Q2 2025 Ranger Energy Services Inc Earnings Call

Today's presentation, there will be an opportunity to ask questions.

Operator: will be in the listen-only mode.

Operator: Participants will be in the listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the call over to Joe Mease, Vice President of Finance. Please go ahead.

Operator: After today's presentation, there will be an opportunity to ask questions.

Please note this event is being recorded.

Operator: Please note, this event is being recorded.

I would now like to turn call over to Julie <unk> Vice President of Finance. Please go ahead.

Joe Mease: I would now like to call over to Joe Mease, Vice President of Finance, please go ahead. Thank you and welcome to Ranger Energy Services second quarter 2025 results conference call. Ranger has issued a press release outlining our operational and financial performance for the three months ended June 30 2025.

Thank you and welcome to Ranger Energy services second quarter 2025 results conference call.

Joe Mease: Thank you. Welcome to Ranger Energy Services' Second Quarter 2025 Results Conference Call. Ranger has issued a press release outlining our operational and financial performance for the 3 months ended 30 June 2025. 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. 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.

Ranger has issued a press release outlining our operational and financial performance for the three months ended June 32025.

The press release and accompanying presentation materials are available in the Investor Relations section of our website at Www Dot Ranger energy Dotcom.

Joe Mease: 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.

Joe Mease: Today's discussion may contain forward looking statements about future business and financial expectations.

Joe Mease: 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.

Joe Mease: Except as required by law, we undertake no obligation to update our forward-looking statements.

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.

Joe Mease: Further, please note that non-GAAP financial measures will be referenced during this call.

Joe Mease: A full reconciliation of GAAP to non-GAAP measurements is available in our latest quarterly earnings release and conference call presentation.

With that I would like to now turn the conference call over to our CEO Stuart <unk> and our CFO Melissa kugel for their prepared remarks.

Stuart Bodden: With that, I would like to now turn the conference call over to our CEO, Stuart Bodden, and our CFO, Melissa Cougle, for their prepared remarks. Thanks, Joe. Good morning, everyone. Today, I'm pleased to report another strong quarter for Ranger Energy. second quarter results reflect the resilience of our production oriented strategy, the hard work of our field teams, and our ongoing commitment to disciplined execution. We exited the winter with a strong pickup in activity early in the second quarter, which has continued into the summer month. we have seen higher than normal levels of asset turnover, as certain customers suggested their well programs in light of current market conditions.

Joe Mease: With that, I would like to now turn the conference call over to our CEO, Stuart Bodden, and our CFO, Melissa Cougle, for their prepared remarks.

Thanks, Joe Good morning, everyone.

Stuart Bodden: Thanks, Joe. Good morning, everyone. Today, I'm pleased to report another strong quarter for Ranger. Q2 results reflect the resilience of our production-oriented strategy, the hard work of our field teams, and our ongoing commitment to disciplined execution. We exited the winter with a strong pickup in activity early in Q2, which has continued into the summer months. We have seen higher than normal levels of asset turnover as certain customers adjusted their well programs in light of current market conditions. That said, demand in Ranger's core service lines remains strong, and Ranger's results showcase the consistent earnings power and resilience of our business model, our focus on capital discipline, and our ability to lead the sector in innovation.

Today I am pleased to report another strong quarter for Ranger.

Second quarter results reflect the resilience of our production oriented strategy.

The hard work of our field teams and our ongoing commitment to disciplined execution.

We exited the winter with a strong pickup in activity early in the second quarter, which has continued into the summer months, we have seen higher than normal levels of asset turnover as certain customers adjusted their well programs in light of current market conditions.

That said demand and Rangers core service lines remained strong and Rangers results showcase the consistent earnings power and resilience of our business model, our focus on capital discipline, and our ability to lead the sector and innovation.

Stuart Bodden: That said, demand in Rangers core service lines remain strong, and Rangers results showcase the consistent earnings power and resilience of our business model, our focus on capital discipline, and our ability to lead the sector in innovation. For the second quarter, we reported $140.6 million in revenue, a year over year improvement that is impressive given the drilling rig and crack spread declines currently impacting drilling and completion exposed business. Ranger reported $20.6 million of adjusted EBITDA for the quarter, achieving 14.7% margin. consistent with last year's performance and sequentially stronger than Q1. All segments delivered sequentially improving results despite falling rig counts with company-wide Q2 revenue and adjusted EBITDA improving 4% and 33% quarter over quarter respectively.

For the second quarter, we reported a $146 million in revenue a year over year improvement that is impressive given the drilling rig and frac spread declines currently impacting drilling and completion exposed businesses.

Stuart Bodden: For Q2, we reported $140.6 million in revenue, a year-over-year improvement that is impressive given the drilling rig and frac spread declines currently impacting drilling and completion-exposed businesses. Ranger Energy Services reported $20.6 million of adjusted EBITDA for the quarter, achieving 14.7% margins, consistent with last year's performance and sequentially stronger than Q1. All segments delivered sequentially improving results despite falling rig counts with company-wide Q2 revenue and adjusted EBITDA improving 4% and 33% quarter-over-quarter, respectively. Our High-Spec Rigs segment continued to be the cornerstone of our business, contributing $86.3 million of revenue and $17.6 million of adjusted EBITDA, with margins staying over 20%, again, demonstrating the stability and profitability of production-focused services. Activity levels and customer demand remain stable, although managing through recent white space has put some pressure on margins.

Range reported $26 million of adjusted EBITDA for the quarter, achieving 14, 7% margins consistent with last year's performance and sequentially stronger than Q1.

All segments delivered sequentially improving results, despite falling rig counts with company wide Q2 revenue and adjusted EBITDA, improving 4% and 33% quarter over quarter respectively.

Our high spec rig segment continued to be the cornerstone of our business.

Stuart Bodden: Our high spec rig segment continue to be the cornerstone of our business. contributing $86.3 million of revenue and $17.6 million of adjusted EBITDA with margins staying over 20%, again, demonstrating the stability and profitability of production focused services. activity levels in customer demand remain stable, although managing through recent white space has put some pressure on large We are encouraged by consistent base of work heading into the second half of the year and the resilience and pricing stability we have seen thus far. ancillary services and wireline both improved quarter over quarter with ancillary services generating $32.2 million in revenue and $6.6 million in adjusted EBITDA.

Contributing $86 $3 million of revenue and $17 6 million of adjusted EBITDA with margin staying over 20% again, demonstrating the stability and profitability of production focused services.

Activity levels and customer demand remains stable, although managing through recent wide space has put some pressure on margins. We are encouraged by consistent base of work heading into the second half of the year and the resilience and pricing stability, we have seen thus far.

Stuart Bodden: We are encouraged by a consistent base of work heading into the H2 of the year and the resilience in pricing stability we have seen thus far. Ancillary services and wireline both improved quarter over quarter, with ancillary services generating $32.2 million in revenue and $6.6 million in adjusted EBITDA. Our coiled tubing service line saw a significant improvement quarter over quarter with consistent demand for our coil spreads as weather conditions improved in the spring. While our Reynolds and Torrent service lines saw continued strength and resiliency. Our P&A service line has seen a pullback in activity by some customers given the discretionary nature of these costs, although the long-term growth potential of this vital and environmentally sensitive work remains intact while regulatory bodies and customers contend with an ever-aging population of wells in the lower 48.

Ancillary services and wireline, both improved quarter over quarter with ancillary services generating $32 $2 million in revenue and $6 $6 million and adjusted EBITDA. Our coiled tubing service line saw a significant improvement quarter over quarter with consistent demand for our coil spreads as weather.

Stuart Bodden: Our coil tubing service line saw significant improvement quarter over quarter with consistent demand for our coil spreads as weather conditions improved in the spring, while our rentals and torrent service lines saw continued strength and Our P&A service line has seen a pullback in activity by some customers given the discretionary nature of these costs, although the long-term growth potential of this vital and environmentally sensitive work remains intact, while regulatory bodies and customers contend with an ever-aging population of wells in the lower 48. Wireline achieved a meaningful turnaround this quarter with positive adjusted EBITDA of $1.6 million on $22.1 million of revenue.

Conditions improved in the spring, while our rentals and Torrance service lines saw continued strength and resiliency. Our PNA service line has seen a pullback in activity by some customers given the discretionary nature of these costs, although the long term growth potential of this vital and environmentally sensitive work remains intact.

While regulatory bodies and customers contend with an ever aging population of wells in the lower 48.

Wireline achieved a meaningful turnaround this quarter with positive adjusted EBITDA of $1 $6 million on $22 $1 billion of revenue.

Stuart Bodden: Wireline achieved a meaningful turnaround this quarter with +adjusted EBITDA of $1.6 million on $22.1 million of revenue once winter effects subsided and our restabilization efforts improved profitability. Our work in this segment continues. With this quarter's result, we are also proud to announce a transformational milestone in well servicing, the launch of our ECHO rig, the industry's first hybrid double electric workover rig. This technology is the culmination of 2 years of engineering effort from trusted manufacturing partners, converting an existing Taylor rig design uniquely available to Ranger. It borrows technologies from outside traditional oil and gas and applies electrification strategies from other industrial sectors that are truly differentiated from anything on the market today. It also utilizes Ranger's existing spare asset capacity for conversion to reduce construction costs and avoid further market saturation.

Once winter effects subsided, and our re stabilization efforts improved profitability.

Stuart Bodden: Once winter effects subsided, and our restabilization efforts improved profitability. Our work in this segment continues.

Our work in this segment continues.

With this quarter's result were also proud to announce a transformational milestone in well servicing the launch of our IPO rig the industry's first hybrid double electric Workover rig.

Stuart Bodden: With this quarter's result, we are also proud to announce a transformational milestone in well service. the launch of our echo rig, the industry's first hybrid double electric workover rig. This technology is the culmination of two years of engineering effort from trusted manufacturing partners, converting an existing tailor rig design uniquely available to Rangers. It borrows technologies from outside traditional oil and gas and applies electrification strategies from other industrial sectors that are truly differentiated from anything on the market today. It also utilizes Rangers existing spare asset capacity for conversion to reduce construction costs and avoid further market saturation.

This technology is the culmination of two years of engineering effort from trusted manufacturing partners converting an existing Taylor rig design uniquely available to Ranger.

<unk> technologies from outside traditional oil and gas and applies electrification strategies from other industrial sectors that are truly differentiated from anything on the market today.

It also utilizes rangers existing spare asset capacity for conversion to reduce construction costs and avoid further market saturation.

These rigs bring a long list of enhanced benefits, but some of the key highlights of this hybrid <unk> solution include.

Stuart Bodden: These rigs bring a long list of enhanced benefits. But some of the key highlights of this hybrid rig solution include a zero emissions profile when well sought power is available with a 90% reduction in emissions even in off grid settings. operations that are stunningly quiet when compared to traditional conventional rigs, improving the ability of crews to communicate and coordinate activity. A fully electric drivetrain that utilizes regenerative braking with precision drawworks, remote safety lockout, and a digital interface capable of applying machine learning, which is a game changer in conducting safe and optimized operations. a plug-and-play modular construction design that will allow for major component maintenance and replacement without significant downtime.

Stuart Bodden: These rigs bring a long list of enhanced benefits, but some of the key highlights of this hybrid rig solution include a zero-emissions profile when well site power is available with a 90% reduction in emissions even in off-grid settings. Operations that are stunningly quiet when compared to traditional conventional rigs, improving the ability of crews to communicate and coordinate activities. A fully electric drivetrain that utilizes regenerative braking with precision drawworks, remote safety lockouts, and a digital interface capable of applying machine learning, which is a game changer in conducting safe and optimized operations. A plug-and-play modular construction design that will allow for major component maintenance and replacement without significant downtime, and a 30-minute recharge window that can be conducted during continuous operations. Ranger committed to two ECHO rigs earlier this year, with both currently under construction and anticipated to be delivered and tested before the end of Q3.

Zero emissions profile, when well site power is available with a 90% reduction in emissions even in off grid settings.

Operations that are stunningly quiet when compared to traditional conventional rigs improving the ability of cruise communicate and coordinate activities.

Fully electric drivetrain that utilizes regenerative braking with precision draw works remote safety lockout, and a digital interface capable of applying machine learning, which is a game changer in conducting safe and optimized operations, a plug and play a modular construction design that will allow for major.

Maintenance and replacement without significant downtime.

And a 30 minute recharge window that can be conducted during continuous operations.

Stuart Bodden: and a 30 minute recharge window that can be conducted during continuous operation. Ranger committed to two echo rigs earlier this year, with both currently under construction and anticipated to be delivered and tested before the end of Q3. The rigs have been contracted with two major US operators with provisions ensuring capital return thresholds are met, as well as options for future rig conversion. We spent time this past year ensuring that the echo platform is scalable and capital efficient with costs that are shared with our customers and or captured in an uplifted rate. simply stated, the echo rig is poised to reshape how well servicing work gets done in the lower 48.

Ranger committed to to Echo rigs earlier this year with both currently under construction and anticipated to be delivered and tested before the end of Q3.

The rigs have been contracted with two major U S operators with provisions ensuring capital return thresholds are met as well as options for future rig convergence. We spent time this past year, ensuring that the echo platform is scalable and capital efficient with costs that are shared with our customers and or captured in an upper.

Stuart Bodden: The rigs have been contracted with 2 major US operators, with provisions ensuring capital return thresholds are met, as well as options for future rig conversions. We spent time this past year ensuring that the ECHO platform is scalable and capital efficient, with costs that are shared with our customers and/or captured in an uplifted rate. Simply stated, the ECHO rig is poised to reshape how well servicing work gets done in the Lower 48. This is not innovation for its own sake. This is practical innovation that improves operations, enhances safety, reduces emissions, and positions Ranger to lead the way as operator expectations continue to evolve. It also demonstrates our engineering leadership and our ability to bring forward-looking solutions to the market at the right moment.

Lifted right.

Simply stated the echo rig is poised to reshape how well servicing work gets done in the lower 48.

This is not innovation for its own sake. This is practical innovation that improves operations enhances safety.

Stuart Bodden: This is not innovation for its own sake. This is practical innovation that improves operations, enhances safety, reduces emissions, and positions Ranger to lead the way as operator expectations continue to evolve. It also demonstrates our engineering leadership and our ability to bring forward looking solutions to the market at the right moment.

<unk> emissions and positions Ranger to lead the way as operator expectations continue to evolve.

It also demonstrates our engineering leadership and our ability to bring forward looking solutions to the market at the right moment.

Before I turn the call over to Melissa I'd also like to provide some thoughts on <unk> current strategic priorities and our views as we look to the second half of the year.

Stuart Bodden: Before I turn the call over to Melissa, I'd also like to provide some thoughts on Ranger's current strategic priorities and our views as we look to the H2 of the year. The past two years have brought newfound pressures in this space, as new activity lows seem to be a recurring theme each quarter. Despite this market pressure, Ranger has been able to produce consistent, durable, and strong cash flows and has shown the ability to put these cash flows to smart use, whether through buybacks or targeted CapEx investment. We have had some pressures in select service lines, but they remain isolated without affecting our core service lines. When we look towards the H2 of the year, we see continued shuffling and rig deployment that can bring about some white space and schedules and margin pressures.

Stuart Bodden: Before I turn the call over to Melissa, I'd also like to provide some thoughts on Ranger's current strategic priorities and our views as we look to the second half of the year. The past couple of years have brought newfound pressures in this space, as new activity lows seem to be a recurring theme each quarter. Despite this market pressure, Ranger has been able to produce consistent, durable, and strong cash flows, and has shown the ability to put these cash flows to smart use, whether through buybacks or targeted CapEx investments. We have had some pressures in select service lines, but they remain isolated without affecting our core service lines.

Last couple of years have brought newfound pressures in this space as new activity lows seem to be a recurrent theme each quarter. Despite this market pressure Ranger has been able to produce consistent durable and strong cash flows and has shown the ability to put these cash flows to smart use whether through buybacks were targeted.

Capex investment.

We have had some pressures in select service lines, but they remain isolated without affecting our core service lines. When we look towards the back half of the year, we see continued shuffling and redeployment that can bring about some white space and schedules and margin pressures.

Stuart Bodden: When we look towards the back half of the year, we see continued shuffling and redeployment that can bring about some white space in schedules and margin pressure. That said, our base of work remains stable, and we feel the third quarter will show continued resilience. The fourth quarter has historically been unpredictable, depending on customer budget exhaustion, and general macro sentiment. And we feel this year will be no different.

Our base of work remains stable and we feel the third quarter will show continued resilience.

Stuart Bodden: That said, our base of work remains stable and we feel Q3 will show continued resilience. Q4 has historically been unpredictable, depending on customer budget exhaustion and general macro sentiment, and we feel this year will be no different. We will provide additional color as available during our Q3 earnings call. Ranger's strategic priorities remain the same. We will be disciplined capital allocators who look to maximize free cash flow and prioritize shareholder returns. We believe that further growth in the future will be key for Ranger, and in the same way we approach the Basic asset acquisition in 2021 and in development of our new ECHO rig, we will be thoughtful and meticulous in our pursuit of accretive M&A and organic growth opportunities that create value for Ranger shareholders and ensure our balance sheet strength is protected.

Fourth quarter has historically been unpredictable depending on customer budget exhaustion and general macro sentiment and we feel this year will be no different we will provide additional color as available during our third quarter earnings call.

Stuart Bodden: We will provide additional color as available during our third quarter earnings Ranger's strategic priorities remain the same. We will be disciplined capital allocators who look to maximize free cash flow and prioritize shareholder returns. We believe that further growth in the future will be key for Ranger. And in the same way we approach the basic asset acquisition in 2021. And in development of our new echo rig, we will be thoughtful and meticulous in our pursuit of accretive M&A and organic growth opportunities that create value for Ranger shareholders and ensure our balance sheet strength is protected. We remain a partner of choice to large consolidated EMPs who prioritize safety, reliability, and multi-basin that strength has allowed us to capture incremental market share these past couple of years during the most recent market contraction.

<unk> strategic priorities remain the same we will be disciplined capital allocators, who look to maximize free cash flow and prioritize shareholder returns.

We believe that further growth in the future will be key for Ranger and in the same way we approach the basic asset acquisition in 2021 and in development of our new Echo rig, we will be thoughtful and meticulous in our pursuit of accretive M&A and organic growth opportunities that create value for ranger shareholders and ensure our balance.

She'd strength is protected.

We remain a partner of choice to large consolidated E&ps, who prioritize safety reliability and multi basin reach that strength has allowed us to capture incremental market share. These past couple of years during the most recent market contraction.

Stuart Bodden: We remain a partner of choice to large, consolidated E&Ps who prioritize safety, reliability, and multi-basin reach. That strength has allowed us to capture incremental market share these past couple of years during the most recent market contraction. Finally, I want to commend our field teams and support staff. Our people are Ranger's greatest assets, and their dedication and discipline are what makes these results possible. With that, I'll turn it over to our CFO, Melissa Cougle.

Finally, I want to commend our field teams and support staff our people our Rangers greatest assets and their dedication and discipline are what makes these results possible with that I'll turn it over to our CFO Melissa Google.

Stuart Bodden: Finally, I want to commend our field teams and support Our people are Rangers greatest assets, and their dedication and discipline are what makes these results possible.

Melissa Cougle: With that, I'll turn it over to our CFO, Melissa Cougle. Thanks, Stuart. And good morning, everyone. As mentioned, Ranger showed up in the second quarter with another set of consistent results, further reinforcing our production focused resiliency in the face of declining rate counts. Second quarter revenue was $140.6 million, up 4% sequentially from Q1, and up 2% year-over-year when comparing to the second quarter of 2024. Adjusted EBITDA for the second quarter was $20.6 million, a sequential increase of 33% from the first quarter and 2% lower than the prior year quarter due to both service line mix and some margin pressure from rig transitions between customers.

Thanks, Stuart and good morning, everyone as mentioned Ranger showed up in the second quarter with another set of consistent results further reinforcing our production focused resiliency in the face of declining rig counts.

Melissa Cougle: Thanks, Stuart, and good morning, everyone. As mentioned, Ranger showed up in Q2 with another set of consistent results, further reinforcing our production-focused resiliency in the face of declining rig counts. Q2 revenue was $140.6 million, up 4% sequentially from Q1 and up 2% year over year when comparing to Q2 2024. Adjusted EBITDA for Q2 was $20.6 million, a sequential increase of 33% from Q1 and 2% lower than the prior year quarter due to both service line mix and some margin pressure from rig transitions between customers. Consolidated margins were 14.7%, a significant improvement from Q1 and consistent to those seen in Q2 2024. From a segment perspective, the High Specification Rig segment reported $86.3 million in revenue and $17.6 million in adjusted EBITDA.

Second quarter revenue was $146 million up 4% sequentially from Q1 and up 2% year over year, when comparing to the second quarter of 2024.

Adjusted EBITDA for the second quarter was $26 million.

A sequential increase of 33% from the first quarter and 2% lower than the prior year quarter due to the service line mix and some margin pressure from rig transitions between customers.

Consolidated margins were 14, 7% a significant improvement from the first quarter and consistent to those seen in the second quarter of 2024.

Melissa Cougle: Consolidated margins were 14.7%, a significant improvement from the first quarter and consistent to those seen in the second quarter of 2024. From a segment perspective, the high specification rig segment reported $86.3 million in revenue and $17.6 million in adjusted EBITDA. Revenues slipped slightly quarter over quarter and improved year over year, while adjusted EBITDA and associated margins improved quarter over quarter and decreased year over year. Rig hours have continued to improve and grow, showing strong demand and utilization of the fleet. While pricing slipped 2% quarter over quarter, these declines were isolated and driven largely by adjustments to rig packaging profile.

From a segment perspective, the high specification rig segment reported $86 $3 million in revenue and $17 6 million and adjusted EBITDA.

Revenues slipped slightly quarter over quarter and improved year over year, while adjusted EBITDA and associated margin improved quarter over quarter and decreased year over year.

Melissa Cougle: Revenues slipped slightly quarter over quarter and improved year over year, while adjusted EBITDA and associated margins improved quarter over quarter and decreased year over year. Rig hours have continued to improve and grow, showing strong demand and utilization of the fleet. While pricing slipped 2% quarter over quarter, these declines were isolated and driven largely by adjustments to rig packaging profiles. Turning to processing solutions and ancillary services, revenues for the quarter were $32.2 million, an improvement of 6% from the prior quarter and 4% from the prior year quarter. Adjusted EBITDA for the segment was $6.6 million with 20.5% margins for Q2, an improvement from Q1, but decrease from the prior year due to service line contribution mix.

Rig hours have continued to improve and grow showing strong demand and utilization of the fleet, while pricing slipped 2% quarter over quarter. These declines were isolated and driven largely by adjustments to rig packaging profiles.

Turning to processing solutions and ancillary services revenues for the quarter were $32 2 million, an improvement of 6% from the prior quarter and 4% from the prior year quarter adjusted EBITDA for the segment was $6 $6 million with 25% margins for the second quarter and <unk>.

Melissa Cougle: Turning to processing solutions and ancillary services, revenues for the quarter were $32.2 million, an improvement of 6% from the prior quarter and 4% from the prior year quarter. Adjusted EBITDA for the segment was $6.6 million with 20.5% margins for the second quarter, an improvement from the first quarter but decreased from the prior year due to service line contribution mix. Wireline returned to profitability with positive EBITDA of $1.6 million on $22.1 million of revenue, a significant sequential improvement that we believe is repeatable in the third quarter. We remain focused on creating a more consistent activity profile and looking for ways to further drive down fixed costs.

From the first quarter a decrease from the prior year due to service line contribution next.

Wireline returned to profitability with positive EBITDA of $1 6 million on $22 $1 million of revenue a significant sequential improvement that we believe is repeatable in the third quarter, we remain focused on creating a more consistent activity profile and looking for ways to further drive down fixed costs.

Melissa Cougle: Wireline returned to profitability with +EBITDA of $1.6 million on $22.1 million of revenue, a significant sequential improvement that we believe is repeatable in Q3. We remain focused on creating a more consistent activity profile and looking for ways to further drive down fixed costs. Ranger's balance sheet is stronger than ever. Free cash flow year to date totaled $17.8 million, up 45% from the prior year, and we exited June with $48.9 million of cash and $120.1 million of total liquidity. We deployed a portion of our liquidity during the quarter, repurchasing 278,000 shares of Ranger stock for a total spend of $3.3 million. These share repurchases have continued into Q3, as we see the Ranger share price at current levels as an incredibly compelling investment and use of capital.

Rangers balance sheet is stronger than ever free cash flow year to date totaled $17 8 million up 45% from the prior year and we exited June with $48 $9 million of cash and $121 million of total liquidity.

Melissa Cougle: Ranger's balance sheet is stronger than ever. Free cash flow year to date totaled $17.8 million, up 45% from the prior year, and we exited June with $48.9 million of cash and $120.1 million of total liquidity. We deployed a portion of our liquidity during the quarter, repurchasing 278,000 shares of Ranger stock for a total spend of $3.3 million. These share repurchases have continued into the third quarter, as we see the Ranger share price at current levels as an incredibly compelling investment and use of capital.

We deployed a portion of our liquidity during the quarter repurchasing 278000 shares of Ranger stock for a total spend of $3 $3 million.

These share repurchases have continued into the third quarter as we see the ranger share price at current levels as an incredibly compelling investment and use of capital.

We paid our quarterly dividend of <unk> per share on may 23rd and today, Our board approved the third quarter's dividend that brings our capital returns to shareholders as of June 32, well over $5 million in line with our ongoing commitment to returning at least 25% of free cash flow to shareholders annually.

Melissa Cougle: We paid our quarterly dividend of $0.06 per share on May 23rd, and today our board approved the third quarter's dividend. That brings our capital returns to shareholders as of June 30th to well over $5 million, in line with our ongoing commitment to returning at least 25% of free cash flow to shareholders annually.

Melissa Cougle: We paid our quarterly dividend of $0.06 per share on 23 May, and today, our board approved the Q3's dividend. That brings our capital returns to shareholders as of 30 June to well over $5 million, in line with our ongoing commitment to returning at least 25% of free cash flow to shareholders annually. Turning to the back half of the year, we expect continued stability in Q3. High-spec rigs and ancillary services should continue to show steady performance, while wireline's recovery is being closely managed. We are optimistic about Q3 performance while cautious once we enter the Q4 and winter weather arrives, which will likely slow activities once more. CapEx spending remains disciplined, and we are holding prior guidance, having made select investments this year in the ECHO rigs Stuart discussed earlier.

Turning to the back half of the year, we expect continued stability in Q3 high spec rigs and ancillary services should continue to show steady performance, while wireline recovery is being closely managed we are optimistic about third quarter performance, while cautious once we enter the fourth quarter and winter weather arrives which will likely.

Melissa Cougle: Turning to the back half of the year, we expect continued stability in Q3. High-spec rigs and ancillary services should continue to show steady performance while wirelines recovery is being closely managed. We are optimistic about third quarter performance, while cautious once we enter the fourth quarter and winter weather arrives, which will likely slow activities once more.

So activities on tomorrow.

Capex spending remains disciplined and we are holding prior guidance, having made select investments this year in the echo rigs Stuart discussed earlier, we have begun trimming capex whenever possible to give us maximum flexibility in responding to market conditions, we will remain focused on delivering high quality service, while investing in target.

Melissa Cougle: CapEx spending remains disciplined and we are holding prior guidance having made select investments this year in the Echo Rigs Stuart discussed earlier. We have begun trimming CapEx whenever possible to give us maximum flexibility in responding to market conditions. We will remain focused on delivering high quality service while investing in targeted innovation that supports long-term profitability and shareholder returns.

Melissa Cougle: We have begun trimming CapEx whenever possible to give us maximum flexibility in responding to market conditions. We will remain focused on delivering high-quality service while investing in targeted innovation that supports long-term profitability and shareholder returns. With that, I'll turn the call back over to Stuart for closing comments.

Innovation that supports long term profitability and shareholder returns with that I'll turn the call back over to Stuart for closing comments.

Stuart Bodden: With that, I'll turn the call back over to Stuart for closing comments. Thanks, Melissa. To summarize, Q2 reflects the strength and consistency of our business model, strong cash conversion, resilient core segments, and disciplined execution.

Thanks, Melissa to summarize Q2 reflects the strength and consistency of our business model strong cash conversion resilient core segments and disciplined execution.

Stuart Bodden: Thanks, Melissa. To summarize, Q2 reflects the strength and consistency of our business model, strong cash conversion, resilient core segments, and disciplined execution. Importantly, it also is the exciting start of something new with the launch of ECHO, a platform that showcases how Ranger can lead with innovation without sacrificing returns or reliability. We remain committed to generating free cash flow, returning capital to shareholders, maintaining balance sheet strength, and delivering smart growth both organically and through selective M&A. Thanks again to our employees, partners, and shareholders for your continued support. With that, operator, I would like to open up the call for questions.

Importantly, it also has the exciting start of something new with the launch of Echo a platform that showcases how ranger can lead with innovation without sacrificing returns or reliability.

Stuart Bodden: Importantly, it also is the exciting start of something new with the launch of echo, a platform that showcases how Ranger can lead with innovation without sacrificing returns or reliability. We remain committed to generating free cash flow, returning capital to shareholders, maintaining balance sheet strength, and delivering smart growth, both organically and through selective M&A. Thanks again to our employees, partners, and shareholders for your continued support.

We remain committed to generating free cash flow returning capital to shareholders, maintaining balance sheet strength and delivering smart growth, both organically and through selective M&A.

Thanks, again to our employees partners and shareholders for your continued support with that operator, I would like to open up the call for questions.

Operator: With that, Operator, I would like to open up the call for questions. We will now begin the question and answer session.

Thank you.

We will now begin the question and answer session.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble a roster. The first question comes from Don Crist with Johnson Rice. Please go ahead.

To ask a question human fifth Star then one on your telephone keypad.

Operator: To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone. Please pick up your handset before pressing the key.

If you are using a speaker phone.

Please pick up your handset before pressing the keys.

If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, then.

At this time, we will pause momentarily to assemble our roster.

Operator: At this time, we will pause momentarily to assemble a roster.

The first question comes from Don Crist from Johnson Rice. Please go ahead.

Don Crist: The first question comes from Don Crist with Johnson Rice, please go ahead. Good morning, Stuart and Melissa, hope you're all doing well. Good morning, Don.

Good morning, Stuart Melissa I hope, you're all doing well.

Don Crist: Good morning, Stuart and Melissa. Hope you all doing well.

You too.

Don.

I wanted to start with the new Echo rig contracts congrats for getting this over the finish line after two years, but.

Stuart Bodden: You too. Good morning, Don.

Stuart Bodden: I wanted to start with the new Echo rig contract, you know, congrats for, you know, getting this over the finish line after two years, but I'm assuming that these assets are going to cost a touch more, but on the contract, is it designed to have a similar payback as you would on a normal rig? I'm just assuming that these are going to be a little bit more expensive for the operator, but save money in the long run from a, you know, diesel perspective.

Don Crist: I wanted to start with the new ECHO rig contract. Congrats for getting this over the finish line after 2 years. I'm assuming that these assets are gonna cost a touch more, but on the contract, is it designed to have a similar payback as you would on a normal rig? I'm just assuming that these are gonna be a little bit more expensive for the operator, but save money in the long run from a diesel perspective.

I'm, assuming that these assets are going to cost to touch more but on the contract.

Is it designed to have a similar payback as you would on a normal rig.

I'm just assuming that these are going to be a little bit more expensive for the operator, but save money in the long run from a.

Diesel perspective.

Yes.

Kick it off and then listen can chime in and Don.

Stuart Bodden: Yeah, I'll kick it off and then listen to Chyna and Don. So the short answer is we do think they'll have very similar return profiles or maybe even better, you know, we'll see how the market is. The way that we thought about it is, you're right, there's an incremental cost to doing these refurbs and making the echo rigs, you know, over and above what we typically do in a complete refurb. The customers have, you know, the two contracts we referenced, the customers have spent a lot of time with us and they have a lot of faith in the technology.

Stuart Bodden: Yeah. I'll kick it off and then Melissa can chime in, Don. The short answer is, we do think they'll have very similar return profiles or maybe even better. We'll see how the market is. The way that we thought about it is, you're right, there's an incremental cost to doing these refurbs, and making the ECHO rigs over and above what we would typically do in a complete refurb. The two contracts we referenced, the customers have spent a lot of time with us, and they have a lot of faith in the technology. They have actually, through kind of a combination of down payments and agreements for increased rates over a defined set of hours, to pay or to help share that incremental cost. When you put that all together, we get very similar return profiles as a typical refurb for us.

The short answer is we do think they will have very similar return profiles are or maybe even better we will see how the market is.

The way that we've thought about it is youre right theres an incremental cost.

Doing these <unk> and making the echo rigs kind of over and above what we would typically do in a complete refurb.

The customers have.

Two contracts, we referenced the customers there's been a lot of time with us.

And they have a lot of it and the technology. So they have actually through kind of a combination of down payments and agreements for increased rates over a defined set of hours to.

Stuart Bodden: So they have actually, through kind of a combination of down payments and agreements for increased rates over a defined set of hours to pay or to help share that incremental cost. And when you kind of put that all together, you know, we get very similar return profiles as a typical refurb.

To pay or to help share that that incremental cost.

And when you kind of put that all together.

Get very similar return profiles as a typical referred for us.

Okay.

Wanted to ask about wireline services, you know obviously that market has been challenged for quite a while but theres been some some M&A in the sector. Some some companies going away and others buying other companies.

Don Crist: Okay, and I wanted to ask about wireline services. You know, obviously, that that market's been challenged for quite a while, but there's been some, some M&A in the in the sector, some some companies going away and others, you know, buying other companies and in the in the second quarter, your results were much better than I would have expected. And I wanted to know if if the market was tightening, and some of those excess assets are going away through M&A, or is it something more on your side that you're doing the control cost and boost mark?

Don Crist: Okay. I wanted to ask about wireline services. Obviously, that market's been challenged for quite a while, but there's been some M&A in the sector, some companies going away and others buying other companies. In Q2, your results were much better than I would've expected. I wanted to know if the market was tightening, and some of those excess assets are going away through M&A, or is it something more on your side that you're doing to control cost and boost margin?

In the in the second quarter results were much better than I would've expected Madden I wanted to know if it's too.

The market was tightening.

And some of those excess assets are going away through M&A or is it something more on your side that youre doing the control cost and boost margins.

I think on the impacted potential consolidation in the wireline I think it's too early to tell dawn or too early to really see the benefits of it.

Stuart Bodden: I think on the impact of potential consolidation in the wireline, I think it's too early to tell, Don, or too early to really see the benefits of it. I think the improvements are really related to two things. One is the team really has done a great job of really getting incredibly focused on costs and managing labor costs and fixed costs. So a lot of that has been on the Q2. We do typically see steppier activity in Q2, particularly in the north, and we did see that. So some benefit from the market, but I would also say a lot of benefit from internal action.

Stuart Bodden: I think on the impact of potential consolidation in the wireline, I think it's too early to tell, Don, or too early to really see the benefits of it. I think the improvements are really related to two things. One is, the team really has done a great job of really getting incredibly focused on costs and managing labor costs and fixed costs. A lot of that has been on the Ranger side. The second thing is, just as you move out of Q1 and into Q2, we do typically see kind of steadier activity in Q2, particularly in the north, and we did see that. Some benefit from the market, but I would also say a lot of benefit from internal actions.

I think the improvements are really related to two things one is.

The team really has done a great job of really getting incredibly focus on on costs and managing labor costs and fixed costs. So a lot of that has been on the Ranger side. The second thing is just as you move out of Q1 and into Q2, we do typically see.

Kind of a steadier activity in Q2, particularly in the north and we did see that so some benefit from the market, but I would also say a lot of benefit from internal actions.

Okay, and then one final one for me.

Don Crist: Okay, and then one final one for me, you know, you are not the first company this quarter to say that the fourth quarter is is kind of uncertain at this time. But do you think there's an opportunity for some of the gas basins to pick up and kind of fill in some of those white spaces that may crop up in the fourth quarter through, you know, other actions in the gas in the old days? I think we're certainly hopeful that that could be the case, Don. We certainly saw that earlier this year when the forward curve from depp and gas, we saw an increase in activity and then a little bit of a slowdown once it declined.

Don Crist: Okay. One final one from me. You are not the first company this quarter to say that the Q4 is kind of uncertain at this time. Do you think there's an opportunity for some of the gas basins to pick up and kind of fill in some of those white spaces that may crop up in the Q4 through other actions in the oil basins?

We're not the first company this quarter to say that the fourth quarter is kind of uncertain at this time, but do you think there is an opportunity.

For some of the gas basins to pick up in China.

Fill in some of those white spaces that may crop up in the fourth quarter through our other.

Other actions in the gas and the oil basins.

I think we're certainly hopeful that that could be the case, Don we certainly saw that earlier this year when when the forward curve firmed up in gas we saw an increase in.

Stuart Bodden: I think we're certainly hopeful that that could be the case, Don. We certainly saw that earlier this year when the forward curve firmed up in gas. We saw an increase in activity and then a little bit of a slowdown once it declined. I think there is that. I think also a lot will just depend on where people are as relative to their budgets and production profiles as you get into the back half of the year. It's just too early to say, but certainly a strengthening gas market would help, for sure.

Increase in activity.

A little bit of a slowdown once it once the decline but.

I think there is that I think also a lot will just depend on where people are as relative to their budgets and production profiles as you get into the back half of the year.

Stuart Bodden: But I think also a lot will just depend on where people are as relative to their budgets and production profiles as you get into the back half of the year. too early to say, but certainly a strengthening gas market would help. exactly.

It's just too early to say, but certainly a strengthening gas market would help for sure.

Exactly.

Alright, I will turn it back to the operator I appreciate the color.

Don Crist: Exactly. All right, I'll turn it back to the operator. I appreciate the call.

Don Crist: All right, I'll turn it back to the operator.

Alright, Thanks John.

Don Crist: I appreciate the call. Thanks, Don.

Stuart Bodden: All right, thanks, Don.

Thank you.

The next question comes from Derek <unk> from Piper Sandler. Please go ahead.

Operator: Thank you.

Operator: Thank you. The next question comes from Derek Podhaizer from Piper Sandler. Please go ahead.

Derek Pothiser: The next question comes from Derek Pothiser from Piper Sandler. Please go ahead. Hey, good morning, I want to ask a question around scaling the echo rig. Just how do we think about that? Whether this is customer demand driven? Where do we go from two rigs to something greater than that? Actually, is it a natural maintenance cycle or natural attrition of your legacy rigs?

Hey, good morning, I wanted to ask a question around scaling the echo Rick just.

Derek Podhaizer: Hey, good morning. I wanted to ask a question around scaling the ECHO rig. Just how do we think about that? Whether this is customer demand driven, where do we go from 2 rigs to something greater than that? Is it a natural maintenance cycle or natural attrition of your legacy rigs? Maybe just some more help so we can understand what the total addressable market could be for the ECHO rig in the future.

Just how do we think about that whether this is a customer demand driven where do we go from two rigs to something greater than that how should we is it a natural maintenance cycle, our natural attrition of your legacy rigs maybe just some more help so we can understand what the total addressable market could be for the Echo Reagan if in the future.

Stuart Bodden: Maybe just some more help so we can understand what the total addressable market can be for the echo rig in the in the future. Thanks for the question, Derek. Good to have you on. I think right now, I think it's really related to customer demand. I think we are, we don't want to, you know, build a number of these and, you know, build it and hope they will come. So, I think it will really be tied to customer demand. What I would say, though, is based on the conversations we've been having with, you know, with the two customers in particular and some other customers that have looked at it as well, there appears to be significant demand for this.

Sure. Thanks for the question Derek good good to have you on.

Stuart Bodden: Sure. Thanks for the question, Derek. Good to have you on. I think right now it's really related to customer demand. I think we don't want to build a number of these and build it and hope they will come. I think it'll really be tied to customer demand. What I would say, though, is based on the conversations we've been having with the two customers in particular and some other customers that have looked at it as well, there appears to be significant demand for this. I think it's hard to know exactly what the TAM is ultimately on this. I do think that, if we had in the next 3 to 5 years, 20 plus ECHO rigs out it, I don't think it would surprise us.

I think right now I think it's really related to customer demand I.

I think we are.

We don't want to be.

A number of these and build it and hope they will come. So so I think it would really be tied to customer demand what I would say, though is based on the conversations we've been having with with the two customers in particular and some other customers who have looked at it as well.

There appears to be significant demand for this and I think it's hard to know exactly what the Tam is ultimately on this but I do think that.

Stuart Bodden: And I think it's hard to know exactly what the TAM is ultimately on this. But I do think that, you know, if we had in the next three to five years 20 plus ECHO rigs out it, I don't think it would surprise us. But I think we do just want to make sure we're being really disciplined about how we spend the capital related to ECHO and make sure that they're tied to customer demand.

If we had in the next three to five years 20, plus echo rigs out at I don't think it would surprise us.

But I think we do just want to make sure we're being really disciplined about how we spend the capital related to echo and make sure that they're tied to customer to it.

Stuart Bodden: I think we do just want to make sure we're being really disciplined about how we spend the capital related to ECHO and make sure that they're tied to a specific customer demand.

Specific customer demand.

Stuart Bodden: to specific customer That makes sense. Is this basin agnostic and these go in every basin across the U.S.? They can. Interestingly, the two that are deploying, one is going to be deployed in the Permian Basin, one is going to be deployed in the north. So we are actually testing different kind of weather packages with the two different rigs that are going out. But yes, it will be weather agnostic or bad agnostic. Right, right. That makes sense.

That makes sense is there is this basin agnostic and these go in every basin across the U S.

Derek Podhaizer: No, that makes sense. Is this basin agnostic? Can these go in every basin across the US?

All right.

Can.

Interestingly the two that are deploying one is going to be deployed in the Permian basin. One is going to be deployed in the north. So we are actually testing different kind of weather pack.

Stuart Bodden: They can. Interestingly, the two that are deploying, one is going to be deployed in the Permian Basin, one is going to be deployed in the north. We are actually testing different kind of weather packages with the two different rigs that are going out. Yes, it will be weather agnostic.

Packages.

With the two different rigs that are going out there, but yes, it will be weather agnostic or battle agnostic.

Derek Podhaizer: Got it.

Right that makes sense.

Stuart Bodden: basin agnostic.

So sticking on high spec rigs I noticed the rig hours, obviously picked up here. So that's great to see and looking back in our modeling and we're at the highest level since 2022.

Derek Podhaizer: Right. No, that makes sense. Sticking on high-spec rigs, I noticed the rig hours obviously picked up here, so that's great to see. Looking back in the model, we're at the highest level since 2022. Maybe could you just help us again understand holistically the primary drivers of that? Obviously, you're an efficient operator, safety and all that. You had some vendor consolidation. What's helping you capture that market share, or is it just this focus on production efficiencies from your customer? Maybe just help us understand what the big drivers are, that we're seeing this rig hour increase despite kind of this deflationary market that we've been in US land since 2022.

Stuart Bodden: So, sticking on high-spec rigs, I noticed the rig hours obviously picked up here. So, that's great to see. And looking back in the model, I mean, we're at the highest level since 2022.

Maybe could you just help us again understand holistically the primary drivers of that.

Stuart Bodden: You know, maybe could you just help us again understand holistically the primary drivers of that? You know, obviously, you're an efficient operator, safety and all that. You had some vendor consolidation. But what's helping you capture that market share or is it just this focus on production efficiencies from your customer? Maybe just help us understand what the big drivers are that we're seeing this rig hour increase despite kind of this deflationary market that we've been in in U.S. land since 2022. It really is a combination of the things that you just said. So one is, you know, as you know, we have really worked hard to make sure we have strong relationships with the biggest players, just because we think they have the most consistent profiles.

Obviously, youre inefficient, operator safety and all that you had some vendor consolidation, but what's helping us capture that market share or is it just is this focus on production efficiencies from your customer I mean, just help us understand what the big drivers are that we're seeing as rig rig hour increase despite kind of this deflationary market that we bid in.

In U S land since 2022.

It really is a combination of the things that you just said so one is as you know we have really worked hard to make sure. We have strong relationships with the biggest players do you think that the most consistent profiles.

Stuart Bodden: It really is a combination of the things that you just said. One is, as you know, we have really worked hard to make sure we have strong relationships with the biggest players, just because we think they have the most consistent profiles. That continues. A lot of it has been driven by that. A lot of it has been, as we've talked about before, just on the back of consolidation generally and particularly in high-spec rigs, consolidation has helped us. I think the other thing I would say is when you kind of look at the customer mix, we are really having kind of increased success in deploying rigs for kind of not necessarily the majors, but other larger customers. Even some kind of mid-tier from a size perspective.

And that continues so a lot of it has been driven by that a lot of it has been as we've talked about before just on the back of consolidation generally and particularly in high spec rigs consolidation has helped US I think the other thing I would say is when you kind of look at the customer mix we are.

Stuart Bodden: And that continues. So a lot of it has been driven by that. A lot of it has been, as we've talked about before, just on the backup consolidation, generally, and particularly in high-spec rigs, consolidation has helped us.

Stuart Bodden: I think the other thing I would say is when you kind of look at the customer mix, we are really having.

Really having.

Kind of increased success and deploying rigs for.

Kind of not necessarily the majors that other larger customers, but but even some kind of mid tier.

From a size perspective, and I think the the reason that we're getting getting that work really is around efficiency safety.

Stuart Bodden: Unknown Executive, John Daniel, Donald Crist, Stuart Bodden, Unknown Executive, Melissa Cougle, Joe Mease, Ranger Energy Services Inc Yeah, okay, that's helpful. Just last one for me, Torrent, you guys mentioned it in the release, but maybe just an update there. I know it's an exciting growth avenue for you guys. I think you previously guided us doubling EBITDA in 2025. But maybe where does Torrent stand? And how do you think about it as we move through the rest of the year to next year? I think right now it remains on track to double EBITDA. It's, again, I think it's been pretty steady, the team has done a great job of kind of enhancing the customer base.

Stuart Bodden: I think the reason that we're getting that work really is around efficiency, safety, reliability, et cetera.

Reliability et cetera.

Got it Okay. That's helpful. Just last one for me <unk> you guys mentioned it in the release, but maybe just an update there I know thats an exciting growth Avenue for you guys and thank you.

Derek Podhaizer: Got it. Okay. That's helpful. Just last one from me, Torrent. You guys mentioned it in the release, maybe just an update there. I know it's an exciting growth avenue for you guys. I think you previously guided us doubling EBITDA in 2025. Maybe where does Torrent stand, and how do you think about it as we move through the rest of the year into next year?

Previously guided us doubling EBITDA in 2025, but maybe where does towards stand and how do you think about it as we move through the rest of the year into next year.

I think right now it remains on track.

Stuart Bodden: I think right now it remains on track to double EBITDA. I think it's been pretty steady. The team has done a great job of kind of enhancing the customer base. I think as we look to the year, I think the big decision for us is what kind of capital do we want to deploy into that business? It will need to be tied to customer demand. I don't think we just want to do kind of spec builds. Right now it looks to be kind of on track for the year.

<unk> two <unk>.

To double EBITDA.

It's again I think it's been it's been pretty steady that the team has done a great job a great job of kind of enhanced.

Enhancing the customer base I think as we look to the year I think the big decision for us as is.

Stuart Bodden: I think as we look to the year, I think the big decision for us is, you know, what kind of capital do we want to deploy into that business? Again, it will need to be tied to customer demand. I don't think we just want to do, you know, kind of spec builds. But, again, you know, right now it looks to be kind of on track.

What kind of capital do we want to deploy into that business again, it will need to be tired tied to customer demand I don't think we just want to do.

Speck builds.

But again.

Right now it looks to be kind of on track for the year.

Great. That's all I got thanks, I'll send it back.

Derek Pothiser: Great. That's all I got. Thanks. I'll send it back. Thanks, Garrett.

Derek Podhaizer: Great. That's all I got. Thanks. I'll send it back.

Thanks Derek.

Stuart Bodden: Thanks, Derek.

Thank you.

The next question is from John Daniel with Daniel Energy Partners. Please go ahead.

John Daniel: Thank you. The next question is from John Daniel with Daniel Energy Partners. Hey, guys. I guess I'm going to focus on ECHO as well. Stuart, when you some of your your customers have like 50 plus rigs, workover rigs across the country at any given time. And I would assume that the people that are starting with the ECHO are the larger, higher quality names. I'm just curious. like when someone adopts one or two of these rigs, how quickly will they would you expect or hope that they would really rapidly accelerate. If you're using one and you're having a good experience, it would seem like you'd want to have more than one if that makes any sense.

Operator: Thank you. The next question is from John Daniel with Daniel Energy Partners. Please go ahead.

Hey, guys.

I guess I'm going to focus on echo as well as Stuart when you some of your customers have like <unk>.

John Daniel: Hey guys. I guess I'm going to focus on ECHO as well. Stuart, some of your customers have 50-plus rigs, workover rigs across the country at any given time, I would assume that the people that are starting up the ECHO are the larger, higher quality names. I'm just curious, when someone adopts one or two of these rigs, how quickly would you expect or hope that they would really rapidly accelerate? If you're using one and you're having a good experience, it would seem like you'd want to have more than one, if that makes any sense. Just to let you pontificate.

50, plus rigs workover rigs across the country at any given time.

And I would assume that the people that are starting out the echo or the larger higher quality names I'm just curious.

When someone adopt one or two of these rigs how quickly will they would you expect or hope that they would.

It really rapidly accelerate because if you're using one and youre, having a good experience.

It would seem like you'd want to have more than one if that makes sense. So I'll, let you have quantification.

Yes, it makes a lot of sense.

Stuart Bodden: So just let you pontificate. Yeah, it makes a lot of sense.

Stuart Bodden: Yeah, it makes a lot of sense. What I would say is with both of the customers we're talking about, I think we mentioned in the press release and mentioned in the script that there's basically an option to build additional rigs for both of these customers. They are both indicating that they would like additional rigs. Again, they've spent a lot of time with us. They're very familiar with the technology, or they have gotten themselves very familiar with the technology. To that point, it wouldn't surprise us. We don't have anything firmed up yet, but we're having a lot of conversations, Sean.

What I would say is with both of the customers we're talking about.

Stuart Bodden: What I would say is with both of the customers we're talking about, I think we mentioned in the press release and mentioned in the script that there's basically an option to build additional rigs for both of these customers. They are both indicating that they would like additional rigs. Again, they've spent a lot of time with us. They're very familiar with the technology, or they have gotten themselves very familiar with the technology. So, to that point, it wouldn't surprise us. We don't have anything firmed up yet, but we're having a lot of conversations, John, and it wouldn't surprise us if very quickly they come back and ask us for a number of additional echo rigs.

I think we mentioned in the press release, you had mentioned in the script that there is a.

Basically an option.

To build additional rigs for both of these customers.

They are both indicating that they would like additional rigs again theres been a lot of time with us they're very familiar with the technology.

They have gotten themselves very familiar with the technology.

To that point it wouldn't surprise us we don't have anything from that yet, but we have we're having a lot of conversations Sean and it wasn't surprising some of it very quickly they come back and ask us for for a number of additional acreage.

John Daniel: All right.

Stuart Bodden: It wouldn't surprise us if very quickly they come back and ask us for a number of additional ECHO rigs.

Okay and then.

One more for me I don't know if you want to disclose it but from the time you started.

Stuart Bodden: Okay.

John Daniel: Okay. One more from me. I don't know if you want to disclose it, but from the time you started retrofitting ECHO rig 1 to the time it was completed, I'm curious what that timeframe was, and then what's the optimal timeframe you could get it down to once you start seeing multiple repeating orders? How quickly can you improve the retrofit process?

John Daniel: And then one more for me.

Stuart Bodden: I don't know if you want to disclose it, but from the time you started retrofitting Echo Rig 1 to the time it was completed, I'm curious like what that timeframe was and then what's the optimal timeframe you could get it down to once you start seeing multiple repeating orders? How quickly can you improve the retrofit process? Yeah. We think that just given the demand that we think is going to come, we've been talking a lot with our vendors on this. The first Echo Rig has been Think months, right? You know, it's been a number of months.

Retrofitting Echo rig one to the time it was completed.

I'm curious like what that timeframe wise and then what's the optimal timeframe you could get it down to once you start seeing multiple repeating orders how quickly can you improve the retrofit part of that process.

Yes, we think that.

Just given the.

Stuart Bodden: We think that just given the demand that we think is going to come, we've been talking a lot with our vendors on this. The first ECHO rig has been, think months, right?

The demand that we think is going to come we've been talking a lot with our vendors on this.

The first ACO rig.

Yeah.

Take months right, Brian Konigsberg months.

John Daniel: Right.

Stuart Bodden: It's been a number of months. I think that when we sit down and we talk with the vendors, we think that we can actually get it down significantly quicker than that. The one thing I will say is that there are a number of long lead time items, particularly around batteries. I think that's one of the things that when we've been talking to customers is that if they say, Hey, I want one in, make it up, March 2026, where you go, Well, that means we need to start sort of buying long lead time items now, or very quickly. That's the nature of the conversation. Assuming we have those items in place, the actual refurb process can be pretty quick.

But but I think that when we sit down and we talk with the vendors.

Stuart Bodden: But I think that when we sit down and we talk with the vendors, we think that we can actually get it down, you know, significantly quicker than that. The one thing I will say is that there are a number of long lead time items, right, typically around batteries. And so I think that's one of the things that, you know, when we've been talking to customers is that, you know, if they say, hey, I want one and, you know, make it up March of 2026, well, that means we need to start sort of buying long lead time items now, right, or very quickly.

We think that we can actually get it down significantly quicker than that the one thing I will say is that there are a number of long lead time items right, so but normally around batteries.

So I think that's one of the things that we've been talking to customers is that yes if.

If they say hey, I want one and make it up March of 2026, where you're well.

We need to start sort of buying long life long lead time items now right. We're very quickly. So that's kind of the nature of the conversation, but assuming we have those items in place the actual wafer process can be pretty quick.

Stuart Bodden: So that's kind of the nature of the conversation. But assuming we have those items in place, the actual refurb process can be pretty Got it.

Got it okay. That's all.

Thanks Ravi.

John Daniel: Got it. Okay. That is all I got. Thanks for having me.

John Daniel: Okay, that's all I got. Thanks for having me.

Thank you.

To ask a question humor press Star then one on your telephone keypad.

Operator: Thank you. The next question comes from Peter Sidoti from Sidoti & Company. Please go ahead.

Operator: To ask a question, you may press star then 1 on your telephone keypad.

Yeah.

The next question comes from Peter Sidoti from Sidoti <unk> Company. Please go ahead.

Peter Sidoti: The next question comes from Peter Sidoti from Sidoti and Company, please go ahead. Hi, I wonder if you gentlemen, or you can give me a handle on capital spending this year, next year. and you seem to be building a fairly large cash hoard here or a strong balance sheet. If you could provide a little more meat on what you'll be doing with that.

Hi, I'm wondering if you gentlemen can give me a hand on capital spending this year next year.

Peter Sidoti: Hi. I wonder if you gentlemen, or you can give me a handle on capital spending this year, next year. You seem to be building a fairly large cash hoard here or strong balance sheet. If you could provide a little more meat on what you'll be doing with that.

And you seem to be building a fairly large cash hoard here are strong balance sheet.

If you could provide a little more meat on what youll be doing with it.

Hi, Eric it's great to have you.

I'll take that and get us started jerking checking behind it.

Melissa Cougle: Hi Peter, great to have you. So I'll take that and give a start and Stuart can tuck in behind it. So what we previously got was year over year similar, so in the ballpark of low 30. And we don't see that being, being particularly different this year. Echo was included in that budget, if you will. So I think we see a steady state. We are looking at, hey, if the market got a lot worse, could we throttle it back a little bit in the back half of the year? We'll see. The Echo rigs are more than 50% paid for, about two-thirds paid for at this point.

Melissa Cougle: Hi, Peter. Great to have you. I'll take that and give a start and Stuart can tuck in behind it. What we previously guided was year-over-year similar, in the ballpark of low 30s, and we don't see that being particularly different this year. ECHO was included in that budget, if you will. I think we see steady state. We are looking at, hey, if the market got a lot worse, could we throttle it back a little bit in the back half of the year? We'll see. The ECHO rigs are more than 50% paid for, about two-thirds paid for at this point. As far as the cash balance, we do have a cash balance. I think there is a lot of discussions we have internally around capital allocation. You saw us start to spend.

We've previously guided but with year over year similar ourselves.

<unk> 38, and we don't see that being.

Being particularly different this year Echo was included in that budget, if you will.

So I think we see steady state we are looking at hey, if the market got a lot worse could be throttle that back a little bit in the back half of the year.

Well see the Edgar rigs and more than 50% paid for about two thirds painful and at this point.

As far as the cash balance.

Melissa Cougle: As far as the cash balance, you know, we do have a cash balance. I think there, there's, there is A lot of discussions we have internally around capital allocation, you saw us start to spend, we were a little bit hesitant at the beginning of the year when the market started to inflect and part of it was just sort of some cautiousness. We also saw a lot of support in the stock price at a much higher level. Then we had Liberation Day, then we had OPEC come in behind. So we just thought it was prudent to kind of take a little bit of a step back.

We do have a cash balance I think.

There is.

A lot of discussions we have internally around capital allocation you saw us start to spend we were a little bit hesitant to at the beginning of the year when that market is turning into a flat and part of it we should sort of some cost net we also.

Melissa Cougle: We were a little bit hesitant at the beginning of the year when the market started to inflect, part of it was just sort of some cautiousness. We also saw a lot of support in the stock price at a much higher level. We had Liberation Day, we had OPEC come in behind. We just thought it was prudent to take a little bit of a step back. This summer, we actually saw the distribution of our largest shareholder. You saw us start to put our toe back in the water, so to speak. We've done repurchases. We intend to continue to do repurchases. They have continued into Q3, as I made in my comments. I think the balance remains wanting to hold onto a little bit.

So a lot of support on our stock price at a higher level than we had liberation David Okay coming behind that we just out of Australia and take a little bit.

This summer we actually saw the distribution of our largest shareholder any thoughts kind of start to take a <unk> back in the water. So to speak we've done repurchases. We intend to continue to do repurchases. They have continued into Q3 and as I made in my comments I think the balance remained wanting to hold onto a little bit.

Melissa Cougle: This summer, we actually saw the start to put our toe back in the water, so to speak. We've done repurchases. We intend to continue to do repurchases. They have continued in the Q3, as I made in my comments. I think the balance remains wanting to hold on to a little bit. So to the extent the share price is a really compelling investment for us, I think you would see us continue to do that because we do have the 25% minimum commitment. I think what we also are measured by is as we think about echo and the future, the customer conversations are going in a few different directions.

So to the extent the share price is.

Melissa Cougle: To the extent the share price is a really compelling investment for us, I think you would see us continue to do that because we do have the 25% minimum commitment. I think what we also are measured by is as we think about ECHO and the potential demand in the future, the customer conversations are going in a few different directions. Some include some upfront sort of CapEx sharing. Some include uplifting rates, just as Stuart said. That's giving us some reflection in wanting to make sure we have cash on hand if it looks like we need to outlay for that. I think there's always a little bit of holding onto a little bit of cash is never a bad thing because our M&A conversations, Stuart really didn't touch on, because we're so excited about ECHO. Our M&A conversations have been richer lately.

Really compelling investment for us I think you'd see us continue to do that because we do have a 29% then I think what we also are measured by and as we think about potential.

Potential demand in the future.

Conversations are going and as you can get for direction. Some include some upfront.

Capex sharing some included athletic ranks.

Melissa Cougle: Some include some upfront sort of capex sharing. Some include uplifted rates, just as Stuart said. So that's giving us some reflection and wanting to make sure we have cash on hand if it looks like we need to outlay for that. And I think there's always a little bit of holding on to a little bit of cash is never a bad thing because our M&A conversations, which we really didn't touch on because we're so excited about echo, but our M&A conversations have been richer lately. So if that ever, you know, eventually I think we do hold a lot of optimism and a belief that we will get additional M&A transactions done in due course.

So that is giving us.

Some of our collection and wanting to make sure we have cash on hand, if it looks like we need to outlay for that and I think there is always a little bit of holding onto a little bit of cash is never a bad bank M&A conversation, you're really then Sean.

<unk>.

But our M&A conversations have been richer lately, so if that ever eventually I think mid year hold.

Melissa Cougle: If that ever, eventually I think we do hold a lot of optimism and a belief that we will get additional M&A transactions done in due course. I think being able to support some of that with capital would be constructive for us as well. I think we view it as making sure we have enough cash to go in a few different directions, because there's several paths in front of us, and we want to make sure we can support all of them without levering up. Is that helpful?

We do hold a lot of optimism and I believe that we will get additional M&A transactions done in <unk>, and I think being able to support some of that capital with capital will be constructive for us as well. So I think we viewed as making sure we have enough cash kind of going in different directions.

Melissa Cougle: And I think being able to support some of that capital with capital would be constructive for us as well. So I think we view it as making sure we have enough cash to kind of go in a few different directions because, you know, there's several paths in front of us and we want to make sure we can support all of them without levering up. Is that how off it is? Yep, thank you.

There are several paths in front of it and we want to make sure. We can support all of them without levering up.

Is that helpful.

Thank you.

Yes.

Peter Sidoti: Yep. Thank you.

Peter I don't have anything to add.

Stuart Bodden: Yeah, Peter, I don't have anything to add. Melissa said it exactly right. I mean, I think that the intention is, you know, through a combination of repurchases and potential M&A, that, you know, those would all be good uses of cash. The only thing I would say is, you know, when we speak to investors, we're not out and specifically trying to build a war chest, right? I think that's just kind of how it's happened a little bit.

Stuart Bodden: Yeah, Peter, I don't have anything to add. Melissa said it exactly right. I think the intention is through a combination of repurchases and potential M&A, that those would all be good uses of cash. The only thing I would say is, when we speak to investors, we're not out and specifically trying to build a war chest, right? I think that's just how it's happened a little bit. Again, I think we see real opportunities both through capital returns and also M&A in the future.

Well as I said it exactly right I mean, I think the intention is.

Through a combination of repurchases and potential M&A.

This would all be good uses of cash.

The only thing I would say is when we speak to investors, where we're not out and specifically trying to build a war chest right.

I think thats, just kind of how its happened a little bit, but again I think we see real opportunities both through capital returns and also M&A in the future.

Operator: But again, I think we see real opportunities, both through capital returns and also M&A in the Thank you very much. Again, if you have a question, please press star, then 1. Thank you.

Thank you very much.

Peter Sidoti: Thank you very much.

Thank you.

Again, if you have a question. Please press Star then one.

Operator: Thank you. Again, if you have a question, please press star then one. Thank you. This concludes our question and answer session. I would like to turn the conference back to Stuart Bodden for closing remarks.

Thank you.

This concludes our question and answer session.

Operator: This concludes our question and answer session.

I would like to turn the conference back to Stuart Gordon for closing remarks.

Stuart Bodden: I would like to turn the conference back to Stuart Bodden for closing remarks. Thanks, Steve. Again, thanks to everyone, to our employees, our partners, our investors for your continued interest in Ranger. We're very excited about ECHO. Please, please follow us and follow along on social media. We'll have more things being announced in the coming months around ECHO. So again, thank you very much and I hope everyone has a great day.

Thanks, Steve again, thanks to everyone to our employees our partners our investors for your continued interest in Ranger. We're very excited about Echo. Please please follow us and follow along on social media, but we will have more things being announced in the coming months.

Stuart Bodden: Thanks, Steve. Again, thanks to everyone, to our employees, our partners, our investors, for your continued interest in Ranger. We're very excited about ECHO. Please follow us and follow along on social media. We'll have more things being announced in the coming months around ECHO. Again, thank you very much, and hope everyone has a great week.

Around echo so again, thank you very much and hope everyone has a great week.

The conference now has concluded.

Operator: The conference now has concluded. Thank you for attending today's presentation.

Operator: The conference now has concluded. Thank you for attending today's presentation. You may now disconnect.

You for attending today's presentation you may now disconnect.

Operator: You may now disconnect.