Ranger Energy Services, Inc. (NYSE:RNGR) Q3 2023 Earnings Call Transcript

Stuart Bodden: So I don’t think we’ve seen any trend on the — as an example the type of artificial lift. I mean obviously it varies by region a bit. But I don’t think we’ve seen that trend. I do think what we’ve seen with customers is as customers have become very focused on efficiency I think as it relates to a lot of our work what they see is that continuity of crews and specific crews is actually really driving a lot of efficiency. So I actually think that we talked about the contract earlier. I think a lot of that is driven by safety is one but I think it’s also driven by efficiency. And they’re saying, I think our biggest customers are saying, they recognize that, if they have steady work programs, that basically allows for crew continuity, they see improved performance across the board.

Melissa Cougle: I’ll just add to that. I think Stuart’s point, that’s a trend that you’re seeing sort of multiple service lines, whether that be frac, whether that be whatever drilling, the programs are getting tighter which altogether is better serves the industry. There’s less white space for everyone. I think this year has been a bit anomalous, just given the gas market that we had to kind of freed up and then to this had to deal with assets being redeployed.

Donovan Schafer: Okay. That makes a lot of sense. All right. Thanks guys. I’ll take the rest of my questions offline.

Stuart Bodden: All right. Thanks, Donovan.

Melissa Cougle: Thank you.

Operator: Your next question comes from Jeff Robertson with Water Tower Research. Please go ahead.

Jeff Robertson: Good morning. Thanks for taking my question. Stuart, on the contract, can you — I assume it’s a one-year contract from the way the press release is written. And secondly, can you just talk about what level of business you would like to see underwritten by these types of agreements?

Stuart Bodden: So, it is a one-year contract that has evergreen provisions in it. So we actually think it can go for quite a long time. So that’s on the first. We don’t really have a target per se. This type of a contract is pretty unique. I think if you look in our portfolio, we can point to one other. It has slightly different mechanics, but I think it has a lot of the same kind of duration if you will to it through time. What I can just say is that we have some other larger customers that are again and I think it relates to the conversation about efficiency and continuity of work that have kind of opened up discussions about doing something similar. It does tend to be with larger customers is again, I think that they want us to get a lot more enmeshed with their SOPs and guidelines and protocols et cetera.

Jeff Robertson: I presume that’s just to help drive their efficiencies in their capital programs as Melissa alluded to earlier?

Stuart Bodden: Absolutely.

Jeff Robertson: And secondly, is this agreement — does it span multiple basins, or is it just in one basin?

Stuart Bodden: It’s multiple basins.

Jeff Robertson: Thank you, very much.

Stuart Bodden: You bet.

Operator: Your next question is a follow-up from Don Crist with Johnson Rice. Please go ahead.

Don Crist: Thanks for letting me back ion. Melissa, just one for you. The working capital ticked up a little bit in the Third Quarter, but it sounds like it’s starting to release a little bit. Any color there? And should we expect all of that to kind of come out in the fourth quarter? Just kind of trying to model your cash as we go into the fourth quarter year-end?