Ranger Energy Services, Inc. (NYSE:RNGR) ("Ranger" or the "Company") today announced that it has entered into an agreement to acquire the US coiled tubing assets of STEP Energy Services ("STEP" or the "Seller").

Strategic Highlights

  • Positions Ranger as the second-largest U.S. coiled tubing operator in the onshore U.S. market, with significant scale and a strong Permian and Bakken presence.
  • Delivers a compelling valuation, with approximately $27.5 million of total consideration against anticipated 2027 EBITDA of more than $10 million, including at least $2.5 million of first-year cost synergies.
  • Creates pull-through opportunities for Ranger’s high-specification rig segment and expands Ranger’s ability to provide additional flexibility in drill out programs.

Compelling Valuation: Total consideration of approximately $27.5 million represents slightly more than 2.5x anticipated 2027 EBITDA. The acquisition is expected to be earnings accretive in 2027, with additional upside as the technology matures and scales with strong operating leverage. The consideration mix is expected to support shareholder value creation, and acquiring the service line is expected to provide a faster and lower-risk path than building it out organically.

Specific Acquisition Details

Ranger will acquire STEP’s coiled tubing assets, inventory, and certain capital and property leases for aggregate consideration of approximately $27.5 million, subject to certain adjustments. Consideration includes $22.5 million in cash and $5.0 million in equity, based on a 30-day trailing VWAP as of the day prior to closing. The asset sale will be funded with revolver borrowings, with post-close borrowings expected to be approximately $30 million while maintaining a strong balance sheet.

Pro forma Financial Details

On a pro forma basis, the acquired assets are expected to add approximately $80 million to $90 million of revenue and more than $10 million of EBITDA in 2027, including at least $2.5 million of first-year synergies. Asset utilization and profitability improvement will be key priorities, supported by greater scale. The transaction is expected to be accretive to earnings and EBITDA, with nominal 2026 uplift as integration begins. 2026 cash flows are expected to be lower due to approximately $10 million of first-quarter post-close borrowings for working capital and pre-close capital commitments.