Ranger Energy Services, Inc. Class A

Good morning and welcome to Ranger Energy Services first quarter 2026 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Meese, Vice President, Finance. Please go ahead.

Good morning and thank you for joining Ranger Energy Services' first quarter 2026 earnings conference call. Before we begin, Ranger has issued a press release outlining our operational and financial performance. The press release and accompanying presentation materials are available in the investor relations section of our website at www.rangerenergy.com. Today's discussion may contain forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties. including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements. Factors that could cause actual results to differ include but are not limited to changes in oil and natural gas prices, customer activity levels, operating risks, competitive pressures, weather conditions, integration risks related to acquisitions, and other risks described in our filings with the Securities and Exchange Commission. Further, please note that non-GAAP financial measures will be referenced during this call. A full reconciliation of GAAP to non-GAAP measurements is available in our latest quarterly earnings release and conference call presentation. Joining me on the call today are Stuart Bowden, Ranger's Chief Executive Officer, and Melissa Kugel, our Executive Vice President and Chief Financial Officer. With that, I'll turn the call over to Stuart.

Thank you, Joe, and good morning, everyone. We appreciate you joining us today as we discuss Ranger's first quarter 2026 results and our strong financial performance. Despite a challenging start to the year, driven by the severity of winter storm ferns, Ranger delivered solid financial results with meaningful year-over-year growth and continued progress against our strategic priorities. For the first quarter, Ranger generated total revenue of $159.1 million and adjusted EBITDA of $23.3 million, representing growth both sequentially and versus the prior year. Importantly, these results reflect a quarter that began sluggishly but finished with strong momentum as February and March activity levels rebounded across our portfolio. The severe winter storm in January temporarily disrupted activity in all regions for several days, particularly in the Permian Basin. However, conditions improved and activity levels rebounded, and we exited the quarter with stronger utilization and improving operating cadence. That positive momentum has continued into April. From a strategic standpoint, we remain focused on execution, safety, and disciplined growth. We continue to integrate the AWS businesses, advance our ECHO hybrid rig program, and invested in areas that support long-term value creation while maintaining operational and financial discipline. Looking at some specifics, high-spec rigs once again delivered strong results in the first quarter and continues to serve as the cornerstone of Ranger's performance. Revenue in the segment increased both sequentially and year-over-year, driven by incorporation of a full quarter of legacy AWS rigs, an improvement in utilization across the legacy Ranger fleet, and resilient pricing. Topline growth in the quarter was driven by a meaningful shift in rig activity beginning in March, while some slight margin pressure was felt due to higher levels of white space earlier in the quarter and some maintenance-related expenses. Despite this, Segment margins remained over 20%, and we expect them to improve in the second and third quarter of this year as we continue to focus on disciplined cost management, efficient scheduling, and as we realize the benefits of increased scale. Operational execution across the fleet remains strong. Our teams continue to deliver safe, reliable service while maintaining high service quality and customer satisfaction. This was reflected in an expansion of our rig rate to $731 per hour. Customer demand for high-quality work over rigs remains healthy, particularly in mature basins where operators are focused on maximizing production from existing assets. We continue to see Ranger's high-spec rig fleet viewed as a preferred solution due to our reliability, performance, and safety record. During the quarter, we also made continued progress on our ECHO hybrid electric rig program. We announced the signing of a new 15 rig contract as part of our year-end earnings, and construction activities are underway and advancing as planned. Our first ECHO rigs deployed in late 2025 are in the field operating currently, and the early operational results are impressive. We are seeing a high amount of productive time and receiving positive customer feedback about the capabilities of these rigs. the fleet additions remain on track for delivery beginning later this year. Having visited the manufacturer and spent time on the rig and exploring its capabilities, we are more convinced than ever that ECHO represents a meaningful differentiator for Ranger, delivering improved efficiency, lower fuel consumption, and emissions benefits for our customers, while at the same time generating attractive returns for our shareholders. Turning to ancillary services, this segment continues to grow in strategic importance within Ranger. We see meaningful opportunity to expand this segment organically through cross-selling, improved utilization, and leveraging our scale and customer relationships. The first quarter marked another period of solid growth and improving contribution. Revenue and profitability increased sequentially and year over year, driven by higher activity across several service lines, and a full quarter's inclusion and expanded offerings acquired through the AWS transaction. Integration efforts progressed well during the quarter, and we are realizing early benefits from combining these assets with Ranger's broader platform. Speaking specifically to a couple of our service lines, within our P&A group, we commenced activity on our recently awarded Texas Railroad Commission contract and are pleased with how that work is progressing and how our relationship with the regulatory bodies both within and outside of Texas are developing. This contract aligns well with our capabilities, provides a steady source of activity, and further diversifies our revenue base. The tubing rental and inspection business acquired in the fall has also been a bright spot. With significant capacity to grow with minimal capital and strong incremental margins, we are looking to increase our business in this service line and see its contribution to our bottom line grow in the coming quarters. On wireline services, we were particularly pleased with the overall financial performance and stability of this segment through the first quarter. We have historically had a difficult time navigating to positive adjusted EBITDA in Q1, given winter weather and the more northern exposure of the business. Activity improved meaningfully in March, and the business exited the quarter with stronger operational performance and respectable margins. Before turning the call over to Melissa, I want to briefly touch on the broader market environment. When we entered 2026, macro sentiment across the energy sector remained cautious, with many operators planning for relatively flat to down activity levels. As the quarter progressed, geopolitical developments and improving crude oil futures began to modestly improve sentiment. We've seen this reflected in customer conversations that are increasingly constructive, particularly around production-focused work and maintenance activity. Ranger's business model is well suited to this environment. Our portfolio is heavily weighted toward work over, maintenance and production optimization services on existing wells. Services that are essential, cost effective and critical to sustaining production and bringing short cycle barrels to market. Combined with our scale across the lower 48 and our long live asset base, we believe we are well positioned to respond efficiently as activity levels evolve. With that, I'll turn the call over to Melissa to walk through our financial results in more detail.