Ranger Energy Q4 EBITDA up to $20.3M; secures contract for 15 Echo rigs
Ranger Energy posted Q4 net income of $3.2 million ($0.14 per share) and adjusted EBITDA of $20.3 million, driven by stronger high-spec rig and ancillary services revenue. The company secured a 15-unit EchoRig contract and reports AWS integration milestones on track 120 days post-acquisition.
1. Financial Results
Ranger Energy generated Q4 revenue of $142.2 million, up from $128.9 million in Q3 and flat year-over-year. Net income rose to $3.2 million ($0.14 per share) versus $1.2 million, while adjusted EBITDA improved sequentially to $20.3 million, reflecting a 14.3% margin driven by high-spec rigs and processing services.
2. AWS Integration and Capital Allocation
The integration of American Well Services is on track 120 days post-close, with management reporting no material disruptions to synergy plans. Ranger deployed $26.1 million in capex focused on EchoRig growth and used approximately $40 million of free cash flow in 2025 toward the AWS purchase and share repurchases.
3. Share Repurchases and Liquidity
During 2025, the company repurchased nearly one million shares at an average price of $12.26, totaling $12.3 million, and returned over 40% of free cash flow through dividends and buybacks. Liquidity ended the year at $67.7 million, including $57.4 million in revolver availability and $10.3 million in cash, with $3.5 million of borrowings.
4. EchoRig Deployment and 2026 Outlook
Ranger rolled out two Echo rigs, demonstrating less than 22 generator hours in the first 450 operational hours, and contracted for 15 additional units in early 2026. Management expects 2026 activity levels similar to 2025, with free cash flow conversion near 50% and pro forma EBITDA generation of over $100 million with AWS integration.