Lower drilling activity and unexpected rig change outs impact profits

  • Ranger Energy Services shares dropped 12% after 3Q revenue and profit fell
  • Lower drilling activity and unexpected rig change outs affected results
  • Revenue fell 7.1% to $164.4 million, missing analyst forecasts
  • Ranger now expects lower revenue of $630 million to $640 million

Shares of Ranger Energy Services fell 12% after the company reported a drop in third-quarter revenue and profit. The Houston-based oil and gas industry services company recorded a profit of $9.4 million, down from $13.6 million in the same period last year. Revenue also fell 7.1% to $164.4 million, missing analyst forecasts. Chief Executive Stuart Bodden attributed the decline to reduced onshore drilling and completions activity, as well as lower rig counts. Unexpected rig change outs further impacted the company’s results. As a result, Ranger now expects lower revenue of $630 million to $640 million, compared to its previous outlook of $660 million to $680 million.

Public Companies: Ranger Energy Services (Unknown)
Private Companies:
Key People: Stuart Bodden (Chief Executive)

Factuality Level: 7
Justification: The article provides specific information about the decrease in revenue and profit for Ranger Energy Services due to lower drilling activity. It also includes quotes from the Chief Executive explaining the reasons for the decline. The article mentions the stock price decrease and provides information about the company’s revised revenue outlook. However, it does not provide any additional context or analysis, and it does not include any opposing viewpoints or potential factors that could have contributed to the decline.

Noise Level: 3
Justification: The article provides relevant information about Ranger Energy Services’ third-quarter revenue and profit drop due to lower drilling activity. It includes specific figures and quotes from the Chief Executive. However, it lacks in-depth analysis, scientific rigor, and actionable insights. The article stays on topic and supports its claims with data and examples.

Financial Relevance: Yes
Financial Markets Impacted: Oil and gas industry

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Ranger Energy Services, an oil and gas industry services company. The drop in revenue and profit is attributed to lower drilling activity, reduced onshore drilling and completions activity, lower rig counts, and unexpected rig change outs. The company also lowered its revenue guidance due to lower customer activity. However, there is no mention of any extreme event or its impact.