Ranger Energy Services Inc.
11/09/2026 | Press release | Distributed by Public on 11/09/2026 15:57
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with the historical financial statements and related notes included in Part I, Item 1. Financial Statements (Unaudited) of this Quarterly Report on Form 10-Q (the "Quarterly Report"). This discussion contains "forward-looking statements" reflecting our current expectations, estimates and assumptions concerning events and financial trends that may affect our future operating results or financial position. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. Factors that could cause or contribute to such differences include, but are not limited to, market prices and demand for oil and natural gas, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed elsewhere in this report. Please read the Cautionary Statement Regarding Forward-Looking Statements. Also, please read the risk factors and other cautionary statements described under "Risk Factors" in this Quarterly Report and in our Annual Report. We assume no obligation to update any of these forward-looking statements except as required by law. Except as otherwise indicated or required by the context, all references in this Quarterly Report to the "Company," "Ranger," "Ranger, Inc.," "we," "us," or "our" relate to Ranger Energy Services, Inc. and its consolidated subsidiaries.
How We Evaluate Our Operations
We provide services within the U.S. that are organized into three reporting segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services, which are described below. The reportable segments have been categorized based on the nature of services provided within each line of business.
Our service offerings consist of well completion support, workover, well maintenance, wireline, and other complementary services, as well as well installation, commissioning, and operation of modular equipment, which are conducted in three reportable segments, as follows:
•High Specification Rigs. Provides high specification well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well.
•Wireline Services. Provides services necessary to bring and maintain a well on production and consists of our completion, production and pump down service lines.
•Processing Solutions and Ancillary Services. Provides other services often utilized in conjunction with our High Specification Rigs and Wireline Services segments. These services include equipment rentals, plug and abandonment, logistics, coil tubing, mixing plants and chemicals, tubing and inspection, transportation, and processing solutions.
•Other. Other represents costs not allocable to the reporting segments and includes corporate general and administrative expense and depreciation of corporate furniture and fixtures, amortization, impairments and other items similar in nature.
For additional financial information about our segments, please see "Item 1. Financial Statements (Unaudited)-Note 17 - Segment Reporting."
Business Outlook
Market conditions across the oilfield services sector were mixed during the third quarter of 2026. Geopolitical developments and disruptions to global oil supply continued to contribute to elevated commodity prices and market volatility. The Company expects customer activity to continue to be shaped primarily by operators' longer-term capital discipline, basin-level economics and production priorities rather than short-term commodity price movements alone. The Company's production-oriented service lines continue to support relative resilience in its core business.
Although elevated commodity prices and ongoing supply constraints may support customer activity in the near term, the timing and extent of any corresponding changes in customer spending in the mid to longer term remain uncertain. Prolonged disruptions to global oil supply and transportation could further constrain supply and support commodity prices, while sustained elevated prices could weaken global energy demand and, in turn, affect North American oil and gas activity.
The Company continues to monitor macroeconomic and industry developments that may affect demand for its services. During the third quarter of 2026, the West Texas Intermediate ("WTI") crude oil spot price averaged approximately $87 per barrel, compared to approximately $96 per barrel during the second quarter of 2026 and approximately $66 per barrel during the third quarter of 2025. For the nine months ended September 30, 2026, the WTI crude oil spot price averaged approximately $85 per barrel, compared to approximately $67 per barrel during the same period in 2025. The U.S. Energy Information Administration ("EIA") noted in its October 2026 Short-Term Energy Outlook that WTI crude oil prices are expected to
average approximately $97 per barrel during the fourth quarter of 2026 before declining during 2027, averaging approximately $80 per barrel for the year and approximately $70 per barrel during the fourth quarter of 2027. The EIA also forecast U.S. crude oil production to average approximately 13.9 million barrels per day in 2026.
Although commodity prices have been affected by disruptions in the Middle East, the Company believes customers will continue to prioritize efficient production from existing wells and disciplined development activity. As a provider of production- and completion-oriented well services with solely domestic operations, the Company believes its service offerings are positioned to benefit from customer demand associated with maintaining and enhancing production. However, reductions in customer capital spending, weakening oil demand, sustained cost inflation or increased competitive pricing pressures could adversely affect utilization, pricing and financial results, particularly in service lines more directly exposed to discretionary completions activity.
Following the AWS Acquisition in November 2025, the Company has a larger presence in the Permian Basin and an operating footprint more heavily concentrated in this basin than in prior operating periods. AWS complements the Company's existing service offerings and contributed to the Company's financial results during the first nine months of 2026. During the remainder of the year, the Company remains focused on continuing to realize the expected benefits of the AWS Acquisition, maintaining service quality for customers and preserving liquidity and balance sheet flexibility.
Subsequent to September 30, 2026, on October 8, 2026, the Company completed the STEP Acquisition, acquiring certain assets associated with STEP's coiled tubing, fluid and nitrogen pumping, and related well services business in the United States. See "Item 1. Financial Statements (Unaudited)-Note 18 - Subsequent Events." The STEP Acquisition is expected to significantly expand the Company's coiled tubing operations and increase its presence in several of its existing operating basins, including the Permian Basin. The Company remains focused on integrating the acquired operations while maintaining operational and financial discipline.
The Company also continues to advance its ECHO hybrid rig program, which represents the next generation of its high-specification rig fleet. As of September 30, 2026, the Company had 24 ECHO rigs under contract, of which 4 were active in the field. The ECHO rigs are designed to provide lower emissions, reduced fuel consumption and improved operating efficiency compared to conventional rigs. The Company believes the ECHO program enhances its competitive position and supports long-term customer relationships. The timing and pace of additional ECHO rig deployments will depend on customer demand, customer capital spending plans, construction schedules and broader industry conditions.
Following the AWS Acquisition and the STEP Acquisition, the Company has increased its scale and service capabilities in several of its core operating basins. The Company intends to continue pursuing opportunities to provide complementary services to existing and new customers while remaining focused on disciplined capital allocation, liquidity and balance sheet flexibility.
The Company also continues to monitor longer-term trends that may influence demand for its services, including evolving regulatory requirements and policies related to emissions and flaring, the pace of natural gas infrastructure development, increasing power demand associated with data center development, and changing customer demand for field-level gas processing solutions. While the Company's direct exposure to natural gas markets is more limited than its exposure to crude oil markets, these factors could provide incremental support for certain of the Company's service offerings.
Financial Metrics
How We Generate Revenue
Rig hours and stage counts, as they relate to our High Specification Rigs and parts of our Wireline Services segments, respectively, are important indicators of our activity levels and profitability. Rig hours represent the aggregate number of hours that our well service rigs actively worked. Stage counts represent the number of completed stages during the periods presented for the completion service line within our Wireline Services segment. Generally, during the period in which our services are provided, our customers are billed on an hourly basis for our high specification rigs services or, as it relates to our wireline services, customers are billed upon the completion of the well, on a monthly basis, or on a per job basis. The rates at which the customers are billed are generally predetermined based upon a contractual agreement.
Costs of Conducting Our Business
The principal costs associated with conducting our business are personnel, repairs and maintenance, general and administrative, and depreciation expense.
Cost of Services. The primary costs associated with our cost of services are related to personnel expenses and repairs and maintenance of our fixed assets. A significant portion of these expenses are variable, and therefore typically managed based on industry conditions and demand for our services. Further, there is generally a correlation between our revenue generated and personnel and repairs and maintenance costs, which are dependent upon the operational activity.
Personnel costs associated with our operational employees represent the most significant cost of our business. A substantial portion of our labor costs is attributable to our field crews and is partly variable based on the requirements of specific customers.
General and Administrative. General and administrative expenses are corporate in nature and are included within Other. These costs include the majority of centrally-located company management and administrative personnel and are not attributable to any of our lines of business or reporting segments.
Operating Income or Loss
We analyze our operating income or loss by segment, which we have defined as revenue less cost of services and depreciation expense. We believe this is a key financial metric as it provides insight into profitability and operational performance based on the historical cost basis of our assets.
Adjusted EBITDA
We view Adjusted EBITDA, which is a non-GAAP financial measure, as an important indicator of performance. The CODM primarily uses Adjusted EBITDA to assess segment profitability and make resource allocation decisions. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain or loss on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, inventory adjustment, adjustment to contingent consideration, contract liability revenue recognition, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance. See "-Results of Operations" and "-Note Regarding Non-GAAP Financial Measure" for more information and reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Results of Operations
Three Months Ended September 30, 2026 compared to Three Months Ended September 30, 2025
The following is an analysis of our operating results. See "-How We Evaluate Our Operations" for definitions of rig hours, stage counts and other analogous information, as well as key operating metrics (in millions).
| Three Months Ended | ||||||||||||||||||||||||||
| September 30, | Variance | |||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| High Specification Rigs | $ | 110.5 | $ | 80.9 | $ | 29.6 | 37 | % | ||||||||||||||||||
| Wireline Services | 12.3 | 17.2 | (4.9) | (28) | % | |||||||||||||||||||||
| Processing Solutions and Ancillary Services | 40.0 | 30.8 | 9.2 | 30 | % | |||||||||||||||||||||
| Total revenue | 162.8 | 128.9 | 33.9 | 26 | % | |||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Cost of services (exclusive of depreciation and amortization): | ||||||||||||||||||||||||||
| High Specification Rigs | 92.6 | 65.2 | 27.4 | 42 | % | |||||||||||||||||||||
| Wireline Services | 12.1 | 18.6 | (6.5) | (35) | % | |||||||||||||||||||||
| Processing Solutions and Ancillary Services | 33.3 | 25.3 | 8.0 | 32 | % | |||||||||||||||||||||
| Total cost of services (exclusive of depreciation and amortization) | 138.0 | 109.1 | 28.9 | 26 | % | |||||||||||||||||||||
| General and administrative | 7.7 | 6.6 | 1.1 | 17 | % | |||||||||||||||||||||
| Depreciation and amortization | 14.9 | 11.0 | 3.9 | 35 | % | |||||||||||||||||||||
| Impairment of assets | 0.1 | - | 0.1 | (100) | % | |||||||||||||||||||||
| (Gain) loss on sale of assets | 0.3 | (0.4) | 0.7 | (175) | % | |||||||||||||||||||||
| Change in fair value of contingent consideration | (3.0) | - | (3.0) | 100 | % | |||||||||||||||||||||
| Total operating expenses | 158.0 | 126.3 | 31.7 | 25 | % | |||||||||||||||||||||
| Operating income | 4.8 | 2.6 | 2.2 | 85 | % | |||||||||||||||||||||
| Other income and expenses | ||||||||||||||||||||||||||
| Interest expense, net | 0.7 | 0.4 | 0.3 | 75 | % | |||||||||||||||||||||
| Other income, net | (0.1) | (0.3) | 0.2 | (67) | % | |||||||||||||||||||||
| Total other expenses, net | 0.6 | 0.1 | 0.5 | 500 | % | |||||||||||||||||||||
| Income before income tax expense | 4.2 | 2.5 | 1.7 | 68 | % | |||||||||||||||||||||
| Income tax expense | 1.7 | 1.3 | 0.4 | 31 | % | |||||||||||||||||||||
| Net income | $ | 2.5 | $ | 1.2 | $ | 1.3 | 108 | % | ||||||||||||||||||
Revenue. Revenue for the three months ended September 30, 2026 increased $33.9 million, or 26%, to $162.8 million from $128.9 million for the three months ended September 30, 2025. The change in revenue by segment was as follows:
High Specification Rigs. High Specification Rigs revenue for the three months ended September 30, 2026 increased $29.6 million, or 37%, to $110.5 million from $80.9 million for the three months ended September 30, 2025. The increase in revenue reflects revenue growth of $30.9 million related to the AWS Acquisition and included a corresponding increase in total rig hours to 143,500 hours for the three months ended September 30, 2026 from 111,200 hours reported for the three months ended September 30, 2025. Hourly rig rates increased to $770 per hour for the three months ended September 30, 2026 from $727 per hour for the three months ended September 30, 2025, largely reflecting the pass through of fuel surcharges as well as certain changes in asset and regional revenue mix.
Wireline Services. Wireline Services revenue for the three months ended September 30, 2026 decreased $4.9 million, or 28%, to $12.3 million from $17.2 million for the three months ended September 30, 2025. The decreased revenue was primarily attributable to a $4.4 million decrease in completion services revenue where there was a 61% decrease in completed stage counts to 700 for the three months ended September 30, 2026 from 1,800 for the three months ended September 30, 2025, primarily reflecting a change in customer and job mix. Additionally, production services revenue decreased $1.1 million, partially offset by a $0.7 million increase in pump down services revenue.
Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the three months ended September 30, 2026 increased $9.2 million, or 30%, to $40.0 million from $30.8 million for the three months ended
September 30, 2025. The increase reflects higher activity in other Ancillary Services lines with revenue growth of $7.9 million related to the AWS Acquisition and increases also within primarily the plugging and abandonment and Torrent legacy service lines.
Cost of services (exclusive of depreciation and amortization). Cost of services for the three months ended September 30, 2026 increased $28.9 million, or 26%, to $138.0 million from $109.1 million for the three months ended September 30, 2025. As a percentage of revenue, cost of services was 85% for both the three months ended September 30, 2026 and 2025. The change in cost of services by segment was as follows:
High Specification Rigs. High Specification Rigs cost of services for the three months ended September 30, 2026 increased $27.4 million, or 42%, to $92.6 million from $65.2 million for the three months ended September 30, 2025. The increase is primarily attributable to increased employee labor, fuel, and repair and maintenance costs which amounted to $15.4 million, $2.7 million and $2.4 million, respectively. These increases were driven by higher activity levels and the inclusion of $24.7 million of costs related to the AWS Acquisition. As a percentage of High Specification Rigs revenue, cost of services increased from 81% for the three months ended September 30, 2025 to 84% for the three months ended September 30, 2026.
Wireline Services. Wireline Services cost of services for the three months ended September 30, 2026 decreased $6.5 million, or 35%, to $12.1 million from $18.6 million for the three months ended September 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $4.6 million as the Company reorganized this service line in response to lower operating activity. Additionally, costs decreased within production and pump down services by $1.5 million and $0.4 million, respectively. As a percentage of Wireline Services revenue, cost of services decreased from 108% for the three months ended September 30, 2025 to 98% for the three months ended September 30, 2026. These cost reductions reflect the Company's efforts to align the Wireline Services cost structure with current activity levels, which contributed to improved profitability despite continued pressure on revenue.
Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the three months ended September 30, 2026 increased $8.0 million, or 32%, to $33.3 million from $25.3 million for the three months ended September 30, 2025. The increase is primarily attributable to increased employee labor, repair and maintenance, and fuel costs which amounted to $2.2 million, $1.0 million, and $0.9 million, respectively. These increases were driven by higher activity levels and the inclusion of $6.3 million of costs related to operations acquired in the AWS Acquisition. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services remained relatively steady moving from 82% for the three months ended September 30, 2025 to 83% for the three months ended September 30, 2026.
General and Administrative. General and administrative expenses for the three months ended September 30, 2026 increased $1.1 million, or 17%, to $7.7 million from $6.6 million for the three months ended September 30, 2025. This increase was due to increased employee labor costs and professional fees.
Depreciation and Amortization. Depreciation and amortization for the three months ended September 30, 2026 increased $3.9 million, or 35%, to $14.9 million from $11.0 million for the three months ended September 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.
Interest Expense, net. Interest expense, net for the three months ended September 30, 2026 increased $0.3 million, or 75%, to $0.7 million from $0.4 million for the three months ended September 30, 2025. The increase in interest expense, net was primarily due to higher non-recurring interest income recognized during 2025 and the increased principal balance under our Wells Fargo Revolving Credit Facility.
Income Tax Expense. Income tax expense for the three months ended September 30, 2026 increased $0.4 million, or 31%, to $1.7 million compared to $1.3 million for the three months ended September 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.
Net Income. Net income for the three months ended September 30, 2026 increased $1.3 million, or 108%, to $2.5 million from $1.2 million for the three months ended September 30, 2025. The increase in net income was primarily driven by incremental operating income from the AWS Acquisition and the contingent consideration gain, partially offset by lower income resulting from activity declines in the Wireline Services segment.
Nine Months Ended September 30, 2026 compared to Nine Months Ended September 30, 2025
The following is an analysis of our operating results. See "-How We Evaluate Our Operations" for definitions of rig hours, stage counts and other analogous information, as well as key operating metrics (in millions).
| Nine Months Ended | ||||||||||||||||||||||||||
| September 30, | Variance | |||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| High specification rigs | $ | 333.0 | $ | 254.7 | $ | 78.3 | 31 | % | ||||||||||||||||||
| Wireline services | 41.5 | 56.5 | (15.0) | (27) | % | |||||||||||||||||||||
| Processing solutions and ancillary services | 123.9 | 93.5 | 30.4 | 33 | % | |||||||||||||||||||||
| Total revenue | 498.4 | 404.7 | 93.7 | 23 | % | |||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Cost of services (exclusive of depreciation and amortization): | ||||||||||||||||||||||||||
| High specification rigs | 273.8 | 204.0 | 69.8 | 34 | % | |||||||||||||||||||||
| Wireline services | 38.0 | 59.6 | (21.6) | (36) | % | |||||||||||||||||||||
| Processing solutions and ancillary services | 99.5 | 75.9 | 23.6 | 31 | % | |||||||||||||||||||||
| Total cost of services | 411.3 | 339.5 | 71.8 | 21 | % | |||||||||||||||||||||
| General and administrative | 23.1 | 20.7 | 2.4 | 12 | % | |||||||||||||||||||||
| Depreciation and amortization | 46.7 | 32.5 | 14.2 | 44 | % | |||||||||||||||||||||
| Impairment of assets | 0.1 | 0.4 | (0.3) | (75) | % | |||||||||||||||||||||
| Gain on sale of assets | (1.5) | (0.6) | (0.9) | (150) | % | |||||||||||||||||||||
| Change in fair value of contingent consideration | (2.3) | - | (2.3) | 100 | % | |||||||||||||||||||||
| Total operating expenses | 477.4 | 392.5 | 84.9 | 22 | % | |||||||||||||||||||||
| Operating income | 21.0 | 12.2 | 8.8 | 72 | % | |||||||||||||||||||||
| Other income and expenses | ||||||||||||||||||||||||||
| Interest expense, net | 2.6 | 1.0 | 1.6 | 160 | % | |||||||||||||||||||||
| Other income, net | (0.1) | (1.9) | 1.8 | (95) | % | |||||||||||||||||||||
| Total other expenses (income), net | 2.5 | (0.9) | 3.4 | (378) | % | |||||||||||||||||||||
| Income before income tax expense | 18.5 | 13.1 | 5.4 | 41 | % | |||||||||||||||||||||
| Income tax expense | 6.1 | 4.0 | 2.1 | 53 | % | |||||||||||||||||||||
| Net income | $ | 12.4 | $ | 9.1 | $ | 3.3 | 36 | % | ||||||||||||||||||
Revenue. Revenue for the nine months ended September 30, 2026 increased $93.7 million, or 23%, to $498.4 million from $404.7 million for the nine months ended September 30, 2025. The change in revenue by segment was as follows:
High Specification Rigs. High Specification Rigs revenue for the nine months ended September 30, 2026 increased $78.3 million, or 31%, to $333.0 million from $254.7 million for the nine months ended September 30, 2025. The increase in revenue reflects revenue growth of $90.4 million related to the AWS Acquisition and included a corresponding increase in the average revenue per rig hour by 3% to $764 from $741 for the nine months ended September 30, 2025, coupled with a 27% increase in total rig hours to 435,700 for the nine months ended September 30, 2026 from 343,900 for the nine months ended September 30, 2025.
Wireline Services. Wireline Services revenue for the nine months ended September 30, 2026 decreased $15.0 million, or 27%, to $41.5 million from $56.5 million for the nine months ended September 30, 2025. The decrease in wireline services revenue was attributable to reductions in the completions service line totaling $9.1 million illustrated by a 30% decrease in completed stage counts to 4,000 for the nine months ended September 30, 2026 from 5,700 for the nine months ended September 30, 2025. This decrease in completion services revenue and stage count is indicative of lower operating activity reflecting the Company's decision to pursue only work with appropriate margins. Wireline production associated services and pump down revenues decreased year over year by $5.8 million and $0.1 million, respectively.
Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services revenue for the nine months ended September 30, 2026 increased $30.4 million, or 33%, to $123.9 million from $93.5 million for the nine months ended
September 30, 2025. The increase reflects higher activity in other Ancillary Services lines with revenue growth of $27.8 million related to the AWS Acquisition.
Cost of services (exclusive of depreciation and amortization). Cost of services for the nine months ended September 30, 2026 increased $71.8 million, or 21%, to $411.3 million from $339.5 million for the nine months ended September 30, 2025. As a percentage of revenue, cost of services was 83% and 84% for the nine months ended September 30, 2026 and 2025, respectively. The change in cost of services by segment was as follows:
High Specification Rigs. High Specification Rigs cost of services for the nine months ended September 30, 2026 increased $69.8 million, or 34%, to $273.8 million from $204.0 million for the nine months ended September 30, 2025. The increase was primarily attributable to an increase in variable expenses, most significant of which are employee-related labor costs, repair and maintenance, fuel, and travel costs, which amounted to $34.4 million, $7.9 million, $6.0 million and $5.7 million, respectively. These increases were driven by higher activity levels and the inclusion of $71.7 million of costs related to the AWS Acquisition. As a percentage of High Specification Rigs revenue, cost of services increased from 80% for the nine months ended September 30, 2025 to 82% for the nine months ended September 30, 2026.
Wireline Services. Wireline Services cost of services for the nine months ended September 30, 2026 decreased $21.6 million, or 36%, to $38.0 million from $59.6 million for the nine months ended September 30, 2025. The decrease is primarily attributable to a decrease in costs from the completion services line by approximately $11.2 million as the Company reorganized this service line beginning in the second half of the prior year to accommodate lower operating activity and focus on more profitable service lines. Additionally, costs decreased in the production services line by $5.8 million. As a percentage of Wireline Services revenue, cost of services decreased from 105% for the nine months ended September 30, 2025 to 92% for the nine months ended September 30, 2026 primarily due to cost reductions and lower activity levels.
Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services cost of services for the nine months ended September 30, 2026 increased $23.6 million, or 31%, to $99.5 million from $75.9 million for the nine months ended September 30, 2025. The increase was primarily attributable to increased employee labor and repair and maintenance costs which amounted to $7.6 million and $3.7 million, respectively. These increases were driven by higher activity levels and the inclusion of $21.3 million of costs related to operations acquired in the AWS Acquisition. As a percentage of Processing Solutions and Ancillary Services revenue, cost of services remained relatively consistent, reporting 81% for the nine months ended September 30, 2025 to 80% for the nine months ended September 30, 2026.
General and Administrative. General and administrative expenses for the nine months ended September 30, 2026 increased $2.4 million, or 12%, to $23.1 million from $20.7 million for the nine months ended September 30, 2025. This increase was due to increased employee labor, integration costs largely associated with the AWS Acquisition and incremental professional fees incurred in 2026.
Depreciation and Amortization. Depreciation and amortization for the nine months ended September 30, 2026 increased $14.2 million, or 44%, to $46.7 million from $32.5 million for the nine months ended September 30, 2025. The increase is primarily due to the inclusion of depreciation associated with assets acquired in the AWS Acquisition.
Interest Expense, net. Interest expense, net for the nine months ended September 30, 2026 increased $1.6 million, or 160%, to $2.6 million from $1.0 million for the nine months ended September 30, 2025. The increase in interest expense, net was primarily due to higher non-recurring interest income recognized during 2025 and the increased principal balance under our Wells Fargo Revolving Credit Facility.
Income Tax Expense. Income tax expense for the nine months ended September 30, 2026 increased $2.1 million, or 53%, to $6.1 million from $4.0 million for the nine months ended September 30, 2025. The increase in tax expense resulted from higher taxable income and an increase in non-deductible expenses.
Net Income. Net income for the nine months ended September 30, 2026 increased $3.3 million, or 36%, to $12.4 million from $9.1 million for the nine months ended September 30, 2025. The increase in net income was primarily driven by incremental operating income from the AWS Acquisition and the contingent consideration gain, partially offset by lower income resulting from activity declines in the Wireline Services segment.
Note Regarding Non-GAAP Financial Measure
Adjusted EBITDA is not a financial measure determined in accordance with U.S. GAAP. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain or loss on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, inventory adjustment, adjustment to contingent consideration, contract liability revenue recognition, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance.
We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) determined in accordance with U.S. GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an indication that our results will be unaffected by the items excluded from Adjusted EBITDA. Our computations of Adjusted EBITDA may not be identical to other similarly titled measures of other companies. The following table presents reconciliations of net income (loss) to Adjusted EBITDA, the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP.
Three Months Ended September 30, 2026 compared to Three Months Ended September 30, 2025
The following is an analysis of our Adjusted EBITDA. See "Item 1. Financial Statements (Unaudited)-Note 17 - Segment Reporting" and "-Results of Operations" for further details (in millions).
| High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | ||||||||||||||||||||||||||||
| Three Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 8.9 | $ | (1.4) | $ | 2.7 | $ | (7.7) | $ | 2.5 | ||||||||||||||||||||||
| Interest expense, net | - | - | - | 0.7 | 0.7 | |||||||||||||||||||||||||||
|
Income tax expense
|
- | - | - | 1.7 | 1.7 | |||||||||||||||||||||||||||
| Depreciation and amortization | 9.0 | 1.6 | 4.0 | 0.3 | 14.9 | |||||||||||||||||||||||||||
| EBITDA | 17.9 | 0.2 | 6.7 | (5.0) | 19.8 | |||||||||||||||||||||||||||
| Impairment of assets | - | - | - | 0.1 | 0.1 | |||||||||||||||||||||||||||
| Equity based compensation | - | - | - | 1.7 | 1.7 | |||||||||||||||||||||||||||
| Loss on sale of assets | - | - | - | 0.3 | 0.3 | |||||||||||||||||||||||||||
| Severance and reorganization costs | 0.1 | - | - | - | 0.1 | |||||||||||||||||||||||||||
| Acquisition related costs | 0.7 | - | 0.1 | 0.6 | 1.4 | |||||||||||||||||||||||||||
| Adjustment to contingent consideration | - | - | - | (3.0) | (3.0) | |||||||||||||||||||||||||||
| Contract liability revenue recognition | (0.3) | - | - | - | (0.3) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 18.4 | $ | 0.2 | $ | 6.8 | $ | (5.3) | $ | 20.1 | ||||||||||||||||||||||
| High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | ||||||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 10.0 | $ | (4.2) | $ | 3.4 | $ | (8.0) | $ | 1.2 | ||||||||||||||||||||||
| Interest expense, net | - | - | - | 0.4 | 0.4 | |||||||||||||||||||||||||||
| Income tax expense | - | - | - | 1.3 | 1.3 | |||||||||||||||||||||||||||
| Depreciation and amortization | 5.7 | 2.8 | 2.1 | 0.4 | 11.0 | |||||||||||||||||||||||||||
| EBITDA | 15.7 | (1.4) | 5.5 | (5.9) | 13.9 | |||||||||||||||||||||||||||
| Equity based compensation | - | - | - | 1.6 | 1.6 | |||||||||||||||||||||||||||
| Gain on sale of assets | - | - | - | (0.4) | (0.4) | |||||||||||||||||||||||||||
| Severance and reorganization costs | - | 0.1 | - | - | 0.1 | |||||||||||||||||||||||||||
| Acquisition related costs | - | 0.1 | - | - | 0.1 | |||||||||||||||||||||||||||
| Legal fees and settlements | - | - | - | 0.2 | 0.2 | |||||||||||||||||||||||||||
| Employee retention credit | - | - | - | (0.3) | (0.3) | |||||||||||||||||||||||||||
| Inventory adjustment | - | 1.6 | - | - | 1.6 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 15.7 | $ | 0.4 | $ | 5.5 | $ | (4.8) | $ | 16.8 | ||||||||||||||||||||||
| High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | ||||||||||||||||||||||||||||
| Variance ($) | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (1.1) | $ | 2.8 | $ | (0.7) | $ | 0.3 | $ | 1.3 | ||||||||||||||||||||||
| Interest expense, net | - | - | - | 0.3 | 0.3 | |||||||||||||||||||||||||||
| Income tax expense | - | - | - | 0.4 | 0.4 | |||||||||||||||||||||||||||
| Depreciation and amortization | 3.3 | (1.2) | 1.9 | (0.1) | 3.9 | |||||||||||||||||||||||||||
| EBITDA | 2.2 | 1.6 | 1.2 | 0.9 | 5.9 | |||||||||||||||||||||||||||
| Impairment of assets | - | - | - | 0.1 | 0.1 | |||||||||||||||||||||||||||
| Equity based compensation | - | - | - | 0.1 | 0.1 | |||||||||||||||||||||||||||
| (Gain) loss on sale of assets | - | - | - | 0.7 | 0.7 | |||||||||||||||||||||||||||
| Severance and reorganization costs | 0.1 | (0.1) | - | - | - | |||||||||||||||||||||||||||
| Acquisition related costs | 0.7 | (0.1) | 0.1 | 0.6 | 1.3 | |||||||||||||||||||||||||||
| Legal fees and settlements | - | - | - | (0.2) | (0.2) | |||||||||||||||||||||||||||
| Employee retention credit | - | - | - | 0.3 | 0.3 | |||||||||||||||||||||||||||
| Inventory adjustment | - | (1.6) | - | - | (1.6) | |||||||||||||||||||||||||||
| Adjustment to contingent consideration | - | - | - | (3.0) | (3.0) | |||||||||||||||||||||||||||
| Contract liability revenue recognition | (0.3) | - | - | - | (0.3) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 2.7 | $ | (0.2) | $ | 1.3 | $ | (0.5) | $ | 3.3 | ||||||||||||||||||||||
Adjusted EBITDA for the three months ended September 30, 2026 increased $3.3 million to $20.1 million from $16.8 million for the three months ended September 30, 2025. The change by segment was as follows:
High Specification Rigs. High Specification Rigs Adjusted EBITDA for the three months ended September 30, 2026 increased $2.7 million to $18.4 million from $15.7 million for the three months ended September 30, 2025, due to an increase in revenue of $29.6 million, partially offset by a corresponding increase in cost of services of $27.4 million with costs increasing as a percent of revenue due to inflationary pressures.
Wireline Services. Wireline Services Adjusted EBITDA for the three months ended September 30, 2026 decreased $0.2 million to $0.2 million from $0.4 million for the three months ended September 30, 2025. Adjusted EBITDA increased $1.6 million due to a decrease in cost of services of $6.5 million, partially offset by a corresponding decline in revenue of $4.9 million. This improvement was more than offset by $1.8 million of adjustments to EBITDA in the prior year period, primarily an inventory adjustment, that did not recur in the current year period.
Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the three months ended September 30, 2026 increased $1.3 million to $6.8 million from $5.5 million for the three months ended September 30, 2025, due to an increase in revenue of $9.2 million, partially offset by a corresponding increase in cost of services of $8.0 million.
Other. The Other Adjusted EBITDA loss for the three months ended September 30, 2026 increased $0.5 million to $5.3 million from $4.8 million for the three months ended September 30, 2025. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.
Nine Months Ended September 30, 2026 compared to Nine Months Ended September 30, 2025
The following is an analysis of our Adjusted EBITDA. See "Item 1. Financial Statements (Unaudited)-Note 17 - Segment Reporting" and "-Results of Operations" for further details (in millions).
| High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | ||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 30.5 | $ | (2.8) | $ | 13.2 | $ | (28.5) | $ | 12.4 | ||||||||||||||||||||||
| Interest expense, net | - | - | - | 2.6 | 2.6 | |||||||||||||||||||||||||||
| Income tax expense | - | - | - | 6.1 | 6.1 | |||||||||||||||||||||||||||
| Depreciation and amortization | 28.7 | 6.3 | 11.2 | 0.5 | 46.7 | |||||||||||||||||||||||||||
| EBITDA | 59.2 | 3.5 | 24.4 | (19.3) | 67.8 | |||||||||||||||||||||||||||
| Impairment of assets | - | - | - | 0.1 | 0.1 | |||||||||||||||||||||||||||
| Equity based compensation | - | - | - | 4.9 | 4.9 | |||||||||||||||||||||||||||
| Gain on sale of assets | - | - | - | (1.5) | (1.5) | |||||||||||||||||||||||||||
| Severance and reorganization costs | 0.3 | 0.2 | - | - | 0.5 | |||||||||||||||||||||||||||
| Acquisition related costs | 1.2 | 0.3 | 0.1 | 1.2 | 2.8 | |||||||||||||||||||||||||||
| Adjustment to contingent consideration | - | - | - | (2.3) | (2.3) | |||||||||||||||||||||||||||
| Contract liability revenue recognition | (0.3) | - | - | - | (0.3) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 60.4 | $ | 4.0 | $ | 24.5 | $ | (16.9) | $ | 72.0 | ||||||||||||||||||||||
| High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | ||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 34.0 | $ | (11.2) | $ | 11.2 | $ | (24.9) | $ | 9.1 | ||||||||||||||||||||||
| Interest expense, net | - | - | - | 1.0 | 1.0 | |||||||||||||||||||||||||||
| Income tax expense | - | - | - | 4.0 | 4.0 | |||||||||||||||||||||||||||
| Depreciation and amortization | 16.7 | 8.1 | 6.4 | 1.3 | 32.5 | |||||||||||||||||||||||||||
| EBITDA | 50.7 | (3.1) | 17.6 | (18.6) | 46.6 | |||||||||||||||||||||||||||
| Impairment of assets | - | - | - | 0.4 | 0.4 | |||||||||||||||||||||||||||
| Equity based compensation | - | - | - | 4.8 | 4.8 | |||||||||||||||||||||||||||
| Gain on sale of assets | - | - | - | (0.6) | (0.6) | |||||||||||||||||||||||||||
| Severance and reorganization costs | - | 0.7 | - | 0.1 | 0.8 | |||||||||||||||||||||||||||
| Acquisition related costs | - | 0.5 | 0.1 | 0.1 | 0.7 | |||||||||||||||||||||||||||
| Legal fees and settlements | - | - | - | 0.5 | 0.5 | |||||||||||||||||||||||||||
| Employee retention credit | - | - | - | (1.9) | (1.9) | |||||||||||||||||||||||||||
| Inventory adjustment | - | 1.6 | - | - | 1.6 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 50.7 | $ | (0.3) | $ | 17.7 | $ | (15.2) | $ | 52.9 | ||||||||||||||||||||||
| High Specification Rigs | Wireline Services | Processing Solutions and Ancillary Services | Other | Total | ||||||||||||||||||||||||||||
| Variance ($) | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (3.5) | $ | 8.4 | $ | 2.0 | $ | (3.6) | $ | 3.3 | ||||||||||||||||||||||
| Interest expense, net | - | - | - | 1.6 | 1.6 | |||||||||||||||||||||||||||
| Income tax expense | - | - | - | 2.1 | 2.1 | |||||||||||||||||||||||||||
| Depreciation and amortization | 12.0 | (1.8) | 4.8 | (0.8) | 14.2 | |||||||||||||||||||||||||||
| EBITDA | 8.5 | 6.6 | 6.8 | (0.7) | 21.2 | |||||||||||||||||||||||||||
| Impairment of assets | - | - | - | (0.3) | (0.3) | |||||||||||||||||||||||||||
| Equity based compensation | - | - | - | 0.1 | 0.1 | |||||||||||||||||||||||||||
| Gain on sale of assets | - | - | - | (0.9) | (0.9) | |||||||||||||||||||||||||||
| Severance and reorganization costs | 0.3 | (0.5) | - | (0.1) | (0.3) | |||||||||||||||||||||||||||
| Acquisition related costs | 1.2 | (0.2) | - | 1.1 | 2.1 | |||||||||||||||||||||||||||
| Legal fees and settlements | - | - | - | (0.5) | (0.5) | |||||||||||||||||||||||||||
| Employee retention credit | - | - | - | 1.9 | 1.9 | |||||||||||||||||||||||||||
| Inventory adjustment | - | (1.6) | - | - | (1.6) | |||||||||||||||||||||||||||
| Adjustment to contingent consideration | - | - | - | (2.3) | (2.3) | |||||||||||||||||||||||||||
| Contract liability revenue recognition | (0.3) | - | - | - | (0.3) | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 9.7 | $ | 4.3 | $ | 6.8 | $ | (1.7) | $ | 19.1 | ||||||||||||||||||||||
Adjusted EBITDA for the nine months ended September 30, 2026 increased $19.1 million to $72.0 million from $52.9 million for the nine months ended September 30, 2025. The change by segment was as follows:
High Specification Rigs. High Specification Rigs Adjusted EBITDA for the nine months ended September 30, 2026 increased $9.7 million to $60.4 million from $50.7 million for the nine months ended September 30, 2025, due to an increase in revenue of $78.3 million, partially offset by a corresponding increase in cost of services of $69.8 million.
Wireline Services. Wireline Services Adjusted EBITDA for the nine months ended September 30, 2026 increased $4.3 million to $4.0 million from a loss of $0.3 million for the nine months ended September 30, 2025. Adjusted EBITDA increased $6.6 million due to a decrease in cost of services of $21.6 million, partially offset by a corresponding decline in revenue of $15.0 million. This improvement was partially offset by a $2.3 million decrease in adjustments to Adjusted EBITDA compared with the prior year period, primarily due to an inventory adjustment recorded in the prior year period.
Processing Solutions and Ancillary Services. Processing Solutions and Ancillary Services Adjusted EBITDA for the nine months ended September 30, 2026 increased $6.8 million to $24.5 million from $17.7 million for the nine months ended September 30, 2025, primarily due to an increase in revenue of $30.4 million, partially offset by a corresponding increase in cost of services of $23.6 million.
Other. The Other Adjusted EBITDA loss for the nine months ended September 30, 2026 increased $1.7 million to $16.9 million from $15.2 million for the nine months ended September 30, 2025. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services or Processing Solutions and Ancillary Services.
Liquidity and Capital Resources
Overview
We require capital to fund ongoing operations, including maintenance expenditures on our existing fleet and equipment, organic growth initiatives, investments and acquisitions. Our primary sources of liquidity have historically been cash generated from operations and borrowings under our credit facilities. As of September 30, 2026, we had total liquidity of $76.2 million, consisting of $6.0 million of cash on hand and availability under our Wells Fargo Revolving Credit Facility of $70.2 million. The Wells Fargo Revolving Credit Facility had a total loan capacity of $75.0 million as of September 30, 2026, with $4.8 million of outstanding Letters of Credit reducing available borrowing capacity to $70.2 million, compared to available borrowing capacity of $71.5 million as of September 30, 2025 and $57.4 million as of December 31, 2025. Subsequent to September 30, 2026, the Company completed the STEP Acquisition, and the cash portion of the purchase price was funded with $22.5 million of borrowings under the Wells Fargo Revolving Credit Facility. Following the closing of the STEP Acquisition on October 8, 2026, total borrowings outstanding under the Wells Fargo Revolving Credit Facility were $30.6 million and approximately $39.6 million remained available for borrowings. We strive to maintain financial flexibility and proactively monitor potential capital sources to meet our investment and target liquidity requirements and manage the cyclicality associated
with our business. We currently expect to have sufficient funds to meet the Company's short and long term liquidity requirements and remain in compliance with our covenants under our debt agreements. Based upon current levels of operations and anticipated growth, we expect that cash generated from operations, together with borrowings under our Wells Fargo Revolving Credit Facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future. For further details, see "- Debt Agreements."
Cash Flows
The following table presents our cash flows for the periods indicated (in millions):
| Nine Months Ended September 30, | Change | |||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 53.5 | $ | 44.9 | $ | 8.6 | 19 | % | ||||||||||||||||||
| Net cash used in investing activities | (32.6) | (17.5) | (15.1) | (86) | % | |||||||||||||||||||||
| Net cash used in financing activities | (25.2) | (23.1) | (2.1) | (9) | % | |||||||||||||||||||||
| Net change in cash | $ | (4.3) | $ | 4.3 | $ | (8.6) | (200) | % | ||||||||||||||||||
Operating Activities
Net cash from operating activities increased $8.6 million to $53.5 million for the nine months ended September 30, 2026 compared to $44.9 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher earnings, increased non-cash depreciation and amortization expense resulting from the AWS Acquisition, and increases in contract liabilities and accrued expenses. These improvements were partially offset by increased accounts receivable and contract assets, primarily due to the timing of customer billings and collections.
Investing Activities
Net cash used in investing activities increased $15.1 million to $32.6 million for the nine months ended September 30, 2026 compared to $17.5 million for the nine months ended September 30, 2025. The change in cash flows used in investing activities is largely attributable to increases in construction in progress for the build out of ECHO hybrid rigs.
Financing Activities
Net cash used in financing activities increased $2.1 million to $25.2 million for the nine months ended September 30, 2026 compared to $23.1 million for the nine months ended September 30, 2025. The change was primarily driven by net repayments under the Wells Fargo Revolving Credit Facility and higher principal payments on finance lease obligations, partially offset by lower cash used for share repurchases.
Supplemental Disclosures
During the nine months ended September 30, 2026, the Company added fixed assets of $0.3 million, $4.7 million and $1.9 million primarily related to accounts payable, finance leased assets and asset trades, respectively, across all operating segments.
Working Capital
Our working capital, which we define as total current assets less total current liabilities, increased to $80.5 million as of September 30, 2026, compared to $52.0 million as of December 31, 2025. The increase was primarily driven by higher balances in accounts receivable and contract assets resulting from the timing of customer collections.
Debt Agreements
Wells Fargo Bank, N.A. Credit Agreement
On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A., providing the Company with a secured credit facility ("Wells Fargo Revolving Credit Facility") in an aggregate principal amount of $75.0 million. Debt under the Credit Agreement is secured by a lien on substantially all of the Company's assets. The Company was in compliance with the Credit Agreement covenant of maintaining a Fixed Charge Coverage Ratio ("FCCR") of greater than 1.0 as of September 30, 2026, which is applicable only under certain borrowing levels.
The Company has up to $5.0 million available under the Wells Fargo Revolving Credit Facility for letters of credit, subject to assignment. As of September 30, 2026, Letters of Credit outstanding totaled $4.8 million. These Letters of Credit are primarily to be utilized for working capital, general corporate purposes, and to support the Company's insurance programs, and have been amended periodically in connection with the annual insurance renewals. The interest rate applicable to the Letters of Credit was approximately 1.8% for the month ended September 30, 2026.
The Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is calculated based upon a percentage of the Company's eligible accounts receivable and eligible unbilled revenue, less certain reserves. The Company's eligible accounts receivable serve as collateral for the borrowings under the Wells Fargo Revolving Credit Facility, which is scheduled to mature on May 31, 2028. The Wells Fargo Revolving Credit Facility includes an acceleration clause and cash dominion provisions under certain circumstances that permit the administrative agent to sweep cash daily from certain bank accounts into an account of the administrative agent to repay the Company's obligations under the Wells Fargo Revolving Credit Facility. The borrowings of the Wells Fargo Revolving Credit Facility, therefore, are classified as a current liability on the Condensed Consolidated Balance Sheets.
Under the Wells Fargo Revolving Credit Facility, the total loan capacity was $75.0 million, which was based on a borrowing base certificate in effect as of September 30, 2026. On June 17, 2024, the Company entered into the First Amendment to the Wells Fargo Revolving Credit Facility, which allows for a percentage of unbilled revenue to be included in the calculation of the borrowing base. The Company did not have any borrowings under the Wells Fargo Revolving Credit Facility as of September 30, 2026 and had $4.8 million in Letters of Credit open under the facility, leaving a residual $70.2 million available for borrowings as of September 30, 2026. Subsequent to September 30, 2026, the Company borrowed $22.5 million under the Wells Fargo Revolving Credit Facility to fund the cash portion of the purchase price for the STEP Acquisition. Following the closing of the STEP Acquisition on October 8, 2026, total borrowings outstanding under the Wells Fargo Revolving Credit Facility were $30.6 million and approximately $39.6 million remained available for borrowings. Long-term debt, current portion on the Condensed Consolidated Balance Sheet as of December 31, 2025 also included other immaterial financing obligations, including vehicle-related financing arrangements. Borrowings under the Wells Fargo Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on the average excess availability. The weighted average interest rate for the loan was approximately 5.7% for the nine months ended September 30, 2026.
Capital Returns Program
In March 2023, the Company initially announced a share repurchase program authorizing the Company to purchase up to $35.0 million of Class A Common Stock that could be utilized for up to 36 months, and may be accelerated, suspended or discontinued at any time without notice. On March 4, 2024, the Company announced that the Board of Directors approved an additional share repurchase program authorization of $50.0 million, bringing the total share repurchase program authorization to $85.0 million in aggregate value. During the nine months ended September 30, 2026, the Company repurchased 463,700 shares of the Company's Class A Common Stock for a total of $7.2 million, net of tax on the open market. As of September 30, 2026, an aggregate of 4,783,900 shares of Class A Common Stock were purchased for a total of $54.1 million, net of tax since the inception of the repurchase program announced on March 7, 2023 and $30.9 million remained available under the share repurchase program.
In 2023, the Board of Directors approved the initiation of a quarterly dividend of $0.05 per share. The Company increased the quarterly dividend to $0.06 per share in 2025. The Company believes that a share repurchase and dividend framework provides the best overall value creation potential for investors. The Company paid $4.4 million to stockholders for the nine months ended September 30, 2026.
The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company's debt agreements and other factors. There can be no assurance that we will pay a dividend in the future.
Critical Accounting Estimates and Policies
Our significant accounting policies are discussed in our Annual Report and have not materially changed since December 31, 2025.
Off-Balance Sheet Arrangements
We currently have no material off-balance sheet arrangements.
Ranger Energy Services Inc. published this content on November 09, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 09, 2026 at 21:58 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]