Ranger Energy Services (RNGR) has acquired Patriot Completion Solutions in an all-stock deal. Ranger is an oil and gas completion and production solutions company with a foundation built on well servicing.
Patriot Completion is a portfolio company of White Deer Energy that provides well completion and intervention services, specializing in wireline evaluation.
The acquisition enhances Ranger’s wireline business while simultaneously preserving its balance sheet quality. A wireline is an electrical cable used to lower tools into and transmit data about the conditions of a wellbore.
Ranger Energy CEO, Darron Anderson said, “The addition of Patriot to our ranger portfolio of companies checks a number of strategic boxes. Operators continue to drive capital discipline resulting in a material growth of well maintenance and intervention style work.” (See Ranger Energy stock analysis on TipRanks)
Anderson added, “Patriot’s primary service offering of wireline evaluation and intervention plays an integral role in these types of operations, significantly expanding Ranger’s current capabilities.”
Ranger Energy plans to integrate patriot’s wireline completion units with its Mallard wireline business. This move is expected to achieve increased scale and immediate cost synergy for the company.
Recently, B. Riley Financial analyst Tom Curran reiterated a Buy rating on the stock and increased the price target to $7.50 (15.7% upside potential) from $6.
Curran highlighted Ranger Energy’s debt-free balance sheet and predicts that its longer-term M&A pursuit will start to deliver.
Ranger’s shares have surged about 82% over the past year.
Ranger Energy scores a 7 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations.
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