Ranger Energy Services (RNGR) risk factors, FY2024 10-K

Risks Related to Our Operations

1. 01Our operations are subject to inherent risks, some of which are beyond our control. These risks may be self‑insured, or may not be fully covered under our insurance policies
2. 02In addition, our operations are subject to, and exposed to, employee/employer liabilities and risks such as claims relating to wrongful termination, discrimination, labor organizing, retaliation and general human resource‑related matters
3. 03Seasonal weather conditions, climate change, severe weather events and natural disasters could severely disrupt normal operations and harm our business
4. 04inclement weather conditions could severely disrupt the normal operation of our business and adversely impact our financial condition and results of operations
5. 05Our business could be harmed by geographical and terrorist threats, armed conflicts or civil unrest
6. 06Our business depends on domestic capital spending by the oil and natural gas industry, and reductions in such capital spending could have a material adverse effect on our business, liquidity position, financial condition, results of operations and prospects
7. 07Our business could be adversely affected by general economic conditions or a weakening of the broader energy industry, and inflation or recession may adversely affect our financial position and operating results
8. 08The volatility of oil and natural gas prices may adversely affect the demand for our services and negatively impact our results of operations
9. 09Fuel conservation measures could reduce demand for oil and natural gas which would in turn reduce the demand for our services
10. 10We may incur significant capital expenditures for new equipment as we grow our operations and may be required to incur further capital expenditures as a result of environmental initiatives, new regulatory requirements, and advancements in oilfield services technologies
11. 11We may have difficulty managing growth in our business, which could adversely affect our financial condition and results of operations
12. 12We face intense competition that may cause us to lose market share and could negatively affect our ability to market our services and expand our operations
13. 13Increasing competition for workers, as well as labor shortages, could adversely affect our business
14. 14Reliance upon a few large customers may adversely affect our revenue and operating results
15. 15Our customers may be forced to curtail or shut in production due to a lack of storage capacity
16. 16Unsatisfactory safety performance may negatively affect our current and future customer relationships and, to the extent we fail to retain existing customers or attract new customers, adversely impact our revenue
17. 17We may be subject to claims for personal injury and property damage, or for catastrophic events, which could materially and adversely affect our financial condition, results of operations and prospects
18. 18We provide services to customers who operate on federal and tribal lands, which are subject to additional regulations
19. 19Increases in the scope or pace of midstream infrastructure development, or decreased federal or state regulation of natural gas pipelines, could decrease demand for our services
20. 20Delays or restrictions in obtaining permits by us for our operations or by our customers for their operations could impair our business
21. 21Changes in transportation regulations may increase our costs and negatively impact our results of operations
22. 22We are subject to environmental and occupational health and safety laws and regulations that may expose us to significant costs and liabilities
23. 23Federal and state legislative and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays as well as adversely affect demand for our support services
24. 24The EPA also released its final report on the potential impacts of hydraulic fracturing on drinking water resources. The final report concluded that “water cycle” activities associated with hydraulic fracturing may impact drinking water resources under certain limited circumstances
25. 25Our operations, and those of our customers, are subject to a series of risks arising from climate change
26. 26Increased attention to sustainability, environmental, social, and governance (“ESG”) matters and conservation measures may adversely impact our or our customers’ business
27. 27Anti‑indemnity provisions enacted by many states may restrict or prohibit a party’s indemnification of us
28. 28We may be subject to interruptions or failures in our information technology systems
29. 29We are subject to cybersecurity risks. A cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss

Risks Related to Our Ownership and Capital Structure

1. 30As of December 31, 2024 and 2023 our total debt was $0.0 million and $0.1 million, respectively
2. 31Our Wells Fargo Revolving Credit Facility subjects us to various financial and other restrictive covenants. These restrictions may limit our operational or financial flexibility and could subject us to potential defaults under our Wells Fargo Revolving Credit Facility
3. 32Continued increases in interest rates could adversely impact the price of our shares, our ability to issue equity or incur debt for acquisitions or other purposes
4. 33We may identify material weaknesses or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of our financial statements or cause us to fail to meet our periodic reporting obligations
5. 34Future sales of our Class A Common Stock in the public market, or the perception that such sales may occur, could reduce our stock price, and any additional capital raised by us through the sale of equity or preferred stock or convertible securities may dilute your ownership in us
6. 35We may issue preferred stock, the terms of which could adversely affect the voting power or value of our Class A Common Stock
7. 36For as long as we are a smaller reporting company, we will not be required to comply with certain reporting requirements that apply to other public companies
8. 37If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our Class A Common Stock or if our operating results do not meet their expectations, our stock price could decline
9. 38CSL, Bayou Holdings and their respective affiliates are not limited in their ability to compete with us, and the corporate opportunity provisions in our amended and restated certificate of incorporation could enable CSL and Bayou Holdings to benefit from corporate opportunities that might otherwise be available to us
10. 39CSL owns a significant portion of our voting stock, and their interests may conflict with those of our other stockholders
11. 40A significant reduction of CSL’s ownership interests in the Company could adversely affect us
12. 41Certain of our directors have significant duties with, and spend significant time serving, entities that may compete with us in seeking acquisitions and business opportunities and, accordingly, may have conflicts of interest in allocating time or pursuing business opportunities