RNGR - Ranger Energy Services Steadies On Focused Growth Strategy
2024-02-05 03:15:48 ET
Summary
- Ranger Energy Services has limited room for growth due to weak natural gas prices and lower utilization leading to higher labor costs.
- The company has found some solutions to its challenges, including selective bidding and focusing on production-oriented wireline jobs.
- Despite the challenges, RNGR has achieved strong cash flows and has sufficient liquidity, making the stock appear undervalued compared to its peers.
Ranger Has Limited Room For Growth
My last article on Ranger Energy Services ( RNGR ) discussed why the company relocated its assets and crews to the Permian from Haynesville due to weak natural gas prices. In late 2023, the natural pricing softness continued to haunt it. It caused lower utilization, leading to higher labor costs. But the company has also found a few suitable answers to its challenges. Selective bidding and focusing on production-oriented wireline jobs improved its prospects. It also expanded the wireline business and relied on the resilient high-specification rig business to generate steady cash flows....
Ranger Energy Services Steadies On Focused Growth Strategy