Is Ranger Energy's Business Highly Vulnerable to Oil & Gas Prices?

In the domestic market, Ranger Energy Services Inc. RNGR is among the leading well-service providers. RNGR’s business is directly proportional to the demand for its service offerings, which are primarily specialized in maintaining wells.

Since the demand generally comes from exploration and production companies, RNGR’s overall operations are directly related to the pricing environment of crude oil and natural gas. As the pricing scenario of the commodities is highly volatile, the business of Ranger Energy is extremely volatile and vulnerable to uncertainty.

However, unlike many other players belonging to the same industry, Ranger Energy can rely on its strong balance sheet to sail through the business uncertainty. Notably, in its August 2025 investor presentation, Ranger Energy stated that as of June 30, 2025, it had zero net debt and a total liquidity of $120 million.

HAL & SLB Have Higher Debt Load

In the oilfield service space, Halliburton Company HAL and SLB SLB are two leading players. Notably, both HAL and SLB have higher exposure to debt capital and hence are more vulnerable to commodity prices compared to RNGR.

While HAL’s debt-to-capitalization stands at 41.7%, SLB has a debt-to-capitalization of 38.9%.

RNGR’s Price Performance, Valuation & Estimates

Shares of RNGR have gained 3.4% over the past year against the 7.8% decline of the industry.

From a valuation standpoint, RNGR trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 3.03X. This is below the broader industry average of 6.78X.

The Zacks Consensus Estimate for RNGR’s 2025 earnings has not seen any revisions over the past seven days.

Ranger Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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