Ranger Energy Services Inc (RNGR) 2025 Q1 法說會逐字稿

Good day and welcome to the Ranger Energy first quarter of 2025 conference call.

大家好，歡迎參加 Ranger Energy 2025 年第一季電話會議。

(Conference Instructions)

（會議指示）

I would now like to turn the call over to Joe Meath, Vice President of Finance. Please go ahead, sir.

現在我想將電話轉給財務副總裁喬‧米斯 (Joe Meath)。先生，請繼續。

Thank you and welcome to Ranger Energy Services first quarter 2025 results conference call. Ranger has issued a press release outlining our operational and financial performance for the three months ended March 30, 2025.

感謝您，歡迎參加 Ranger Energy Services 2025 年第一季業績電話會議。Ranger 發布了一份新聞稿，概述了我們截至 2025 年 3 月 30 日的三個月的營運和財務表現。

The press release and accompanying presentation materials are available at the investor relations section of our website at www.rangerEnergy.com. Today's discussion may contain forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission.

新聞稿及隨附的簡報資料可在我們網站 www.rangerEnergy.com 的投資者關係板塊取得。今天的討論可能包含關於未來業務和財務預期的前瞻性陳述。由於各種風險和不確定性，包括我們向美國證券交易委員會提交的定期報告中所述的風險，實際結果可能與今天的前瞻性陳述中預測的結果有很大差異。

Except as required by law, we undertake no obligation to update our forward-looking statements. Further, please note that non-GAAP financial measures will be referenced during this call. A full reconciliation of GAAP to non-GAAP measurements is available in our latest quarterly earnings release and conference call presentation.

除法律要求外，我們不承擔更新前瞻性聲明的義務。此外，請注意，本次電話會議將參考非公認會計準則財務指標。我們最新的季度收益報告和電話會議報告中提供了 GAAP 與非 GAAP 衡量標準的完整對帳。

With that, I would now like to turn the conference call over to our CEO Stuart Bodden and our CFO Melissa Cougle for their prepared remarks.

現在，我想將電話會議交給我們的執行長 Stuart Bodden 和財務長 Melissa Cougle，請他們發表準備好的演講。

Thanks, Joe. Good morning, everyone, and thank you for joining us today to discuss our first quarter results.

謝謝喬。大家早安，感謝大家今天加入我們，討論我們的第一季業績。

The past couple of months have brought about a new level of uncertainty into the global economy and the oil and gas industry. In the midst of market volatility Ranger continues to stand out among small cap oil service companies for its ability to be resilient for the cycle. But for durability, our business has always and will continue to benefit from a production-oriented focus and a fortress balance sheet.

過去幾個月為全球經濟和石油天然氣產業帶來了新的不確定性。在市場波動中，Ranger 憑藉其對週期的適應能力繼續在小型石油服務公司中脫穎而出。但就持久性而言，我們的業務始終並將繼續受益於以生產為導向的重點和堡壘資產負債表。

Having been through many cycles, we have been very intentional in building this business for the long term. Making tough choices to preserve strength and optionality in all of our business lines. Because we operate conservatively in strong markets, we can act decisively during downturns, allocating capital in ways that drive long term shareholder value. As we report our first quarter's results and look ahead to the remainder of 2025. We remain steadfast in our conviction that Ranger is a differentiated oilfield services business.

經歷了多個週期後，我們一直致力於長期發展這項業務。做出艱難的選擇以保持我們所有業務線的優勢和選擇性。由於我們在強勁的市場中採取保守的經營方式，因此我們可以在經濟低迷時期果斷採取行動，以推動長期股東價值的方式分配資本。我們報告第一季的業績並展望 2025 年剩餘時間。我們堅信，Ranger 是一家差異化的油田服務公司。

During the first quarter, despite the typical impacts of weather and seasonality, we reported significant improvements year over year and Adjusted EBITDA and margin, led once again by the strength of our high specification risks business. We reported revenue of $135.2 million and Adjusted EBITDA $15.5 million achieving a margin of 11.4%, a significant improvement over the same period last year.

在第一季度，儘管受到天氣和季節性的典型影響，但我們報告的調整後 EBITDA 和利潤率同比仍有顯著改善，這再次得益於我們高規格風險業務的強勁表現。我們報告的收入為 1.352 億美元，調整後 EBITDA 為 1,550 萬美元，利潤率為 11.4%，與去年同期相比有顯著提高。

While first quarters are often impacted by seasonality, this year brought two polar vortex events in January and February, followed by March windstorms. Still, our core business line delivered, and we achieved strong operational and financial results. We talk about our production focus all the time, but it's worth emphasizing again why this is so important during market turbulence. We often use the analogy that we are the mechanics, not the car manufacturer. Our services are critical to maximizing production, which our customers' lowest cost incremental barrel.

雖然第一季通常會受到季節性的影響，但今年 1 月和 2 月出現了兩次極地渦旋事件，3 月又出現了風暴。儘管如此，我們的核心業務線仍然取得了良好的業績，並取得了強勁的營運和財務業績。我們一直在談論我們的生產重點，但值得再次強調為什麼這在市場動盪期間如此重要。我們常打個比方說，我們是機械師，而不是汽車製造商。我們的服務對於最大化產量至關重要，從而為我們的客戶提供成本最低的增量桶。

When commodity prices force difficult decisions, it's capital expenditure budgets, to which we have limited exposure that typically get trimmed first. Over the past two years, Ranger has bucked the trend of the typical E&D consolidation outcome that two plus two equals three. Posting material growth in the face of major operator consolidation and benefiting from scale and exposure across basins as other vendors were rationalized. All of this was achieved during declining drilling rig and frac spread counts.

當大宗商品價格迫使我們做出艱難決定時，我們通常首先削減的是資本支出預算，而我們在這方面的投資有限。在過去的兩年裡，Ranger 打破了典型的 E&D 合併結果（二加二等於三）的趨勢。在主要營運商整合的情況下實現材料成長，並隨著其他供應商的合理化而受益於規模和跨盆地的曝光。所有這些都是在鑽井平台和壓裂擴展數量下降的情況下實現的。

The high specification R segment recorded its fifth consecutive quarter of revenue growth driven by consistent Rick hours and a higher funded rate. Margins were slightly down quarter over quarter due to weather but increased by 280 basis points over the prior year period. We expect the stability and resiliency of the business to continue throughout the year despite the noise from the broader market.

高規格 R 部門連續第五個季度實現收入成長，這得益於穩定的 Rick 工作時間和更高的融資利率。由於天氣原因，利潤率環比略有下降，但比去年同期增加了 280 個基點。儘管市場大環境不穩定，我們預期全年業務仍將保持穩定和彈性。

Our customer base includes some of the largest operators in the world working in some of the highest quality oil and gas assets in the world. We have stayed and will continue to stay in close communication with them regarding their well intervention programs and the current commodity price environment. Although some customers are making contingency plans for reduced activity in a lower for longer commodity price scenario, today, we have not seen material reductions in the well services production space. Ancillary services also continues to be a bright spot for Ranger.

我們的客戶群包括一些世界上最大的營運商，他們經營著世界上一些最優質的石油和天然氣資產。我們一直並將繼續與他們保持密切溝通，了解他們的井下作業計劃和當前的商品價格環境。儘管一些客戶正在製定應急計劃，以應對長期商品價格較低的情況下的活動減少，但今天，我們還沒有看到油井服務生產領域的實質減少。輔助服務也繼續成為 Ranger 的一大亮點。

Its performance pulled back modestly from the last quarter due to seasonality, but increased substantially from the first quarter of 2024. Revenue increased by 25% from the prior year period with Adjusted EBITDA more than doubling and margins remaining in the high [10%]. As I have highlighted in the last couple of quarters, Torrent our gas capture and processing platform, is a standout performer. Compared to the same period last year, revenues quadrupled and with very strong fall through, with margins now solidly between 25% and 30% monthly.

由於季節性因素，其業績較上一季略有回落，但較 2024 年第一季大幅成長。營收較上年同期成長 25%，調整後 EBITDA 成長一倍以上，利潤率維持高位[10%]。正如我在過去幾季所強調的那樣，我們的天然氣捕獲和處理平台 Torrent 表現出色。與去年同期相比，營收成長了四倍，而且降幅非常大，利潤率目前穩定在每月 25% 至 30% 之間。

We are pleased with the demand for this service and continue to evaluate opportunities to put additional resources behind this segment in 2025. Our rentals and P&A service lines both showed continuing strong margin performance and have developed the ability over the past couple of years to respond more quickly to activity pullbacks to minimize margin degradation. Our wireline units struggled in the first quarter as completion activity in the north stagnated due to the severe weather, reporting negative Adjusted EBITDA of $2.3 million which weighed on our consolidated performance.

我們對這項服務的需求感到滿意，並將繼續評估在 2025 年為該領域投入更多資源的機會。我們的租賃和 P&A 服務線均表現出持續強勁的利潤率表現，並且在過去幾年中已經培養了對活動回調做出更快反應的能力，以最大限度地減少利潤率的下降。由於惡劣天氣導致北部地區完工活動停滯，我們的有線部門在第一季陷入困境，報告的調整後 EBITDA 為負 230 萬美元，這給我們的綜合業績帶來了壓力。

Our January and February performance was our most challenged to date. However, we did post positive margins in March and looked to be building on that again in April. We made an additional round of adjustments to the organization to align the cost structure of this segment with the market conditions, along with redeployment of assets into both the conventional wireline space and to our plugging and abandonment business to meet increasing customer demands. We believe this will be a benefit over the longer term. And demonstrates our flexible equipment base that can work across our various business segments.

我們一月和二月的表現是迄今為止最具挑戰性的。然而，我們確實在三月實現了正利潤，並希望在四月再次保持這一水平。我們對組織進行了新一輪調整，使該部門的成本結構與市場條件保持一致，同時將資產重新部署到傳統有線領域以及封鎖和廢棄業務中，以滿足日益增長的客戶需求。我們相信從長遠來看這將是有益的。並展示了我們可在各個業務部門工作的靈活設備基礎。

Turning now to our strategic priorities, I would like to spend a few minutes addressing the current market environment and the potential impacts to Ranger's business. While the macroeconomic environment is currently being impacted by a number of factors, including the current tariff situation. It is not possible to accurately determine the impact to our business, and our guidance remains the same in the absence of concrete data to indicate otherwise.

現在談談我們的策略重點，我想花幾分鐘時間談談當前的市場環境及其對 Ranger 業務的潛在影響。目前宏觀經濟環境正受到多種因素的影響，包括當前的關稅情勢。我們無法準確地確定對我們業務的影響，並且在沒有具體數據表明其他影響的情況下，我們的指導保持不變。

Today we've had very limited impact, and our customers largely remain in a holding pattern for now. The market share gains we've experienced through customer consolidation have allowed us to deepen our relationship with the strongest operators holding the best acreage in the lower 48, and these operators have given us every indication that they plan to continue using Ranger as a preferred provider.

今天我們受到的影響非常有限，我們的客戶基本上目前仍處於等待狀態。透過客戶整合，我們的市場份額不斷增加，這使我們能夠加深與美國本土 48 個州中擁有最佳土地面積的最強大運營商的關係，這些運營商已向我們表明，他們計劃繼續將 Ranger 作為首選供應商。

In each of our calls, we reaffirm our strategic priorities since they do not change. Our goals always are to maximize free cash flow, prioritize shareholder returns, defend the balance sheet, and grow through disciplined, accretive M&A. These priorities are never more important than in an uncertain market. We are inherently able to maximize cash flow because of the light capital intensity of our assets.

在每次通話中，我們都會重申我們的策略重點，因為它們不會改變。我們的目標始終是最大化自由現金流、優先考慮股東回報、維護資產負債表並透過有紀律的增值併購實現成長。在市場不確定的情況下，這些優先事項最為重要。由於我們的資產資本密集度較低，我們本質上能夠最大化現金流。

Our CapEx expend in Q1 reflected strategic investments to enhance our service offerings to major customers, which increases customer loyalty and brings consistent margins. We will be particularly judicious with incremental CapEx in the coming quarters since it's important to us to maximize our capital allocation and flexibility. We remain convicted in our capital return strategy and announced a 20% increase to the dividend last quarter to $0.06 per share, again affirming that commitment today in this quarter's announcement.

我們第一季的資本支出反映了策略性投資，旨在增強我們為主要客戶提供的服務，從而提高客戶忠誠度並帶來穩定的利潤率。在未來幾個季度，我們將特別謹慎地增加資本支出，因為對我們來說，最大化資本配置和靈活性非常重要。我們仍然堅信我們的資本回報策略，並宣布上個季度股息增加 20% 至每股 0.06 美元，今天在本季度的公告中再次確認了這一承諾。

Capital returns to regressive share buybacks at compelling valuations were an important part of our strategy for value creation in 2024, and this buyback strategy remains an important tool in the toolkit in 2025 to maximize returns. Our cash flows not only allow for optimizing capital returns, but we can also maintain balance sheet strength that is far beyond that of any other peer. As of March 30, first, Ranger had zero long-term debt, $104.4 million of liquidity, and $40 million of cash on hand.

以有吸引力的估值進行回歸股票回購的資本回報是我們 2024 年價值創造策略的重要組成部分，而這種回購策略仍然是 2025 年工具包中實現回報最大化的重要工具。我們的現金流不僅可以優化資本回報，而且還可以保持遠遠超過任何其他同業的資產負債表實力。截至 3 月 30 日，首先，Ranger 的長期債務為零，流動資金為 1.044 億美元，現金為 4,000 萬美元。

Finally, we continue to evaluate opportunities to grow that are both strategic and accretive. The bid out spread has remained an obstacle, but as market conditions evolved, we see potential for actionable opportunities. With our financial strength and public currency. Ranger continues to be an ideal natural consolidator with a proven track record on the integration front.

最後，我們持續評估具有策略性和增值性的成長機會。競價價差仍然是一個障礙，但隨著市場條件的發展，我們看到了可行的機會的潛力。憑藉我們的財力和公共貨幣。Ranger 繼續成為理想的天然整合者，在整合方面擁有良好的業績記錄。

We believe Ranger is a safe haven during these uncertain times and that there is no other small cap willful services company that comes close to offering the free cash flow, shareholder returns, and balance sheet strength that we do. Our confidence isn't rooted in the call market. It's built on a track record of disciplined execution and a shareholder focused strategy. In short, Ranger is a durable high return business designed to perform through the cycle.

我們相信，Ranger 是這些不確定時期的安全港，沒有其他小型自願服務公司能夠提供像我們這樣的自由現金流、股東回報和資產負債表實力。我們的信心並非根植於呼叫市場。它建立在嚴格的執行記錄和以股東為中心的策略之上。簡而言之，Ranger 是一家旨在在整個週期內表現出色的持久高回報企業。

Melissa will now review our quarterly financials.

梅麗莎現在將審查我們的季度財務狀況。

Thanks, Stuart, and good morning, everyone. To reiterate the themes that Stuart mentioned, High Spec Rigs continued to exceed expectations with consistent revenue growth and operational stability. We are pleased with our first quarter results in High Spec Rigs and ancillary, both of which maintained higher margins in the face of unusually severe winter weather, holding margins higher than typical for Q1, and our production focus is a clear differentiator in the services industry.

謝謝，斯圖爾特，大家早安。重申史都華提到的主題，高規格鑽孔機繼續超出預期，收入持續成長，營運穩定。我們對高規格鑽機和輔助設備第一季的業績感到滿意，在異常嚴酷的冬季天氣下，這兩款產品都保持了較高的利潤率，利潤率高於第一季的正常水平，而且我們的生產重點在服務業中是一個明顯的差異化因素。

Revenue for the first quarter was $135.2 million down from $143.1 million in the fourth quarter, affected by unusually strong winter weather. The first quarter of revenue was down slightly from $136.9 million in the first quarter of 2024. This was due exclusively to the wire line segment with both high spec rigs and ancillary segment revenues growing materially year-over-year. Adjusted EBITDA increased 42% year-over-year to $15.5 million. Quarter over quarter sequential declines were experienced as a consequence of the winter weather events and heavier costs that are carried in the first quarter, such as payroll taxes.

受異常寒冷的冬季天氣影響，第一季營收為 1.352 億美元，低於第四季的 1.431 億美元。第一季的營收較 2024 年第一季的 1.369 億美元略有下降。這完全歸功於電纜部門的高規格鑽孔機和輔助部門收入較去年同期大幅成長。調整後 EBITDA 年增 42% 至 1550 萬美元。由於冬季天氣事件和第一季的工資稅等成本增加，導致季度環比下降。

As we emerge from the winter months, we expect margins to return to mid-teen levels. We also posted free cash flow during the quarter of $3.4 million or $0.15 a share. Turning to segment results, High Spec Rigs reported revenue of $87.5 million. Margins compressed slightly from 21.7% to 19.9% quarter over quarter due to typical elevated first quarter costs such as elevated labor carrying costs during winter.

隨著冬季的結束，我們預計利潤率將恢復到十幾歲的水平。本季我們也實現了 340 萬美元或每股 0.15 美元的自由現金流。談到分部業績，High Spec Rigs 報告的收入為 8,750 萬美元。由於第一季成本普遍增加（例如冬季勞動力成本增加），利潤率環比略有下降，從 21.7% 降至 19.9%。

High Spec Rigs reported adjusted Ibiza of $17.4 million an increase of 28% from the first quarter of 2024. Ancillary services segment revenue was $30.5 million, up $6.1 million or 25% from the first quarter of 2024, while down slightly from the fourth quarter. Our plug-in abandonment and coiled tubing service lines saw a slower start in depressed activity levels compared to the fourth quarter at the start of the year, but we expect those to rebound to historical levels through the remainder of this year pending market conditions.

High Spec Rigs 報告稱，調整後的 Ibiza 收入為 1,740 萬美元，較 2024 年第一季成長 28%。輔助服務部門收入為 3,050 萬美元，比 2024 年第一季增加 610 萬美元（25%），但比第四季略有下降。與年初第四季相比，我們的插件廢棄和連續油管服務線的活動水平起步較慢，但我們預計，根據市場情況，這些活動水平將在今年剩餘時間內反彈至歷史水平。

These service lines were nonetheless stronger when compared to the prior year period. Adjusted even for the quarter was $5.6 million up $3.1 million from the first quarter of 2024, and down $2.4 million from the fourth quarter. Wireline revenue for the quarter was $17.2 million a decrease of $5.4 million or 24% compared to $22.6 million in the fourth quarter, and down 48% compared to $32.8 million in the first quarter of 2024.

儘管如此，與去年同期相比，這些服務線更加強勁。本季調整後為 560 萬美元，比 2024 年第一季增加 310 萬美元，比第四季減少 240 萬美元。本季有線營收為 1,720 萬美元，與第四季的 2,260 萬美元相比減少 540 萬美元（降幅 24%），與 2024 年第一季的 3,280 萬美元相比下降 48%。

Adjusted EBITDA turned negative during the quarter for wireline, given the significant weather reporting an EBITDA loss of $2.3 million. We are constantly responding to market conditions in this segment, and our efforts in January and February yielded positive margins in March that are expected to continue in the next couple of quarters, during which time we will evaluate the broader market conditions and optionality for this segment.

由於惡劣天氣的影響，本季有線業務的調整後 EBITDA 變為負值，EBITDA 損失達 230 萬美元。我們一直在對該領域的市場狀況做出反應，我們在一月和二月的努力在三月份取得了正利潤，預計這種狀況將在接下來的幾個季度繼續下去，在此期間，我們將評估該領域的更廣泛的市場狀況和可選性。

The balance sheet remains a distinct advantage at the end of the first quarter, we had $104.4 million of liquidity, consisting of $64.1 million of capacity on a revolving credit facility and $40.3 million of cash on hand. We have zero net debt and have prioritized pay down historically to maintain maximum optionality. Our financial strength allows us to make smart capital allocation decisions for the long-term benefit of our shareholders.

資產負債表在第一季末仍然具有明顯的優勢，我們擁有 1.044 億美元的流動資金，其中包括 6,410 萬美元的循環信貸額度和 4,030 萬美元的現金。我們的淨債務為零，並且歷來優先償還債務以保持最大程度的選擇權。我們的財務實力使我們能夠做出明智的資本配置決策，從而為股東帶來長期利益。

We did spend $7.2 million in the first quarter on equipment, with some capital investment directed towards modernizing our rate fleet and enhancing customer offerings which we expect will support future margin expansion. These investments have the added benefit of strengthening customer relationships and solidifying Ranger as the well-serviced vendor of choice for our customers.

我們在第一季確實花費了 720 萬美元購買設備，其中一些資本投資用於更新我們的車隊並增強客戶服務，我們預計這將支持未來的利潤率擴大。這些投資還具有加強客戶關係和鞏固 Ranger 作為客戶首選的優質服務供應商的額外好處。

With that, I will turn the call back to the operator to open the line for questions.

說完這些，我將把電話轉回給接線員，以便開通熱線來回答問題。

We will now begin the question and answer session.

我們現在開始問答環節。

(Conference Instructions)

（會議指示）

And our first question here will come from Don Crist with Johnson Rice. Please go ahead.

我們的第一個問題來自 Johnson Rice 的 Don Crist。請繼續。

Good morning, Stuart and Melissa. Hopefully you all are doing well.

早上好，史都華和梅麗莎。希望你們一切都好。

Good morning. How are you?

早安.你好嗎？

Doing well. I wanted to start with kind of the differentiation between kind of workover projects and new drills for your major customers. I would assume that those are kind of separate budgets and given your production focus activity levels. And that being so much more than completions, you could be mostly isolated from any kind of potential slowdowns that we may see in the back half of the year.

做得很好。我想先針對您的主要客戶，介紹一下修井專案和新鑽機之間的差異。我認為這些都是單獨的預算，並考慮到您的生產重點活動水平。而且由於這遠遠超出了竣工數量，因此您可能基本上不會受到我們可能在今年下半年看到的任何潛在放緩的影響。

Sure, thanks. I'll start and we'll chime in, about 80% of our revenues are associated to your point with production focus which typically are aligned with OpEx budgets of our customers versus CapEx budgets, and so you know that kind of as you indicated we think that obviously makes us a lot more resilient through the cycle because they tend to be different budgets. And the OpEx budget tends to be a lot more resilient.

當然，謝謝。首先，讓我們來談談，大約 80% 的收入與生產重點相關，這通常與我們客戶的營運支出預算與資本支出預算相一致，所以你知道，正如你所指出的，我們認為這顯然使我們在整個週期中更具彈性，因為它們往往是不同的預算。而且營運支出預算往往更具彈性。

That's been our experience, you kind of hinted at something else which I think is worth highlighting, and that's just our customer mix, certainly over the last, several years we've really tried to align ourselves with the with the largest customers who typically have the most consistent programs, and we really aligned ourselves with them just because they know that. A lot of, changing activity levels in kind of a knee jerk way really, harms their vendors, so, those would be certainly two things that that we would highlight right now.

這是我們的經驗，你暗示了其他一些我認為值得強調的事情，那就是我們的客戶組合，當然在過去的幾年裡，我們確實試圖與通常擁有最一致計劃的最大客戶保持一致，我們確實與他們保持一致，因為他們知道這一點。很多情況下，以一種下意識的方式改變活動水平實際上會損害他們的供應商，所以，這肯定是我們現在要強調的兩件事。

Okay, I appreciate that color. And on the wireline side, obviously it sounds like in your commentary that you made some changes there and margins came up as you kind of move into the second quarter, obviously that's a little bit more completion focused but.

好的，我很欣賞那個顏色。在有線方面，顯然從您的評論中可以看出您在那裡做了一些改變，並且隨著進入第二季度，利潤率有所上升，顯然這更側重於完成度。

How do you see that kind of playing out throughout the quarter? Can you get back to kind of historical margins in that business, or is it still kind of challenge for the rest of this year?

您如何看待整個季度的這種表現？您能否讓該業務的利潤率恢復到歷史水平，還是說今年剩餘時間內仍會面臨挑戰？

I think if you look at the back part of the year, we certainly think it will move into positive territory. I think we've been pretty open about some of the challenges in that space obviously was a disappointing quarter for wireline seasonality hit it particularly hard that the weather event is the most of our business is in the north, and so weather hit it particularly hard this quarter.

我認為，如果你看一下今年下半年的情況，我們肯定會認為它會進入積極的領域。我認為我們對該領域的一些挑戰持相當開放的態度，顯然這是一個令人失望的季度，有線業務受到季節性的嚴重打擊，天氣事件是我們的大部分業務在北方，因此本季度天氣對它的影響尤其嚴重。

As we've talked about in the past, Don, we're really trying to orient that business more on the kind of conventional wire line which typically has a lot more exposure to production versus completion. The plug and per for completions market has been, particularly challenged over the last couple, really the last year and a half or so. But again, I think we're working hard to kind of move it into positive territory, so it's at least a positive contributor for the year.

正如我們過去所談到的，唐，我們確實在嘗試將業務更多地定位於傳統的有線生產線，這種生產線通常更多地涉及生產而不是完井。在過去的幾年裡，確切地說是過去的一年半里，完井市場的接插和按期受到了特別的挑戰。但我再次認為我們正在努力將其帶入積極的領域，因此它至少對今年來說是一個積極的貢獻者。

Okay. And I did want to touch on your balance sheet. Obviously, it's a fortress balance sheet and differentiates you from a lot of other players out there. But as you kind of look forward and generate free cash flow going into the second quarter, how do you balance that versus, M&A potential? I'm assuming some bit ass spreads are coming in closer to where you like them and kind of stock buybacks. Like, how do you just look at the balance sheet more broadly?

好的。我確實想談談你的資產負債表。顯然，這是一份堡壘資產負債表，它讓你從眾多其他參與者中脫穎而出。但是，當您展望未來並進入第二季度產生自由現金流時，您如何平衡它與併購潛力？我假設一些小幅利差正在接近你喜歡的水平，並進行股票回購。例如，你如何更廣泛地看待資產負債表？

Yeah, I'll take that Don, and I think, look, given how sideways the market is sort of the territory everybody feeling a little bit uncertain about what the future holds, I would say two things:

是的，我接受唐的觀點，我認為，鑑於市場目前處於橫盤狀態，每個人都對未來感到有點不確定，我想說兩件事：

One, we recognize, and part of the reason why we wanted the balance sheet strength, and we've highlighted it is because We feel like not only does it allow us to weather the storm, but to sort of take advantages of opportunities during periods where the market's challenged. And I think we'd be thinking about, the rest of this year and however long this period of uncertainty last is that kind of opportunity set for us.

首先，我們意識到，我們希望資產負債表強勁的原因之一是，我們強調這一點，因為我們覺得它不僅能讓我們渡過難關，還能讓我們在市場面臨挑戰的時期抓住機會。我想我們會考慮，今年剩下的時間以及無論這段不確定的時期持續多久，這是否是為我們創造的機會。

I think for us right now, the focus on M&A, it feels like with all of the uncertainty, it almost feels like Stuart and I were talking about it earlier, more challenged in the very short term, but as we get into sort of near term and midterm, we actually think that, potentially later this year, we might have, further closing in the bed ass spread and I think our hope is that we can finally start to push something over the line.

我認為對我們來說，現在重點關注併購，感覺就像所有的不確定性一樣，幾乎感覺就像斯圖爾特和我早些時候談論過的那樣，在短期內面臨更多挑戰，但隨著我們進入短期和中期，我們實際上認為，可能在今年晚些時候，我們可能會進一步縮小差距，我想我們的希望是我們最終可以開始推動一些事情。

We remain really interested in continuing to grow and scale the business. We think that there's that much more opportunities set to create value, through it through a down cycle. So, I think we are really focused on continuing to be very active in M&A dialogue while also recognizing now is probably not the time to pull the trigger, but that could change in 90 days. I think the other thing is looking at it through the buyback.

我們仍然對繼續發展和擴大業務非常感興趣。我們認為，在經濟下行週期中，還有更多機會可以創造價值。因此，我認為我們真正專注於繼續積極參與併購對話，同時也認識到現在可能不是採取行動的時候，但這種情況可能會在 90 天內發生變化。我認為另一件事是透過回購來看待它。

So, I think everything that we're thinking about is, well, we have $40 million of cash, we have lots of capacity on the revolver. How do we be really mindful to taking advantages of opportunities through the next six months to a year, however long this lasts, to be able to come out on the other side of this stronger than ever, like we've done before.

所以，我認為我們所考慮的一切是，我們有 4000 萬美元的現金，我們在循環信貸方面擁有很大的容量。在接下來的六個月到一年的時間裡，無論這種情況持續多久，我們如何才能真正留意並抓住機遇，以便能夠像以前一樣比以往任何時候都更加強大地走出困境。

Yeah, and I, and all I would add to that is Melissa talked about M&A. We obviously have investments, in, organic, investments we can make and then share repurchases. I think just as a management team how we think about those is. They ultimately all compete for capital with one another, right, as we go forward, and you know you saw us in the past get pretty aggressive with share repurchases at times of, when the share price come under pressure, and that's certainly something we'll be looking at as well going forward.

是的，我想補充的是梅麗莎談到了併購。我們顯然進行了投資，進行了有機投資，然後進行了股份回購。我認為身為管理團隊我們應該如何看待這些問題。隨著我們不斷前進，他們最終都會相互競爭資本，你知道，你看到我們過去在股價承受壓力時非常積極地回購股票，這當然也是我們未來會關注的事情。

I appreciate it. All the color. I'll turn it back to the operator. Thanks.

我很感激。所有顏色。我會將其轉回給接線生。謝謝。

Thanks.

謝謝。

As a quick reminder, if you have a question or a follow up, you may press star, the one to join the queue.

快速提醒一下，如果您有疑問或需要跟進，您可以按星號加入隊列。

Our next question will come from John Daniel with Daniel Energy Partners. Please go ahead.

我們的下一個問題來自 Daniel Energy Partners 的 John Daniel。請繼續。

Hey guys, thank you.

嘿夥計們，謝謝你們。

I'm going to dig into the [minutia] here and talk about your coil business, and we've seen the cost of strings go up here recently and I'm curious. The ability you've had to pass that through to your customers via you know surcharge. And then given the strength of your rig business, what are the opportunities to perhaps have small surcharges tied to tariffs there as well?

我將深入研究這裡的[細節]並談論您的線圈業務，我們發現最近琴弦的成本上漲了，我很好奇。您必須透過附加費將其轉嫁給您的客戶。那麼，考慮到你們鑽井業務的實力，有沒有可能將小額附加費與關稅掛鉤？

Yeah, thank, thanks for the question, John. Again, I'll start unless you can chime in maybe just kind of a first, a broader comment about sort of the impacts of potential impacts of tariffs, on our business, in general we typically don't, think that there's a lot in our supply chain, our direct supply chain. I think you've highlighted that the one place that it could be potentially material and that's on coil.

是的，謝謝你的提問，約翰。再次，除非你能插話，否則我先開始，也許只是首先，對關稅對我們業務的潛在影響發表更廣泛的評論，一般來說，我們通常不會認為我們的供應鏈，我們的直接供應鏈中有很多。我認為您已經強調了可能具有潛在價值的一個地方，那就是線圈。

I think right now I wouldn't say that there's an opportunity to necessarily, push a lot of those through, but I think there is certainly a recognition on our customers behalf that, as our cost base changes, we're going to have to recuse some of that, so I think right now it feels like a fairly balanced conversation. I think what we're looking for or looking at it as we take a step back is just the broader the broader macro, and kind of what happens in that environment because obviously that will dictate some of our ability to have those conversations.

我認為現在我不會說一定有機會推動其中很多，但我認為我們的客戶肯定認識到，隨著我們的成本基礎發生變化，我們將不得不放棄其中的一些，所以我認為現在感覺這是相當平衡的對話。我認為，當我們退一步考慮時，我們所尋找的或所看到的只是更廣泛的宏觀，以及在那種環境下發生的事情，因為顯然這將決定我們進行這些對話的能力。

Okay.

好的。

Thank you. The second one, the final one is one of your peers just recently shut down its Williston Yard. And you know over the last couple quarters we've seen a handful, not a ton, but a handful of your small sort of 15 rig competitors or less closing doors as well.

謝謝。第二家，也是最後一家，是你們的同行之一，最近剛關閉了其威利斯頓碼頭。你知道，在過去的幾個季度裡，我們已經看到一些，雖然不是很多，但有少數擁有 15 台或更少台鑽機的小型競爭對手也關門了。

I'm just curious are you seeing, do you see more of that coming? Are you being contacted by smaller equipment brokers trying to help liquidate these companies just where do you think that market is a year from today?

我只是好奇您是否看到了，您是否看到了更多這樣的情況？是否有小型設備經紀人聯繫您，試圖幫助清算這些公司，您認為一年後市場會如何？

Yeah, I think we are seeing that. I guess the first thing I would sort of highlight on just the Williston and Bakken in general for us that's it obviously had, as we indicated earlier, a lot of weather impacts that said, it's a, it's a business and a market for us. It's been really strong is the first thing I would say. I think again on the broader point about are we seeing some of the smaller players come under pressure, I think the answer is yes, and I don't think it's necessarily.

是的，我想我們已經看到了。我想首先要強調的是，對於我們來說，威利斯頓和巴肯地區總體而言顯然受到了很大的天氣影響，正如我們之前指出的那樣，這對我們來說是一門生意，也是一個市場。我首先要說的是，它真的很強大。我再次思考更廣泛的觀點，我們是否看到一些較小的參與者面臨壓力，我認為答案是肯定的，但我認為這不一定。

It's not just one basin. I mean I think that as we've talked about in the past, as the ENTs have consolidated. And they're consolidating their vendor base. I think, companies like Ranger have been the beneficiary of that, and that certainly helped us, but I do think that that has hit some of the smaller players particularly hard. So we do get contacted about again assets and distress.

不只是一個盆地。我的意思是，我認為正如我們過去所討論的，ENT 已經得到鞏固。他們正在鞏固其供應商基礎。我認為，像 Ranger 這樣的公司從中受益，這當然對我們有幫助，但我確實認為這對一些小型企業造成了特別嚴重的打擊。因此，我們確實再次收到了有關資產和困境的聯繫。

And I would only add to that, John, I think it's important to point out is I don't think that's a recent phenomenon. I think that's something that's been happening sort of the past two years, as you've heard us talk repeatedly about us benefiting from operator consolidation. I think what's changed more recently is you have a lot of the smaller players who were sort of hanging on, and with this latest market turn, I think a lot of them are, well I'm out of time.

約翰，我只想補充一點，我認為有必要指出的是，我認為這並不是最近才出現的現象。我認為這是過去兩年來一直在發生的事情，正如您聽到我們反覆談論的那樣，我們從運營商整合中受益。我認為最近發生的變化是，有很多小型企業還在堅持，隨著最近的市場轉變，我認為他們中的許多人已經沒有時間了。

And so, I think that's where you're seeing a little bit more of the rollover here recently is a consequence of the pressure they had been put under, and now it's not looking like I think everybody was hopeful last year ourselves included, to be honest, that this year was going to be a better year and as it's played out, it hasn't kind of played out that way.

所以，我認為最近你看到的這種轉變是他們承受的壓力的結果，現在看起來，我認為去年包括我們自己在內的每個人都沒有抱有希望，說實話，今年會是更好的一年，但隨著事情的發展，情況並沒有那麼好。

But it kind of gets back to how do we end up, kind of taking advantage of opportunities through this whole cycle is as these companies sort of realize that well, I'm not going to probably be able to weather the storm the same way, whether it's combining with Ranger or other things, we think it will provide for more opportunities for Ranger through sort of the mid-cycle.

但這又回到了我們如何最終利用整個週期中的機會的問題，因為這些公司意識到，我可能無法以同樣的方式度過難關，無論是與 Ranger 還是其他東西結合，我們認為它將在中期為 Ranger 提供更多機會。

Got it. Okay, that's all I had.

知道了。好的，這就是我所知道的全部。

Thank you for letting me ask some questions.

感謝您允許我提問一些問題。

Absolutely, thanks I appreciate it.

絕對的，謝謝，我很感激。

And this concludes our question-and-answer session. I'd like to turn the conference back over to Stuart Bodden for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Stuart Bodden 做結束語。

Thanks, operator, and thanks everyone for joining the call and your interest in Ranger. Just a couple of quick closing comments. We sit here ready for all scenarios. I think we're aware of the potential headwinds in the market, but certainly. We feel like our production focus, our alignment with some of the largest customers working in the Best Rock and in the Lower 48 and our balance sheet strength are real benefits here. So again, thank you for your interest and I hope everybody has a great week.

謝謝接線員，也感謝大家參加電話會議以及對 Ranger 的關注。最後再簡單說幾句。我們坐在這裡，為各種情況做好準備。我認為我們已經意識到了市場中潛在的阻力，但可以肯定的是。我們認為，我們的生產重點、我們與在 Best Rock 和美國本土 48 個州工作的一些最大客戶的合作以及我們的資產負債表實力都是真正的好處。再次感謝您的關注，並祝大家有個愉快的一周。

The conference is now concluded.

會議現已結束。

Thank you for attending today's presentation. You may now disconnect your lines.

感謝您參加今天的演講。現在您可以斷開線路了。