Ranger Completes Acquisition of STEP Assets, Becoming the No. 2 Coiled Tubing Operator

Key Facts

Ranger Energy Services said it has completed its acquisition of STEP Energy Services’ U.S. coiled tubing assets, making it the second-largest provider of those services in the U.S. market. The acquisition adds a new business to Ranger’s oilfield services portfolio, with the acquired assets operating across major production regions. The company had scheduled its third-quarter 2026 results for after the market close on November 9, with management set to discuss them with investors the following day. The information available here did not include third-quarter results, so the announcement focused on completion of the deal and the scale of the business acquired. Ranger announced the agreement to acquire the assets on August 31.

According to Ranger’s filing with the U.S. Securities and Exchange Commission, the approximate total consideration was $27.5 million, comprising $22.5 million in cash and $5 million in Class A shares. The announced transaction covers U.S. assets including coiled tubing, fluid pumping, nitrogen and related well services. The completion announcement focuses on the coiled tubing assets, which make Ranger the second-largest operator in that business in the U.S. The difference between the scope of the announced agreement and the description of the assets at completion indicates that the original package was broader than the coiled tubing business alone. The information available did not detail how the consideration was allocated among the asset categories.

The package includes 13 complete coiled tubing operating spreads, along with related equipment and inventory. When it announced the agreement, Ranger said it expected to employ about 220 workers, specialists and support staff associated with the business. The operating spreads and equipment provide a ready-made base for expanding the company’s presence in well services, while the employees bring the expertise and capabilities needed to run them. STEP’s U.S. operations span five locations, from the Bakken in the north to South Texas, with its largest presence in the Permian Basin. Ranger said the locations fall within its existing footprint, allowing it to integrate the business in areas where it already operates.

In its August announcement, Ranger estimated that the acquired assets would add between $80 million and $90 million in revenue in 2027 and more than $10 million in earnings before interest, taxes, depreciation and amortization. The estimates included at least $2.5 million in synergies in the first year. The company presented these figures as forward-looking estimates, not realized results, and tied the expected contribution to the coming year. The deal is part of a plan to expand revenue and profitability by adding an established business, equipment and personnel to Ranger’s operations. The information provided did not detail when the savings would be realized or how expected revenue would be distributed during the year.

Ranger’s second-quarter results, published in July, provide a baseline for the company’s performance before its third-quarter results announcement. Revenue was $176.5 million in the second quarter of 2026, compared with $159.1 million in the first quarter and $140.6 million in the second quarter of 2025. Ranger attributed the quarterly increase of $17.4 million mainly to broader activity, while it linked the annual increase of $35.9 million primarily to the contribution from American Well Services. Second-quarter net income was $6.9 million, or $0.29 per diluted share, compared with $7.3 million and $0.32 per share a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization were $28.6 million, up from $23.3 million in the first quarter and $20.6 million in the same period of 2025.

Chief Executive Stuart Bodden said in July that Ranger had achieved an annualized earnings rate exceeding $100 million in its second full quarter after acquiring American Well Services. The comment puts the STEP expansion in the context of a strategy through which the company previously expanded by acquiring an existing business, while indicating that the cited earnings rate was management’s estimate of what the company could generate annually. Ranger had total liquidity of $61.3 million on June 30, including $57.1 million available under its revolving credit facility and $4.2 million in cash. That total was below the $67.7 million recorded on December 31, 2025. Management is scheduled to review third-quarter results on a call on November 10 at 10:00 a.m. Eastern Time, or 9:00 a.m. Central Time.