The lead underwriters on the deal were Credit Suisse, Piper Jaffray, and Wells Fargo. The IPO is slated to open for trading on the NYSE later this morning.
With a fleet of 123 rigs, RNGR is one of the largest independent providers of high-specification well service rigs and services in the U.S. It specifically focuses on technically-demanding unconventional horizontal well completion and production operations. The company has operations in most of the active oil and natural gas basins in the country, including the Permian Basin, the Denver-Julesburg Basin, the Bakken Shale, the Eagle Ford Shale, Haynesville Shale, and the SCOOP and STACK plays.
RNGR says that its fleet of rigs -- which includes 49 rigs to be acquired from ESCO -- is among the newest and most advanced in the industry. Its high-spec rigs facilitate operations through the full lifecycle of a well, making them an operator of choice for onshore exploration and production companies. Its customers currently include Devon Energy (DVN), EOG Resources (EOG), Noble Energy (NBL), and Oasis Petroleum (OAS) among others.
RNGR also owns and operates a fleet of modular natural gas processing equipment that processes rich natural gas streams at the wellhead or central gathering points.
The company's growth strategy will mainly hinge on growing its fleet of rigs, through organic means and acquisitions, and expanding its relationships with existing customers. On the former, the company says it intends to use its strong balance sheet to continually invest in high-spec rigs and complementary equipment. On the latter, many of its customers have operations throughout the U.S., which it intends to leverage as opportunities to enter new geographic regions.
In its IPO prospectus, RNGR provided some guidance for 2Q17. For revenue, it is expecting to report $33.6-$33.7 million, up sharply from 2Q16's $5.6 million. The spike in revenue is driven by the increase in the number of rigs in its fleet and the rig utilization in the period.
Specifically, the number of rigs went from an average of 19 rigs during the three months ended June 30, 2016 to an average of 67 rigs during the three months ended June 30, 2017 and its estimated rig utilization as measured by average monthly hours per rig increased from 186 for the three months ended June 30, 2016 to 214 for the three months ended June 30, 2017.
Despite the surge in revenue, operating loss is expected to widen to ($4.8)-($5.4) million compared to an operating loss of ($0.7) million in the year ago period.
On the positive side, Adjusted EBITDA is projected to increase to $2.7-$3.3 compared to $100K in 2Q16.