	—	$	485.1
Cost of services	185.6		140.3		76.1		—		402.0

Depreciation and amortization	14.7		8.4		5.0		1.2		29.3


Operating income (loss)	34.0		8.9		12.1		(22.7)		32.3



Net income (loss)	$	34.0	$	8.9	$	12.1	$	(33.3)	$	21.7

Capital expenditures	$	11.4	$	13.7	$	9.5	$	—	$	34.6


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2022
Revenue	$	79.7	$	60.6	$	36.7	$	—	$	177.0
Cost of services	62.7		49.2		26.2		—		138.1

Depreciation and amortization	6.3		2.8		1.3		0.4		10.8

Operating income (loss)	10.7		8.6		9.2		(10.5)		18.0



Net income (loss)	$	10.7	$	8.6	$	9.2	$	(14.9)	$	13.6

Capital expenditures	$	2.8	$	0.4	$	2.0	$	—	$	5.2

	Nine Months Ended September 30, 2022
Revenue	$	220.6	$	148.7	$	84.9	$	—	$	454.2
Cost of services	175.3		134.8		66.0		—		376.1

Depreciation and amortization	20.8		8.3		3.3		1.4		33.8
Operating income (loss)	24.5		5.6		15.6		(35.1)		10.6



Net income (loss)	$	24.5	$	5.6	$	15.6	$	(38.2)	$	7.5

Capital expenditures	$	5.7	$	2.0	$	5.2	$	—	$	12.9

Note 16 — Subsequent Events

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date the financial statements are issued. Based upon this review, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the financial statements.

On October 31, 2023, the Board of Directors declared a quarterly cash dividend of $0.05 per share payable December 1, 2023 to common stockholders of record at the close of business on November 13, 2023.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the historical financial statements and related notes included in Part I, Item 1. Financial Statements of this Quarterly Report on Form 10-Q (the “Quarterly Report”). This discussion contains “forward-looking statements” reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. Factors that could cause or contribute to such differences include, but are not limited to, market prices for oil and natural gas, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this report. Please read the Cautionary Statement Regarding Forward-Looking Statements. Also, please read the risk factors and other cautionary statements described under “Risk Factors” in this Quarterly Report and in our Annual Report filed on Form 10-K for the year ended December 31, 2022 (our “Annual Report”). We assume no obligation to update any of these forward-looking statements. Except as otherwise indicated or required by the context, all references in this Quarterly Report to the “Company,” “Ranger,” “we,” “us,” or “our” relate to Ranger Energy Services, Inc. (“Ranger, Inc.”) and its consolidated subsidiaries.

How We Evaluate Our Operations

Our service offerings consist of well completion support, workover, well maintenance, wireline, other complementary services, as well as well installation, commissioning and operating of modular equipment, which are conducted in three reportable segments, as follows:

•High Specification Rigs. Provides high specification well service rigs 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 our completion, production and pump down service lines.

•Processing Solutions and Ancillary Services. Provides complimentary services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services primarily include equipment rentals, coil tubing, plug and abandonment, snubbing, and processing solutions.

•Other. Other represents costs not allocable to the reporting segments and includes corporate general and administrative expense and depreciation of corporate furniture and fixtures, amortization, impairments, debt retirements and other items similar in nature.

For additional financial information about our segments, please see “Item 1. Financial Information — Note 15 — Segment Reporting.”

Business Outlook

The outlook for our business remains stable. Despite drilling and completion activity declines in the first three quarters of 2023, we have continued to show mild increases in operating activity through redeployment of idled assets. Going forward, we anticipate the global economy and, commodity prices as a consequence, will show further stabilization and eventual improvement. OPEC+ production cuts have continued and are expected to keep commodity prices at a stable level through the remainder of 2023. Furthermore, both EIA and OPEC+ are projecting for oil demand to rise in 2024 driving continued investment and growth in the sector. Consolidation occurring at the Exploration and Production operator level within the energy industry is expected to impact U.S. onshore activity levels. The full extent of this impact is not yet known, but the Company expects that it may be varied and include favorable preference from larger organizations where the well-established processes and systems of Ranger are more valued over the longer term, while also potentially involving a temporary reduction in activity levels in the near term.

The Company also believes the current geopolitical events will continue to have an impact on our industry. Considering the rapidly evolving events and the interplay of supply and demand within oil and gas commodities sector, numerous unknown factors could materially impact our operations. These events have already, and are likely to continue, influencing commodity prices, causing volatility that could have a material effect on our earnings, cash flows, and financial condition.

Financial Metrics

How We Generate Revenue

Rig hours and stage counts, as it relates to our High Specification Rigs and Wireline Services segments, respectively, are important indicators of our activity levels and profitability. Rig hours represent the aggregate number of hours that our well service rigs actively worked, whereas stage counts represent the number of completed stages during the periods presented for

the completion service line within our Wireline Services segment. Generally, during the period our services are being provided, our customers are billed on an hourly basis for our high specification rig services. As it relates to our wireline services, services are billed upon the completion of the well, on a monthly basis, or on a per job basis. The rates for which the customer is billed is generally predetermined based upon a contractual agreement.

Costs of Conducting Our Business

The principal costs associated with conducting our business are personnel, repairs and maintenance, general and administrative, and depreciation expense.

Cost of Services. The primary costs associated with our cost of services are related to personnel expenses, repairs and maintenance of our fixed assets and, additionally, as it relates to our Wireline Services segment, perforating and gun costs. A significant portion of these expenses are variable, and therefore typically managed based on industry conditions and demand for our services. Further, there is generally a correlation between our revenue generated and personnel and repairs and maintenance costs, which are dependent upon the operational activity.

Personnel costs associated with our operational employees represent the most significant cost of our business. A substantial portion of our labor costs is attributable to our field crews and is partly variable based on the requirements of specific customers. A key component of personnel costs relates to the ongoing training of our employees, which improves safety rates and reduces attrition.

General & Administrative. General and administrative expenses are corporate in nature and are included within Other. These costs include the majority of centrally-located company management and administrative personnel and are not attributable to any of our lines of businesses nor reporting segments.

Operating Income or Loss

We analyze our operating income or loss by segment, which we have defined as revenue less cost of services and depreciation expense. We believe this is a key financial metric as it provides insight on profitability and operational performance based on the historical cost basis of our assets.

Adjusted EBITDA

We view Adjusted EBITDA, which is a non‑GAAP financial measure, as an important indicator of performance. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity‑based compensation, acquisition‑related and severance costs, gain or loss on disposal of assets, significant and unusual legal fees and settlements, and other non‑cash and certain other items that we do not view as indicative of our ongoing performance. See “—Results of Operations” and “—Note Regarding Non‑GAAP Financial Measure” for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Results of Operations

Three Months Ended September 30, 2023 compared to Three Months Ended September 30, 2022

The following is an analysis of our operating results. See “—How We Evaluate Our Operations” for definitions of rig hours, stage counts and other analogous information, as well as key operating metrics.


	Three Months Ended
	September 30,				Variance
	2023		2022		$		%
Revenue
High specification rigs	$	79.2	$	79.7	$	(0.5)	(1)	%
Wireline services	53.2		60.6		(7.4)		(12)	%
Processing solutions and ancillary services	32.0		36.7		(4.7)		(13)	%
Total revenue	164.4		177.0		(12.6)		(7)	%

Operating expenses
Cost of services (exclusive of depreciation and amortization):
High specification rigs	63.5		62.7		0.8		1	%
Wireline services	45.8		49.2		(3.4)		(7)	%
Processing solutions and ancillary services	25.5		26.2		(0.7)		(3)	%
Total cost of services	134.8		138.1		(3.3)		(2)	%
General and administrative	7.0		11.0		(4.0)		(36)	%
Depreciation and amortization	10.6		10.8		(0.2)		(2)	%
Impairment of fixed assets	0.4		0.2		0.2		100	%
Gain on sale of assets	(0.1)		(1.1)		1.0		(91)	%
Total operating expenses	152.7		159.0		(6.3)		(4)	%

Operating income	11.7		18.0		(6.3)		(35)	%

Other (income) expenses
Interest expense, net	0.7		1.8		(1.1)		(61)	%

Gain on bargain purchase, net of tax	—		(0.8)		0.8		(100)	%
Total other (income) expenses	0.7		1.0		(0.3)		(30)	%

Income before income tax expense	11.0		17.0		(6.0)		(35)	%
Income tax expense	1.6		3.4		(1.8)		(53)	%
Net income	$	9.4	$	13.6	$	(4.2)	(31)	%

Revenue. Revenue for the three months ended September 30, 2023 decreased $12.6 million, or 7%, to $164.4 million from $177.0 million for the three months ended September 30, 2022. The change in revenue by segment was as follows:

High Specification Rigs. High Specification Rig revenue for the three months ended September 30, 2023 decreased $0.5 million, or 1%, to $79.2 million from $79.7 million for the three months ended September 30, 2022. The revenue decrease is attributable to decreased total rig hours to 112,400 for the three months ended September 30, 2023 from 123,000 for three months ended September 30, 2022 due to reduced rig activity in the South region offset by rig activity increases in other regions and improved pricing, as the average revenue per rig hour increased 8% to $700 for the three months ended September 30, 2023 from $648 for the three months ended September 30, 2022.

Wireline Services. Wireline Services revenue for the three months ended September 30, 2023 decreased $7.4 million, or 12%, to $53.2 million from $60.6 million for the three months ended September 30, 2022. The decreased revenue was primarily attributable to a decrease in completion services revenue of $6.5 million where there was a 26% decrease in completed stage counts to 6,800 for the three months ended September 30, 2023 from 9,200 for the three months ended September 30, 2022.

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended September 30, 2023 decreased $4.7 million, or 13%, to $32.0 million from $36.7 million for the three months ended September 30, 2022. The decrease in revenue is primarily attributable to decreased activity in our rentals service, coil tubing service lines, and snubbing services, which amounted to decreased revenue of $2.3 million, $1.8 million, and $1.4 million, respectively. These activity declines were partially offset by increased revenues within plugging and abandonment services of $0.7 million.

Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended September 30, 2023 decreased $3.3 million, or 2%, to $134.8 million from $138.1 million for the three months ended September 30, 2022. As a percentage of revenue, cost of services was 82% and 78% for the three months ended September 30, 2023 and 2022, respectively. The change in cost of services by segment was as follows:

High Specification Rigs. High Specification Rig cost of services for the three months ended September 30, 2023 increased $0.8 million, to $63.5 million from $62.7 million for the three months ended September 30, 2022. Costs of services increased year over year primarily due to labor and other cost increases year over year due to inflationary pressures.

Wireline Services. Wireline Services cost of services for the three months ended September 30, 2023 decreased $3.4 million, or 7%, to $45.8 million from $49.2 million for the three months ended September 30, 2022. Wireline Services cost of services as a percentage of revenue increased from 81% for the three months ended September 30, 2022 to 86% for the three months ended September 30, 2023 due to the decreased activity levels. Increasing costs as a percent of revenue is due to a reduction in operating leverage.

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended September 30, 2023 decreased $0.7 million, or 3%, to $25.5 million from $26.2 million for the three months ended September 30, 2022. The decrease was primarily attributable to decreased employee, fuel, and maintenance costs with the downturn in operational activity in our rental, coil tubing, and snubbing services.

General & Administrative. General and administrative expenses for the three months ended September 30, 2023 decreased $4.0 million, or 36%, to $7.0 million from $11.0 million for the three months ended September 30, 2022. The decrease in general and administrative expenses is primarily due to decreased in accounting, legal, and professional expenses related to the Basic acquisition for the three months ended September 30, 2022, coupled with decreased employee costs during the three months ended September 30, 2023.

Depreciation and Amortization. Depreciation and amortization for the three months ended September 30, 2023 decreased $0.2 million, or 2%, to $10.6 million from $10.8 million for the three months ended September 30, 2022. The decrease was attributable to assets disposed of during three months ended September 30, 2023.

Impairment of Fixed Assets. Impairment of fixed assets for the three months ended September 30, 2023 increased $0.2 million, or 100%, to $0.4 million from $0.2 million for the three months ended September 30, 2022. The increase was attributable impairment recognized on a property during the three months ended September 30, 2023, which was greater than the impairment recognized on certain assets during the three months ended September 30, 2022.

Interest Expense, net. Interest expense, net for the three months ended September 30, 2023 decreased $1.1 million, or 61%, to $0.7 million from $1.8 million for the three months ended September 30, 2022. The decrease to net interest expense was attributable to the reduced borrowings.

Income Tax Expense. Income tax expense for the three months ended September 30, 2023 decreased $1.8 million, or 53%, to $1.6 million from $3.4 million for the three months ended September 30, 2022. The decrease in tax expense was attributable to the increase in net operating loss utilization in the current quarter, coupled with a decrease in net income.

Net Income. Net income for the three months ended September 30, 2023 decreased $4.2 million, or 31%, to $9.4 million from $13.6 million for the three months ended September 30, 2022. The decrease in net income was primarily driven by reduced activity in wireline and processing and ancillary services segments.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022


	Nine Months Ended
	September 30,				Variance
	2023		2022		$		%
Revenue
High specification rigs	$	234.3	$	220.6	$	13.7	6	%
Wireline services	157.6		148.7		8.9		6	%
Processing solutions and ancillary services	93.2		84.9		8.3		10	%
Total revenue	485.1		454.2		30.9		7	%

Operating expenses
Cost of services (exclusive of depreciation and amortization):
High specification rigs	185.6		175.3		10.3		6	%
Wireline services	140.3		134.8		5.5		4	%
Processing solutions and ancillary services	76.1		66.0		10.1		15	%
Total cost of services	402.0		376.1		25.9		7	%
General and administrative	22.7		32.4		(9.7)		(30)	%
Depreciation and amortization	29.3		33.8		(4.5)		(13)	%
Impairment of fixed assets	0.4		1.3		(0.9)		(69)	%
Gain on sale of assets	(1.6)		—		(1.6)		100	%
Total operating expenses	452.8		443.6		9.2		2	%

Operating income	32.3		10.6		21.7		(205)	%

Other (income) expenses
Interest expense, net	2.8		5.7		(2.9)		(51)	%
Loss on debt retirement	2.4		—		2.4		(100)	%
Gain on bargain purchase, net of tax	—		(3.6)		3.6		(100)	%
Total other (income) expenses	5.2		2.1		3.1		148	%

Income before income tax expense	27.1		8.5		18.6		219	%
Income tax expense	5.4		1.0		4.4		440	%
Net income	$	21.7	$	7.5	$	14.2	189	%

Revenue. Revenue for the nine months ended September 30, 2023 increased $30.9 million, or 7%, to $485.1 million from $454.2 million for the nine months ended September 30, 2022. The change in revenue by segment was as follows:

High Specification Rigs. High Specification Rig revenue for the nine months ended September 30, 2023 increased $13.7 million, or 6%, to $234.3 million from $220.6 million for the nine months ended September 30, 2022. The increase in rig services revenue included an increase in the average revenue per rig hour by 12% to $693 from $621 for the nine months ended September 30, 2022, offset by a 5% decrease in total rig hours to 338,100 for the nine months ended September 30, 2023 from 355,400 for the nine months ended September 30, 2022. Revenue improvement was driven by pricing improvements year over year offset by a decrease in activity levels during 2023 due to the redeployment of rigs between customers and regions.

Wireline Services. Wireline Services revenue for the nine months ended September 30, 2023 increased $8.9 million, or 6%, to $157.6 million from $148.7 million for the nine months ended September 30, 2022. The increase wireline services revenue was attributable to production and pump down services accounting for $5.8 million and $4.5 million, respectively, and related to both increased pricing and utilization of assets. This is offset by decreased wireline services revenue within the completion service line totaling $1.4 million coupled with a 16% decrease in completed stage counts to 20,600 for the nine months ended September 30, 2023 from 24,600 for the nine months ended September 30, 2022.

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the nine months ended September 30, 2023 increased $8.3 million, or 10%, to $93.2 million from $84.9 million for the nine months ended September 30, 2022. The increase in processing solutions and ancillary services revenue is attributable to increases of

$5.6 million in our plugging and abandonment service lines, $4.2 million in our coil tubing service line, and $1.0 million in our logistics services.

Cost of services (exclusive of depreciation and amortization). Cost of services for the nine months ended September 30, 2023 increased $25.9 million, or 7%, to $402.0 million from $376.1 million for the nine months ended September 30, 2022. As a percentage of revenue, cost of services was 83% for both the nine months ended September 30, 2023 and 2022. The change in cost of services by segment was as follows:

High Specification Rigs. High Specification Rig cost of services for the nine months ended September 30, 2023 increased $10.3 million, or 6%, to $185.6 million from $175.3 million for the nine months ended September 30, 2022. The increase was primarily attributable to an increase in variable expenses, most significant of which is employee-related labor costs and repair and maintenance accounting for of $7.1 million and $1.1 million, respectively.

Wireline Services. Wireline Services cost of services for the nine months ended September 30, 2023 increased $5.5 million, or 4%, to $140.3 million from $134.8 million for the nine months ended September 30, 2022. Increase in costs from the production and pump down service lines accounted for approximately $6.2 million and $3.4 million, respectively, of the segment cost of services increase. These increases are offset by a decrease in costs from the completion services lines by approximately $4.1 million.

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the nine months ended September 30, 2023 increased $10.1 million, or 15%, to $76.1 million from $66.0 million for the nine months ended September 30, 2022. The increase was primarily attributable to increased employee labor costs and other costs associated with higher operational activity, which amounted to $4.0 million and $4.9 million, respectively.

General & Administrative. General and administrative expenses for the nine months ended September 30, 2023 decreased $9.7 million, or 30%, to $22.7 million from $32.4 million. The decrease in general and administrative expenses is primarily due to higher compensation costs in the prior year, coupled with accounting, legal, and professional fees and transactional costs incurred during the nine months ended September 30, 2022 both largely related to the Basic acquisition.

Depreciation and Amortization. Depreciation and amortization for the nine months ended September 30, 2023 decreased $4.5 million, or 13%, to $29.3 million from $33.8 million for the nine months ended September 30, 2022. The decrease was attributable to assets disposed of during 2022.

Impairment of Fixed Assets. Impairment of fixed assets for the nine months ended September 30, 2023 decreased $0.9 million, or 69%, to $0.4 million from $1.3 million for the nine months ended September 30, 2022. The decrease was attributable impairment recognized on a property during the nine months ended September 30, 2023, which was less than the impairment recognized on certain assets during the nine months ended September 30, 2022.

Interest Expense, net. Interest expense, net for the nine months ended September 30, 2023 decreased $2.9 million, or 51%, to $2.8 million from $5.7 million for the nine months ended September 30, 2022. The decrease to net interest expense was attributable to the decreased levels of borrowings year over year.

Income Tax Expense. Income tax expense for the nine months ended September 30, 2023 increased $4.4 million, or 440%, to $5.4 million from $1.0 million for the nine months ended September 30, 2022. The increase in tax expense was attributable to the increase in income from the prior year.

Net Income. Net income for the nine months ended September 30, 2023 increased $14.2 million, or 189%, to $21.7 million from $7.5 million for the nine months ended September 30, 2022. The increase in net income was primarily driven by an increase in operating activity and pricing improvements across high specification rigs and wireline services segments.

Note Regarding Non-GAAP Financial Measure

Adjusted EBITDA is not a financial measure determined in accordance with U.S. GAAP. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, gain or loss on disposal of assets, legal fees and settlements, and other non-cash or certain other items that we do not view as indicative of our ongoing performance.

We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with U.S. GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an indication that our results will be unaffected by the items excluded from Adjusted EBITDA. Our computations of Adjusted EBITDA may not be identical to other similarly titled measures of other companies. The following table presents reconciliations of net income (loss) to Adjusted EBITDA, our most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.

Three Months Ended September 30, 2023 compared to Three Months Ended September 30, 2022

The following is an analysis of our Adjusted EBITDA. See “Item 1. Financial Information—Note 15—Segment Reporting” and “—Results of Operations” for further details (in millions).


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2023
Net income (loss)	$	10.6	$	4.3	$	4.5	$	(10.0)	$	9.4
Interest expense, net	—		—		—		0.7		0.7
Income tax expense	—		—		—		1.6		1.6
Depreciation and amortization	5.1		3.1		2.0		0.4		10.6
EBITDA	15.7		7.4		6.5		(7.3)		22.3
Impairment of fixed assets	—		—		—		0.4		0.4
Equity based compensation	—		—		—		1.3		1.3

Gain on disposal of property and equipment	—		—		—		(0.1)		(0.1)


Acquisition related costs	—		—		—		0.1		0.1

Adjusted EBITDA	$	15.7	$	7.4	$	6.5	$	(5.6)	$	24.0


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2022
Net income (loss)	$	10.7	$	8.6	$	9.2	$	(14.9)	$	13.6
Interest expense, net	—		—		—		1.8		1.8
Income tax expense	—		—		—		3.4		3.4
Depreciation and amortization	6.3		2.8		1.3		0.4		10.8
EBITDA	17.0		11.4		10.5		(9.3)		29.6
Impairment of fixed assets	—		—		—		0.2		0.2
Equity based compensation	—		—		—		1.1		1.1

Gain on disposal of property and equipment	—		—		—		(1.1)		(1.1)
Bargain purchase gain, net of tax	—		—		—		(0.8)		(0.8)
Severance and reorganization costs	—		—		—		1.1		1.1

Legal fees and settlements	—		—		—		0.2		0.2
Adjusted EBITDA	$	17.0	$	11.4	$	10.5	$	(8.6)	$	30.3


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Variance ($)
Net income (loss)	$	(0.1)	$	(4.3)	$	(4.7)	$	4.9	$	(4.2)
Interest expense, net	—		—		—		(1.1)		(1.1)
Income tax expense	—		—		—		(1.8)		(1.8)
Depreciation and amortization	(1.2)		0.3		0.7		—		(0.2)
EBITDA	(1.3)		(4.0)		(4.0)		2.0		(7.3)
Impairment of fixed assets	—		—		—		0.2		0.2
Equity based compensation	—		—		—		0.2		0.2

Gain on disposal of property and equipment	—		—		—		1.0		1.0
Bargain purchase gain, net of tax	—		—		—		0.8		0.8
Severance and reorganization costs	—		—		—		(1.1)		(1.1)
Acquisition related costs	—		—		—		0.1		0.1
Legal fees and settlements	—		—		—		(0.2)		(0.2)
Adjusted EBITDA	$	(1.3)	$	(4.0)	$	(4.0)	$	3.0	$	(6.3)

Adjusted EBITDA for the three months ended September 30, 2023 decreased $6.3 million to $24.0 million from $30.3 million for the three months ended September 30, 2022. The change by segment was as follows:

High Specification Rigs. High Specification Rigs Adjusted EBITDA for the three months ended September 30, 2023 decreased $1.3 million to $15.7 million from $17.0 million for the three months ended September 30, 2022, due to decreased revenue of $0.5 million as well as an increase in cost of services of $0.8 million driven by inflationary pressures year over year and gaps in rig scheduling during the three months ended September 30, 2023.

Wireline Services. Wireline Services Adjusted EBITDA for the three months ended September 30, 2023 decreased $4.0 million to $7.4 million from $11.4 million for the three months ended September 30, 2022, due to decreased revenue of $7.4 million, partially offset by a corresponding decrease in cost of services of $3.4 million.

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended September 30, 2023 decreased $4.0 million to $6.5 million from $10.5 million for the three months ended September 30, 2022, due to decreased revenue of $4.7 million, partially offset by a corresponding decrease in cost of services of $0.7 million.

Other. Other Adjusted EBITDA for the three months ended September 30, 2023 improved $3.0 million to a loss of $5.6 million from a loss of $8.6 million for the three months ended September 30, 2022 due to lower general and administrative costs year over year. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Nine Months Ended September 30, 2023 compared to Nine Months Ended September 30, 2022

The following is an analysis of our Adjusted EBITDA. See “Item 1. Financial Information—Note 15—Segment Reporting” and “—Results of Operations” for further details (in millions).


		High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	TA	Nine Months Ended September 30, 2023
Net income (loss)		$	34.0	$	8.9	$	12.1	$	(33.3)	$	21.7
Interest expense, net		—		—		—		2.8		2.8
Income tax expense		—		—		—		5.4		5.4
Depreciation and amortization		14.7		8.4		5.0		1.2		29.3
EBITDA		48.7		17.3		17.1		(23.9)		59.2
Impairment of fixed assets		—		—		—		0.4		0.4
Equity based compensation		—		—		—		3.6		3.6
Loss on retirement of debt		—		—		—		2.4		2.4
Gain on disposal of property and equipment		—		—		—		(1.6)		(1.6)

Severance and reorganization costs		—		—		—		0.4		0.4
Acquisition related costs		—		—		—		1.6		1.6

Adjusted EBITDA		$	48.7	$	17.3	$	17.1	$	(17.1)	$	66.0


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other			Total
	Nine Months Ended September 30, 2022
Net income (loss)	$	24.5	$	5.6	$	15.6	$	(38.2)		$	7.5
Interest expense, net	—		—		—		5.7			5.7
Income tax expense	—		—		—		1.0			1.0
Depreciation and amortization	20.8		8.3		3.3		1.4			33.8
EBITDA	45.3		13.9		18.9		(30.1)			48.0
Impairment of fixed assets	—		—		—		1.3			1.3
Equity based compensation	—		—		—		2.8			2.8


Bargain purchase gain, net of tax	—		—		—		(3.6)		(3.6)	(3.6)
Severance and reorganization costs	—		—		—		1.6			1.6
Acquisition related costs	—		—		—		6.5			6.5
Legal fees and settlements	—		—		—		1.3			1.3
Adjusted EBITDA	$	45.3	$	13.9	$	18.9	$	(20.2)		$	57.9


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Variance ($)
Net income (loss)	$	9.5	$	3.3	$	(3.5)	$	4.9	$	14.2
Interest expense, net	—		—		—		(2.9)		(2.9)
Income tax expense	—		—		—		4.4		4.4
Depreciation and amortization	(6.1)		0.1		1.7		(0.2)		(4.5)
EBITDA	3.4		3.4		(1.8)		6.2		11.2
Impairment of fixed assets	—		—		—		(0.9)		(0.9)
Equity based compensation	—		—		—		0.8		0.8
Loss on retirement of debt	—		—		—		2.4		2.4
Gain on disposal of property and equipment	—		—		—		(1.6)		(1.6)
Bargain purchase gain, net of tax	—		—		—		3.6		3.6
Severance and reorganization costs	—		—		—		(1.2)		(1.2)
Acquisition related costs	—		—		—		(4.9)		(4.9)
Legal fees and settlements	—		—		—		(1.3)		(1.3)
Adjusted EBITDA	$	3.4	$	3.4	$	(1.8)	$	3.1	$	8.1

Adjusted EBITDA for the nine months ended September 30, 2023 increased $8.1 million to $66.0 million from $57.9 million for the nine months ended September 30, 2022. The change by segment was as follows:

High Specification Rigs. High Specification Rigs Adjusted EBITDA for the nine months ended September 30, 2023 increased $3.4 million to $48.7 million from $45.3 million for the nine months ended September 30, 2022, primarily due to increased revenue of $13.7 million, partially offset by a corresponding increase in cost of services of $10.3 million.

Wireline Services. Wireline Services Adjusted EBITDA for the nine months ended September 30, 2023 increased $3.4 million to $17.3 million from $13.9 million for the nine months ended September 30, 2022, primarily due to increased revenue of $8.9 million, partially offset by an increase in cost of services of $5.5 million.

Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the nine months ended September 30, 2023 decreased $1.8 million to $17.1 million from $18.9 million for the nine months ended September 30, 2022, primarily due to an increase in cost of services of $10.1 million, partially offset by increased revenue of $8.3 million.

Other. Other Adjusted EBITDA for the nine months ended September 30, 2023 increased $3.1 million to a loss of $17.1 million from a loss of $20.2 million for the nine months ended September 30, 2022. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.

Liquidity and Capital Resources

Overview

We require capital to fund ongoing operations, including maintenance expenditures on our existing fleet and equipment, organic growth initiatives, investments and acquisitions. Our primary sources of liquidity have historically been cash generated from operations and borrowings under our credit facilities. As of September 30, 2023, we had total liquidity of $69.9 million, consisting of $8.2 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $61.7 million. Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, net of $10.1 million in borrowings and $3.2 million of Letters of Credit open under the facility. This compares to the Company’s available borrowings under the EBC Revolving Credit Facility of $57.0 million and $61.0 million as of September 30, 2022 and December 31, 2022, respectively. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements that permit us to manage the cyclicality associated with our business. We currently expect to have sufficient funds to meet the Company’s short and long term liquidity requirements and comply with our covenants of our debt agreements. For further details, see “— Debt Agreements.”

Cash Flows

The following table presents our cash flows for the periods indicated:


	Nine Months Ended September 30,				Change
	2023		2022		$		%
	(in millions)
Net cash provided by operating activities	$	53.1	$	18.5	$	34.6	187	%
Net cash provided by (used in) investing activities	(23.0)		12.5		(35.5)		(284)	%
Net cash used in financing activities	(25.6)		(26.4)		0.8		3	%
Net change in cash	$	4.5	$	4.6	$	(0.1)	(2)	%

Operating Activities

Net cash from operating activities increased $34.6 million to cash provided of $53.1 million for nine months ended September 30, 2023 compared to cash provided of $18.5 million for the nine months ended September 30, 2022. The change in cash flows from operating activities is primarily attributable to an increase in operating income for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 and the building of working capital in the prior year period due to the absorption of the business associated with the Basic acquisition. The use of working capital cash decreased $17.2 million to $9.4 million for the nine months ended September 30, 2023, compared to $26.6 million for the nine months ended September 30, 2022 due to the aforementioned Basic acquisition working capital.

Investing Activities

Net cash from investing activities decreased $35.5 million to cash used of $23.0 million for nine months ended September 30, 2023 compared to cash provided of $12.5 million for the nine months ended September 30, 2022. The change in cash flows from investing activities is largely attributable to the significant asset disposals occurring after the Basic asset acquisition during the nine months ended September 30, 2022, coupled with acquisition of certain fixed assets from Pegaso for consideration of $7.3 million during the three months ended September 30, 2023.

Financing Activities

Net cash from financing activities increased $0.8 million from cash used of $26.4 million for the nine months ended September 30, 2022 to cash used of $25.6 million for the nine months ended September 30, 2023. The Company centralized debt and repaid the Revolving Credit Facility, M&E Term Loan Facility, and the Secured Promissory Note with borrowings from the new Wells Fargo Revolving Credit Facility (see Item 1. Financial Information— Note 9 — Debt). The repayment along with a decrease in cash flows from financing activities is primarily attributable to the increased ability to pay down debt in 2023 with proceeds from operating activities.

Supplemental Disclosures

During the nine months ended September 30, 2023, the Company added fixed assets of $5.6 million and $1.1 million primarily related to finance leased assets and asset trades, respectively, across all operating segments.

Working Capital

Our working capital, which we define as total current assets less total current liabilities, was $71.4 million as of September 30, 2023, compared to $65.6 million as of December 31, 2022. The increase in working capital can be attributed to a higher cash balance and contract assets, as well as a decrease in accrued expenses.

Debt Agreements

Wells Fargo Bank, N.A. Credit Agreement

In addition, on September 25, 2023, the Company entered into an agreement with Wells Fargo Bank, N.A. which designated an additional Letter of Credit in the amount of $1.6 million as part of incremental collateral requirements for the Company’s 2023 insurance renewal. This line of credit falls under the Wells Fargo Revolving Credit Facility aggregate principal amount and matures on September 25, 2024. The interest rate for this Letter of Credit was approximately 1.8% for the month ended September 30, 2023.

The Wells Fargo Revolving Credit Facility was drawn in part on May 31, 2023, to repay the Revolving Credit Facility, M&E Term Loan Facility, and the Secured Promissory Note. The undrawn portion of the Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other-permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company’s eligible accounts receivable less certain reserves. The Company’s eligible accounts receivable serve as collateral for the borrowings under the Wells Fargo Revolving Credit Facility, which is scheduled to mature on May 31, 2028. The Wells Fargo Revolving Credit Facility includes an acceleration clause and cash dominion provisions under certain circumstances that permits the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company’s obligations under the Revolving Credit Facility. The borrowings of the Wells Fargo Revolving Credit Facility, therefore, will be classified as Long-term debt, current portion on the Condensed Consolidated Balance Sheet.

Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, which was based on a borrowing base certificate in effect as of September 30, 2023. The Company had $10.1 million in borrowings under the Wells Fargo Revolving Credit Facility and $3.2 million in Letters of Credit open under the facility, leaving a residual $61.7 million available for borrowings as of September 30, 2023. Borrowings under the Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability. The weighted average interest rate for the loan was approximately 7.0% for the nine months ended September 30, 2023.

Eclipse Loan and Security Agreement

On September 27, 2021, the Company entered into a Loan and Security Agreement with Eclipse Business Capital LLC (“EBC”) and Eclipse Business Capital SPV, LLC, as administrative agent, providing the Company with a senior secured credit facility in an aggregate principal amount of $77.5 million (the “EBC Credit Facility”), consisting of (i) a revolving credit facility in an aggregate principal amount of up to $50.0 million (the “Revolving Credit Facility”), (ii) a machinery and equipment term loan facility in an aggregate principal amount of up to $12.5 million (the “M&E Term Loan Facility”) and (iii) a term loan B facility in an aggregate principal amount of up to $15.0 million (the “Term Loan B Facility”).

Secured Promissory Note

On July 8, 2021, the Company acquired the assets of PerfX Wireline Services (“PerfX”), a provider of wireline services that operated in Williston, North Dakota and Midland, Texas. In connection with the PerfX acquisition, Bravo Wireline, LLC, a wholly owned subsidiary of Ranger, entered into a security agreement with Chief Investments, LLC, as administrative agent, for the financing of certain assets acquired. Borrowings under the Secured Promissory Note bear interest at a rate of 8.5% per annum and was scheduled to mature in January 2024.

Other Installment Purchases

During the year ended December 31, 2021, the Company entered into various Installment and Security Agreements (collectively, the “Installment Agreements”) in connection with the purchase of certain ancillary equipment, where such assets are being held as collateral. As of September 30, 2023, the aggregate principal balance outstanding under the Installment Agreements was $0.2 million and is payable ratably over 36 months from the time of each purchase. For the nine months ended September 30, 2023, the Company paid down the Installment Agreements by $0.3 million. The monthly installment payments contain an imputed interest rate that are consistent with the Company’s incremental borrowing rate and is not significant to the Company.

Capital Returns Program

On March 7, 2023, the Company announced a share repurchase program authorizing the Company to purchase up to $35.0 million of Class A Common Stock that can be utilized for up to 36 months. Additionally, the Board of Directors

announced an intention to initiate a quarterly dividend of $0.05 per share once the Company achieved a stated objective of being net debt zero. The Board of Directors approved the initiation of the quarterly dividend, which first became payable on September 8, 2023 to all stockholders of record as of August 18, 2023. The Company believes that a share repurchase and dividend framework provides the best overall value creation potential for investors and intends to return at least 25% of annual cash flows to investors going forward.

Critical Accounting Policies and Estimates

Our significant accounting policies are discussed in our Annual Report and have not materially changed since December 31, 2022.

Off-Balance Sheet Arrangements

We currently have no material off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risks

Recent Events

We continue to expect business opportunities and financial results to show mild increases assuming the global economy remains stable. OPEC+ production cuts have continued and are expected to keep commodity prices at a stable level through the remainder of 2023. OPEC+ also expects oil demand to rise by approximately 2.5 million barrels per day in 2024, an approximated 2.2% increase over 2.4 million barrels per day in 2023.

We believe that geopolitical events will continue to have an impact on the macroeconomic backdrop of our industry, most notably, China’s growth expectations and uncertainty regarding Russia’s oil supply while under sanctions. The 2022 invasion of Ukraine by neighboring Russia has caused turmoil in global markets, generally driving oil prices higher while also injecting further uncertainty into a worldwide economy recovering from the effects of COVID-19. Additionally, recent events in the Middle East have contributed to further uncertainty and created additional risk to global stability that could ultimately affect our business.

Given the continuing conflict globally, there are many unknown factors and events that could materially impact our operations. These events have and continue to impact commodity prices, which could have a material effect on our earnings, cash flows, and financial condition. In the short-term, commodity price fluctuations are highly uncertain. Actual price outcomes will be dependent on the degree to which existing sanctions imposed on Russia, any potential future sanctions, and independent corporate actions affect Russia’s oil production or the sale of Russia’s oil in the global market. In addition, the degree to which other oil producers respond to current oil prices, as well as the effects macroeconomic developments might have on global oil demand, will be important for oil price formation in the coming months.

Interest Rate Risk

We are exposed to interest rate risk as a result of borrowings associated with our Wells Fargo Revolving Credit Facility and Financing Agreement to fund operations. The Company had $10.1 million outstanding under the Wells Fargo Revolving Credit Facility, with a weighted average interest rate of 7.0%. A hypothetical 1.0% increase or decrease in the weighted average interest rate would increase or decrease interest expense by less than $0.1 million per year. We do not currently hedge out interest rate exposure. We do not engage in derivative transactions for speculative or trading purposes. For a complete discussion of our interest rate risk, see our Annual Report.

Credit Risk

The majority of our trade receivables have payment terms of 30 days or less. As of September 30, 2023, the top three trade receivable balances represented approximately 12%, 11%, and 7%, respectively, of consolidated net accounts receivable. Within our High Specification Rig segment, the top three trade receivable balances represented 20%, 13% and 12%, respectively, of total High Specification Rig net accounts receivable. Within our Wireline Services segment, the top three trade receivable balances represented 16%, 14%, and 12%, respectively, of total Wireline Services net accounts receivable. Within our Processing Solutions and Ancillary Services segment, the top three trade receivable balances represented 14%, 11%, and 10%, respectively, of total Processing Solutions and Ancillary Services net accounts receivable. We mitigate the associated credit risk by performing credit evaluations and monitoring the payment patterns of our customers.

Commodity Price Risk

The market for our services is indirectly exposed to fluctuations in the prices of oil and natural gas to the extent such fluctuations impact the activity levels of our E&P customers. See “— Recent Events” above for further details. Any prolonged substantial reduction in oil and natural gas prices would likely affect oil and natural gas production levels and therefore affect demand for our services. We do not currently intend to hedge our indirect exposure to commodity price risk.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Exchange Act, we have evaluated, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report.

Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were ineffective as of September 30, 2023 due to the material weaknesses previously disclosed in our 2022 Annual Report.

Material Weaknesses in Internal Control Over Financial Reporting

In connection with the evaluation of the Company’s internal control over financial reporting as described above, management has identified the following deficiencies in our control environment in the current period that constituted material weaknesses in the Company’s internal control over financial reporting as of December 31, 2022:

•Ineffective controls over segregation of duties related to the review of manual journal entries and account reconciliations. Specifically, certain personnel had the ability to both (a) create and post journal entries within our general ledger system, and (b) review account reconciliations.

•Ineffective information technology general controls related to administrative user access to the Company’s information systems that are relevant to the preparation of financial statements to ensure appropriate segregation of duties and to adequately restrict access to financial applications and data.

In addition, the following material weakness previously reporting in our 2021 Annual Report continued to exist as of December 31, 2022.

•Ineffective controls over the accounting for complex transactions.

Notwithstanding we did not identify any material misstatements to the consolidated financial statements and there were no changes to previously released financial results as a result of these material weaknesses, the control deficiencies created a reasonable possibility that a material misstatement to the consolidated financial statements would not be prevented or detected on a timely basis.

Remediation Efforts to Address the Material Weaknesses Existing in the Current Period

•During the fourth quarter of 2022, management implemented a remediation plan to update its design and implementation of controls to remediate the deficiency related to manual journal entries and enhance the Company's internal control environment. The Company has designed and implemented controls to prevent or detect a material misstatement resulting from certain personnel with the ability to create and post journal entries within the Company’s general ledger system. Management has designed and implemented controls over the review of all manual journal entries initiated and approved to ensure appropriate segregation of duties.

•Management has implemented measures to design information technology general controls related to administrative user access by restricting privileged access, implemented controls over user access and enforced proper segregation of duties within IT environments based on roles and responsibilities.

•Management is enhancing processes and designing and implementing additional internal controls to properly account for complex transactions. Additionally, the Company has hired additional accounting personnel and implementing training of new and existing personnel on proper execution of designed control procedures.

During 2022 and 2023, significant remediation steps were taken to address the communicated material weaknesses in our Internal Control environment. These remediation actions have largely been completed and the Company expects to test the effectiveness of these remediation plans at the time of the full year financial reporting for the year ended December 31, 2023.

The material weaknesses will not be considered remediated until the controls have operated effectively, as evidenced through testing, for a sufficient number of instances.

Any failure to implement and maintain the improvements in the controls over our financial reporting, or difficulties encountered in the implementation of these improvements in our controls, could cause us to fail to meet our reporting obligations. Any failure to improve our internal controls to address these identified weaknesses could cause misstatements (whether or not material) in our consolidated financial statements and/or also cause investors to lose confidence in our reported financial information, which could have a negative impact on the trading price of our stock.

Changes in Internal Control over Financial Reporting

There were no other changes in our internal control over financial reporting during the quarter ended September 30, 2023 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

Our operations are subject to a variety of risks and disputes normally incident to our business. As a result, we may, at any given time, be a defendant in various legal proceedings and litigation arising in the ordinary course of business. However, we are not currently subject to any material litigation and in the opinion of management, the outcome of any existing matters will not have a material adverse effect on the Company’s consolidated financial position or consolidated results of operations. We maintain insurance policies with insurers in amounts and with coverage and deductibles that we, with the advice of our insurance advisers and brokers, believe are reasonable and prudent. We cannot, however, assure you that this insurance will be adequate to protect us from all material expenses related to potential future claims for personal injury and property damage or that these levels of insurance will be available in the future at economical prices.

Item 1A. Risk Factors

Factors that could materially adversely affect our business, financial condition, operating results or liquidity and the trading price of our Class A Common Stock are described under “Risk Factors,” included in our Annual Report. This information should be considered carefully, together with other information in the Quarterly Report and the other reports and materials we file with the SEC.

Item 2. Unregistered Sales of Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Issuer Purchases of Equity Securities

On March 7, 2023, the Company announced that its Board of Directors authorized a share repurchase program, allowing the Company to purchase currently outstanding Class A Common Stock held by non-affiliates, not to exceed $35.0 million in aggregate value. Share repurchases may take place from time to time on the open market or through privately negotiated transactions. The duration of the share repurchase program is 36 months and may be accelerated, suspended or discontinued at any time without notice.

The following table provides information with respect to Class A Common Stock purchases made by the Company during the three months ended September 30, 2023.


Period	Total Number of Shares Repurchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (3)
July 1, 2023 - July 31, 2023	68,200	$	9.80	68,200	2,743,081
August 1, 2023 - August 31, 2023	89,500	12.35		89,500	2,293,301
September 1, 2023 - September 30, 2023	80,934	12.30		75,200	1,860,857
Total	238,634	$	11.60	232,900	1,860,857

_________________________

(1) Total number of shares repurchased during the third quarter of 2023 consists of 5,734 shares of Class A Common Stock, at an average price paid per share of $12.27, withheld by the Company in satisfaction of withholding taxes due upon the vesting of restricted shares granted to our employees under the Ranger Energy Services, Inc. 2017 Long-Term Incentive Plan and 232,900 shares of Class A Common Stock, at an average price paid per share of $12.30, repurchased pursuant to the repurchase program that was announced on March 7, 2023.

(2) As of September 30, 2023, an aggregate of 781,000 shares of Class A Common Stock were purchased for a total of $8.6 million since the inception of the repurchase plan announced on March 7, 2023.

(3) As of September 30, 2023, the maximum number of shares that may yet be purchased under the plan is 1,860,857 shares of Class A Common Stock. This is based on the closing price of $14.18 of Ranger Energy Services, Inc.’s Class A Common Stock on the New York Stock Exchange as of September 30, 2023.

Item 6. Exhibits

The following exhibits are filed as part of this Quarterly Report.


INDEX TO EXHIBITS
Exhibit Number						Description
10.1*						Form of Restricted Stock Agreement for Directors under the Ranger Energy Services, Inc. 2017 Long-Term Incentive Plan dated 2023.
31.1*						Certification of Chief Executive Officer Pursuant to Rule 13a‑14(a)/15d‑14(a) of the Securities Exchange Act of 1934
31.2*						Certification of Chief Financial Officer Pursuant to Rule 13a‑14(a)/15d‑14(a) of the Securities Exchange Act of 1934
32.1**						Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**						Certifications of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.CAL*						iXBRL Calculation Linkbase Document
101.DEF*						iXBRL Definition Linkbase Document
101.INS*						iXBRL Instance Document
101.LAB*						iXBRL Labels Linkbase Document
101.PRE*						iXBRL Presentation Linkbase Document
101.SCH*						iXBRL Schema Document
104*						Cover page interactive data file (formatted in iXBRL and contained in Exhibit 101)

* Filed as an exhibit to this Quarterly Report on Form 10-Q.

** Furnished as an exhibit to this Quarterly Report on Form 10-Q.

† Schedules and similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant will furnish a supplemental copy of any omitted schedule or similar attachment to the SEC upon request.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Ranger Energy Services, Inc.


/s/ Melissa Cougle						October 31, 2023
Melissa Cougle						Date
Chief Financial Officer
(Principal Financial Officer)

Exhibit 10.1

RANGER ENERGY SERVICES, INC.

2017 LONG TERM INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT FOR DIRECTORS


Grant Date:	August 1, 2023	(the “Grant Date”)
Name of Grantee:	[Name]	(the “Grantee” or “you”)
Number of Restricted Shares subject to Award:	[No. of Shares]	(the “Restricted Shares”)

This Restricted Stock Agreement (“Agreement”) is made and entered into as of the Grant Date by and

between Ranger Energy Services, Inc., a Delaware corporation (the “Company”), and you.

WHEREAS, the Company adopted the Ranger Energy Services, Inc., 2017 Long Term Incentive Plan (as amended from time to time, the “Plan”), under which the Company is authorized to grant equity-based awards to certain employees and service providers of the Company;

WHEREAS, the Company, in order to induce you to enter into and to continue and dedicate service to the Company and to materially contribute to the success of the Company, agrees to grant you this award of Restricted Stock;

WHEREAS, you acknowledge that a copy of the Plan has been furnished to you and shall be deemed a part of this Agreement as if fully set forth herein and the terms capitalized but not defined herein shall have the meanings set forth in the Plan; and

WHEREAS, you desire to accept the award of Restricted Stock granted pursuant to this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other valuable consideration hereinafter set forth, the parties agree as follows:

1. The Grant. Subject to the conditions set forth below, the Company hereby grants you, effective as of the Grant Date, as a matter of separate inducement and not in lieu of any salary or other compensation for your services for the Company, an award of Restricted Stock (the “Award”) valued at $75,000, consisting of 30% cash and 70% Class A Common Stock, which the total number of shares shall be determined based upon a volume weighted average price (“VWAP”) using the thirty-day period preceding the applicable issue date and in accordance with the terms and conditions set forth herein and in the Plan.

2.. Ownership of Restricted Shares. From and after the time the Restricted Shares are issued in your name, you shall have all rights of ownership in or with respect to the Restricted Shares, including without limitation, voting rights; provided, however, that dividends and distributions (collectively, “Distributions”) made on a Restricted Share shall be subject to the same transfer restrictions and the risk of forfeiture applicable to the related Restricted Share and shall be held by the Company without interest until the related Restricted Share becomes vested or is forfeited. If the Restricted Share to which such Distributions relate is forfeited to the Company, then such Distributions shall be forfeited to the Company at the same time such Restricted Share is so forfeited. If the Restricted Share to which such Distributions relate becomes vested, then such Distributions shall be paid and distributed to you as soon as administratively feasible after such Restricted Share becomes vested (but in no event later than March 15 of the calendar year following the calendar year in which such vesting occurs).

3. Restrictions; Forfeiture. The Restricted Shares are restricted in that they may not be sold, transferred or otherwise alienated or hypothecated until these restrictions are removed or expire as described in Section 5 or 6 of this Agreement. The Restricted Shares are also restricted in the sense that they may be forfeited to the Company (the “Forfeiture Restrictions”). You hereby agree that if the Restricted Shares are forfeited, as

provided in Section 6, the Company shall have the right to deliver the Restricted Shares to the Company’s transfer agent for, at the Company’s election, cancellation or transfer to the Company.

4. Expiration of Restrictions and Risk of Forfeiture. The restrictions on the Restricted Shares described in Section 4 of this Agreement will expire and the Restricted Shares will become transferable and nonforfeitable, provided that you remain a service provider to the Company or its Affiliates until the applicable dates set forth in the following schedule:


Number of Restricted Shares that Vest						Vesting Date
[No. of Shares]						August 1, 2024

5. Termination of Services.

(a) Termination Generally. If your service relationship with the Company or its Affiliates is terminated for any reason, then those Restricted Shares for which the restrictions have not lapsed as of the date of termination shall become null and void and those Restricted Shares shall be forfeited to the Company. The Restricted Shares for which the restrictions have lapsed as of the date of such termination shall not be forfeited to the Company.

(b) Effect of Other Agreements. Notwithstanding any provision herein to the contrary, in the event of any inconsistency between this Section 6 and any services, consulting, severance or change in control agreement between you and the Company or a similar plan or arrangement sponsored or maintained by the Company in which you participate, the terms of such services, consulting, severance or change in control agreement or similar plan or arrangement shall control.

6. Leave of Absence. With respect to the Award, the Company may, in its sole discretion, determine that if you are on leave of absence for any reason you will be considered to still be providing services to the Company, provided that rights to the Restricted Shares during a leave of absence will be limited to the extent to which those rights were earned or vested when the leave of absence began.

7. Delivery of Stock. Promptly following the expiration of the restrictions on the Restricted Shares pursuant to Section 5 of this Agreement, the Company shall cause to be issued and delivered to you or your designee evidence of the number of Restricted Shares as to which restrictions have lapsed (i.e., shares of Stock), free of any restrictive legend relating to the lapsed restrictions. The value of such Stock shall not bear any interest owing to the passage of time.

8. Payment of Taxes. In connection with any disposition of Shares or Distributions acquired pursuant to settlement of the Award, you (or any person permitted to receive settlement of the Award in the event of your death) shall be responsible for satisfying withholding taxes and other tax obligations relating to the Award. You acknowledge that there may be adverse tax consequences upon the transfer, vesting or settlement of the Award or disposition of the underlying Shares or Distributions and that you have been advised, and hereby are advised, to consult a tax advisor prior to such transfer, vesting or settlement. You represent that you are in no manner relying on the Board, the Committee, the Company or any of its Affiliates or any of their respective managers, directors, officers, employees or authorized representatives (including, without limitation, attorneys, accountants, consultants, bankers, lenders, prospective lenders and financial representatives) for tax advice or an assessment of such tax consequences.

9. Compliance with Securities Law. Notwithstanding any provision of this Agreement to the contrary, the issuance of Stock (including Restricted Shares) will be subject to compliance with all applicable requirements of federal, state, or foreign law with respect to such securities and with the requirements of any stock exchange or market system upon which the Stock may then be listed. No Stock will be issued hereunder if such issuance would constitute a violation of any applicable federal, state, or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, Stock will not be issued hereunder unless (a) a registration statement under the Securities Act of 1933, as amended (the “Act”), is at the time of issuance in effect with respect to the shares issued or (b) in the opinion of legal counsel to the Company, the shares issued may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Award will relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority has not been obtained. As a condition to any issuance hereunder, the Company may require you to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect to such compliance as may be requested by the Company. From time to time, the Board and appropriate officers of the Company are authorized to take the actions necessary and appropriate to file required documents with governmental authorities, stock exchanges, and other appropriate Persons to make shares of Stock available for issuance.

10. Legends. The Company may at any time place legends referencing any restrictions imposed on the shares pursuant to Sections 4 or 10 of this Agreement representing shares issued with respect to this Award.

11. Right of the Company and Affiliates to Terminate Services. Nothing in this Agreement confers upon you the right to continue performing services for the Company or any of its Affiliates, or interfere in any way with the rights of the Company or any of its Affiliates to terminate your service relationship at any time.

12. Furnish Information. You agree to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirements imposed upon the Company by or under any applicable statute or regulation.

13. Remedies. The parties to this Agreement shall be entitled to recover from each other reasonable attorneys’ fees incurred in connection with the successful enforcement of the terms and provisions of this Agreement whether by an action to enforce specific performance or for damages for its breach or otherwise.

14. No Liability for Good Faith Determinations. The Company and the members of the Board shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Restricted Shares granted hereunder.

15. Execution of Receipts and Releases. Any payment of cash or any issuance or transfer of shares of Stock or other property to you, or to your legal representative, heir, legatee or distributee, in accordance with the provisions hereof, shall, to the extent thereof, be in full satisfaction of all claims of such Persons hereunder. The Company may require you or your legal representative, heir, legatee or distributee, as a condition precedent to such payment or issuance, to execute a release and receipt therefor in such form as it shall determine.

16. No Guarantee of Interests. The Board and the Company do not guarantee the Stock of the

Company from loss or depreciation.

17. Notice. All notices required or permitted under this Agreement must be in writing and personally delivered or sent by mail and shall be deemed to be delivered on the date on which it is actually received by the person to whom it is properly addressed or if earlier the date it is sent via certified United States mail.

18. Waiver of Notice. Any person entitled to notice hereunder may waive such notice in writing.

19. Information Confidential. As partial consideration for the granting of the Award hereunder, you hereby agree to keep confidential all information and knowledge, except that which has been disclosed in any public filings required by law, that you have relating to the terms and conditions of this Agreement; provided, however, that such information may be disclosed as required by law and may be given in confidence to your spouse and tax and financial advisors. In the event any breach of this promise comes to the attention of the Company, it shall take into consideration that breach in determining whether to recommend the grant of any future similar award to you, as a factor weighing against the advisability of granting any such future award to you.

20. Successors. This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns.

21. Severability. If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein.

22. Company Action. Any action required of the Company shall be by resolution of the Board or by a person or entity authorized to act by resolution of the Board.

23. Headings. The titles and headings of Sections are included for convenience of reference only and are not to be considered in construction of the provisions hereof.

24. Governing Law. All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of Delaware without giving any effect to any conflict of law provisions thereof, except to the extent Delaware state law is preempted by federal law. The obligation of the Company to sell and deliver Stock hereunder is subject to applicable laws and to the approval of any governmental authority required in connection with the authorization, issuance, sale, or delivery of such Stock.

25. Amendment. This Agreement may be amended by the Board or by the Committee at any time; provided that any amendment that would materially and adversely affect your rights hereunder shall not be effective without your consent.

26. Clawback. To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Board (or a committee thereof), all shares of Stock granted under this Agreement shall be subject to the provisions of any applicable clawback policies or procedures adopted by the Company, which clawback policies or procedures may provide for forfeiture and/or recoupment of such shares of Stock. Notwithstanding any provision of this Agreement to the contrary, the Company reserves the right, without your consent, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this Agreement with retroactive effect.

27. The Plan. This Agreement is subject to all the terms, conditions, limitations and restrictions contained in the Plan.

28. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one instrument. Delivery of an executed counterpart of this Agreement by facsimile or portable document format (.pdf) attachment to electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement.

29. Consent to Electronic Delivery; Electronic Signature. In lieu of receiving documents in paper format, you agree, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports and all other forms of communications) in connection with this and any other award made or offered by the Company. Electronic delivery

may be via a Company electronic mail system or by reference to a location on a Company intranet to which you have access. You hereby consent to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.

30. Entire Agreement; Amendment. This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Award granted hereby; provided however, that the terms

of this Agreement shall not modify and shall be subject to the terms and conditions of any services, consulting, severance and/or change in control agreement between the Company (or an Affiliate or other entity) and you in effect as of the date a determination is to be made under this Agreement. Without limiting the scope of the preceding sentence, except as provided therein, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect. The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially reduces your rights shall be effective only if it is in writing and signed by both you and an authorized officer of the Company.

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its officer thereunto duly authorized, and the Grantee has set his hand as to the date and year first above written.

RANGER ENERGY SERVICES, INC.



Name: Stuart Bodden									Date of Signature
Title: President and Chief Executive Officer



Grantee:									Date of Signature

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stuart N. Bodden, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ranger Energy Services, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:

October 31, 2023

/s/ Stuart N. Bodden

Stuart N. Bodden

President, Chief Executive Officer and Director

(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Melissa Cougle, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Ranger Energy Services, Inc.

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:

October 31, 2023

/s/ Melissa Cougle

Melissa Cougle

Chief Financial Officer

(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

UNDER SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002, 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q of Ranger Energy Services, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stuart N. Bodden, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:

October 31, 2023

/s/ Stuart N. Bodden

Stuart N. Bodden

President, Chief Executive Officer and Director

(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

UNDER SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002, 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q of Ranger Energy Services, Inc. (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Melissa Cougle, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:

October 31, 2023

/s/ Melissa Cougle

Melissa Cougle

Chief Financial Officer

(Principal Financial Officer)

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Oct. 25, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-38183
Entity Registrant Name	RANGER ENERGY SERVICES, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-5449572
Entity Address, Address Line One	10350 Richmond
Entity Address, Address Line Two	Suite 550
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77042
City Area Code	713
Local Phone Number	935-8900
Title of 12(b) Security	Class A Common Stock, $0.01 par value
Trading Symbol	RNGR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001699039
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		24,412,713
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		0

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 8.2	$ 3.7
Accounts receivable, net	89.9	91.2
Contract assets	35.6	26.9
Inventory	7.7	5.9
Prepaid expenses	8.6	9.2
Assets held for sale	1.0	3.2
Total current assets	151.0	140.1
Property and equipment, net	225.0	221.6
Intangible assets, net	6.5	7.1
Operating leases, right-of-use assets	9.8	11.2
Other assets	1.2	1.6
Total assets	393.5	381.6
Liabilities and Stockholders' Equity
Accounts payable	32.6	24.3
Accrued expenses	29.6	36.1
Other financing liability, current portion	0.6	0.7
Long-term debt, current portion	10.3	6.8
Other current liabilities	6.5	6.6
Total current liabilities	79.6	74.5
Operating leases, right-of-use obligations	8.0	9.6
Other financing liability	11.1	11.6
Long-term debt, net	0.0	11.6
Other long-term liabilities	14.3	8.1
Total liabilities	113.0	115.4
Commitments and contingencies (Note 14)
Stockholders' equity
Preferred stock, $0.01 per share; 50,000,000 shares authorized; no shares issued or outstanding as of September 30, 2023 and December 31, 2022	0.0	0.0
Less: Class A Common Stock held in treasury at cost; 1,332,828 treasury shares as of September 30, 2023 and 551,828 treasury shares as of December 31, 2022	(12.4)	(3.8)
Retained earnings	27.6	7.1
Additional paid-in capital	265.0	262.6
Total stockholders' equity	280.5	266.2
Total liabilities and stockholders' equity	393.5	381.6
Class A Common Stock
Stockholders' equity
Common stock A and B	0.3	0.3
Class B Common Stock
Stockholders' equity
Common stock A and B	$ 0.0	$ 0.0

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Treasury stock (in shares)	1,332,828	551,828
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	25,744,069	25,446,292
Common stock, shares outstanding (in shares)	24,411,241	24,894,464
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue
Total revenue	$ 164.4	$ 177.0	$ 485.1	$ 454.2
Cost of services (exclusive of depreciation and amortization):
Cost of services	134.8	138.1	402.0	376.1
General and administrative	7.0	11.0	22.7	32.4
Depreciation and amortization	10.6	10.8	29.3	33.8
Impairment of fixed assets	0.4	0.2	0.4	1.3
Gain on sale of assets	(0.1)	(1.1)	(1.6)	0.0
Total operating expenses	152.7	159.0	452.8	443.6
Operating income	11.7	18.0	32.3	10.6
Other (income) expenses
Interest expense, net	0.7	1.8	2.8	5.7
Loss on debt retirement	0.0	0.0	2.4	0.0
Gain on bargain purchase, net of tax	0.0	(0.8)	0.0	(3.6)
Total other (income) expenses	0.7	1.0	5.2	2.1
Income before income tax expense	11.0	17.0	27.1	8.5
Income tax expense	1.6	3.4	5.4	1.0
Net income	$ 9.4	$ 13.6	$ 21.7	$ 7.5
Income per common share
Basic (in dollars per share)	$ 0.38	$ 0.55	$ 0.88	$ 0.34
Diluted (in dollars per share)	$ 0.38	$ 0.54	$ 0.86	$ 0.33
Weighted average common shares outstanding
Basic (in shares)	24,500,607	24,845,517	24,758,890	22,323,308
Diluted (in shares)	24,887,275	25,184,067	25,149,415	22,637,457
High specification rigs
Revenue
Total revenue	$ 79.2	$ 79.7	$ 234.3	$ 220.6
Cost of services (exclusive of depreciation and amortization):
Cost of services	63.5	62.7	185.6	175.3
Wireline services
Revenue
Total revenue	53.2	60.6	157.6	148.7
Cost of services (exclusive of depreciation and amortization):
Cost of services	45.8	49.2	140.3	134.8
Processing solutions and ancillary services
Revenue
Total revenue	32.0	36.7	93.2	84.9
Cost of services (exclusive of depreciation and amortization):
Cost of services	$ 25.5	$ 26.2	$ 76.1	$ 66.0

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Millions	Total	Class A Common Stock	Total shareholders’ equity	Preferred Stock Series A Preferred Stock	Common Stock Class A Common Stock	Treasury Stock	Retained Earnings (accumulated deficit)	Additional paid-in capital
Preferred stock, shares outstanding (in shares) at Dec. 31, 2021				6,000,001
Common stock, shares outstanding (in shares) at Dec. 31, 2021					18,981,172
Treasury stock, beginning (in shares) at Dec. 31, 2021						(551,828)
Balance, beginning of period at Dec. 31, 2021			$ 248.7	$ 0.1	$ 0.2	$ (3.8)	$ (8.0)	$ 260.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares conversion (in shares)				(6,000,001)	6,000,001
Shares conversion				$ (0.1)	$ 0.1
Issuance of shares under share-based compensation plans (in shares)					457,030
Shares withheld for taxes on equity transactions (in shares)					(112,449)
Issuance in connection with acquisitions (in shares)					100,000
Net income	$ 7.5		7.5				7.5
Equity based compensation			2.6					2.6
Shares withheld for taxes on equity transactions			(1.1)					(1.1)
Preferred stock, shares outstanding (in shares) at Sep. 30, 2022				0
Common stock, shares outstanding (in shares) at Sep. 30, 2022					25,425,754
Treasury stock, ending (in shares) at Sep. 30, 2022						(551,828)
Balance, end of period at Sep. 30, 2022			257.7	$ 0.0	$ 0.3	$ (3.8)	(0.5)	261.7
Preferred stock, shares outstanding (in shares) at Jun. 30, 2022				0
Common stock, shares outstanding (in shares) at Jun. 30, 2022					25,268,856
Treasury stock, beginning (in shares) at Jun. 30, 2022						(551,828)
Balance, beginning of period at Jun. 30, 2022			243.1	$ 0.0	$ 0.3	$ (3.8)	(14.1)	260.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under share-based compensation plans (in shares)					57,263
Shares withheld for taxes on equity transactions (in shares)					(365)
Issuance in connection with acquisitions (in shares)					100,000
Net income			13.6				13.6
Equity based compensation			0.9					0.9
Shares withheld for taxes on equity transactions			0.1					0.1
Preferred stock, shares outstanding (in shares) at Sep. 30, 2022				0
Common stock, shares outstanding (in shares) at Sep. 30, 2022					25,425,754
Treasury stock, ending (in shares) at Sep. 30, 2022						(551,828)
Balance, end of period at Sep. 30, 2022			257.7	$ 0.0	$ 0.3	$ (3.8)	(0.5)	261.7
Preferred stock, shares outstanding (in shares) at Dec. 31, 2022	0			0
Common stock, shares outstanding (in shares) at Dec. 31, 2022		24,894,464			25,446,292
Treasury stock, beginning (in shares) at Dec. 31, 2022	(551,828)					(551,828)
Balance, beginning of period at Dec. 31, 2022			266.3	$ 0.0	$ 0.3	$ (3.8)	7.2	262.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under share-based compensation plans (in shares)					390,612
Shares withheld for taxes on equity transactions (in shares)					(92,835)
Repurchase of Class A Common Stock (in shares)		(781,000)				(781,000)
Repurchase of Class A Common Stock		$ (8.6)	(8.6)			$ (8.6)
Net income	$ 21.7		21.7				21.7
Dividends declared			(1.3)				(1.3)
Equity based compensation			3.4					3.4
Shares withheld for taxes on equity transactions			(1.0)					(1.0)
Preferred stock, shares outstanding (in shares) at Sep. 30, 2023	0			0
Common stock, shares outstanding (in shares) at Sep. 30, 2023		24,411,241			25,744,069
Treasury stock, ending (in shares) at Sep. 30, 2023	(1,332,828)					(1,332,828)
Balance, end of period at Sep. 30, 2023			280.5	$ 0.0	$ 0.3	$ (12.4)	27.6	265.0
Preferred stock, shares outstanding (in shares) at Jun. 30, 2023				0
Common stock, shares outstanding (in shares) at Jun. 30, 2023					25,689,807
Treasury stock, beginning (in shares) at Jun. 30, 2023						(1,099,928)
Balance, beginning of period at Jun. 30, 2023			274.0	$ 0.0	$ 0.3	$ (9.7)	19.5	263.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares under share-based compensation plans (in shares)					59,996
Shares withheld for taxes on equity transactions (in shares)					(5,734)
Repurchase of Class A Common Stock (in shares)		(232,900)				(232,900)
Repurchase of Class A Common Stock		$ (2.7)	(2.7)			$ (2.7)
Net income			9.4				9.4
Dividends declared			(1.3)				(1.3)
Equity based compensation			1.1					1.1
Preferred stock, shares outstanding (in shares) at Sep. 30, 2023	0			0
Common stock, shares outstanding (in shares) at Sep. 30, 2023		24,411,241			25,744,069
Treasury stock, ending (in shares) at Sep. 30, 2023	(1,332,828)					(1,332,828)
Balance, end of period at Sep. 30, 2023			$ 280.5	$ 0.0	$ 0.3	$ (12.4)	$ 27.6	$ 265.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities
Net income	$ 21.7	$ 7.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	29.3	33.8
Equity based compensation	3.6	2.8
Gain on disposal of property and equipment	(1.6)	0.0
Impairment of fixed assets	0.4	1.3
Gain on bargain purchase, net of tax	0.0	(3.6)
Deferred income tax expense	4.8	0.0
Loss on debt retirement	2.4	0.0
Other expense, net	2.3	0.9
Changes in operating assets and liabilities
Accounts receivable	0.1	(14.3)
Contract assets	(8.7)	(25.7)
Inventory	(2.0)	(2.9)
Prepaid expenses and other current assets	0.6	(4.2)
Other assets	1.2	(3.6)
Accounts payable	8.3	16.0
Accrued expenses	(7.7)	3.7
Other current liabilities	0.0	0.8
Other long-term liabilities	(1.6)	6.0
Net cash provided by operating activities	53.1	18.5
Cash Flows from Investing Activities
Purchase of property and equipment	(27.9)	(8.7)
Proceeds from disposal of property and equipment	4.9	20.4
Purchase of businesses, net of cash received	0.0	0.8
Net cash provided by (used in) investing activities	(23.0)	12.5
Cash Flows from Financing Activities
Principal payments on financing lease obligations	(4.0)	(3.4)
Principal payments on Secured Promissory Note	(6.2)	(3.3)
Principal payments on other financing liabilities	(0.7)	(2.2)
Dividends paid to Class A Common Stock shareholders	(1.2)	0.0
Shares withheld on equity transactions	(1.0)	(1.1)
Payments on Other Installment Purchases	(0.3)	(0.3)
Repurchase of Class A Common Stock	(8.6)	0.0
Deferred financing costs on Wells Fargo	(0.7)	0.0
Net cash used in financing activities	(25.6)	(26.4)
Increase in cash and cash equivalents	4.5	4.6
Cash and cash equivalents, Beginning of Period	3.7	0.6
Cash and cash equivalents, End of Period	8.2	5.2
Supplemental Cash Flow Information
Interest paid	1.0	0.8
Supplemental Disclosure of Non-cash Investing and Financing Activities
Capital expenditures included in accounts payable and accrued liabilities	0.0	(0.7)
Additions to fixed assets through installment purchases and financing leases	(5.6)	(3.5)
Additions to fixed assets through asset trades	(1.1)	0.0
Senior Revolving Credit Facility
Cash Flows from Financing Activities
Borrowings under Revolving Credit Facility	315.6	431.0
Principal payments on Revolving Credit Facility	(308.1)	(433.2)
Term Loan B Facility
Cash Flows from Financing Activities
Principal payments on Revolving Credit Facility	0.0	(12.4)
Eclipse M&E Term Loan, net
Cash Flows from Financing Activities
Principal payments on Revolving Credit Facility	$ (10.4)	$ (1.5)

Organization and Business Operations	9 Months Ended
Organization and Business Operations	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Operations	Note 1 — Organization and Business Operations Business Ranger Energy Services, Inc. (“Ranger, Inc.,” “Ranger,” “we,” “us” or the “Company”) is a provider of onshore high specification well service rigs, wireline services, and additional processing solutions and ancillary services in the United States (“U.S.”). The Company provides an extensive range of well site services to leading U.S. exploration and production (“E&P”) companies that are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well. Our service offerings consist of well completion support, workover, well maintenance, wireline, and other complementary services, as well as installation, commissioning and operating of modular equipment, which are conducted in three reportable segments, as follows: •High Specification Rigs. Provides high specification 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 our wireline completion, wireline production, and pump down lines of business. •Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics, snubbing and coil tubing, 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. Organization Ranger, Inc. was incorporated as a Delaware corporation in February 2017. Ranger, Inc. is a holding company, and its sole assets consist of membership interests in RNGR Energy Services, LLC, a Delaware limited liability company (“Ranger LLC”). Ranger LLC owns all of the outstanding equity interests in Ranger Energy Services, LLC (“Ranger Services”) and Torrent Energy Services, LLC (“Torrent Services”), and the other subsidiaries through which it operates its assets. Ranger LLC is the sole managing member of Ranger Services and Torrent Services, and is responsible for all operational, management and administrative decisions relating to Ranger Services, its subsidiaries, and Torrent Services’ business and consolidates the financial results of Ranger Services, its subsidiaries, and Torrent Services.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 — Summary of Significant Accounting Policies Basis of Presentation The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the Securities and Exchange Commission’s (the “SEC”) instructions to Form 10-Q. Accordingly, certain information and disclosures have been condensed or omitted. The Condensed Consolidated Financial Statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results of operations for the interim periods. These interim financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in the Annual Report. Interim results for the periods presented may not be indicative of results that will be realized for future periods. Significant Accounting Policies The Company’s significant accounting policies are disclosed in Note 2 — Summary of Significant Accounting Policies of the Annual Report. Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: •Depreciation and amortization of property and equipment and intangible assets; •Impairment of property and equipment and intangible assets; •Revenue recognition; •Income taxes; and •Equity-based compensation. New Accounting Pronouncements Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology to reflect expected credit losses. The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date to be performed based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2022. The Company adopted this standard on January 1, 2023. This adoption did not have a material impact on the Company’s Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for accounting contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be discontinued due to the reference rate reform. ASU 2020-04 became effective as of March 12, 2020 and can be applied through December 31, 2022, recently amended by ASU 2022-06 which has delayed the application date through December 31, 2024. On September 23, 2022, the Company entered into the Fourth Amendment to the Loan and Security Agreement (the Eclipse Loan and Security Agreement, as amended through and including the Fourth Amendment, the “Amended Loan Agreement”) with Eclipse Business Capital LLC (“EBC”) and Eclipse Business Capital SPV, LLC where the Secured Overnight Financing Rate (“SOFR”) replaced LIBOR as the reference rate for interest on borrowings, effective October 1, 2022. On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo, NA. with SOFR as the reference rate for interest on borrowings. New Accounting Standards With the exception of the standards above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s Consolidated Financial Statements.

Assets Held for Sale	9 Months Ended
Assets Held for Sale	Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]
Assets Held for Sale	Note 3 — Assets Held for Sale Assets held for sale include the net book value of assets the Company plans to sell within the next 12 months and are related to excess assets acquired from the Basic Energy Services, Inc. (“Basic”) acquisition. Long-lived assets that meet the held for sale criteria are held for sale and reported at the lower of their carrying value or fair value less estimated costs to sell. As of September 30, 2023, the Company classified $1.0 million of land and buildings within our High Specification Rigs and Processing Solutions and Ancillary Services segments as held for sale as they are being actively marketed. For the nine months ended September 30, 2023, the Company recognized a gain on assets previously classified as held for sale of $1.8 million and recognized a loss on the sale of assets previously held in Property and equipment, net of $0.2 million, which nets to the $1.6 million gain on sale of assets on the Condensed Consolidated Statements of Operations.

Property and Equipment, Net

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Note 4 — Property and Equipment, Net

Property and equipment, net include the following (in millions):


	Estimated Useful Life (years)	September 30, 2023		December 31, 2022
High specification rigs	15	$	138.9	$	138.0
Machinery and equipment	3 - 30	185.6		179.3
Vehicles	3 - 15	50.4		46.9
Other property and equipment	5 - 25	19.7		21.3
Property and equipment		394.6		385.5
Less: accumulated depreciation		(188.0)		(167.2)
Construction in progress		18.4		3.3
Property and equipment, net		$	225.0	$	221.6

Intangible Assets, Net

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

Note 5 — Intangible Assets, Net

Definite lived intangible assets are comprised of the following (in millions):


	Estimated Useful Life (years)	September 30, 2023		December 31, 2022
Customer relationships	10-18	$	11.4	$	11.4
Less: accumulated amortization		(4.9)		(4.3)
Intangible assets, net		$	6.5	$	7.1


For the twelve months ending September 30,	Amount
2024	$	0.7
2025	0.7
2026	0.7
2027	0.7
2028	0.6
Thereafter	3.1
Total	$	6.5

Accrued Expenses

9 Months Ended

Sep. 30, 2023

Accrued Liabilities, Current [Abstract]

Accrued Expenses

Note 6 — Accrued Expenses

Accrued expenses include the following (in millions):


	September 30, 2023		December 31, 2022
Accrued payables	$	14.6	$	15.9
Accrued compensation	12.6		12.5
Accrued taxes	1.8		2.1
Accrued insurance	0.6		5.6
Accrued expenses	$	29.6	$	36.1

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Note 7 — Leases

Operating Leases


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Short-term lease costs	$	3.4	$	3.3	$	13.0		$	10.0
Operating lease costs	$	0.8	$	1.1	$	2.4		$	2.2
Operating cash outflows from operating leases	$	0.7	$	0.7	$	2.3		$	1.9

Weighted average remaining lease term					3.7 years			4.7 years
Weighted average discount rate					8.2		%	7.9		%

Aggregate future minimum lease payments under operating leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	3.3
2025	3.4
2026	3.0
2027	2.3
2028	0.2

Total future minimum lease payments	12.2
Less: amount representing interest	(1.7)
Present value of future minimum lease payments	10.5
Less: current portion of operating lease obligations	(2.5)
Long-term portion of operating lease obligations	$	8.0

Finance Leases

Lease costs and other information related to finance leases for the nine months ended September 30, 2023 and 2022, are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Amortization of finance leases	$	1.0	$	0.5	$	2.7		$	1.5
Interest on lease liabilities	$	0.5	$	0.2	$	1.1		$	0.6
Financing cash outflows from finance leases	$	1.3	$	1.1	$	4.0		$	3.4

Weighted average remaining lease term					2.1 years			1.4 years
Weighted average discount rate					5.2		%	2.6		%

Aggregate future minimum lease payments under finance leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	4.7
2025	3.3
2026	1.7
2027	0.8


Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$	5.3

Note 8 — Other Financing Liabilities

As of September 30, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	0.6
2025	0.7
2026	0.7
2027	0.8
2028	0.8
Thereafter	8.1
Total future minimum lease payments	$	11.7

Leases

Note 7 — Leases

Operating Leases


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Short-term lease costs	$	3.4	$	3.3	$	13.0		$	10.0
Operating lease costs	$	0.8	$	1.1	$	2.4		$	2.2
Operating cash outflows from operating leases	$	0.7	$	0.7	$	2.3		$	1.9

Weighted average remaining lease term					3.7 years			4.7 years
Weighted average discount rate					8.2		%	7.9		%

Aggregate future minimum lease payments under operating leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	3.3
2025	3.4
2026	3.0
2027	2.3
2028	0.2

Total future minimum lease payments	12.2
Less: amount representing interest	(1.7)
Present value of future minimum lease payments	10.5
Less: current portion of operating lease obligations	(2.5)
Long-term portion of operating lease obligations	$	8.0

Finance Leases

Lease costs and other information related to finance leases for the nine months ended September 30, 2023 and 2022, are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Amortization of finance leases	$	1.0	$	0.5	$	2.7		$	1.5
Interest on lease liabilities	$	0.5	$	0.2	$	1.1		$	0.6
Financing cash outflows from finance leases	$	1.3	$	1.1	$	4.0		$	3.4

Weighted average remaining lease term					2.1 years			1.4 years
Weighted average discount rate					5.2		%	2.6		%

Aggregate future minimum lease payments under finance leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	4.7
2025	3.3
2026	1.7
2027	0.8


Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$	5.3

Other Financing Liabilities

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Other Financing Liabilities

Note 7 — Leases

Operating Leases


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Short-term lease costs	$	3.4	$	3.3	$	13.0		$	10.0
Operating lease costs	$	0.8	$	1.1	$	2.4		$	2.2
Operating cash outflows from operating leases	$	0.7	$	0.7	$	2.3		$	1.9

Weighted average remaining lease term					3.7 years			4.7 years
Weighted average discount rate					8.2		%	7.9		%

Aggregate future minimum lease payments under operating leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	3.3
2025	3.4
2026	3.0
2027	2.3
2028	0.2

Total future minimum lease payments	12.2
Less: amount representing interest	(1.7)
Present value of future minimum lease payments	10.5
Less: current portion of operating lease obligations	(2.5)
Long-term portion of operating lease obligations	$	8.0

Finance Leases

Lease costs and other information related to finance leases for the nine months ended September 30, 2023 and 2022, are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Amortization of finance leases	$	1.0	$	0.5	$	2.7		$	1.5
Interest on lease liabilities	$	0.5	$	0.2	$	1.1		$	0.6
Financing cash outflows from finance leases	$	1.3	$	1.1	$	4.0		$	3.4

Weighted average remaining lease term					2.1 years			1.4 years
Weighted average discount rate					5.2		%	2.6		%

Aggregate future minimum lease payments under finance leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	4.7
2025	3.3
2026	1.7
2027	0.8


Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$	5.3

Note 8 — Other Financing Liabilities

As of September 30, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	0.6
2025	0.7
2026	0.7
2027	0.8
2028	0.8
Thereafter	8.1
Total future minimum lease payments	$	11.7

Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 9 — Debt

The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions):


	September 30, 2023		December 31, 2022
Wells Fargo Revolving Credit Facility	$	10.1	$	—
Eclipse Revolving Credit Facility	—		1.4
Eclipse M&E Term Loan, net	—		10.4
Secured Promissory Note	—		6.1
Installment Purchases	0.2		0.5
Total Debt	10.3		18.4
Current portion of long-term debt	(10.3)		(6.8)
Long term-debt, net	$	—	$	11.6

Wells Fargo Bank, N.A. Credit Agreement

Eclipse Loan and Security Agreement

Secured Promissory Note

Other Installment Purchases

Debt Obligations and Scheduled Maturities

As of September 30, 2023, aggregate future principal payments of total debt are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	10.3




Total	$	10.3

Equity	9 Months Ended
Equity	Sep. 30, 2023
Equity [Abstract]
Equity	Note 10 — Equity Equity-Based Compensation In 2017, the Company adopted the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan (the “2017 Plan”). The Company has granted shares of restricted stock (“restricted shares” or “RSAs”) and performance-based restricted stock units (“performance stock units” or “PSUs”) under the 2017 Plan. Restricted Stock Awards The Company has granted RSAs, which generally vest in three equal annual installments beginning on the first anniversary date of the grant. During the nine months ended September 30, 2022, the Company granted approximately 436,200 RSAs, with an approximated aggregate value of $4.7 million. As of September 30, 2023, there was an aggregate $5.0 million of unrecognized expense related to restricted shares issued which is expected to be recognized over a weighted average period of 1.8 years. Performance Stock Units The performance criteria applicable to performance stock units that have been granted by the Company are based on relative total shareholder return, which measures the Company’s total shareholder return as compared to the total shareholder return of a designated peer group, and absolute total shareholder return. Generally, the performance stock units are subject to an approximated three-year performance period. During the nine months ended September 30, 2023, the Company granted approximately 110,400 target shares of market-based performance stock units, of which 55,200 were granted at a relative grant date fair value of approximately $15.71 per share and 55,200 were granted at an absolute grant date fair value of approximately $13.12 per share. Additionally, the Company granted approximately 55,200 target shares of market-based performance stock units with a specified floor price per share, of which 27,600 were granted a relative grant date fair value of approximately $15.22 and 27,600 were granted at an absolute grant date fair value of approximately $10.85 per share. Shares granted during the nine months ended September 30, 2023 are expected to vest (if at all) following the completion of the applicable performance period on December 31, 2025. As of September 30, 2023, there was an aggregate $2.5 million of unrecognized compensation cost related to performance stock units which are expected to be recognized over a weighted average period of 1.5 years. Share Repurchases On March 7, 2023, the Company announced a share repurchase program allowing the Company to purchase Class A Common Stock held by non-affiliates, not to exceed $35.0 million in aggregate value. Share repurchases may take place in any transaction form as allowable by the Securities and Exchange Commission. Approval of the program by the Board of Directors of the Company is specific for the next 36 months. During the three and nine months ended September 30, 2023, the Company repurchased 232,900 and 781,000 shares, respectively, of the Company’s Class A Common Stock for an aggregate $2.7 million and $8.6 million, respectively, on the open market. Dividends On August 7, 2023, the Company’s Board of Directors declared a cash dividend of $0.05 per share of Class A Common Stock. On September 8, 2023, the Company paid dividend distributions totaling $1.2 million to stockholders of record as of the close of business on August 18, 2023. The declaration of any future dividends is subject to the Board of Directors’ discretion and approval. Warrant from PerfX Acquisition The PerfX acquisition purchase price included a warrant to acquire a 30% ownership in the XConnect Business (“XConnect”), which expires on July 8, 2031. XConnect is the manufacturer of a perforating gun system developed by the PerfX sellers alongside the PerfX wireline service business. The warrant requires the Company to maintain a specific minimum level of purchases of XConnect’s manufactured products. Should the Company fail to maintain the specified minimum level of purchases, a forfeiture event would occur; however, the Company may elect to cure the forfeiture event through a cash payment to XConnect. If the Company elects to not cure the forfeiture event, the ownership percentage would reduce to 15%. Upon the occurrence of a second uncured forfeiture event, the warrant is deemed to be cancelled. The value of the warrant by the Company is negligible as of September 30, 2023. The Company finalized the purchase price allocation in the fourth quarter of 2021.

Risk Concentrations	9 Months Ended
Risk Concentrations	Sep. 30, 2023
Risk Concentrations
Risk Concentrations	Note 11 — Risk Concentrations Customer Concentrations During the three and nine months ended September 30, 2023, one customer accounted for approximately 11% and 10%, respectively, of the Company’s consolidated revenues. As of September 30, 2023, approximately 7% of the net accounts receivable balance was due from this customer. During the three and nine months ended September 30, 2022, one customer accounted for approximately 11% and 10%, respectively, of the Company’s consolidated revenue. As of September 30, 2022, approximately 15% of the net accounts receivable balance, in aggregate, was due from this customer.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 12 — Income Taxes Effective Tax Rate The Company is a corporation and is subject to U.S. federal income tax. The Company uses an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating the estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and other income tax related estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. The effective U.S. federal income tax rate applicable to the Company for the nine months ended September 30, 2023 and 2022 was 20.0% and 11.6%, respectively. The Company is subject to the Texas Margin Tax, which requires tax payments at a maximum statutory effective rate of 0.75% on the taxable margin of each taxable entity that does business in Texas. Tax Attributes Historically, utilization of a portion of the Company's net operating loss carryforwards has been subject to limitations of utilization under Section 382 of the Internal Revenue Code of 1986 (“Section 382”), as amended. The Company incurred an ownership change, triggering another Section 382 loss limitation, during the three months ended June 30, 2023. The Company is currently in the process of conducting an analysis to determine the full tax consequence of such limitation and does not expect this will have a material cash impact to taxes for the remainder of 2023. As the Company continues to experience increasing profits and no longer has a trailing 3-year cumulative taxable loss, we currently believe that it is more likely than not to fully utilize all deferred tax assets including those associated with the net operating loss carry-forward. Accordingly, the Company released all valuation allowances previously recorded resulting in a discrete tax benefit for the period ended September 30, 2023. Other Tax Matters Total income tax expense for the nine months ended September 30, 2023 and 2022 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income or loss primarily due to the release of the VA on deferred tax assets, the impact of permanently non-deductible expenses, state income taxes and certain discrete tax benefits recognized during the nine months ended September 30, 2023. The Company is subject to the following material taxing jurisdictions: the United States and Texas. As of September 30, 2023, the Company has no current tax years under audit. The Company remains subject to examination for federal income taxes and state income taxes for tax years 2016 through 2022. The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained upon examination. Therefore, as of September 30, 2023, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions. In August 2022, President Biden signed the Inflation Reduction Act of 2022 (“IRA 2022”) (Public Law Number 117-169) into law. The Company is still evaluating the impact of this legislation as it relates to the Employee Retention Credit.

Earnings per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings per Share

Note 13 — Earnings per Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Income (numerator):
Basic:
Income attributable to Ranger Energy Services, Inc.	$	9.4	$	13.6	$	21.7	$	7.5
Net income attributable to Class A Common Stock	$	9.4	$	13.6	$	21.7	$	7.5

Diluted:
Income attributable to Ranger Energy Services, Inc.	$	9.4	$	13.6	$	21.7	$	7.5

Net income attributable to Class A Common Stock	$	9.4	$	13.6	$	21.7	$	7.5

Weighted average shares (denominator):
Weighted average number of shares - basic	24,500,607		24,845,517		24,758,890		22,323,308
Effect of share-based awards	386,668		338,550		390,525		314,149

Weighted average number of shares - diluted	24,887,275		25,184,067		25,149,415		22,637,457

Basic income per share	$	0.38	$	0.55	$	0.88	$	0.34
Diluted income per share	$	0.38	$	0.54	$	0.86	$	0.33

During the three and nine months ended September 30, 2022, the Company excluded 0.1 million of equity-based awards in calculating diluted income per share, as the effect was anti-dilutive.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14 — Commitments and Contingencies Legal Matters From time to time, the Company is involved in various legal matters arising in the normal course of business. The Company does not believe that the ultimate resolution of these currently pending matters will have a material adverse effect on its condensed consolidated financial position or results of operations.

Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Reporting

Note 15 — Segment Reporting

The following is a description of each operating segment:

High Specification Rigs. Provides high specification 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 our wireline completion, wireline production and pump down lines of business.

Certain segment information for the three and nine months ended September 30, 2023 and 2022 is as follows (in millions):


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2023
Revenue	$	79.2	$	53.2	$	32.0	$	—	$	164.4
Cost of services	63.5		45.8		25.5		—		134.8

Depreciation and amortization	5.1		3.1		2.0		0.4		10.6


Operating income (loss)	10.6		4.3		4.5		(7.7)		11.7



Net income (loss)	$	10.6	$	4.3	$	4.5	$	(10.0)	$	9.4

Capital expenditures	$	5.6	$	9.2	$	2.4	$	—	$	17.2

	Nine Months Ended September 30, 2023
Revenue	$	234.3	$	157.6	$	93.2	$	—	$	485.1
Cost of services	185.6		140.3		76.1		—		402.0

Depreciation and amortization	14.7		8.4		5.0		1.2		29.3


Operating income (loss)	34.0		8.9		12.1		(22.7)		32.3



Net income (loss)	$	34.0	$	8.9	$	12.1	$	(33.3)	$	21.7

Capital expenditures	$	11.4	$	13.7	$	9.5	$	—	$	34.6


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2022
Revenue	$	79.7	$	60.6	$	36.7	$	—	$	177.0
Cost of services	62.7		49.2		26.2		—		138.1

Depreciation and amortization	6.3		2.8		1.3		0.4		10.8

Operating income (loss)	10.7		8.6		9.2		(10.5)		18.0



Net income (loss)	$	10.7	$	8.6	$	9.2	$	(14.9)	$	13.6

Capital expenditures	$	2.8	$	0.4	$	2.0	$	—	$	5.2

	Nine Months Ended September 30, 2022
Revenue	$	220.6	$	148.7	$	84.9	$	—	$	454.2
Cost of services	175.3		134.8		66.0		—		376.1

Depreciation and amortization	20.8		8.3		3.3		1.4		33.8
Operating income (loss)	24.5		5.6		15.6		(35.1)		10.6



Net income (loss)	$	24.5	$	5.6	$	15.6	$	(38.2)	$	7.5

Capital expenditures	$	5.7	$	2.0	$	5.2	$	—	$	12.9

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Note 16 — Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date the financial statements are issued. Based upon this review, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the financial statements. On October 31, 2023, the Board of Directors declared a quarterly cash dividend of $0.05 per share payable December 1, 2023 to common stockholders of record at the close of business on November 13, 2023

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and the Securities and Exchange Commission’s (the “SEC”) instructions to Form 10-Q. Accordingly, certain information and disclosures have been condensed or omitted. The Condensed Consolidated Financial Statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results of operations for the interim periods. These interim financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in the Annual Report. Interim results for the periods presented may not be indicative of results that will be realized for future periods.
Use of Estimates	Use of Estimates The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from such estimates. Areas where critical accounting estimates are made by management include: •Depreciation and amortization of property and equipment and intangible assets; •Impairment of property and equipment and intangible assets; •Revenue recognition; •Income taxes; and •Equity-based compensation.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses, which replaces the incurred loss impairment methodology to reflect expected credit losses. The amendment requires the measurement of all expected credit losses for financial assets held at the reporting date to be performed based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2022. The Company adopted this standard on January 1, 2023. This adoption did not have a material impact on the Company’s Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for accounting contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be discontinued due to the reference rate reform. ASU 2020-04 became effective as of March 12, 2020 and can be applied through December 31, 2022, recently amended by ASU 2022-06 which has delayed the application date through December 31, 2024. On September 23, 2022, the Company entered into the Fourth Amendment to the Loan and Security Agreement (the Eclipse Loan and Security Agreement, as amended through and including the Fourth Amendment, the “Amended Loan Agreement”) with Eclipse Business Capital LLC (“EBC”) and Eclipse Business Capital SPV, LLC where the Secured Overnight Financing Rate (“SOFR”) replaced LIBOR as the reference rate for interest on borrowings, effective October 1, 2022. On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo, NA. with SOFR as the reference rate for interest on borrowings. New Accounting Standards With the exception of the standards above, there have been no new accounting pronouncements not yet effective that have significance, or potential significance, to the Company’s Consolidated Financial Statements.

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of property and equipment, net

Property and equipment, net include the following (in millions):


	Estimated Useful Life (years)	September 30, 2023		December 31, 2022
High specification rigs	15	$	138.9	$	138.0
Machinery and equipment	3 - 30	185.6		179.3
Vehicles	3 - 15	50.4		46.9
Other property and equipment	5 - 25	19.7		21.3
Property and equipment		394.6		385.5
Less: accumulated depreciation		(188.0)		(167.2)
Construction in progress		18.4		3.3
Property and equipment, net		$	225.0	$	221.6

Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of definite lived intangible assets

Definite lived intangible assets are comprised of the following (in millions):


	Estimated Useful Life (years)	September 30, 2023		December 31, 2022
Customer relationships	10-18	$	11.4	$	11.4
Less: accumulated amortization		(4.9)		(4.3)
Intangible assets, net		$	6.5	$	7.1

Schedule of aggregated amortization expense for future periods

Amortization expense for the future periods is expected to be as follows (in millions):


For the twelve months ending September 30,	Amount
2024	$	0.7
2025	0.7
2026	0.7
2027	0.7
2028	0.6
Thereafter	3.1
Total	$	6.5

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2023

Accrued Liabilities, Current [Abstract]

Schedule of accrued expenses

Accrued expenses include the following (in millions):


	September 30, 2023		December 31, 2022
Accrued payables	$	14.6	$	15.9
Accrued compensation	12.6		12.5
Accrued taxes	1.8		2.1
Accrued insurance	0.6		5.6
Accrued expenses	$	29.6	$	36.1

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of other information related to operating and finance leases


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Short-term lease costs	$	3.4	$	3.3	$	13.0		$	10.0
Operating lease costs	$	0.8	$	1.1	$	2.4		$	2.2
Operating cash outflows from operating leases	$	0.7	$	0.7	$	2.3		$	1.9

Weighted average remaining lease term					3.7 years			4.7 years
Weighted average discount rate					8.2		%	7.9		%

Lease costs and other information related to finance leases for the nine months ended September 30, 2023 and 2022, are as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023			2022
Amortization of finance leases	$	1.0	$	0.5	$	2.7		$	1.5
Interest on lease liabilities	$	0.5	$	0.2	$	1.1		$	0.6
Financing cash outflows from finance leases	$	1.3	$	1.1	$	4.0		$	3.4

Weighted average remaining lease term					2.1 years			1.4 years
Weighted average discount rate					5.2		%	2.6		%

Schedule of future minimum leases payments for operating leases

Aggregate future minimum lease payments under operating leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	3.3
2025	3.4
2026	3.0
2027	2.3
2028	0.2

Total future minimum lease payments	12.2
Less: amount representing interest	(1.7)
Present value of future minimum lease payments	10.5
Less: current portion of operating lease obligations	(2.5)
Long-term portion of operating lease obligations	$	8.0

Schedule of future minimum leases payments for finances leases

Aggregate future minimum lease payments under finance leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	4.7
2025	3.3
2026	1.7
2027	0.8


Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$	5.3

As of September 30, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	0.6
2025	0.7
2026	0.7
2027	0.8
2028	0.8
Thereafter	8.1
Total future minimum lease payments	$	11.7

Other Financing Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of future minimum leases payments for finances leases

Aggregate future minimum lease payments under finance leases are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	4.7
2025	3.3
2026	1.7
2027	0.8


Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$	5.3

As of September 30, 2023, aggregate future lease payments of the financing liabilities are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	0.6
2025	0.7
2026	0.7
2027	0.8
2028	0.8
Thereafter	8.1
Total future minimum lease payments	$	11.7

Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of long-term debt

The aggregate carrying amounts, net of issuance costs, of the Company’s debt consists of the following (in millions):


	September 30, 2023		December 31, 2022
Wells Fargo Revolving Credit Facility	$	10.1	$	—
Eclipse Revolving Credit Facility	—		1.4
Eclipse M&E Term Loan, net	—		10.4
Secured Promissory Note	—		6.1
Installment Purchases	0.2		0.5
Total Debt	10.3		18.4
Current portion of long-term debt	(10.3)		(6.8)
Long term-debt, net	$	—	$	11.6

Schedule of future payments

As of September 30, 2023, aggregate future principal payments of total debt are as follows (in millions):


For the twelve months ending September 30,	Total
2024	$	10.3




Total	$	10.3

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of earnings (loss) per share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Income (numerator):
Basic:
Income attributable to Ranger Energy Services, Inc.	$	9.4	$	13.6	$	21.7	$	7.5
Net income attributable to Class A Common Stock	$	9.4	$	13.6	$	21.7	$	7.5

Diluted:
Income attributable to Ranger Energy Services, Inc.	$	9.4	$	13.6	$	21.7	$	7.5

Net income attributable to Class A Common Stock	$	9.4	$	13.6	$	21.7	$	7.5

Weighted average shares (denominator):
Weighted average number of shares - basic	24,500,607		24,845,517		24,758,890		22,323,308
Effect of share-based awards	386,668		338,550		390,525		314,149

Weighted average number of shares - diluted	24,887,275		25,184,067		25,149,415		22,637,457

Basic income per share	$	0.38	$	0.55	$	0.88	$	0.34
Diluted income per share	$	0.38	$	0.54	$	0.86	$	0.33

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Schedule of segment information

Certain segment information for the three and nine months ended September 30, 2023 and 2022 is as follows (in millions):


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2023
Revenue	$	79.2	$	53.2	$	32.0	$	—	$	164.4
Cost of services	63.5		45.8		25.5		—		134.8

Depreciation and amortization	5.1		3.1		2.0		0.4		10.6


Operating income (loss)	10.6		4.3		4.5		(7.7)		11.7



Net income (loss)	$	10.6	$	4.3	$	4.5	$	(10.0)	$	9.4

Capital expenditures	$	5.6	$	9.2	$	2.4	$	—	$	17.2

	Nine Months Ended September 30, 2023
Revenue	$	234.3	$	157.6	$	93.2	$	—	$	485.1
Cost of services	185.6		140.3		76.1		—		402.0

Depreciation and amortization	14.7		8.4		5.0		1.2		29.3


Operating income (loss)	34.0		8.9		12.1		(22.7)		32.3



Net income (loss)	$	34.0	$	8.9	$	12.1	$	(33.3)	$	21.7

Capital expenditures	$	11.4	$	13.7	$	9.5	$	—	$	34.6


	High Specification Rigs		Wireline Services		Processing Solutions and Ancillary Services		Other		Total
	Three Months Ended September 30, 2022
Revenue	$	79.7	$	60.6	$	36.7	$	—	$	177.0
Cost of services	62.7		49.2		26.2		—		138.1

Depreciation and amortization	6.3		2.8		1.3		0.4		10.8

Operating income (loss)	10.7		8.6		9.2		(10.5)		18.0



Net income (loss)	$	10.7	$	8.6	$	9.2	$	(14.9)	$	13.6

Capital expenditures	$	2.8	$	0.4	$	2.0	$	—	$	5.2

	Nine Months Ended September 30, 2022
Revenue	$	220.6	$	148.7	$	84.9	$	—	$	454.2
Cost of services	175.3		134.8		66.0		—		376.1

Depreciation and amortization	20.8		8.3		3.3		1.4		33.8
Operating income (loss)	24.5		5.6		15.6		(35.1)		10.6



Net income (loss)	$	24.5	$	5.6	$	15.6	$	(38.2)	$	7.5

Capital expenditures	$	5.7	$	2.0	$	5.2	$	—	$	12.9

Organization and Business Operations (Details)	9 Months Ended
Organization and Business Operations (Details)	Sep. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Assets Held for Sale (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Assets Held for Sale (Details) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Assets held for sale	$ 1.0		$ 1.0		$ 3.2
Gain on sale of assets			1.8
Loss on sale of assets			(0.2)
Gain on disposal of property and equipment	$ 0.1	$ 1.1	$ 1.6	$ 0.0

Property and Equipment, Net (Details) $ in Millions		3 Months Ended		9 Months Ended
Property and Equipment, Net (Details) $ in Millions	Aug. 09, 2023 USD ($)	Sep. 30, 2023 USD ($) pump	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) pump	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Property, Plant and Equipment, Net
Property and equipment		$ 394.6		$ 394.6		$ 385.5
Less: accumulated depreciation		(188.0)		(188.0)		(167.2)
Construction in progress		18.4		18.4		3.3
Property and equipment, net		225.0		225.0		221.6
Depreciation expense		10.4	$ 10.5	28.7	$ 33.2
Change in assets held for sale				0.6
Impairment of fixed assets		$ 0.4	$ 0.2	$ 0.4	$ 1.3
Pegaso Energy Services, LLC
Property, Plant and Equipment, Net
Total consideration	$ 7.3
Asset Acquisition, Number Of Pumps Acquired \| pump		2		2
High specification rigs
Property, Plant and Equipment, Net
Estimated Useful Life (years)		15 years		15 years
Property and equipment		$ 138.9		$ 138.9		138.0
Machinery and equipment
Property, Plant and Equipment, Net
Property and equipment		185.6		185.6		179.3
Vehicles
Property, Plant and Equipment, Net
Property and equipment		50.4		50.4		46.9
Other property and equipment
Property, Plant and Equipment, Net
Property and equipment		$ 19.7		$ 19.7		$ 21.3
Minimum \| Machinery and equipment
Property, Plant and Equipment, Net
Estimated Useful Life (years)		3 years		3 years
Minimum \| Vehicles
Property, Plant and Equipment, Net
Estimated Useful Life (years)		3 years		3 years
Minimum \| Other property and equipment
Property, Plant and Equipment, Net
Estimated Useful Life (years)		5 years		5 years
Maximum \| Machinery and equipment
Property, Plant and Equipment, Net
Estimated Useful Life (years)		30 years		30 years
Maximum \| Vehicles
Property, Plant and Equipment, Net
Estimated Useful Life (years)		15 years		15 years
Maximum \| Other property and equipment
Property, Plant and Equipment, Net
Estimated Useful Life (years)		25 years		25 years

Intangible Assets, Net - Intangibles (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Intangible assets
Less: accumulated amortization	$ (4.9)	$ (4.3)
Intangible assets, net	6.5	7.1
Customer relationships
Intangible assets
Customer relationships	$ 11.4	$ 11.4
Minimum \| Customer relationships
Intangible assets
Estimated Useful Life (years)	10 years
Maximum \| Customer relationships
Intangible assets
Estimated Useful Life (years)	18 years

Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.2	$ 0.3	$ 0.6	$ 0.6

Intangible Assets, Net - Amortization (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 0.7
2025	0.7
2026	0.7
2027	0.7
2028	0.6
Thereafter	3.1
Intangible assets, net	$ 6.5	$ 7.1

Accrued Expenses (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Accrued payables	$ 14.6	$ 15.9
Accrued compensation	12.6	12.5
Accrued taxes	1.8	2.1
Accrued insurance	0.6	5.6
Accrued expenses	$ 29.6	$ 36.1

Leases - Narrative (Details)	Sep. 30, 2023
Minimum
Lessee, Lease, Description [Line Items]
Lease term, operating leases	1 year
Lease term, finance leases	3 years
Maximum
Lessee, Lease, Description [Line Items]
Lease term, operating leases	9 years
Lease term, finance leases	5 years

Leases - Schedule of Other Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Short-term lease costs	$ 3.4	$ 3.3	$ 13.0	$ 10.0
Operating lease costs	0.8	1.1	2.4	2.2
Operating cash outflows from operating leases	$ 0.7	$ 0.7	$ 2.3	$ 1.9
Weighted average remaining lease term	3 years 8 months 12 days	4 years 8 months 12 days	3 years 8 months 12 days	4 years 8 months 12 days
Weighted average discount rate	8.20%	7.90%	8.20%	7.90%

Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract]
2024	$ 3.3
2025	3.4
2026	3.0
2027	2.3
2028	0.2
Total future minimum lease payments	12.2
Less: amount representing interest	(1.7)
Present value of future minimum lease payments	10.5
Less: current portion of operating lease obligations	(2.5)
Long-term portion of operating lease obligations	8.0	$ 9.6
Finance Lease, Liability, Payment, Due, Rolling Maturity [Abstract]
2024	4.7
2025	3.3
2026	1.7
2027	0.8
Total future minimum lease payments	10.5
Less: amount representing interest	(1.2)
Present value of future minimum lease payments	9.3
Less: current portion of finance lease obligations	(4.0)
Long-term portion of finance lease obligations	$ 5.3
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration]	Other long-term liabilities
Finance lease, liability, current, statement of financial position [Extensible Enumeration]	Other current liabilities
Finance lease, liability, statement of financial position [Extensible Enumeration]	Other current liabilities, Other long-term liabilities

Leases - Schedule of Lease Costs and Other Information Related to Financing Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of finance leases	$ 1.0	$ 0.5	$ 2.7	$ 1.5
Interest on lease liabilities	0.5	0.2	1.1	0.6
Financing cash outflows from finance leases	$ 1.3	$ 1.1	$ 4.0	$ 3.4
Weighted average remaining lease term	2 years 1 month 6 days	1 year 4 months 24 days	2 years 1 month 6 days	1 year 4 months 24 days
Weighted average discount rate	5.20%	2.60%	5.20%	2.60%

Other Financing Liabilities - Narrative (Details) - Other Fixed Asset	9 Months Ended
	Sep. 30, 2023
Minimum
Lessee, Lease, Description [Line Items]
Payment terms	18 months
Maximum
Lessee, Lease, Description [Line Items]
Payment terms	13 years

Other Financing Liabilities (Details) - Building $ in Millions	Sep. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
2024	$ 0.6
2025	0.7
2026	0.7
2027	0.8
2028	0.8
Thereafter	8.1
Total future minimum lease payments	$ 11.7

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total Debt	$ 10.3	$ 18.4
Current portion of long-term debt	(10.3)	(6.8)
Long term-debt, net	0.0	11.6
Secured Promissory Note
Debt Instrument [Line Items]
Total Debt	0.0	6.1
Installment Purchases
Debt Instrument [Line Items]
Total Debt	0.2	0.5
Wells Fargo Revolving Credit Facility
Debt Instrument [Line Items]
Total Debt	10.1	0.0
Eclipse Revolving Credit Facility
Debt Instrument [Line Items]
Total Debt	0.0	1.4
Eclipse M&E Term Loan, net
Debt Instrument [Line Items]
Total Debt	$ 0.0	$ 10.4

Debt - Narrative (Details)		3 Months Ended		9 Months Ended
Debt - Narrative (Details)	May 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 25, 2023 USD ($)	Dec. 31, 2022 USD ($)	Sep. 27, 2021 USD ($)
Debt Instrument [Line Items]
Remaining principal balance		$ 10,300,000		$ 10,300,000			$ 18,400,000
Loss on debt retirement		$ 0	$ 0	2,400,000	$ 0
Principal payments on Secured Promissory Note				6,200,000	3,300,000
Payments on installment purchases				$ 300,000	300,000
Installment Purchases
Debt Instrument [Line Items]
Debt term		36 months		36 months
Installment Purchases \| Secured Promissory Note
Debt Instrument [Line Items]
Interest rate (as a percent)	8.50%
Exercise of right to stop payments on remaining principal balance, amount				$ 5,400,000
Installment Purchases
Debt Instrument [Line Items]
Remaining principal balance		$ 200,000		200,000			500,000
EBC Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowings								$ 77,500,000
Eclipse Revolving Credit Facility
Debt Instrument [Line Items]
Remaining principal balance		0		0			1,400,000
Eclipse Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowings								50,000,000
Eclipse M&E Term Loan, net
Debt Instrument [Line Items]
Remaining principal balance		0		0			10,400,000
Payments on credit facility				10,400,000	1,500,000
Eclipse M&E Term Loan, net \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowings								12,500,000
Exercise of right to stop payments on remaining principal balance, amount	$ 8,400,000
Loss on debt retirement	2,400,000
Term Loan B Facility
Debt Instrument [Line Items]
Payments on credit facility				0	$ 12,400,000
Term Loan B Facility \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowings								$ 15,000,000
Wells Fargo Revolving Credit Facility
Debt Instrument [Line Items]
Remaining principal balance		10,100,000		10,100,000			$ 0
Wells Fargo Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowings	$ 75,000,000	$ 75,000,000		$ 75,000,000
Covenant fixed charge coverage ratio		1.0		1.0
Remaining principal balance		$ 10,100,000		$ 10,100,000
Remaining borrowing		$ 61,700,000		$ 61,700,000
Weighted average interest rate (as a percent)		7.00%		7.00%
Wells Fargo Revolving Credit Facility \| Line of Credit \| Scenario 1
Debt Instrument [Line Items]
Excess availability percentage	20.00%
Wells Fargo Revolving Credit Facility \| Line of Credit \| Scenario 2
Debt Instrument [Line Items]
Excess availability percentage	12.50%
Wells Fargo Revolving Credit Facility \| Line of Credit \| Minimum \| SOFR
Debt Instrument [Line Items]
Interest rate margin (as a percent)				1.75%
Wells Fargo Revolving Credit Facility \| Line of Credit \| Minimum \| Base Rate
Debt Instrument [Line Items]
Interest rate margin (as a percent)				0.75%
Wells Fargo Revolving Credit Facility \| Line of Credit \| Maximum \| SOFR
Debt Instrument [Line Items]
Interest rate margin (as a percent)				2.25%
Wells Fargo Revolving Credit Facility \| Line of Credit \| Maximum \| Base Rate
Debt Instrument [Line Items]
Interest rate margin (as a percent)				1.25%
Credit facility \| Line of Credit
Debt Instrument [Line Items]
Letters of credit outstanding		$ 3,200,000		$ 3,200,000
Credit facility \| Line of Credit \| Wells Fargo Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowings						$ 1,600,000
Interest rate (as a percent)		1.80%		1.80%

Debt - Schedule of Future Payments (Details) $ in Millions	Sep. 30, 2023 USD ($)
Debt Disclosure [Abstract]
2024	$ 10.3
Total	$ 10.3

Equity (Details)				3 Months Ended	9 Months Ended
Equity (Details)	Sep. 08, 2023 USD ($)	Aug. 07, 2023 $ / shares	Mar. 07, 2023 USD ($)	Sep. 30, 2023 USD ($) installment shares	Sep. 30, 2023 USD ($) installment $ / shares shares	Sep. 30, 2022 USD ($) shares	Jul. 09, 2031	Jul. 08, 2031
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, authorized amount \| $			$ 35,000,000
Duration of share repurchase program			36 months
Dividends paid to Class A Common Stock shareholders \| $					$ 1,200,000	$ 0
PerfX Wireline Services, LLC \| Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ownership (as a percent)							15.00%	30.00%
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchased during the period (in shares)				232,900	781,000
Repurchase of Class A Common Stock \| $				$ 2,700,000	$ 8,600,000
Dividends declared (in dollars per share) \| $ / shares		$ 0.05
Dividends paid to Class A Common Stock shareholders \| $	$ 1,200,000
Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equal annual installments \| installment				3	3
Granted shares issued (in shares)						436,200
Value of shares granted \| $						$ 4,700,000
Unrecognized expense related to restricted shares issued \| $				$ 5,000,000	$ 5,000,000
Weighted average period					1 year 9 months 18 days
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares issued (in shares)					110,400
Unrecognized expense related to restricted shares issued \| $				$ 2,500,000	$ 2,500,000
Weighted average period					1 year 6 months
Performance period					3 years
PSUs \| Scenario 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares issued (in shares)					55,200
Performance Shares, Relative Grant Date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares issued (in shares)					55,200
Number of target shares granted to employees (in dollars per share) \| $ / shares					$ 15.71
Performance Shares, Relative Grant Date \| Scenario 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares issued (in shares)					27,600
Number of target shares granted to employees (in dollars per share) \| $ / shares					$ 15.22
Performance Shares, Absolute Grant Date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares issued (in shares)					55,200
Number of target shares granted to employees (in dollars per share) \| $ / shares					$ 13.12
Performance Shares, Absolute Grant Date \| Scenario 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares issued (in shares)					27,600
Number of target shares granted to employees (in dollars per share) \| $ / shares					$ 10.85

Risk Concentrations (Details) - Customer Concentration Risk - Customer One	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue
Customer Concentrations
Concentration risk (as a percent)	11.00%	11.00%	10.00%	10.00%
Accounts Receivable
Customer Concentrations
Concentration risk (as a percent)			7.00%	15.00%

Income Taxes (Details)	9 Months Ended
Income Taxes (Details)	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective federal income tax rate (as a percent)	20.00%	11.60%
Texas margin tax, maximum statutory effective rate (as a percent)	0.75%

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Basic:
Income attributable to Ranger Energy Services, Inc.	$ 9.4	$ 13.6	$ 21.7	$ 7.5
Net income attributable to Class A Common Stock	9.4	13.6	21.7	7.5
Diluted:
Income attributable to Ranger Energy Services, Inc.	9.4	13.6	21.7	7.5
Net income attributable to Class A Common Stock	$ 9.4	$ 13.6	$ 21.7	$ 7.5
Weighted average shares (denominator):
Weighted average number of shares - basic (in shares)	24,500,607	24,845,517	24,758,890	22,323,308
Effect of share-based awards (in shares)	386,668	338,550	390,525	314,149
Weighted average number of shares - diluted (in shares)	24,887,275	25,184,067	25,149,415	22,637,457
Basic income per share (in dollars per share)	$ 0.38	$ 0.55	$ 0.88	$ 0.34
Diluted income per share (in dollars per share)	$ 0.38	$ 0.54	$ 0.86	$ 0.33
Equity-Based awards
Weighted average shares (denominator):
Antidilutive securities (in shares)		100,000		100,000

Segment Reporting (Details) $ in Millions	3 Months Ended		9 Months Ended
Segment Reporting (Details) $ in Millions	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Segment Reporting
Number of reportable segments \| segment			3
Revenue	$ 164.4	$ 177.0	$ 485.1	$ 454.2
Cost of services	134.8	138.1	402.0	376.1
Depreciation and amortization	10.6	10.8	29.3	33.8
Operating income (loss)	11.7	18.0	32.3	10.6
Net income	9.4	13.6	21.7	7.5
Capital expenditures	17.2	5.2	34.6	12.9
Operating Segments \| High Specification Rigs
Segment Reporting
Revenue	79.2	79.7	234.3	220.6
Cost of services	63.5	62.7	185.6	175.3
Depreciation and amortization	5.1	6.3	14.7	20.8
Operating income (loss)	10.6	10.7	34.0	24.5
Net income	10.6	10.7	34.0	24.5
Capital expenditures	5.6	2.8	11.4	5.7
Operating Segments \| Wireline Services
Segment Reporting
Revenue	53.2	60.6	157.6	148.7
Cost of services	45.8	49.2	140.3	134.8
Depreciation and amortization	3.1	2.8	8.4	8.3
Operating income (loss)	4.3	8.6	8.9	5.6
Net income	4.3	8.6	8.9	5.6
Capital expenditures	9.2	0.4	13.7	2.0
Operating Segments \| Processing Solutions and Ancillary Services
Segment Reporting
Revenue	32.0	36.7	93.2	84.9
Cost of services	25.5	26.2	76.1	66.0
Depreciation and amortization	2.0	1.3	5.0	3.3
Operating income (loss)	4.5	9.2	12.1	15.6
Net income	4.5	9.2	12.1	15.6
Capital expenditures	2.4	2.0	9.5	5.2
Segment Reconciling Items
Segment Reporting
Revenue	0.0	0.0	0.0	0.0
Cost of services	0.0	0.0	0.0	0.0
Depreciation and amortization	0.4	0.4	1.2	1.4
Operating income (loss)	(7.7)	(10.5)	(22.7)	(35.1)
Net income	(10.0)	(14.9)	(33.3)	(38.2)
Capital expenditures	$ 0.0	$ 0.0	$ 0.0	$ 0.0

Subsequent Events (Details)	Oct. 31, 2023 $ / shares
Subsequent event
Subsequent Event [Line Items]
Dividends declared (in dollars per share)	$ 0.05

Ranger Energy Services (NYSE:RNGR)
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