Ranger Energy Services Reports Third-Quarter Decline
Shares of Ranger Energy Services saw a significant decrease after experiencing a drop in revenue and profit during the third quarter. This decline can be attributed to lower drilling activity within the oil and gas industry. As a result, the company's stock fell by 12% to $11.70 during Tuesday's trading session, although it has seen a 6.2% increase in shares this year.
Ranger Energy Services, headquartered in Houston, recorded a profit of $9.4 million, or 38 cents per share. This is a decrease from the $13.6 million, or 54 cents per share, that was reported during the same period last year. In terms of revenue, the company experienced a decline of 7.1%, with a total of $164.4 million generated. This fell short of the forecasted $169.4 million that analysts polled by FactSet had predicted.
CEO Stuart Bodden identified reduced onshore drilling and completions activity, as well as lower rig counts, as the primary factors impacting these results. Additionally, unexpected rig change outs also contributed to the decline in revenue and profit.
Ranger Energy Services has adjusted its revenue outlook accordingly and now expects to generate $630 million to $640 million in revenue. This is lower than the previous outlook of $660 million to $680 million. The company attributes this downward revision to decreased customer activity.
All Rights Reserved © 2024
Post a comment