Johnson Rice Energy Conference New Orleans September 27, 2017
Company Overview NOV: 30 rigs Well Historical Ranger: Services 65 rigs 95% 16 Pro Forma Total Fleet: Revenue 144 rigs(1) Processing Solutions 5% ESCO: 49 rigs Ranger is focused on the high-spec service rig market:…
Management Team Leverages Extensive OFS Operations and M&A Experience Pete Miller, Chairman Over 36 years of industry experience, with over 300 M&A transactions Currently serves as Executive Chairman of DistributionNOW, and was…
Pure-Play High-Spec Well Service Rig Provider Mast: Running three joints of pipe, at 90, requires mast heights greater than 102 Increased mast ratings (200,000 lbs for high- spec rigs) needed to support weights associated with long…
Key Market Trends Ranger is uniquely positioned to capitalize on current market trends A Modern Well Design Necessitates High-Spec Service Rigs B Demand Growing Along with Horizontal Completion and Production Spending 6
A Modern Well Design Trends Require High- Spec Service Rigs From Q1 2010 through Q4 2016, average lateral lengths have increased by 88%, 72% and 24% in the Permian, Rockies and Bakken regions, respectively 45% of horizontal well…
B Production Market From 2012-2016, production from horizontal wells 3 years old grew from 4% to 16% of total U.S. output. Additionally, the majority of wells completed today are horizontal and require workover and well maintenance…
B High-Spec Service Rig Demand Overview The contribution of high-spec rigs as a percentage of total service rigs continues to increase Bifurcation of the market: dramatic drop in demand for low-spec rigs Demand for high-spec rigs is…
Key Investment Highlights 1 High-Spec Well Service Rig Provider with Growing Fleet 2 Full-Cycle Well Services and Proprietary Processing Solutions 3 Deep Relationships with Blue-Chip E&P Customers Across Multi-Basin…
1 High-Spec Well Service Rig Provider Ranger has a modern fleet of high-spec well service rigs(1) More than one third of the fleet has been built since 2014 81% of Rangers fleet has an operating capacity of 500 HP or more 99% (1)…
1 High-Spec Well Service Rig Provider (Continued) 213 2Q17 Service Rig Utilization 128 (Hours/rig/month)(1) 99 85 62 RNGR PES BAS CJ KEG Source: Company filings, IBES consensus, Coras Oilfield Research, Spears &…
2 Ranger Services Across Full Life of Well 1 Well Completion Support 3 Workover Completion services utilized subsequent to hydraulic fracturing Major well work conducted multiple times throughout life of well but prior to placing a…
2 Proprietary Processing Solutions Critical Bridge Rangers modular processing equipment provides critical midstream functions in basins where D&C activity has outpaced infrastructure buildout Rangers proprietary equipment is…
3 Blue-Chip Customer Base Pro Forma ESCO acquisition (1)(2) Top 3 customers 37% 2016 Revenue by Other customer(1) 63% Headquarters Field locations(1) (1) Combined, consolidated revenues pro forma for closing of…
Financial Philosophy 1 Committed to maintaining a conservative balance sheet with low leverage No bank debt post-IPO with 7M seller note Increases ability to re-invest in the business throughout the cycle 2 Preserve sufficient…
Sources, Uses, Pro Forma Capitalization Sources and Uses Pro Forma Capitalization As of Transaction As Adjusted ( in millio ns) Sources ( in millio ns) 3/31/17 Adjustments 3/31/17 (1) Gross Proceeds from this Offering 85.0 Cash…
4 ESCO Acquisition Overview Adding Scale to Rangers High-Spec Service Rig Fleet ESCOs service rig fleet includes 49 high-spec service rigs, ranging in horsepower from 475 630 HHP with mast heights between 104 112 Provides meaningful…
Q1 / Q2 - Financial Comparison Quarterly Financial Comparison Quarterly Financial Highlights Revenue increased 15% from Q1 to Q2 Combination of increase in hours per month per rig of 10% to 213 Other non-rig revenue Gross…
2017 Q1 / Q2 - Financial Results Ranger Energy Services Condensed I/S Quarterly Financial Highlights Revenue growth driven by increased rig utilization and non rig revenue Rig utilization as measured by average monthly hours per…
Appendix Privileged & Strictly Confidential 22
2017 Q2 Adjusted EBITDA Reconciliation Ranger Energy Services Adjusted EBITDA Adjusted EBITDA Summary Three Months Ended Three Months Ended June 30, 2017 March 31, 2017 Change Well Services Processing Solutions Total Well…
Utilization Calculation We measure rig utilization by total monthly rig hours worked in a particular period per rig in service, which we refer to as our average hours per rig Mid-month convention: A rig placed into service during a…
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