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Good morning, welcome to Ranger Energy Services first quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Mease, Vice President of Finance. Please go ahead.

Good morning. Thank you for joining Ranger Energy Services first quarter 2026 earnings conference call. Before we begin, Ranger has issued a press release outlining our operational and financial performance. The press release and accompanying presentation materials are available in the investor relations section of our website at www.rangerenergy.com. Today's discussion may contain forward-looking statements about future business and financial expectations.

Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, changes in oil and natural gas prices, customer activity levels, operating risks, competitive pressures, weather conditions, integration risks related to acquisitions, and other risks described in our filings with the Securities and Exchange Commission.

Please note that non-GAAP financial measures will be referenced during this call. A full reconciliation of GAAP to non-GAAP measurements is available in our latest quarterly earnings release and conference call presentation. Joining me on the call today are Stuart Bodden, Ranger's Chief Executive Officer, and Melissa Cougle, our Executive Vice President and Chief Financial Officer. With that, I'll turn the call over to Stuart.

Thank you, Joe, and good morning, everyone. We appreciate you joining us today as we discuss Ranger's first quarter 2026 results and our strong financial performance. Despite a challenging start to the year, driven by the severity of Winter Storm Fern, Ranger delivered solid financial results with meaningful year-over-year growth and continued progress against our strategic priorities. For the first quarter, Ranger generated total revenue of $159.1 million and adjusted EBITDA of $23.3 million, representing growth both sequentially and versus the prior year.

Importantly, these results reflect a quarter that began sluggishly but finished with strong momentum as February and March activity levels rebounded across our portfolio. The severe winter storm in January temporarily disrupted activity in all regions for several days, particularly in the Permian Basin. However, conditions improved and activity levels rebounded, and we exited the quarter with stronger utilization and improving operating cadence. That positive momentum has continued into April.

From a strategic standpoint, we remain focused on execution, safety, and disciplined growth. We continue to integrate the AWS businesses, advance our ECHO hybrid rig program, and invested in areas that support long-term value creation while maintaining operational and financial discipline. Looking at some specifics, high-spec rigs once again delivered strong results in the first quarter and continues to serve as the cornerstone of Ranger's performance.

Revenue in the segment increased both sequentially and year-over-year, driven by incorporation of a full quarter of legacy AWS rigs, an improvement in utilization across the legacy Ranger fleet, and resilient pricing. Topline growth in the quarter was driven by a meaningful shift in rig activity beginning in March. While some slight margin pressure was felt due to higher levels of white space earlier in the quarter and some maintenance-related expenses.

Despite this, segment margins remained over 20%, We expect them to improve in the 2nd and 3rd quarter of this year as we continue to focus on disciplined cost management, efficient scheduling, and as we realize the benefits of increased scale. Operational execution across the fleet remains strong. Our teams continue to deliver safe, reliable service while maintaining high service quality and customer satisfaction this was reflected in an expansion of our rig rate to $731 per hour.

Customer demand for high-quality workover rigs remains healthy, particularly in mature basins where operators are focused on maximizing production from existing assets. We continue to see Ranger's high-spec rig fleet viewed as a preferred solution due to our reliability, performance, and safety record. During the quarter, we also made continued progress on our ECHO hybrid electric rig program. We announced the signing of a new 15-rig contract as part of our year-end earnings and construction activities are underway and advancing as planned.

Our first ECHO rigs deployed in late 2025 are in the field operating currently. The early operational results are impressive. We are seeing a high amount of productive time and receiving positive customer feedback about the capabilities of these rigs. The fleet additions remain on track for delivery beginning later this year. Having visited the manufacturer and spent time on the rig and exploring its capabilities, we are more convinced than ever that ECHO represents a meaningful differentiator for Ranger, delivering improved efficiency, lower fuel consumption, and emissions benefits for our customers, while at the same time generating attractive returns for our shareholders.

Turning to ancillary services, this segment continues to grow in strategic importance within Ranger. We see meaningful opportunity to expand this segment organically through cross-selling, improved utilization, and leveraging our scale and customer relationships. The first quarter marked another period of solid growth and improving contribution. Revenue and profitability increased sequentially and year-over-year, driven by higher activity across several service lines in a full quarter's inclusion and expanded offerings acquired through the AWS transaction.

Integration efforts progressed well during the quarter, and we are realizing early benefits from combining these assets with Ranger's broader platform. Speaking specifically to a couple of our service lines, within our P&A group, we commenced activity on our recently awarded Texas Railroad Commission contract and are pleased with how that work is progressing and how our relationship with the regulatory bodies, both within and outside of Texas, are developing.

This contract aligns well with our capabilities, provides a steady source of activity, and further diversifies our revenue base. The tubing, rental, and inspection business acquired in the fall has also been a bright spot. With significant capacity to grow with minimal capital and strong incremental margins, we are looking to increase our business in this service line and see its contribution to our bottom line grow in the coming quarters. On wireline services, we were particularly pleased with the overall financial performance and stability of this segment through the first quarter.

We have historically had a difficult time navigating to positive adjusted EBITDA in Q1, given winter weather and the more northern exposure of the business. Activity improved meaningfully in March, and the business exited the quarter with stronger operational performance and respectable margins. Before turning the call over to Melissa, I wanna briefly touch on the broader market environment. When we entered 2026, macro sentiment across the energy sector remained cautious, with many operators planning for relatively flat to down activity levels.

As the quarter progressed, geopolitical developments and improving crude oil futures began to modestly improve sentiment. We've seen this reflected in customer conversations that are increasingly constructive, particularly around production-focused work and maintenance activity. Ranger's business model is well-suited to this environment. Our portfolio is heavily weighted toward workover, maintenance, and production optimization services on existing wells.

Services that are essential, cost-effective, and critical to sustaining production and bringing short-cycle barrels to market. Combined with our scale across the lower 48 and our long-lived asset base, we believe we are well-positioned to respond efficiently as activity levels evolve. With that, I'll turn the call over to Melissa to walk through our financial results in more detail.

Thank you, Stuart, and good morning, everyone. I'll walk through our first quarter of 2026 financial results in more detail and then spend some time on cash flow, the balance sheet, and capital allocation. For the first quarter of 2026, Ranger generated total revenue of $159.1 million, compared to $142.2 million in the fourth quarter of 2025 and $135.2 million in the first quarter of 2025. The sequential and year-over-year increase in revenue was driven primarily by higher activity levels in our high-spec rigs business and continued growth in our ancillary services segment, including a full quarter of contribution from the legacy AWS business.

Net income for the quarter was $3 million or $0.12 per diluted share, compared to $600,000 or $0.03 per diluted share in the first quarter of 2025. Adjusted EBITDA for the first quarter was $23.3 million, representing a margin of 14.6%. This compares to adjusted EBITDA of $20.3 million and a 14.3% margin in the fourth quarter of 2025, and $15.5 million and an 11.5% margin in the first quarter of last year. The year-over-year improvement in adjusted EBITDA and margins reflects higher revenue, improved contribution from ancillary services, stronger performance in high-spec rigs, and much improved results in wireline relative to last year.

General and administrative expense was $7.8 million in the first quarter, compared to $8.9 million in the fourth quarter of 2025, reflecting the elevated transaction expenses in the fourth quarter as a consequence of the AWS transaction. Turning to segment performance, revenue in our high-spec rig segment was $106.2 million in the first quarter, compared to $92.3 million in the fourth quarter of 2025. The sequential increase was driven primarily by higher rig hours, which totaled approximately 145,400 hours in the quarter, compared to 128,500 hours in the fourth quarter and 115,700 hours in the first quarter of 2025.

Adjusted EBITDA increased to $21.4 million compared to $19.6 million in the fourth quarter and $17.4 million in the prior year quarter. Adjusted EBITDA margins remain strong and above 20%, reflecting solid execution, cost discipline, and operating leverage. Revenue in our processing solutions and ancillary services segment was $42.3 million in the first quarter compared to $37.5 million in the fourth quarter and $30.5 million in the first quarter of 2025. Adjusted EBITDA was $8 million, up from $6.2 million in the fourth quarter and $5.6 million in the prior year period. The increase reflects higher activity across several service lines and the continued ramp up of services acquired through the AWS transaction.

Revenue in our wireline services segment was $10.6 million in the first quarter. As Stuart mentioned, activity levels improved meaningfully in February and March, and the business exited the quarter with good momentum. On adjusted EBITDA basis, the segment was essentially break even in the first quarter, a meaningful improvement compared to an adjusted EBITDA loss of $2.3 million in the prior year period. Ranger Energy Services' free cash flow for the first quarter was -$21.7 million compared to positive $3.4 million in the prior year period.

The primary driver of the year-over-year change in cash flow was working capital timing, with cash flow in the first quarter impacted by the build-up in accounts receivable related to customer-instituted billing blackout periods at year-end, transition-related billing changes associated with new price books and billing protocols within the legacy AWS business, as well as temporary timing impacts associated with the transition to Ranger's ERP system.

We expect that working capital levels will return to more normalized level over the next two quarters. Capital expenditures for the first quarter totaled $18.3 million compared to $7.2 million in the first quarter of 2025. The increase was primarily driven by milestone payments related to the ECHO hybrid rig build-out program. During the quarter, we also received a large upfront contribution from a key customer related to our ECHO hybrid rig build-out program.

These payments also contributed to an increase in liabilities in the balance sheet as those payments will be recognized as revenue over the life of the contract. ECHO represents a strategic investment in next-generation equipment that we believe will deliver attractive returns, improve operating efficiency, and enhance Ranger's competitive position. Turning to liquidity, as of March 31st, 2026, total liquidity was $42.5 million, consisting of $35.6 million of availability under our revolving credit facility and $6.9 million of cash on hand. We continue to believe our balance sheet provides ample flexibility to support operations, fund planned capital investments, and pursue disciplined capital allocation. With that, I'll turn the call back to Stuart for closing remarks.

Thank you, Melissa. In summary, first quarter highlighted the resilience and strength of Ranger's business. We delivered solid financial results, generated meaningful adjusted EBITDA, and exited the quarter with improving momentum. Our high-spec rigs and ancillary services businesses continue to perform well. The AWS integration is progressing as planned, and our investments in next-generation equipment position us well for the future. As we move into the second quarter, we remain focused on disciplined execution, safety, and delivering value for our shareholders. We believe Ranger is well positioned to navigate the current environment and capitalize on opportunities as activity levels evolve. With that, operator, we can now open the call for questions.

We will now begin the question-and-answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Don Crist with Johnson Rice. Please go ahead.

Morning, guys. Hope you all are doing well.

Good morning, Don.

I wanted to start with what we've been hearing out of a lot of other companies that the oil strip has really kind of been reset here. While a lot of people think that if the Iran war ended today, that the long end of the strip is gonna continue to rise going forward. I don't know if you have any thoughts on that kind of macro view, can you relate that and how you're seeing your customer behavior conversations going as a result of kind of that narrative that we're seeing come through the industry?

Sure. Thanks, thanks for the question, Don Crist. I think when we talk to our customers, what we're hearing and it really depends a little bit on the size and kind of geography of the customer. I think in our conversations, most of the biggest customers for now are remaining fairly disciplined. We are taking more inbounds we're getting kind of more interest, but at the moment, they're not meaningfully changing workover, I mean, you know, the workover programs.

I mean, I think we are seeing some stuff on the margins. I think as you get into some of the smaller players or in some basins that, you know, we're a little bit more on the margin, we are certainly seeing an increase in activity and more demand, particularly to accelerate barrels, right? On the workover program. I think our sense is that as this continues to play out, that we think things are setting up pretty well for the back half of the year. I guess the second thing, third thing I would highlight is on our quarter, and I think in the comments from both me and Melissa, and we highlighted that we exited the quarter strongly, and that's a trend that has continued into April we are certainly seeing some tailwinds.

Okay. Just as a function of kind of white space in your calendars, I know when we met a couple weeks back, you said that that was going away rapidly. Are we to the stage where you could possibly reactivate rigs to meet demand or we still have a little bit of slack in the system?

There's a little bit, but not much. I'd say we're kind of getting to the point now, where, like, if somebody wants to do a smaller program, and we have a little bit of, you know, slack in the schedule, we can fit them in. We're kind of getting to the point now to where, you know, we're hiring crews, and we'll need to add capacity.

Okay. Melissa, one for you. I think the working capital build this quarter kind of shocked several of us, I know in your comments, you said that that should unwind, but any further comments there? I mean, it seemed like a pretty decent-sized number, but that should reverse pretty quickly in my opinion.

Yeah, John, we did. I think we knew it would be, and we had tried to signal that it would be a negative cash flow quarter because we saw some of it early days. To be fair, I think we were hoping to have more progress by the time we get to March 31st. The reality is we had a very substantial billing blackout by one of our biggest customers in December. When we look at legacy Ranger businesses, we're still kind of hit with 10 days unwinding and trying to push through from that.

On top of that, you had exacerbated issues around AWS because we were getting to combine pricing books where those price books, they tend to drag out your billing cycle because you have to get all these different pieces of the puzzle in place to allow the invoices to flow through on the new price book. I would say on the AP side, because we were moving the AWS organization into Ranger for April 1st, we made a call late in the quarter to actually clear out the open AP. We paid out and there was an extra few million dollars that was paid out.

That's long-term benefit to Ranger to kind of make that transition much smoother. Again, short-term impact to the quarter on the working capital side. We do believe when we get into Q2, that the April 1st go live on the ERP will probably continue to leave us challenged for the next month. Then I think we'll start to finally start to see DSO really improve when we get into May and June. I don't think you'll see everything get back to normal by the end of Q2, but I think we'll see a lot of normalization in Q2, and then we'll pick the final piece of it up in Q3 on the DSO side. Helpful?

I appreciate the color. I'll turn it back. Thanks again.

Yeah, thanks, John.

Thank you.

Your next question comes from John Daniel with Daniel Energy Partners. Please go ahead.

Hey, thanks. Good morning. I think I'm gonna stick with the theme of Don's question because we also hear the same view that operators believe the forward curve is mispriced and should be higher. You know, smaller operators are reacting to that right now, as you mentioned, and we've seen, and we know that small players are always the first movers, and larger companies, as we also know, tend to be slower.

Yep.

Presumably, they make the upwards activity shift next year. Forgive that long-winded preamble, to my question, if you share that view, how would this glass half full outlook impact your vision for Ranger? What I mean by this, Stuart, is now the time to get ahead of it and either fast track consolidation? Is now the time to accelerate even more ECHO, you know, new builds, or do you just get a little bit aggressive on the front end and start pushing pricing a bit harder? I know there's probably other choices, but just kind of if you could opine on strategy.

Yeah. I think you probably sort of characterized the conversations right in that I think as we go in and, you know, we look at activity and it can be a range of things, right? Our willingness to give multi-rate discounts. As you can imagine, that's becoming more challenging to entertain. You know, as we think about sort of, you know, hiring a crew when you have line of sight to, you know, 30% utilization or full utilization. I think on the margin, it's easier just to be more confident, more aggressive on that. I do think on the ECHO program, you know, we've had a lot of discussion about as we bring those rigs into the market, will they displace rigs or will they be completely additive?

I think as we go forward, we're feeling more and more confident that they will be additive, which has a huge impact to the business. I feel like with those rates coming in we are kind of naturally adding capacity and hopefully at the right time. Hopefully that kind of makes sense. I mean, I think just in general, I think, you know, I'm not sure you're gonna see a, you know, a massive shift in strategy, but I think on the margin.

Uh-huh

You know, we're certainly feeling pretty confident.

Okay. If I remember correctly in the slide deck, I think you had 193 active rigs maybe that was as of year-end. Can you just say what the active count is today and, you know?

It, yeah. I mean, right now it's about the same. It hasn't meaningfully changed that number includes, you know, you always have some rigs that are getting preventative maintenance or refurbs, et cetera. I'd say right now it's about the same. Again, kind of to Don's question earlier, you know, we're kind of getting near that point where to satisfy new demand, we're gonna have to activate rigs.

Okay. I got one more, and then I'll turn it back over.

Sure.

One of your very, very small competitors was complaining to me that they can't find parts to reactivate equipment. Can you just speak to the supply chain? Do you think that's an anomaly or just, you know, how does that impact you guys?

I'm not sure it's an anomaly, but I don't think we have felt that. I don't think we're feeling supply chain issues. What I would tell you is it wouldn't surprise me if, you know, two quarters from here we're talking about labor tightness again.

Right.

which we haven't really talked about for a while. At the moment, we're not really having issues on supply chain.

Okay. Thank you very much.

Thanks, John Daniel.

Again, if you have a question, please press star then one. Your next question comes from Derek Podhaizer with Piper Sandler. Please go ahead.

Hey, good morning. Wanted to hit on the production optimization theme that you highlighted in your opening comments, talking about accelerating barrels. Maybe just help educate us and the market as far as, you know, how we should think about Ranger taking advantage of the current macro, be it on the workover program. You obviously have rigs that are dedicated towards completion or production, Coiled tubing, anything else inside of the ancillary services segment of yours. Just trying to think about how you guys can also benefit as these EMPs look to accelerate ducts or optimize their current production pace to take advantage of the front month here.

Yeah. Thanks for the question, Derek. Hope you're doing well. Again, I think kind of when we talk to customers, I mean, obviously the shorter cycle barrels they have is to go in and do, you know, to go in and do a workover. Certainly, you know, we're seeing right now some of the smaller, you know, customers get pretty aggressive on those programs. You know, to go do a drill completion, kind of create a program for that obviously takes time and, you know, the curve is still pretty backwardated and as you know, not very liquid, you know, from a trading perspective in the out year.

I think what we're seeing is people try to get, you know, physical barrels in the market pretty quickly. You know, that obviously is right down the fairway of everything that we do in the high-spec rig segment. I would say for some of our other service lines that tend to be a little more completion-oriented, and so I'm thinking things like the [Coil] Tubing business, some of the ancillary completion-related services we picked up with AWS.

I think what we are seeing is those are just kind of generally firming up. I'm not sure it's again, you know, it's not like it's a doubling of activity, but where somebody maybe in the past said, "Hey, I've got some work. I'm gonna go give it back to you in six weeks." Now they're saying, "You know what? I wanna keep it because I don't wanna give it back." I think we are seeing, you know, just sort of really steady work on the completions side, which obviously sort of helps the financials across the board.

Got it. Very helpful. That's it for me. I'll turn it back.

All right. Thanks, Derek.

Thank you.

Concludes our question and answer session. I would like to turn the conference back over to Stuart Bodden for any closing remarks.

Thank you, operator. Thanks to all of you for your interest in Ranger. Obviously, please reach out to us if you have any questions. Have a good week, everyone.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good morning, and welcome to Ranger Energy Services, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Joe Meath, Vice President, Finance. Please go ahead.

Good morning, and welcome to Ranger Energy Services, Inc. Fourth Quarter and Full Year 2025 Earnings Conference Call. Appreciate you joining us today. Before we begin, Ranger Energy Services, Inc. has issued a press release outlining our operational and financial performance. The press release and accompanying presentation materials are available in the Investor Relations section of our website at www.rangerenergy.com. Today's discussion may contain forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements. Further, please note that non-GAAP financial measures will be referenced during this call. A full reconciliation of GAAP to non-GAAP measurements is available in our latest quarterly earnings release and conference call presentation. Joining me today are Stuart Bodden, our Chief Executive Officer, and Melissa Cougle, our Chief Financial Officer. Stuart will begin with a strategic and operational overview outlining our accomplishments in 2025, and provide an outlook for Ranger Energy Services, Inc. for 2026. Melissa will then walk through a financial summary of the results for Ranger Energy Services, Inc.’s fourth quarter and fiscal year. Following their remarks, we will open the call for Q&A. With that, I will turn it over to Stuart.

Thanks, Joe, and good morning, everyone. I appreciate all of you joining us today to discuss our fourth quarter and full year 2025 results. I will spend some time walking through our operational performance during the quarter, highlight the strategic milestones we achieved in 2025, and then talk more broadly about the trajectory we see for the business as we move into 2026. Let me start with an overview of the year. We posted total company revenue of $547,000,000 with adjusted EBITDA of $73,200,000. I am pleased with how the organization executed throughout 2025, particularly against the backdrop of a market environment that required discipline, adaptability, and continued focus on operational performance. Across the board, our teams delivered consistent execution in the field, maintained strong alignment with customers, and supported the integration of new assets and capabilities that will position Ranger Energy Services, Inc. well for the long term. In the fourth quarter specifically, activity levels were generally consistent with our expectations. The market continued to reflect the same characteristics we have spoken about over the past several quarters: relatively stable demand, customers focused on high-quality service execution, and a continued emphasis on efficiency and cost management. Against that backdrop, Ranger Energy Services, Inc. continued to perform well. Our well service operations, wireline offerings, and ancillary services demonstrated solid utilization and maintained the margin profile we had built through disciplined pricing, cost control, and operational efficiency. Let me turn now to a few of the strategic initiatives that shaped the year. Starting with the American Well Services acquisition. We completed this transaction with a strategic intent to broaden our footprint, enhance scale, and strengthen our service offerings in the Permian Basin. I am pleased to report that the integration is progressing well. Our focus during the fourth quarter, and continuing into early 2026, has been on ensuring that the combined operations function cohesively, that our teams remain aligned with the expectations we established at the outset, and that our shared best practices are implemented efficiently. All of these areas have integration milestones that are on track and being achieved. The operational overlap continues to progress well, and we see nothing approximately 120 days into our combination that would derail our long-term synergy plans. We have maintained transparency with our teams and customers, and we have ensured continuity of service while beginning the process of capturing efficiencies that the combined platform enables. The AWS team has been collaborative, and their operational culture aligns well with Ranger Energy Services, Inc.’s emphasis on safety, efficiency, and reliability. The acquisition also strengthens our customer reach and enhances our competitive position. We are solidifying relationships with operators who value scale, responsiveness, and the ability to execute consistently. We continue to see opportunities to drive incremental value from this combination as we move through 2026, and we are encouraged by early results. The other strategic initiative that saw meaningful progress in 2025 was our ECO rig program, which has been one of the most exciting internal developments in our history. As many of you know, ECO represents a significant advancement in well technology—one that reduces emissions while also delivering greater overall control and safety on location. As we rolled out our first two ECO rigs in 2025, we continued to validate the platform's performance with customers, and the feedback has been very reassuring. As one example of the efficiencies of our ECO rigs, in the first 450 hours of deployment last year, one of our ECO rigs used less than 22 hours of generator power, with the balance coming from the onboard battery system being recharged through the regenerative capabilities of the rig. At the beginning of this year, we signed a contract for 15 ECO rigs to be built with a key operator in the Lower 48. This contract reflects a few important themes. First, customer interest remains strong. Operators are increasingly looking for ways to improve operational efficiency and safety on-site while also reducing emissions. ECO directly addresses those needs and provides a flexible platform that can work independently or leverage infield or coal power. Second, the platform is beginning to demonstrate real, measurable value. We have worked to quickly address any issues identified, and we are starting to quantify the operational efficiencies produced. The theme we continue to hear from operators is that the ECO platform is differentiated. We are still early in the broader adoption curve, but the pace is accelerating—faster than what we initially expected when we launched ECO. The pipeline of interest remains robust, and as customers gain more experience with this technology, we expect those conversations will continue to mature. ECO is one of the most meaningful strategic investments we have made as a company. We are excited about the momentum it continues to generate heading into 2026. Outside of the accomplishments on the growth side with AWS and ECO, our legacy core Ranger Energy Services, Inc. businesses have continued to perform well despite the headwinds that were present through most of 2025. Our high-spec rig fleet continued to benefit from operational consistency, steady workload, and disciplined labor management—areas that have long been strengths for Ranger Energy Services, Inc.—with holiday scheduling at year-end showing more resiliency than expected. Although our ancillary services segment performed well as a whole, the situation was more nuanced, with some service lines finding new growth avenues in the fourth quarter, while others contended with white space. Finally, our wireline services continued to navigate a challenged business environment in the fourth quarter. That said, we have seen recent signs of improvement and experienced a couple of key customer awards. We also maintained our commitment to capital discipline throughout the year and deployed capital in a balanced and deliberate manner, investing in opportunities that support our strategic goals while maintaining flexibility on the balance sheet. As Melissa will discuss in more detail later, our free cash flow generation allows us to both pursue growth opportunities and return meaningful capital to shareholders. In 2025, we used approximately $40,000,000 of our free cash flow towards the purchase of American Well Services, while also repurchasing nearly 1,000,000 of our own shares last year, which represents almost 5% of shares outstanding. This disciplined approach to capital deployment positions us well as we move into 2026, where we expect to continue generating healthy levels of cash while also supporting the rollout of our ECO fleet and completing the integration of AWS. Let me now touch briefly on the broader 2026 outlook. We expect the operating environment to remain generally stable and similar to 2025 from an activity level standpoint, making 2026 a year of execution and strategic evaluation. We will continue to integrate American Well Services, support our teams in the field, advance the rollout of the ECO platform, and explore opportunities to strengthen our service offerings where it aligns with our capabilities and our financial strategy. We will stay focused on the fundamentals: safety, efficiency, cost control, and customer service, and we will continue to make decisions that support long-term shareholder value. Despite expectations for a relatively flat 2026, there is reason to be excited about the future looking to 2027 and beyond. Our pro forma financial profile with the AWS acquisition gives us an annual EBITDA generation opportunity of more than $100,000,000 in 2026, with room far beyond in a supportive macro environment when commodity supply begins to tighten. By 2027, we expect to have 15 new ECO rigs operating in the Lower 48, and we believe more contracts for further rig deployments will be underway, providing for an ever more differentiated service offering with best-in-class assets. Over the next 18 to 24 months, we believe the U.S. onshore market will see activity improvement, and Ranger Energy Services, Inc. will be ready with high-quality assets to be deployed. Both oil and gas markets are seeing more incremental support than expected this year, even before geopolitical developments in the past seven days. Whether taking a near, medium, or long-term view, we will remain disciplined in our deployment of capital, ensuring long-term value creation. Before I hand things over to Melissa, I want to again thank the entire Ranger Energy Services, Inc. team for their hard work and commitment throughout 2025. The company delivered solid results through consistent execution, thoughtful decision-making, and strong discipline at every level of the organization. We have momentum entering 2026, and we are confident in our ability to continue building on that foundation. Our field personnel continue to be the heartbeat of this organization, and throughout 2025, our crews delivered safe, reliable, and efficient work for our customers in a variety of operating conditions. And our commitment is evident in the trust we continue to earn from operators across all service lines. As we have said before, Ranger Energy Services, Inc. differentiates itself through execution, and our teams continue to validate that every day. With that, I will turn the call over to Melissa to walk through our financial results.

Thanks, Stuart, and good morning, everyone. I will now take you through our financial results for the fourth quarter and full year 2025. Starting at the top line, revenue for the fourth quarter was $142,200,000, up from $128,900,000 in the third quarter and essentially flat with $143,100,000 reported in 2024. The sequential increase reflects higher activity in our High Specification Rigs and Processing Solutions and Ancillary Services segments brought about from a partial quarter of included AWS results. These increases were partially offset by continued softness in wireline. Breaking out the revenue by segment, High Spec Rigs generated $92,300,000 of revenue in the quarter, up meaningfully from $80,900,000 in the third quarter and up from $87,000,000 in 2024. Rig hours grew 16% sequentially to 128,500 hours in the quarter. Processing Solutions and Ancillary Services contributed $37,500,000 of revenue, representing a 22% sequential increase from Q3. This reflects both organic performance and the contribution of service lines acquired through the American Well Services transaction. Wireline Services revenue was $12,400,000, down from $17,200,000 in the third quarter and consistent with expectations given lower completed stage counts during the quarter. On the profitability side, net income for the fourth quarter was $3,200,000, or $0.14 per diluted share, compared to $1,200,000, or $0.05 per diluted share, in the prior quarter. Adjusted EBITDA for the quarter was $20,300,000, representing a 14.3% margin, compared to $16,800,000, or about 13%, in the third quarter and $21,900,000 in the fourth quarter of the prior year. The sequential improvement reflects stronger revenue and margins in our High Specification Rigs and Processing and Ancillary segments, partially offset by continued margin pressure in wireline. When looking to 2026, we did see heavy winter storm impact in January that will likely put our first quarter results largely in line with Q4, although early March activity levels give us confidence that our full year 2026 goals remain within reach. Turning to the full year, Ranger Energy Services, Inc. generated $546,900,000 of revenue compared to $571,100,000 in 2024. While modestly below last year, the result reflects consistent execution and a generally stable operating environment in our core business, with some softening in activity in specific service lines in wireline and ancillary segments. Full year adjusted EBITDA was $73,200,000, representing a 13.4% margin, compared to $78,900,000 and a 13.8% margin in 2024. From a segment perspective, full year financial results remain stable and aligned to the drivers we have outlined throughout the year. HSR continued to anchor our earnings profile with strong utilization and disciplined pricing. Processing and Ancillary delivered improved performance driven by the incremental contribution from the AWS acquisition. Wireline saw headwinds related to lower utilization and pricing and remains an opportunity set for Ranger Energy Services, Inc. in the future. Turning to CapEx, Ranger Energy Services, Inc. continues to invest capital in a disciplined and measured manner. Total capital expenditures for 2025 were $26,100,000, down from $34,100,000 in 2024. The year-over-year decrease reflects reduced growth spending, as 2024 included approximately $10,000,000 of growth-related CapEx. Growth capital in 2025 was deployed selectively and focused predominantly on the ECO rig deployments. We continue to employ the same rigorous return on capital screening for growth investments that have served us well for several years. Our full year 2026 pro forma financial profile of more than $100,000,000 of annual EBITDA remains supported with a highly disciplined approach to capital deployment. Maintenance CapEx is anticipated to be aligned with historical trends and run at approximately 4% to 5% of revenue. ECO CapEx will push that number higher this year, but recall that these contracts include provisions that include upfront CapEx in many cases that will result in deferred revenue and/or guaranteed hourly commitments in the future. We will call out specific ECO spend that is significant in future periods. Turning now to cash flow, which continues to be one of the most important elements of Ranger Energy Services, Inc.’s financial profile. For the full year 2025, cash provided by operating activities was $69,000,000 compared to $84,500,000 in 2024. The year-over-year decline reflects financial dynamics such as lower profitability in wireline, timing of working capital, and costs associated with integration activities. Free cash flow for the full year was $42,900,000, or $1.89 per share, compared to $50,400,000 in 2024. Our EBITDA-to-free-cash-flow conversion rate posted at nearly 60% for a third straight year in a row. This strong and consistent cash flow generation continues to be a hallmark of Ranger Energy Services, Inc.’s financial model and reflects disciplined operational execution and tight control over capital spending. In 2026, we expect that our free cash flow conversion rate will be closer to 50% as a consequence of the timing of ECO rig capital, and we will be transparent about those impacts and expectations as the year develops and as delivery and payment timing is more solidified. We also ended the year with $67,700,000 of total liquidity, consisting of $57,400,000 of availability on our revolving credit facility and $10,300,000 of cash on hand. We finished the year with $3,500,000 in outstanding borrowing. Ranger Energy Services, Inc. was able to optimize working capital through the end of the year and finish in an incredibly strong liquidity position. We do expect to see borrowings in the first quarter as we anticipate a working capital build as spring arrives and activity levels increase, coupled with typical labor costs unique to the first quarter. On the capital returns front, we take great pride in sharing that we returned over 40% of free cash flow to shareholders in 2025 through a combination of dividends and stock repurchases. During the year, we repurchased nearly 1,000,000 shares at an average price of $12.26, totaling $12,300,000. This capital return strategy continues to be an important part of our value creation framework and reflects our confidence in Ranger Energy Services, Inc.’s long-term cash generation capability. As we enter 2026, we remain focused on maintaining operational discipline, supporting the integration of AWS, pacing the deployment of our ECO fleet, and continuing our track record of consistent financial performance. With that, I will turn the call back over to Stuart.

Thanks, Melissa. As we close out the fourth quarter, I want to reflect on the progress we have made and the opportunities ahead. The acquisition of American Well Services is a clear example of our disciplined approach to growth. It is a transaction that enhances our scale, expands our service offerings, and strengthens our position. With AWS, we are not changing who we are. We are building on what we do best. Our integration plan is already in motion, and we are confident in our ability to execute. We have done this before, and we will do it again with measured urgency, precision, and a focus on creating value for our customers and shareholders. At the same time, our ECO Hybrid Electric Rig program continues to gain traction. These rigs represent the future of well servicing, and the AWS acquisition gives us a better platform upon which we can accelerate that future. We are committed to being the best well services provider in the Lower 48 on behalf of our customers, employees, and shareholders. Strong free cash flows and strong returns to investors remain our guiding principles, and we will continue to make our strategic decisions and allocate our capital with discipline and foresight. With our balance sheet in excellent shape, our integration playbook in action, and our technology roadmap expanding, I am more optimistic than ever about the next chapter for Ranger Energy Services, Inc. I want to thank our Ranger Energy Services, Inc. employees, customers, and shareholders for their partnership and commitment this past year. With that, operator, we will now open for questions.

We will now begin the question-and-answer session. The first question comes from Don Crist with Johnson Rice. Please go ahead.

Morning, guys. Hopefully, you all are doing well this morning.

Yeah. We are. Good morning, Don. How are you?

I am doing well. My first question is surrounding the ECO buildout and the conversations you are having with customers there. Just an update on how those conversations with other operators are going and, as a second step to that, what is the capability of your partners? Do you have a lot of capability there to put a lot more orders on the books? Just any comments around that.

Yeah. Thanks for the question. Obviously, very excited about the contract that we signed earlier in the year. We are in a couple of pretty advanced conversations. I think what we found historically is sometimes it takes a while and then it happens really fast. But we are having really, you know, kind of very productive conversations. As far as manufacturing, we have been working with our vendor pretty closely and feel like we can expand manufacturing if needed. I would highlight these are refurbs, and so there are some things that we can do on our side to streamline the process and increase throughput. So we do not feel like manufacturing should be a bottleneck for us. There are some long lead time items that we are pretty mindful of, but other than that, again, we feel like we can respond to the market demand.

That is reassuring. And I do not believe you mentioned it in your prepared remarks—I did want to touch on the plug and abandonment contract that you put in the press release. The comment about regulatory agencies, I do not know if you want to disclose who this contract is with, but if I remember correctly, this could probably expand your P&A fleet pretty significantly. Any comments around that?

Yeah. It is the Texas regulator, so it is public—you can look it up. What this is, Don, and I think one of the reasons we are excited about it and wanted to call it out in the script, is that these are for complex wells in particular. We really have been trying to position ourselves on some of the government P&A programs as a contractor of choice for some of the more complex P&As. And so that is really what this represents. And you are right. I think it is something that we think we have growth opportunity within this regulator and in other states as well.

Okay. And how many rigs do you think that is going to occupy? I mean, if I remember correctly, it was low single digits that were kind of dedicated to P&A in the past. Any kind of metrics around that?

Yeah. It is still kind of three-ish, plus or minus depending on the program at the moment. But certainly, if we needed to ramp it up, we could. But it is kind of low single digits right now. That is right.

Okay. And one for you, Melissa. As we kind of think about CapEx for the ECO rig program through the year, any kind of metrics around quarter-by-quarter dollar amounts that we could kind of put in the model?

So what I would say, Don—it is a very good question, that is part of my comments around it—we will let you know. A lot of it depends because there are progress milestone payments. You will see a little bit start to trickle in in the first half of the year, but the reality is most of that CapEx really starts to show up as we make milestones and we start to have deliveries month after month in the back half of the year. So I think we have got a long way to really organize how that flows. We have a model, but I also think we are too early in the build cycle to probably give hard guidance on that. That said, I think you will see light build in the first half of the year as just kind of some progress payments are made, but then it will really ramp up in the back half of the year. And just calling attention to the wording was pretty intentional when we said the conversion rate has deteriorated a bit this year on timing, because in some cases we have capital coming in from customers timed alongside this. So what you will see is—and I am just trying to get a sense of the complexity—you might see us lay out capital that ultimately ends up getting refunded to us further down the line too. But we will try to call that out each quarter to any degree it is material, which I suspect it will start to be material as well in 2026.

But it is safe to say that you should still build cash through the quarters, even with this CapEx?

Yes. I think the one thing we were calling out, Don, is Q1. There are a few things going on in Q1—actually less so on the ECO side, more just to do with seasonality and working capital builds. So I think you will not see cash start to really come in until Q2, Q3, Q4. But our guide right now is closer to a 50% conversion rate for the year, and most of that will show up, as is typical, in the later quarters of the year and not in Q1.

I appreciate the color. Thank you so much. I will turn it back.

Thanks for the question. Thanks, Don.

The next question comes from Derek Podhaizer with Piper Sandler. Please go ahead.

Good morning.

Good morning, Derek.

Patrick is my cousin. Sticking on the ECO rig buildout, should we think about the 15 rigs plus the two rigs under operation as far as maybe like a percentage of your fleet? And then where could this go if you continue to execute on additional contracts? And then also, are these all incremental rigs to the fleet, or are you replacing some of your older legacy assets? Just maybe some color on that as well.

Yes. I will try to take it in pieces. Obviously, we have the two in the field and a contract for 15 to 17. Right now, once they are deployed, that would be a little less than 10% of the active fleet, which does include some rigs that are constantly in refurb, repaint, maintenance, etc. As far as the conversations, I think it is really hard to put a number on it, and the reason I say that is that based on the conversations we are having, there is a scenario where it could be the same number again, but I think probably it looks like the next contract would be for less than 10, most likely. So that gives you a sense. And then I think depending how the next 18 to 24 months go, we do think there is longer-term demand for this. Remind me of your second question, sorry, Derek.

Just as far as incremental or replacement.

It is very customer dependent on that answer. I think for a lot of the ones that we are deploying right now, if there is not a change in the macro environment, they will do some replacement of existing rigs. I think what we had highlighted is that given who the customers are that are interested in ECO, the rigs that get displaced tend to be high-spec and very high-quality rigs, and so we are certainly thinking that they will find homes pretty quickly. That said, I think we want to be open and transparent that the first wave of ECO rigs will replace some of our existing rigs.

Right. That makes sense. That is helpful. And then how should we think about the earnings power with the ECO rig buildout? Just looking at your margins right now in High Spec, you are in the low 20s to end the year. As we move over the next 18 to 24 months and these start to become a bigger part of your rig mix, where could those margins start going to when we also start thinking about integrating AWS, and now with the buildout of ECO, how should we think about the margin profile?

It is a good question, Derek, and I would tell you we are still working on how that can come together. Again, you have a little bit of timing. Each one of these contracts sort of looks and flavors itself out differently. So in some cases where you would have a contract that has more upfront capital, we will have deferred revenue, which actually turns into amortization. So you are not going to get—even though we are getting probably pulled-forward returns—it is not going to be as readily obvious in margins because it will be an amortization item as opposed to a current revenue item and collection item. On the inverse side, where we get more hardcore rate uplift over the like, you will see margin uplift. So it is going to be a little bit of a mix of both coming through the pipeline. On the AWS side, what we are seeing is the best of operating leverage and the worst of operating deleverage, because what we saw, for example, in December, where we had a lot of good activity in utilization, we saw real margin expansion in just one single month. That said, the winter storm in February hit us hard, and we had the opposite effect. So I think we are still trying to get a better cadence and flow. I think there is margin to be expected this year. I just think it is too early to tell you that it is 200 bps or 100 bps or 300 bps. It is probably not 5%, though, I would tell you that.

Right. Right. Great. That is all helpful. Thank you. I will turn it back.

Thanks, Derek.

This concludes our question-and-answer session. I would like to turn the conference back over to Stuart Bodden for any closing remarks.

Thank you, operator. Thank you, everyone, for joining. Thank you for your interest in Ranger Energy Services, Inc., and have a great day and a great rest of the week. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.