Ranger Closes $27.5M Buy of STEP's U.S. Coiled Tubing Unit
Ranger Energy Services has closed on STEP Energy Services’ U.S. coiled tubing, fluid and nitrogen pumping, and related well services business, World Oil reports, citing a regulatory filing. The deal was first disclosed under an asset purchase agreement at the end of August.
Ranger is getting coiled tubing units and related equipment, other operating assets, and certain rights under leases tied to the acquired operations. It also assumed certain obligations under facility, vehicle and equipment leases.
Total consideration is about $27.5 million, subject to customary post-closing adjustments. That breaks down to $22.5 million in cash and 307,503 shares of Ranger Class A common stock, valued at $5.0 million based on the 30-day volume-weighted average price before closing. Ranger paid the cash portion with borrowings under its Wells Fargo revolving credit facility. The sellers were four STEP entities: STEP Energy Services (USA) Ltd., STEP Energy Services (Leasing) LLC, STEP Energy Services Holdings Ltd. and STEP Nitrogen Industrial Services (USA) Ltd.
What It Means for Subcontractors
- Coil and nitrogen subs: If you work under MSAs or work orders with STEP’s U.S. entities, ask now whether they are being assigned to Ranger and whether rates or terms change. The filing does not say how customer contracts are handled, so get the answer in writing.
- Yard, vehicle and equipment lessors: Ranger assumed certain facility, vehicle and equipment lease obligations. If you lease to a STEP U.S. entity, confirm who the counterparty is and where payments come from, since the filing does not list which leases transferred.
- Pricing and payment terms: The cash was borrowed on a revolver, so Ranger now carries more debt. That is our inference, not a sourced fact, but check payment terms and any post-closing adjustments before taking on new work, since the filing gives no regions or customer details.
