What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-02-26 compared with 2020-02-28 · 57 added, 59 removed, 265 unchanged (30% of the section changed)

2 unchanged sentences

We provide an extensive range of well site services to leading U.S.

exploration and production (“E&P”) companies that are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well.

exploration and production (“E&P”) companies that are fundamental to establishing and enhancing the flow of oil and natural gas throughout the productive life of a well.

Our focus has been positioning ourselves to serve a high-quality customer base by leveraging our young fleet, improving systems and streamlining processes, making Ranger an operator of choice for U.S.

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• High Specification Rigs .

Provider of high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well.

Provides high-spec well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well.

• Completion and Other Services .

Provider of wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with our high-spec rig services to maintain the production of a well.

Provides wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with our high-spec rig services to enhance the production of a well.

• Processing Solutions .

Provider of proprietary, modular equipment for the processing of natural gas.

Provides proprietary, modular equipment for the processing of natural gas.

We operate in most of the active oil and natural gas basins in the United States, including the Permian Basin, Denver-Julesburg Basin, Bakken Shale, Eagle Ford Shale, Haynesville Shale, Gulf Coast, South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays.

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Financial Statements and Supplementary Data—Note 15 — Segment Reporting.”

continues to combine our services offerings with a highly skilled and experienced workforce, enabling us to consistently deliver exceptional service while maintaining high health, safety and environmental standards.

Personnel at Ranger are dedicated to redefining services for our customers, driving new thinking, raising standards and rising to challenges.

We believe that our efficient operational performance, executed at a high level of integrity, strong safety record and low leverage provides a competitive advantage.

was incorporated as a Delaware corporation in February 2017.

In conjunction with the Offering of Class A Common Stock, par value $0.01 per share (“Class A Common Stock”), which closed on August 16, 2017, and the corporate reorganization, we underwent in connection with the Offering, we became a holding company, the sole material assets of which consist of membership interests in Ranger LLC.

Ranger LLC owns all of the outstanding equity interests in Ranger Services and Torrent Services, the subsidiaries through which it operates its assets.

Ranger LLC owns all of the outstanding equity interests in Ranger Energy Services, LLC (“Ranger Services”) and Torrent Energy Services, LLC (“Torrent Services”), the subsidiaries through which it operates its assets.

Through the consummation of the corporate reorganization, Ranger LLC is the sole managing member of, and is responsible for all operational, management and administrative decisions relating to, Ranger Services and Torrent Services’ business and consolidates the financial results of Ranger Services and Torrent Services and their subsidiaries.

The following diagram indicates our current ownership structure as a result of the Offering and the transactions related thereto:

The following diagram indicates our ownership structure as of February 24, 2021:

_________________________

CSL, Bayou Well Holdings Company, LLC, certain members of our management and other investors own all of the equity interests in the Existing Owners, where CSL holds a majority of the voting interests in each of the Existing Owners.

Inclusive of Ranger Services and Torrent Services and subsidiaries.

(1) CSL, Bayou Well Holdings Company, LLC, certain members of our management and other investors own all of the equity interests in the Legacy Owners, where CSL holds a majority of the voting interests in each of the Legacy Owners.

(2) Inclusive of unvested restricted share awards.

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Our well completion support services are utilized subsequent to hydraulic fracturing operations but prior to placing a well into production, and primarily include unconventional well completion operations, including milling out composite plugs, frac sand or other downhole debris or obstructions that were introduced in the well as part of the completion process and installing production tubing and other permanent downhole equipment necessary to facilitate production.

• Workovers .

Our workover services primarily facilitate major well repairs or modifications required to sustain the flow of oil and natural gas in a producing well.

Workovers, which may require a few days to several weeks to complete and generally require additional auxiliary equipment, are typically more complex and more time consuming than well maintenance operations.

Workover operations include major subsurface repairs such as the

repair or replacement of well casing, recovery or replacement of tubing and removal of foreign objects from the wellbore.

Workover operations include major subsurface repairs such as the repair or replacement of well casing, recovery or replacement of tubing and removal of foreign objects from the wellbore.

All of our high‑spec well service rigs are designed to perform complex workover operations.

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We have a fleet of 136 well service rigs, which we believe to be among the newest and most advanced in the industry and are considered to be high-spec rigs, with high operating horsepower (“HP”) (450 HP or greater) and tall mast heights (102 feet or higher).

In February 2017, we entered into a Purchase Agreement with National Oilwell Varco, Inc.

(“NOV”), pursuant to which we accepted delivery of 28 high-spec rigs during the years ended December 31, 2018 and 2017.

The high‑spec well service rigs in our fleet, the substantial majority of which has been built since 2010, have an average age of approximately six years and feature modern operating components sourced from leading U.S.

The high‑spec well service rigs in our fleet, the substantial majority of which has been built since 2010, have an average age of approximately seven years and feature modern operating components sourced from leading U.S.

manufacturers.

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HP Rating (1)

Mast Rating (2)

Mast Height Mast Rating (2)

Number of High-Spec Rigs

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Completion and Other Services

Our Completion and Other Services segment provides wireline completion services necessary to bring a well on production and other ancillary services often utilized in conjunction with our high-spec rig services to maintain the production of a well.

Our completion and other services, as described in further detail below, strategically enhance our operating footprint by creating

operational efficiencies for our customers and allow us to capture a greater portion of their spending across the lifecycle of a well.

Our completion and other services, as described in further detail below, strategically enhance our operating footprint by creating operational efficiencies for our customers and allow us to capture a greater portion of their spending across the lifecycle of a well.

• Wireline Services .

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Decommissioning work is typically less sensitive to oil and natural gas prices than our other well service rig operations as a result of decommissioning obligations imposed by state regulations.

Services provided within our High Specification Rig and Completion and Other Services segments, as described above, are fundamental to establishing and maintaining the flow of oil and natural gas throughout the productive life of a well.

Services provided within our High Specification Rig and Completion and Other Services segments, as described above, are fundamental to establishing and enhancing the flow of oil and natural gas throughout the productive life of a well.

We have a fleet of wireline and high-pressure pump trucks that are utilized in our Completion and related services.

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In addition, we own and operate five auxiliary NGL stabilizer units (designed to assist our MRUs that require additional capacity to separate and capture valuable NGLs), 78 NGL storage tanks with bulkhead delivery systems and capacities of 18,000 gallons, 13 trailer‑mounted natural gas generators and additional supporting auxiliary equipment.

Our proprietary natural gas and NGL processing equipment is generally designed to be mobile and purpose‑built to increase efficiency

and productivity while reducing safety risks.

We also own and operate 50 gas coolers, which reduces the temperatures of the natural gas stream to allow further processing and meet pipeline specifications.

We incur corporate and administrative costs that are not specific to any of the operating segments or business lines, which are reported as Other.

Our proprietary natural gas and NGL processing equipment is generally designed to be mobile and purpose‑built to increase efficiency and productivity while reducing safety risks.

We also own and operate 50 gas

coolers, which reduces the temperatures of the natural gas stream to allow further processing and meet pipeline specifications.

We incur general corporate and administrative costs that are not attributable to any of the operating segments or business lines, which are reported as Other.

For further information regarding the results of operations for each segment, please see “Part II, Item 7.

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Significant Customers

We have strong relationships with a broad customer base, including EOG Resources, Inc., Concho Resources, Inc., Centennial Resource Development, Inc.

and Pioneer Natural Resources Company.

We have strong relationships with a broad customer base, including EOG Resources, Inc., ConocoPhillips and Pioneer Natural Resources Company.

During the year ended December 31, 2020, EOG Resources, Inc.

and Concho Resources accounted for approximately 17% and 14%, respectively, of our consolidated revenues and we worked for approximately 200 distinct customers.

and Concho Resources accounted for approximately 21% and 17%, respectively, of our consolidated revenues where we provided services for approximately 130 distinct customers.

During the year ended December 31, 2019, EOG Resources, Inc.

accounted for approximately 20% of our revenues.

No other customer represents more than 10% of our consolidated revenues for the years ended December 31, 2019 and 2018 .

Our top five customers represented approximately 49% and 42% of our consolidated revenues for 2019 and 2018 , respectively.

and Concho Resources, Inc.

accounted for approximately 17% and 14%, respectively, of our consolidated revenues.

For the years ended December 31, 2020 and 2019, our top five customers represented approximately 57% and 49% of our consolidated revenues and no other customer represented more than 10% of our consolidated revenues.

Our internal supply chain team manages sourcing and logistics to ensure flexibility and continuity of supply in a cost effective manner across all areas of our operations.

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We have generally been able to obtain the equipment, parts and supplies necessary to support our operations on a timely basis.

We invest in attracting and retaining talented employees and believe we have good relationships with our employees.

As of December 31, 2019 , we had approximately 1,100 full-time, part-time and seasonal employees and no unionized labor.

We hire independent contractors on an as-needed basis and are not a party to collective bargaining agreements.

Human Capital

We combine our services offerings with a highly skilled and experienced workforce, enabling us to consistently deliver exceptional service while maintaining high health, safety and environmental standards.

We invest in attracting, developing and retaining talented personnel and believe we have good relationships with our employees.

Our personnel are dedicated to redefining services for our customers, driving new thinking, raising standards and rising to challenges.

We believe that our efficient operational performance, executed at a high level of integrity, strong safety record and low leverage provides a competitive advantage.

As of December 31, 2020, we had approximately 700 full-time and part-time employees and we hire independent contractors on an as-needed basis.

We are not a party to collective bargaining agreements, nor did we have any unionized labor.

Environmental and Occupational Safety and Health Matters

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The waste resulting from such contamination is regulated by federal and state laws.

Standards have been developed for worker protection, treatment, storage, and disposal of NORM and NORM waste, management of NORM-contaminated waste piles, containers and tanks and limitations on the relinquishment of NORM-contaminated land for unrestricted use under the Resource Conservation and Recovery Act (“RCRA”) and state laws.

of NORM-contaminated land for unrestricted use under the Resource Conservation and Recovery Act (“RCRA”) and state laws.

We may incur significant costs or liabilities associated with elevated levels of NORM.

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Pursuant to rules issued by the EPA, individual states can have delegated authority to administer some or all of the provisions of RCRA, sometimes in conjunction with their own, more stringent requirements.

the course of our operations, we generate industrial wastes, such as paint wastes, waste solvents and oils that are regulated as hazardous materials.

In the course of our operations, we generate industrial wastes, such as paint wastes, waste solvents and oils that are regulated as hazardous materials.

Drilling fluids, produced waters and other wastes associated with the exploration, development and production of oil or natural gas, if properly handled, are currently exempt from regulation as hazardous waste under RCRA and, instead, are regulated under RCRA’s less stringent non-hazardous waste provisions, or other state or federal laws.

However, it is possible that certain oil and natural gas drilling and production wastes now classified as non-hazardous could be classified as hazardous wastes in the future.

For example, the EPA is required, by a consent decree, to propose a rulemaking for revision of certain RCRA Subtitle D criteria regulations pertaining to oil and natural gas wastes or sign a determination that revision of the regulations is not necessary no later than March 15, 2019.

The EPA ultimately signed a determination that revision of the regulations is not necessary at this time.

Nevertheless, reclassification of drilling fluids, produced waters and related wastes as hazardous under RCRA could result in an increase in our, as well as the oil and natural gas E&P industries’, costs to manage and dispose of generated wastes, which could have a material adverse effect on our business, liquidity position, financial condition, results of operations and prospects.

Reclassification of drilling fluids, produced waters and related wastes as hazardous under RCRA could result in an increase in our, as well as the oil and natural gas E&P industries’, costs to manage and dispose of generated wastes, which could have a material adverse effect on our business, liquidity position, financial condition, results of operations and prospects.

Additionally, other wastes handled at E&P sites or generated in the course of providing well services may not fall within this exclusion.

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In response to concerns regarding induced seismicity, regulators in some states have imposed, or are considering imposing, additional requirements in the permitting of produced water disposal wells or otherwise to assess any relationship between seismicity and the use of such wells.

States may, from time to time, develop and implement plans directing certain wells where seismic incidents have occurred to restrict or suspend disposal well operations.

States may, from

time to time, develop and implement plans directing certain wells where seismic incidents have occurred to restrict or suspend disposal well operations.

In addition, ongoing lawsuits allege that disposal well operations have caused damage to neighboring properties or otherwise violated state and federal rules regulating waste disposal.

These developments could result in additional regulation and restrictions on the use of injection wells by our customers to dispose of flowback and produced water and certain other oilfield fluids.

Increased regulation and

attention given to induced seismicity also could lead to greater opposition to, and litigation concerning, oil and natural gas activities utilizing injection wells for waste disposal.

Increased regulation and attention given to induced seismicity also could lead to greater opposition to, and litigation concerning, oil and natural gas activities utilizing injection wells for waste disposal.

Any one or more of these developments may necessitate that our customers limit disposal well volumes, rates or locations, or may require our customers or third party disposal well operators that dispose of customer wastewater to shut down disposal wells, which could adversely affect our customers’ business and result in a corresponding decrease in the need for our services, which could have a material adverse impact on our business, liquidity position, financial condition, results of operations and prospects.

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Compliance with these or other new regulations could, among other things, require installation of new emission controls on some of our equipment, result in longer permitting timelines and significantly increase our capital expenditures and operating costs, which could adversely impact our business.

For example, in June 2016, the EPA published additional final rules establishing new emissions standards for methane and additional standards for VOCs from certain new, modified and reconstructed equipment and processes in the oil and natural gas source category, including production, processing, transmission and storage activities, and is formally seeking additional information from oil and natural gas producing companies as necessary to eventually expand these final rules to include existing equipment and processes.

However, following the change in presidential administration, there have been attempts to modify these regulations.

In August 2019, the EPA proposed amendments to the 2016 standards that, among other things, would rescind methane-specific requirements applicable to sources in the oil and natural gas industry but retain emissions limits for VOCs.

Legal challenges to any final rulemaking that rescinds the 2016 standards are expected.

For example, in June 2016, the EPA published additional final rules establishing new emissions standards for methane and additional standards for Volatile Organic Compounds from certain new, modified and reconstructed equipment and processes in the oil and natural gas source category, including production, processing, transmission and storage activities.

In September 2020, the EPA finalized amendments which removed the transmission and storage segment from the oil and natural gas source category and rescinded the methane-specific requirements for production and processing facilities.

However, several lawsuits have been filed challenging these amendments, and on January 20, 2021, President Biden signed an executive order calling for the suspension, revision, or rescission of the September 2020 rule, and the reinstatement or issuance of methane emissions standards for new, modified, and existing oil and gas facilities.

Therefore, the extent of future implementation of these standards is uncertain at this time.

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In November 2016, the BLM finalized a rule regulating the venting and flaring of natural gas, leak detection, air emissions from equipment, well maintenance and unloading, drilling and completions and royalties potentially owed for loss of such emissions from oil and natural gas facilities producing on federal and tribal leases.

In September 2018, the BLM issued a final rule rescinding the agency’s 2016 methane rule, and litigation challenging the rescission is pending.

Compliance with these and other air pollution control and permitting requirements has the potential to delay the development of oil and natural gas projects and increase costs for us and our customers.

In September 2018, the BLM issued a final rule rescinding the agency’s 2016 methane rule.

However, in July 2020 and October 2020, federal district courts in California and Wyoming, respectively, vacated the rule, and on January 20, 2021, President Biden published an executive order calling for the review and potential revision of the September 2018 rule.

Because of the foregoing, methane requirements on federal land remain uncertain at this time.

Compliance with this and other air pollution control and permitting requirements has the potential to delay the development of oil and natural gas projects and increase costs for us and our customers.

Moreover, our business could be materially affected if these or other similar requirements increase the cost of doing business for us and our customers, or reduce the demand for the oil and natural gas our customers produce, and thus have an adverse effect on the demand for our services.

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In the United States, no comprehensive climate change legislation has been implemented at the federal level.

However, with the U.S.

Supreme Court finding that GHG emissions constitute a pollutant under the CAA, the EPA has adopted rules that, among other things, establish construction and operating permit reviews for GHG emissions from certain large stationary sources, require the monitoring and annual reporting of GHG emissions from certain petroleum and natural gas system sources in the United States, implement New Source Performance Standards directing the reduction of methane from certain new, modified, or reconstructed facilities in the oil and natural gas sector, and together with the U.S.

However, President Biden has highlighted addressing climate change as a priority of his administration, which includes certain initiatives for climate change legislation to be proposed and passed into law.

Additionally, on January 27, 2021, President Biden issued an executive order that calls for substantial action on climate change, calling for, among other things, the increased use of zero-emission vehicles by the federal government, increased production of offshore wind energy, the elimination of subsidies provided to the fossil fuel industry, and the suspension of the issuance of new leases for oil & gas development on federal lands to the extent permitted by law.

Moreover, following the U.S.

Department of Transportation (“DOT”), implement GHG emissions limits on vehicles manufactured for operation in the United States.

Additionally, various states and groups of states have adopted or are considering adopting legislation, regulations or other regulatory initiatives that are focused on such areas as GHG cap and trade programs, carbon taxes, reporting and tracking programs, and restriction of emissions.

At the international level, there is a non-binding agreement, the United Nations-sponsored Paris Agreement, for nations to limit their GHG emissions through individually-determined reduction goals every five years after 2020, although the United States has announced its withdrawal from such agreement, effective November 4, 2020.

Governmental, scientific and public concern over the threat of climate change arising from GHG emissions has resulted in increasing political risks in the United States, including climate change related pledges made by certain candidates seeking the office of the President of the United States in 2020.

Two critical declarations made by one or more candidates running for the Democratic nomination for President include threats to take actions banning hydraulic fracturing of oil and natural gas wells and banning new leases for production of minerals on federal properties, including onshore lands and offshore waters.

Other actions that could be pursued by presidential candidates may include the imposition of more restrictive requirements for the establishment of pipeline infrastructure or the permitting of LNG export facilities, as well as the reversal of the United States’ withdrawal from the Paris Agreement in November 2020.

Litigation risks are also increasing, as a number of cities and other local governments have sought to bring suit against the largest oil and natural gas E&P companies in state or federal court, alleging, among other things, that such companies created public nuisances by producing fuels that contributed to global warming effects, such as rising sea levels, and therefore are responsible for roadway and infrastructure damages as a result.

At the international level, the United Nations-sponsored Paris Agreement requires member states to submit non-binding individually-determined reduction goals every five years after 2020.

Although the United States withdrew from the Paris Agreement on November 4, 2020, President Biden signed an Executive Order on January 20, 2021 recommitting the United States to the Paris Agreement.

However, the impacts of this executive order and the terms of any legislation or regulation to implement the United States’ commitment remain unclear at this time.

These have included promises to pursue actions to limit emissions and curtail the production of oil and gas on federal land.

For more information, see our regulatory disclosure titled “Hydraulic Fracturing.” Other actions that could be pursued by the Biden Administration may include the imposition of more restrictive requirements for the establishment of pipeline infrastructure or the permitting of LNG export facilities, as well as more restrictive GHG emission limitations for oil and gas facilities.

Litigation risks are also increasing, as a number of cities and other local governments have sought to bring suit against the largest oil and natural gas companies in state or federal court, alleging, among other things, that such companies created public nuisances by producing fuels that contributed to climate change or alleging that companies have been aware of the adverse effects of climate change for some time but defrauded their investors or customers by failing to adequately disclose those impacts.

There are also increasing financial risks for fossil fuel producers as shareholders currently invested in fossil-fuel energy companies concerned about the potential effects of climate change may elect in the future to shift some or all of their investments into non-energy related sectors.

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injection of fracturing fluids into wells with inadequate mechanical integrity;

injection of fracturing fluids

directly into groundwater resources;

injection of fracturing fluids directly into groundwater resources;

discharge of inadequately treated fracturing wastewater to surface waters;

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DOT regulations also mandate drug testing of drivers.

From time to time, various legislative proposals are introduced, including proposals to increase federal, state or local taxes, including taxes on motor fuels,

which may increase our costs or adversely impact the recruitment of drivers.

From time to time, various legislative proposals are introduced, including proposals to increase federal, state or local taxes, including taxes on motor fuels, which may increase our costs or adversely impact the recruitment of drivers.

We cannot predict whether, or in what form, any increase in such taxes applicable to us will be enacted.

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business