Ranger Energy Services Inc

NYSE:RNGR

Earnings Call Analysis

Ranger Reports Strong 2023 Financial Growth

Ranger exhibited resilience in 2023, increasing revenue by 5% to $636.6 million despite market challenges. Net income surged to $23.8 million, up from $15.1 million, reflecting a robust business model. Adjusted EBITDA rose by 6% to $84.4 million, and impressive free cash flow of $54.3 million underscored financial discipline. Fourth-quarter net income saw a decline to $2.1 million due to market conditions, yet Ranger improved its balance sheet with $85.1 million in liquidity, signaling strength and growth potential.

Ranger Hits Highest Annual Earnings Despite Industry Headwinds

Ranger has celebrated a remarkable year, posting the highest annual earnings in its history. The company faced industry-wide challenges and a significant reduction in drilling rig counts, yet managed to deliver revenue growth of 5%, reaching $636.6 million. With a focus on safety, service, and production cycle resilience, Ranger saw its net income soar to $23.8 million, translating to $0.95 per diluted share, up from $15.1 million a year earlier.

Strategic Pillars and Capital Return Focus Enhance Shareholder Value

Four strategic pillars guided Ranger's success: maximizing cash flow, strengthening the balance sheet, capital return, and growth via acquisitions. The company manifested its commitment by returning 40% of its free cash flow to shareholders, exceeding its initial promise of 25%. It also embarked on strategic share repurchases, acquiring over 10% of outstanding shares. Despite the market's activity dips, Ranger's consistent price discipline and operational leverage led to an adjusted EBITDA of $84.4 million, a 6% increase from the previous year.

Financial Maneuvers Lead to Debt-Free Status and Ample Liquidity

A pivotal moment in 2023 for Ranger was becoming effectively debt-free, creating over $85 million in liquidity. The elimination of significant debt equated to a strengthened balance sheet, safeguarding the company's financial flexibility. This approach bolsters Ranger's ability to navigate a dynamic market and pursue shareholder-enriching initiatives.

Commitment to Financial Strength and Operational Efficiency

Ranger's operational efficiency and keen financial discipline are apparent in its solid profitability, with a 6% uptick in adjusted EBITDA to $84.4 million. Highlighting its ability to convert a substantial portion of EBITDA, Ranger has generated an impressive $54.3 million in free cash flow, demonstrating a strong commitment to capital allocation. The Q4 performance, though marked by wider market challenges, reflected Ranger's resilience with net income of $2.1 million and an adjusted EBITDA of $18.4 million.

Earnings Call Transcript 2023-Q4

[Operator]

 Thank you, and welcome to Ranger Energy Services Fourth Quarter and Full Year 2023 Results Conference Call. Ranger has issued a press release summarizing operating and financial results for the 3 and 12 months ended December 31, 2023. This press release, together with accompanying presentation materials are available in the Investor Relations section of our website at www.rangerenergy.com. Today's discussion may contain forward-looking statements about future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission. Except as required by law, we undertake no obligation to update our forward-looking statements.Further, please note that non-GAAP financial measures may be disclosed during this call. A full reconciliation of GAAP to non-GAAP measurements are available in our latest quarterly earnings release and conference call presentation. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions] Note this event is being recorded. With that, I would now like to turn the conference call over to Stuart Bodden, Ranger's CEO; and Melissa Cougle, Ranger's CFO for their prepared remarks.

[Stuart Bodden, executive]

I'm pleased to welcome you to our fourth quarter and full year 2023 earnings call. 2023 was a year of significant milestones and achievement for Ranger. Before we delve into the specifics of our fourth quarter and full year 2020 financial and operational performance, I'd like to take a moment to reflect on the journey we've undertaken, the strategic decisions that have shaped our path and a few highlights from the year. In 2023, Ranger achieved the highest annual earnings in our company's history. Despite facing headwinds stemming from macroeconomic conditions and industry-wide challenges, which resulted in a 20% decline in drilling rig count, we delivered revenue of $636.6 million, marking a 5% increase from the prior year. This growth trajectory was supported by our unwavering commitment to safety, superior service quality and our production cycle focus, which continues to prove resilient to market fluctuations.Notably, our net income served to $23.8 million or $0.95 per fully diluted share, up from $15.1 million or $0.65 per share in the previous year. Our success in 2023 underscores the strength of our business model and the dedication of our team members. Throughout the year, we remain steadfast in our commitment to maximizing shareholder value valued by our 4 strategic pillars: maximizing cash flow, fortifying our balance sheet, returning capital to our shareholders and exploring growth through acquisitions. Ranger continues to prioritize cash flow generation throughout 2023 leveraging our capitalization business model and strong operating leverage. We generated $84.4 million in adjusted EBITDA, reflecting a 6% increase from the prior year. And thanks to consistent price discipline in the face of activity declines, we achieved free cash flow of $54.3 million or 64% of adjusted EBITDA. Converting cash at these levels is a market differentiation for Ranger and resulted in free cash flow per share of approximately $2.30, providing for a more than 20% free cash flow yield per share at recent trading levels.Maintaining a robust balance sheet is essential for navigating uncertainties and increasing opportunities in our dynamic industry landscape. In the second quarter of 2023, we achieved a significant milestone of effectively becoming debt-free, paying off nearly $80 million since the first quarter of 2022 when our debt peaked after our 2021 stream of acquisitions. We have remained debt-free and ended 2023 with over $85 million in liquidity. We believe the minimal debt is crucial for maximizing shareholder returns and preserving optionality through cycles, and we remain committed to preserving and growing our balance sheet strength. With our balance sheet targets in place in the first half of the year, we turned our attention to capital returns to our shareholders.In 2023, we announced the company's first dividend and repurchased approximately 1.8 million shares, and those repurchases have continued into 2024. As of today, we have now repurchased over 10% of Ranger's outstanding shares. When we discuss acquisitions and strategic opportunities, we are keenly aware that our own stock remains one of the most attractive uses of capital available to us, and any M&A must compete against it. When we launched our pivotal returns program in the second quarter, we committed to returning only 25% of annual cash flows to shareholders through dividends and share repurchases. And I'm pleased to report that we've far exceeded that commitment in 2023 by returning 40% of free cash flow back to our shareholders, reaffirming our dedication to creating long-term value. Delivering meaningful returns to our shareholders will remain a top priority for Ranger.We also intend to increase Ranger's size and scale. And throughout 2023, we remain actively engaged in evaluating strategic opportunities or growth through acquisitions. Our disciplined approach ensures that any potential  transactions are value creating and accretive for our shareholders. Would we like to do another transformational corporate transaction? Absolutely, but we are committed to maximizing value, and we will not overpay. As a result of the unfavorable data spread in 2023, we fitted into evaluating smaller asset acquisitions that fold into our current operations portfolio. In the third quarter, we successfully closed a modest acquisition of pump down assets and support equipment, further enhancing our operational capabilities.We have the balance sheet and the resources to execute quickly on these types of opportunities, and we'll continue to be nimble in evaluating both large and small deals on behalf of our shareholders. While our full year results demonstrated our resilience and growth trajectory, the fourth quarter did present some unique challenges. We experienced the impactful falling oil prices, customer budgeting sunction and early weather shutdowns in addition to our typical holiday slowdown. Despite these headwinds, our high specification rigs business demonstrated stability, reflecting its production cycle focus, which is less pie to the ups and downs of the U.S. land rig count, not to mention our ongoing dedication to service quality and strong customer relationships.Our wireline segment faced more significant weakness than expected in Q4, driven by frac slowdowns and seasonal factors, particularly in the northern region, where our business is strongest. Finally, our Processing Solutions and Ancillary Services segment increased revenues year-over-year in those business lines, but adjusted EBITDA declined due to higher operating costs and operational and scheduling inefficiencies creep into certain service lines during the year due to the overall market slowdown. Looking ahead in the near term, the first quarter has started slower than we planned, similar to many of our peers. Given macro uncertainties and continued pressure in gas markets, our E&P customers have been cautious with their activity levels to start the year.We have also experienced customer-driven shutdown this quarter related to a safety incident of other service providers that caused turndown across all service providers. On the positive side, we are already seeing activity levels pick back up in the back half of February, paving the way for a stronger second quarter. Regarding full year 2024, we felt a budget assuming a slight year-over-year improvement underpinned by relatively stable customer demand. Given the post in take time mentioned at the start of the year, we expect demand to be stronger in the second half of the year, and we remain optimistic about our ability to grow our business in the medium and long term. We are encouraged to well services space has already shown resilience to lever activity levels, providing a reliable floor to our business.We also feel our upside for the year that are not fully yet realized such as the extended work associated with the key customer agreement we signed in 2023. We think this is a model for future customer relationships and continue to have encouraging conversations with our customers. We continue to be encouraged that our highest-quality customers are willing to commit additional operating dollars for Ranger Group. We fully stand behind our ability to convert approximately 50% of our EBITDA to free cash flow even under flattish conditions and they're showing diligence in deploying these cash flows in the most accretive way possible for our shareholders. To date, we have spent more than $25 million of our original $35 million of repurchase authorization announced on a year ago, which has resulted in the repurchase of over 10% of the company's outstanding shares. Given our belief in the underlying value of our stock and our continued commitment to returning capital in the most efficient way possible, the board has increased our share repurchase authorization by an additional $50 million, resulting in total share repurchase capacity of $85 million.Along with all of the notable financial achievements, the entire Ranger team is proud to announce the release of our first ever sustainability report. This report reflects our commitment to operating responsibly and underscores our efforts to promote environmental, social and governance initiatives. We remain dedicated to fostering a culture of safety and sustainability across all aspects of our operations. As we embark on the new year, Ranger is well positioned for continued strong performance in value creation. Our strategic priorities for 2024 are on driving for growth with challenging market conditions and targeted acquisitions. We will focus on high-quality and safe execution to differentiate ourselves with a relentless commitment to customer satisfaction, all the while we remain fully committed to providing meaningful capital returns to our shareholders. Our acquisition strategy will be complemented by ongoing dividends and share repurchases, reflecting our confidence in the long-term prospects of our business.In conclusion, I want to express my gratitude to our dedicated team members, whose hard work and dedication have been instrumental in our success. As we navigate a year ahead, I am confident in Ranger's abilities to deliver sustainable growth and value for our shareholders. With that, I'm going to turn the call over to Melissa to review our key financial results.

[Melissa Cougle, executive]

I'm pleased to provide an overview of our financial performance for the full year 2023 and the fourth quarter specifically. Let's start with a summary of our full year 2023 financial results. Overall, we achieved year-over-year growth and made substantial progress across key financial metrics. Our revenue for the full year totaled $636.6 million, marking a 5% increase from $608.5 million in 2022. This growth was primarily driven by our continued focus on sales quality, effectively managing what space in the calendar and operational efficiency despite encountering challenges and customer activity that dampened our full year performance. Moving on to profitability. Our net income for the full year stood at $23.8 million or $0.95 per fully diluted share. This represents a substantial improvement from the previous year's net income of $15.1 million or $0.65 per share. Our ability to deliver higher earnings reflect the effectiveness of our business model and underscores its resilience in the face of declining market conditions.Adjusted EBITDA also saw a notable uptick reaching $84.4 million for the full year compared to $79.5 million in the prior year. This 6% increase demonstrates our ability to generate strong operating cash flows and underscores our commitment to maximizing shareholder value. Furthermore, we are incredibly proud to have achieved free cash flow for the year of $54.3 million, representing over 60% of adjusted EBITDA. This robust free cash flow generation reflects our disciplined approach to capital allocation and underscore our financial strength. Now let's jump into the financial performance for the fourth quarter of 2023. Despite the powering headwinds during this period, we maintained our focus on operational excellence and remain agile in responding to market value. For the fourth quarter, our net income totaled $2.1 million or $0.09 per fully diluted share. While this represents a decrease from the prior year, it's important again to note that broader market cap challenges in the fourth quarter, the customer budget exhaustion and a notable holiday slowdown during this period.Despite these challenges, we remain resilient and focused on optimizing our operations. Adjusted EBITDA for the fourth quarter was $18.4 million, with the running share of the year's free cash flow coming in and totaling $29.1 million. Turning to our balance sheet and liquidity position. I'm pleased to report that Ranger's balance sheet strength continues to improve. We ended the year with $85.1 million in liquidity, consisting of $59.4 million of capacity on our revolving credit facility and $15.7 million of cash in Hughes. This represents a significant improvement from the previous year, underscoring our commitment to financial discipline and improving capital management. We would call attention to what we expect will be our favorable first quarter decline in cash flows largely due to compensation commitment at the start of every year.Our total debt at the end of December was virtually zero just commitment to maintaining the highest degree of financial flexibility to seize on opportunities in the future. Our ability to achieve these results and is a challenging operating environment highlights the effectiveness of our strategic initiatives and underscores our commitment to creating long-term value for our shareholders. In conclusion, I'd like to reiterate that despite the challenges we faced in 2023 that have continued into 2024, we remain confident in not only the resiliency strength of our business, but also the longevity of the U.S. offshore market and Ranger's ability to provide through cycle returns in its backdrop. We will continue to focus on executing our strategic priorities, driving operational excellence and delivering value for our shareholders. Thank you for your attention. And I will now turn the call back over to the operator for the question-and-answer session.

[Operator]

[Operator instructions] Our first question comes from Luke Lemoine of Piper Sandler.

[Luke Lemoine, analyst]

Stuart, all the large operator in market consolidation should really help you guys have a high state excited with your focus on safety relative to smaller peers. I know this doesn't kick up in a linear manner, and there might be some pauses as operators kind of determine and sort out plans. But could you just speak to the change in the operator market structure and how this could benefit you probably in the back part of the year?

[Stuart Bodden, executive]

Sure. Thanks for the question, Luke. We do think it has helped us and will continue to help us because of our focus on, as you said, maintaining equipment, training crews and on safety as well. So we do think it's going to help us. I think we're conscious that sometimes when the E&Ps consolidate, 1 plus 1 doesn't equal 2, it equals 1.7. And so sometimes that could be negative. But what we're seeing right now and the conversations we're having with the largest players, we certainly think it's going to benefit us that we think that we'll get additional work, and we think that it will start to shake itself out as the year progresses.

[Luke Lemoine, analyst]

Okay. And then on your share repurchases, Stuart, you outlined what you did in '23 as far as paying down debt and then you bought back about 10% of shares so far. I think with the remaining authorization, you have a little over 20% of your market cap that's available and a lot of free cash flow coming this year, too. Could you just talk about how aggressive you would like to be with that buyback? I know you have the goal of returning at least 25% of free cash flow, but you exceeded that in '23. And I'm guessing you'll probably exceed that this year as well.

[Stuart Bodden, executive]

Again, thanks for the question, Luke. Certainly, we're committed to returning on the 25% of cash flow at a minimum back to shareholders. I think what we saw in '23, and I think we'll take the same stance in '24 was as the stock price came under pressure, we felt like it was a great buying opportunity. So our intention is to take that same stance as we go forward. Again, I think that we do want to grow the company. We want to preserve capital to be able to do that. But we know that anything we do has to compete with our own shares and what we saw was the value of our own share which was incredibly attractive with no integration risk. So again, I think going forward, you could expect us to stay in a pretty similar stance that if we see an opportunity, we'll get pretty aggressive. And the board is very supportive of that stands as well.

[Operator]

The next question comes from Don Crist of Johnson Rice.

[Donald Crist, analyst]

I wanted to ask a question on pricing. The per-hour rate on the workover rigs and the percentage on the wireline really surprised me this quarter. Is there anything there? Is it more bundling or just not chasing unprofitable work and your average came up? Just can you add any details there?

[Stuart Bodden, executive]

It's mainly the latter. It's a not chasing unprofitable work. I think that's the first part I'd highlight. And then I would say that there is some bundling, meaning more ancillary equipment going out with some of the rigs, which tends to increase the overall average revenue per hour.

[Melissa Cougle, executive]

Yes. The other thing, Don, to probably call attention to is when you look at, I think Stuart's common supply really strongly to high-spec rigs. One of the dynamics we had in wireline, although challenged as far as the quarter, there were a few jobs that were really productive jobs. So overall activity depressed, but the jobs we had were really, really productive jobs, which I think drove that stage count pricing up, I think you'll probably see that's probably not going to stay there in the first quarter. We'll see how the year shakes out as frac crews go back to work in the coming months. But I think that you'll see that cool off here in the first quarter from a wireline pricing perspective, I think.

[Donald Crist, analyst]

Okay. And just two quick modeling questions for me. CapEx this year, I'm assuming with flat activity, CapEx will come down a little bit from last year?

[Melissa Cougle, executive]

A little bit. We suggested last year, we were putting a little bit of dollars behind the customer contract. There's still a few of those falling through. So I think we think of it mostly as a flattish year as much as a pullback year but remains to be seen, I think, as we get into the year. Fair enough?

[Donald Crist, analyst]

Yes. And I'm assuming that the second and third quarters would be the highest growth quarters and highest EBITDA quarters with the first little bit light and fourth corner the middle. Is that the right way to think about it as well?

[Melissa Cougle, executive]

That's where we're seeing it.

[Stuart Bodden, executive]

Yes. Exactly.

[Operator]

The next question comes from Derek Podhaizer of Barclays.

[Derek Podhaizer, analyst]

Maybe just sticking on the wireline theme. Can you talk about maybe the interplay between the different services under that brand? I know you have the completions focused work and production focused work and then the pump down work, I know there's different margin profiles. And does that affect some of the per stage price that they were seeing, but just thinking about it more from those different verticals under wireline?

[Stuart Bodden, executive]

Yes. Thanks for the question, Derek. On the first stage pricing, that really is just tied specifically to the plug and perp business or the completions business. So it's certainly impacted by either due to the pumpdown or with the production side. I think as we've talked about in the past, on the completion side, it's been a pretty challenging market. It remains pretty challenging. There are some I'd say, some kind of deals being shopped that might potentially help on the consolidation side. We'll see if they come to fruition or not. But again, I think on the plug and curve side, we've seen the market remain pretty challenged. And some of the E&P operators are rebetting a lot of that work to see if they can lock in lower prices. And as again, as we've said, as a result, we've really been focusing our attention more on the more resilient through cycle production type work on the wireline side.

[Melissa Cougle, executive]

And it's probably worth mentioning, Derek, we've talked a bit in the past about shifting that focus over. I think we saw in the fourth quarter was continued and we've talked about previously, Stuart made a comment about the North region. Remember in the North region really is the bigger business and it has a really outsized weather impact. So they start to see significant declines in November, and it doesn't really start to take back up until late March. We see that phenomenon again this year. And so we do feel strongly we are going to be pursuing the pivot. I think that's that much more difficult to do in the middle of winter. So I think you had sort of an outsized effect, if you will, because you had us saying we're not chasing the unproductive completions work. As we're trying to pivot over to production and pumpdown, we only had a couple of months start at that before we really start to see some winter.So we're optimistic this year. It'll probably take a little bit to get off the ground. We could be fair to assume we'd probably expect the press to result off a wireline again in Q1. But I think we really are expecting that to pick up here in-

[Stuart Bodden, executive]

Yes, for sure. I agree with that.

[Derek Podhaizer, analyst]

And then on the margin profile, obviously, it's bounced around quite a bit over the last few years. I mean do you have a gauge on what you think kind of through cycle margins could look like for this business? I know there's just been a lot of volatility, but as far as the cost addressing the cost structure, addressing the right mix of work under the wireline brand, just in order to help us gauge how we should think about margin profile over the next couple of years for wireline.

[Stuart Bodden, executive]

How do we think about it internally, Derek, certainly we think it's kind of a north of 15% business is what it ought to be. That's how we're modeling it through cycle. Honestly little bit of work to do still to get there, but that's how we're thinking about it.

[Melissa Cougle, executive]

And that's really a blend. I know we probably talk off-line. Production and pumpdown is closer to 20 completions are arguably right now. So the other wildcard in that mix is completion is arguably 10 or in some months less. But when you get high productive jobs, you can raise 10% even in completions. We're just not seeing that lately, given the market dynamics. But I think to Stuart's point, our [indiscernible] is to get continuously above 10 every month. And then then we'll be stretching as we get more and more of our footing and our foundation set on the production business. I think you'll see that it might take us a couple of years, but I think you'll see that start to get more resilience and see that here.

[Derek Podhaizer, analyst]

Just a final one for me. The outlook for 2024 seems to be softening quite a bit, primarily driven from the weakness in the natural gas basins, but any initial high-level takes on how we should think about top line 2024 in EBITDA? Just where you guys are thinking right now?

[Stuart Bodden, executive]

I think we're thinking about a pretty similar year or '24 being a pretty similar year in total to '23. As I said in my earlier remarks, Q1 got off to a slow start, but we do have some things in place and we're optimistic on how things will kind of come together in the back half of the year. So again, I think kind of year-over-year, '24 feels pretty similar to '23 but again, Q1 is going to be a bit of a slow start.

[Melissa Cougle, executive]

It's probably also worth it to mention this year what Ranger has been able to do and pull back on, the last time we saw that in 2021, we pulled off 3 acquisitions. So I think that that's getting to be higher on our radar screen as well this year. So we'll see anybody's yet, but I think that's something that certainly asking as well.

[Operator]

The next question comes from John Daniel of Daniel Energy Partners.

[John Daniel, analyst]

My first question is, how would you characterize seller expectations today, just given natural gas weakness and figures of more E&P consolidation and the impact on the business? Have you seen a change today versus maybe a year ago?

[Stuart Bodden, executive]

I think we've definitely seen a change. We're taking more inbounds than we have in the past. I think we feel like the bid ask is narrowing. I'm not sure it's all the way there yet, but it does feel like it's starting to narrow.

[John Daniel, analyst]

Okay. I thought the commentary the release and in the prepared remarks is helpful but as you look at the difference between smaller bolt-ons versus the larger deals, a very general question of how do you -- who's more realistic in their expectations? If you could just opine on that. If that makes any sense.

[Stuart Bodden, executive]

Yes. I think what I would say is we're probably more focused on the bigger transactions than the smaller ones. And part of that, John, is that I think on the smaller ones, unless it's really tied to a specific region that we're not in, right? So it's a geographic expansion or perhaps they have a technology or a sort of an indispensable position, I think those are interesting to us. But in general, a lot of the smaller players, we feel like we have equipment and a lot of the smaller players they don't give us a lot, whereas I think we feel like that some of the bigger ones we can really kind of continue the consolidation fee that we've been pursuing. So I think we're more focused on the bigger ones.

[John Daniel, analyst]

Fair enough. And then the last one for me is just on coiled tubing. I know it's not the biggest of your businesses, but just your thoughts on what you're seeing there? And then just as laterals are getting longer in the Permian, sort of separately, any difference in demand for [indiscernible] systems oil? I know just some thoughts would be helpful on the operations side.

[Stuart Bodden, executive]

Yes. I'll start off on the first one on the coil. And again, the coil business for us is in the Rockies. I think what we are seeing is that even there with the longer will rules, we're seeing demand for kind of, again, sort of more capable equipment. So we are starting to see that, and we do have some investments, their plan for the year to satisfy that demand. I think if you look at on the drill out space for us in '23, even with the slowdown in frac that happened through the year, our 24-hour space where our drill out space was very, very consistent through the year. So I wouldn't say it's a huge shift but again, I think we're seeing demand hold up pretty well. It was a little slower in January, but we're kind of back off to the races on that.

[Operator]

The next question comes from William Kim of Presidio Asset Management.

[William Kim, analyst]

I guess it looks great that Ranger is in a great financial position to be able to repurchase shares being compared to your competitors. I think your shares have been reflecting that versus other guys. But my question relates more to the shareholder dynamics today. I know that your largest shareholder distributed shares to their limited partners partially. But I know there's also a large chunk left. Do you have any color on what the strategy may be in the coming year?

[Stuart Bodden, executive]

Sure. Thanks for the question, William. I know the distribution that happens in the fall, that was related to into funds. So our shares were in 2 separate funds for that shareholder for CSL. And the first fund timed out, and so that's why those shares were distributed to LPs. Beyond that, we don't have a lot of clarity on Fund II. We do know that CSL has been very supportive of the business, constructed of the business. So we don't anticipate any near term but truthfully, I don't think we know for certain. But again, they've been pretty supportive and constructive.

[William Kim, analyst]

Do you think that there will be maybe an opportunity to repurchase a large check of those shares? Or is that not in discussion around the table?

[Melissa Cougle, executive]

Yes. I mean, I guess I'll take a stab at that and say our best understanding right now is those are not available to be purchased. One thing Stuart did mention is there was some selling on the back of the distribution of Fund I. We understood that we need some small rebalancing. So it's not our understanding at this point that those shares are available and they're interested in actually hitting the market. I think if we were to become aware that there was a distribution plan or there was a need to sell further -- our Board member is pretty keenly aware of our desire to repurchase sort of -- we have a very active dialogue around that. So we would be very interested in engaging in that suppression. As best we know now, those shares are not coming out.

[Operator]

This concludes our question and answer session. I would like to hand the conference back over to Stuart Bodden for any closing remarks.

[Stuart Bodden, executive]

Thanks, Andrea. Thanks, everybody, for joining the call. Thanks for your interest in Ranger. I very much appreciate it, and hope everyone has a great day.

[Operator]

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.