Ranger Energy Services reported third-quarter revenue of $162.8 million and net income of $2.5 million as it generated strong cash flow, repaid its revolving-credit borrowings and repurchased shares. The Houston-based oilfield services company also highlighted two growth initiatives: its recently completed purchase of STEP Energy Services’ U.S. coil-tubing assets and an expansion of its contracted hybrid-electric workover rig fleet.
The company separately declared a quarterly cash dividend of 6 cents per share.
Third-quarter results and capital returns
- Revenue was $162.8 million for the quarter ended September 30, 2026. Net income was $2.5 million, or 10 cents per diluted share.
- Adjusted EBITDA was $20.1 million, equal to a 12.3% margin. Adjusted EBITDA is a non-GAAP measure.
- Ranger generated $20.0 million in free cash flow, which it defines as cash from operations less capital spending. The company said it used the quarter’s cash generation to repay all outstanding borrowings under its revolving credit facility and ended the quarter with no net debt.
- Ranger repurchased 142,100 shares during the quarter. Year-to-date shareholder returns totaled $11.7 million, or 64% of year-to-date free cash flow.
Growth initiatives
- Ranger completed its acquisition of STEP Energy Services’ U.S. coil-tubing assets on October 8, after the quarter ended. The company expects the acquired assets to contribute more than $10 million of EBITDA in 2027 on a pro forma basis for the coil-tubing service line.
- Ranger said the acquisition makes it the second-largest coil-tubing provider in the lower 48 states. Management said the added scale and technology position the business to compete for more demanding work.
- The company secured contracts for four additional ECHO hybrid-electric workover rigs. With those additions, 24 rigs are either operating or under construction. Ranger said the build program is ahead of schedule and early customer feedback has been positive.
- Management described the quarter’s operating environment as challenging competitively, while emphasizing cash generation and growth through the STEP acquisition and the ECHO program.
Dividend
- The board declared a quarterly dividend of 6 cents per share, payable December 4 to shareholders of record at the close of business November 20. Future dividends remain subject to board approval.
The reported third-quarter results precede the STEP acquisition, which closed in October. Ranger’s quarter-end debt position also reflects the period before that acquisition closed; the company did not provide an updated net-debt figure in the information presented here.