Ranger Energy Services Inc. continued to expand its wireline services business with the acquisition of PerfX Wireline Services—Ranger’s second acquisition in the past several weeks.
Founded in 2014, PerfX is a privately held Denver-based service company currently operating wireline pumpdown crews in U.S. shale plays across Oklahoma, North Dakota and Texas. Ranger completed the PerfX acquisition on July 8, consideration of which was comprised of all-stock, according to a company release.
Bill Austin, board chairman who also currently serves as interim CEO of Ranger, said the addition of PerfX checks a number of strategic boxes similar to its acquisition of Patriot Completion Solutions LLC, which closed in May.
“With these two acquisitions we now have the scale, scope and diversification necessary to ensure the long-term success of our wireline service offerings under the Ranger umbrella,” Austin commented in the company release on July 9.
Moving forward, Austin said Ranger will continue its focus on balance sheet strength and free cash flow generation, but also added the company does expect more opportunities to grow its businesses through acquisitions.
Similar to the Patriot acquisition, the PerfX wireline completion units will be integrated into Ranger’s Mallard wireline business.
Together, the Patriot and PerfX transactions add 55 wireline trucks, 10 cranes and four pump-down pumps to Ranger’s existing Mallard fleet of 13 wireline trucks and eight pumps. Additionally, these acquisitions bring eight locations and 27 incremental customers, as well as full packages of other ancillary equipment.
Also, in addition to growing Mallard’s unit count to a total of 68 wireline trucks, the transactions also Mallard’s current Permian Basin focus to a footprint that includes the Denver-Julesburg, Bakken and Powder River basins in eight incremental locations. Plus, Patriot added an extensive production services focus to Mallard’s completion-only offering.
On a combined basis, for both the Patriot and PerfX transactions, Ranger said it issued 2.256 million shares of Class A Common Stock representing 12% of the pro forma, post-transaction outstanding Class A and B common stock. Additionally, the company assumed a total of $12 million of light-duty vehicle leases and rolling-stock associated term debt.
The PerfX purchase price also included a 30% ownership option through a warrant structure in XConnect, manufacturer of a perforating gun system developed over the last several years by the PerfX sellers alongside the PerfX Wireline service business.
Upon the completion of the transaction, Goodrich Petroleum will become a privately held company and shares of Goodrich common stock will no longer be listed on any public market.
The incremental hedge positions are sufficient to cover at least 80% of the expected 2022-24 production from the acquired GEP Haynesville properties, according to the Southwestern Energy release.
The recently formed Tailwater Royalties will focus on the acquisition of minerals and royalties across multiple basins throughout North America, including the Permian Basin, Williston, Eagle Ford and Rockies.