Ranger Energy Services Closes $27.5M Acquisition of STEP Energy U.S. Coiled Tubing Assets

Key numbers

Deal value	$28M
Share of market cap	7.6%
Share of annual revenue	5.0%

Key highlights

• Total transaction value of $27.5 million including cash and equity
• Acquisition includes coiled tubing units, pumping equipment, and lease rights
• Cash component of $22.5 million funded via existing Wells Fargo credit facility
• Issuance of 307,503 Class A Common shares valued at $5.0 million
• Assets projected to contribute up to $90 million in revenue by 2027

What Is the Deal?

Ranger Energy Services completed the acquisition of STEP Energy Services' U.S. business segment focused on coiled tubing, fluid and nitrogen pumping, and related well services on October 8, 2026. The transaction involves the transfer of specific coiled tubing units and associated operating equipment, alongside the assumption of facility and vehicle leases. Initially agreed upon in August 2026, the $27.5 million deal marks a significant expansion of Ranger’s technical service capabilities. This acquisition allows the company to integrate specialized well-site hardware into its existing service fleet, targeting increased efficiency in short-cycle well service operations across major U.S. shale plays.

Deal Structure & Terms

• Aggregate purchase price of approximately $27.5 million subject to post-closing adjustments
• Cash payment of $22.5 million drawn from the company's Wells Fargo Revolving Credit Facility
• Equity issuance of 307,503 shares of Class A Common Stock representing $5.0 million in value
• Stock valuation determined by a 30-day volume-weighted average price prior to closing
• Assumption of obligations related to existing facility, vehicle, and equipment leases
• Full Purchase Agreement to be filed with the third-quarter 10-Q report

Strategic Rationale

The acquisition aligns with Ranger’s strategy to consolidate high-specification well service assets. By absorbing STEP's domestic coiled tubing operations, Ranger aims to enhance its competitive position in the completion and production service markets. Management previously indicated that these assets are expected to generate between $80 million and $90 million in revenue for the full-year 2027, with anticipated EBITDA contribution exceeding $10 million. This acquisition follows the company's 2025 purchase of American Well Services for $90.5 million, signaling a continued focus on expanding its service footprint through targeted asset acquisitions rather than organic fleet expansion alone.

Financial Context

Ranger Energy Services maintains a market capitalization of $361.8 million and reported annual revenue of $546.9 million. The $27.5 million acquisition represents a tactical investment equal to approximately 7.6% of its market value. The company currently operates with a P/E ratio of 25.77 and a quarterly revenue of $176.5 million. While the cash portion was funded through debt, the company’s recent guidance reiterated an Adjusted EBITDA target exceeding $100 million for the current fiscal year. The integration of STEP’s assets is expected to support these financial objectives as the company manages its short-cycle, call-out well service contract model.

Down 1.1% since our story on 9 Oct: $15.46 when we broke it → $15.29 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$16.56
15 Sep	$16.85
16 Sep	$16.46
17 Sep	$16.51
18 Sep	$16.26
21 Sep	$15.67
22 Sep	$15.53
23 Sep	$15.65
24 Sep	$15.46
25 Sep	$15.51
28 Sep	$15.26
29 Sep	$15.04
30 Sep	$15.19
1 Oct	$15.41
2 Oct	$15.66
5 Oct	$15.99
6 Oct	$15.65
7 Oct	$15.38
8 Oct	$15.46
9 Oct	$15.42
12 Oct	$15.31
13 Oct	$15.29

Ranger Energy Services, Inc. · financial snapshot

Share price	$15.46
Market cap	$362M
Revenue (annual)	$547M
P/E (TTM)	25.8×
1-month price change	-8.63%
Sector	EnergyOil & Gas Equipment & Services

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.