Financial Analysis

Note 4 Business Combination The Company completed one acquisition in the fourth quarter of 2025, which was accounted for using the acquisition method of accounting under the FASB Accounting Standards Codification 805, Business Combinations (ASC 805). The results of operations for the acquisition are included in the accompanying Condensed Consolidated Statement of Operations from the date of the acquisition. Under the acquisition method of accounting, the assets acquired and liabilities assumed have been recorded at their respective estimated fair values as of the date of completion of the acquisition and reported in Rangers Condensed Consolidated Balance Sheet. The Company utilized valuation techniques consistent with the market approach to measure the fair value of the assets acquired and liabilities assumed in the business combination. The Companys market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The estimates of fair value required the use of significant unobservable inputs, representative of a Level 3 fair value measurement, including assumptions related to the future performance of the assets. American Well Intermediate Holdings, LLC Acquisition On November 7, 2025 (the Acquisition Date), the Company entered into a Membership Interest Purchase Agreement (the Purchase Agreement) with American Well Holdings, LLC to acquire 100% of the ownership interests of American Well Intermediate Holdi …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Note 16 Commitments and Contingencies Legal Matters From time to time, the Company is involved in various legal matters arising in the normal course of business. The Company does not believe that the ultimate resolution of these currently pending matters will have a material adverse effect on its condensed consolidated financial position or results of operations. We maintain insurance policies with insurers in amounts and with coverage and deductibles that we, with the advice of our insurance advisers and brokers, believe are reasonable and prudent. We cannot, however, assure you that this insurance will be adequate to protect us from all material expenses related to potential future claims for personal injury and property damage or that these levels of insurance will be available in the future at economical prices. Earnout Obligations Related to Business Combination In connection with the Companys acquisition of AWS, the Company included in the Purchase Agreement a contingent consideration arrangement that provides for potential future cash payments to the sellers based on the achievement of specified post-acquisition performance targets during the 12 months following the Acquisition Date. The contingent consideration obligation is recorded at fair value and remeasured each reporting period, with changes in fair value recognized in earnings. During the six months ended June 30, 2026, the fair value of the contingent consideration increased by $0.7 million. As of June 30, 20 …

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Note 12 Equity Equity-Based Compensation In 2017, the Company adopted the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan (the 2017 Plan). The Company has granted shares of restricted stock (restricted shares or RSAs), restricted stock units (restricted units or RSUs), and performance-based restricted stock units (performance stock units or PSUs) under the 2017 Plan. Restricted Stock Awards The Company has granted RSAs, which generally vest in three equal annual installments beginning on the first anniversary date of the grant. No RSAs were granted during 2026 or 2025. As of June 30, 2026, there was an aggregate of $0.8 million of unrecognized expense related to RSAs issued, which is expected to be recognized over a weighted average period of 0.7 years. Restricted Stock Units Beginning in 2025, the Company stopped issuing RSAs and began issuing RSUs to certain employees in lieu of RSAs. These employee RSUs generally vest in three equal annual installments beginning on the first anniversary date of the grant. In addition, the Company began granting RSUs in 2024 to certain non-employee directors, which vest on the first anniversary of the date of the grant. During the six months ended June 30, 2026, the Company granted approximately 324,400 RSUs to employees with an approximate aggregate value of $5.5 million and 22,500 RSUs to non-employee directors with an aggregate value of $0.4 million. During the six months ended June 30, 2025, the Company granted approximately …

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Note 7 Intangible Assets, Net Definite lived intangible assets are comprised of the following (in millions): Estimated Useful Life (Years) June 30, 2026 December 31, 2025 Customer relationships 10-18 $ 11.4 $ 11.4 Less: accumulated amortization (6.9) (6.5) Intangible assets, net $ 4.5 $ 4.9 Amortization expense was $0.2 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively and $0.4 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively. Amortization expense for the future periods is expected to be as follows (in millions): For the twelve months ending June 30, Total 2027 $ 0.7 2028 0.6 2029 0.5 2030 0.5 2031 0.5 Thereafter 1.7 Total $ 4.5 …

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"Note 14 Income Taxes Effective Tax Rate The Company is a corporation and is subject to U.S. federal income tax. The Company uses an estimated annual effective tax rate for purposes of determining the income tax provision during interim reporting periods. In calculating the estimated annual effective tax rate, the Company considers forecasted annual pre-tax income and estimated permanent book versus tax differences. Adjustments to the effective tax rate and other income tax related estimates could occur during the year as information and assumptions change which could include, but are not limited to, changes to forecasted amounts, estimates of permanent book versus tax differences, and changes to tax laws and rates. The effective U.S. federal income tax rate applicable to the Company for the six months ended June 30, 2026 and 2025 was 30.8% and 25.0%, respectively. The Company is subject to the Texas Margin Tax, which requires tax payments at a maximum statutory effective rate of 0.75% on the taxable margin of each taxable entity that does business in Texas. On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (""OBBBA""). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. ASC 740, Income Taxes , requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the l …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 9 Leases Operating Leases The Company has operating leases, primarily for real estate and equipment, with terms that vary from one to nine years, included in operating lease costs in the table below. The operating leases are included in Short-term lease liability and Long-term lease liability in the Condensed Consolidated Balance Sheets. Lease costs associated with yard and field offices are included in cost of services and executive offices are included in general and administrative costs in the Condensed Consolidated Statements of Operations. Lease costs and other information related to operating leases for the three and six months ended June 30, 2026 and 2025, are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Short-term lease costs $ 3.8 $ 3.5 $ 7.8 $ 7.2 Operating lease costs $ 1.3 $ 0.8 $ 2.0 $ 1.6 Operating cash outflows from operating leases $ 1.3 $ 0.8 $ 2.1 $ 1.7 Weighted average remaining lease term 5.0 years 2.3 years Weighted average discount rate 6.8 % 8.1 % As of June 30, 2026, aggregate future minimum lease payments under operating leases are as follows (in millions): For the twelve months ending June 30, Total 2027 $ 3.9 2028 1.8 2029 1.3 2030 1.1 2031 3.7 Total future minimum lease payments 11.8 Less: amount representing interest (1.8) Present value of future minimum lease payments 10.0 Less: current portion of operating lease obligations (3.4) Long-term portion of operating lease obligations $ 6.6 On …

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Note 11 Debt Wells Fargo Bank, N.A. Credit Agreement On May 31, 2023, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A., providing the Company with a secured credit facility (Wells Fargo Revolving Credit Facility) in an aggregate principal amount of $75.0 million. Debt under the Credit Agreement is secured by a lien on substantially all of the Companys assets. The Company was in compliance with the Credit Agreement covenant of maintaining a Fixed Charge Coverage Ratio (FCCR) of greater than 1.0 as of June 30, 2026, which is applicable only under certain borrowing levels. The Company has up to $5.0 million available under the Wells Fargo Revolving Credit Facility for letters of credit, subject to assignment. As of June 30, 2026, Letters of Credit outstanding totaled $4.2 million. These Letters of Credit are primarily to be utilized for working capital, general corporate purposes, and to support the Companys insurance programs, and have been amended periodically in connection with the annual insurance renewals. The interest rate applicable to the Letters of Credit was approximately 1.8% for the month ended June 30, 2026. The Wells Fargo Revolving Credit Facility is available to fund working capital and other general corporate expenses and for other permitted uses, including the financing of permitted investments and restricted payments, such as dividends and share repurchases. The Wells Fargo Revolving Credit Facility is subject to a borrowing base that is …

LongTermDebtTextBlock · excerpt; the full note is in the filing

New Accounting Pronouncements Recently adopted accounting standards In July 2025, the FASB issued Accounting Standards Update No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The Company adopted ASU 2025-05 effective January 1, 2026 and elected to apply the guidance prospectively. Based on the short-term nature of the Companys accounts receivable and contract assets, historical loss experience, and current credit risk management practices, the adoption of ASU 2025-05 did not have a material impact on the Companys consolidated financial statements or related disclosures. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). The guidance in ASU 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amo …

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Note 3 Revenue Revenue Recognition The Company recognizes revenue when control of the promised services is transferred to its customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services. Revenue is generally recognized over time as services are performed. Certain of the Companys customer agreements related to the construction and operation of hybrid rigs (ECHO Rigs) contain lease and non-lease components. The Company has elected the lessor practical expedient under ASC 842, Leases to account for the lease and associated non-lease components as a single combined component because the timing and pattern of transfer of the components are the same and the lease components, if accounted for separately, would be classified as operating leases. Because the non-lease components are predominant, the combined components are accounted for as single performance obligations under ASC 606. Certain ECHO Rig agreements include upfront customer contributions and contractual hourly surcharges. Revenue associated with the customer contributions and contractual surcharges is recognized over time as the related rig services are performed, generally based on rig hours. All revenue associated with the ECHO Rig agreements is included in the High Specification Rigs segment. Revenue disaggregated by reportable segment is presented in Note 17 Segment Reporting. Contract Balances Accounts receivable represent unconditional rights t …

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Note 17 Segment Reporting The Companys operations are located in the United States and organized into three reportable segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The balances included in Other reflect other general and administrative costs, which are not directly attributable to High Specification Rigs, Wireline Services, or Processing Solutions and Ancillary Services. The reportable segments comprise the structure used by the Chief Operating Decision Maker (CODM) to make key operating decisions and assess performance during the years presented in the accompanying Consolidated Financial Statements. The Chief Executive Officer is regarded as the Companys CODM. The primary profitability measurement used by the CODM to review segment operating results is Adjusted EBITDA. We define Adjusted EBITDA as net income or loss before net interest expense, income tax expense, depreciation and amortization, equity-based compensation, acquisition related costs, severance and reorganization costs, gain on sale of assets, significant and unusual legal fees and settlements, impairment of assets, employee retention credit, adjustment to contingent consideration, and certain other non-cash and certain other items that we do not view as indicative of our ongoing performance. The CODM uses Adjusted EBITDA as the primary measure of segment profitability to assess segment performance and monitor period-over-period, forecast-to-actual and pl …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 18 Subsequent Events On July 27, 2026, the Board of Directors declared a quarterly cash dividend of $0.06 per share payable August 21, 2026 to common stockholders of record at the close of business on August 7, 2026. The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Companys debt agreements and other factors. There can be no assurance that we will pay a dividend in the future. The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date the financial statements were issued. Based upon this review, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the financial statements. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing