Ranger Energy Services has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company intends to price its 5.0 million shares in the range of $16 to $18 per share, with an overallotment option for an additional 750,000 shares. At the maximum price, the entire offering is valued up to $103.5 million. The company intends to list its shares on the New York Stock Exchange under the symbol RNGR.
The underwriters for the offering Credit Suisse, Simmons, Wells Fargo, Barclays, Evercore ISI, Capital One Securities, Johnson Rice, Raymond James and Scotia Howard Weil.
This is one of the largest independent providers of high-specification well service rigs and associated services in the United States, with a focus on technically demanding unconventional horizontal well completion and production operations. Management believes that its fleet of 123 well service rigs (including 49 well service rigs to be acquired from ESCO) is among the newest and most advanced in the industry.
Ranger’s high-spec well service rigs facilitate operations throughout the lifecycle of a well, including: well completion support, such as milling out composite plugs used during hydraulic fracturing; workover, including retrieval and replacement of existing production tubing; well maintenance, including replacement of downhole artificial lift components; and decommissioning, such as plugging and abandonment operations.
The firm also provides rental equipment, including well control packages, hydraulic catwalks and other equipment that are often deployed with its well service rigs. In addition, Ranger owns and operates a fleet of proprietary, modular natural gas processing equipment that processes rich natural gas streams at the wellhead or central gathering points. It has operations in most of the active oil and natural gas basins in the United States, including the Permian Basin, the Denver-Julesburg Basin, the Bakken Shale, the Eagle Ford Shale, the Haynesville Shale, the Gulf Coast and the SCOOP and STACK plays.
Ranger intends to use the net proceeds to fully repay and terminate the Ranger Line of Credit and the Ranger Note and enter into a new credit agreement providing for a $50.0 million credit facility. The remainder will be put toward working capital and general corporate purposes. Also the firm will not receive proceeds from the sale of shares by selling stockholders.