Ranger Energy Services to Acquire STEP Energy Services’ U.S. Coiled Tubing Assets
Ranger Energy Services (RNGR) will acquire STEP Energy Services' U.S. coiled tubing assets for $27.5M, including $22.5M in cash and $5M in equity. The deal, expected to close by September 11, 2026, positions Ranger as the second-largest U.S. coiled tubing operator, with anticipated 2027 EBITDA of over $10M, including $2.5M in first-year synergies.
How this was made
The 30-second read
Why it matters
The acquisition is expected to be earnings‑accretive in 2027, adding significant revenue and EBITDA while expanding technological capabilities.
Market read
The deal reshapes the U.S. coiled‑tubing landscape, giving Ranger scale advantages and potential earnings uplift, but the small transaction size limits broader market impact.
What to watch
Financing via a $30 M revolver could increase leverage, and the deal’s success depends on retaining STEP’s specialized talent.
Background
Ranger Energy Services seeks to grow its coiled‑tubing footprint after recent acquisitions, positioning itself as a leading service provider in key U.S. basins.
Ticker impact
Ranger Energy Services announced the acquisition of STEP Energy Services' U.S. coiled tubing assets for approximately $27.5 million.
Potential modest upside as the market prices the added revenue and EBITDA, though the small deal size may limit immediate price movement.
The acquisition adds $80‑90 M of revenue and >$10 M of EBITDA in 2027, but the $27.5 M consideration is modest relative to Ranger's market cap, so impact is likely incremental.
Market effects
Consolidates the U.S. coiled‑tubing market, potentially pressuring smaller operators and supporting higher pricing power for the top players.
Strengthens service capacity in the Permian and Bakken basins, benefitting regional oil‑and‑gas operators.
Limited; the transaction is U.S. focused and does not affect broader global energy markets.
Counterpoint
The modest purchase price may indicate overvaluation risk; integration costs could erode the projected synergies.
Key entities
- CompanyRanger Energy Services, Inc.
U.S. oilfield services firm (NYSE: RNGR) acquiring STEP's assets.
- CompanySTEP Energy Services
Canadian oilfield services firm (private) selling its U.S. coiled‑tubing assets.
