Ranger Energy to Acquire Step Energy Services' U.S. Coiled Tubing Assets

By Bobby Samwell • Monday, August 31 10:49 • Permanent Link

Ranger Energy Services agreed to buy Step Energy Services’ U.S. coiled tubing assets for about $27.5 million, a deal the company said will make it the second-largest U.S. coiled tubing operator in the onshore market.

The transaction includes 13 full coiled tubing spreads, related equipment and inventory, plus certain property and vehicle lease obligations. Ranger expects to bring on about 220 coiled tubing professionals and support staff, with operations to transfer at closing, which is expected around Sept. 11, 2026.

Ranger said the acquired business is expected to generate more than $10 million of EBITDA in 2027 and add roughly $80 million to $90 million of revenue that year. The company said that figure includes at least $2.5 million of first-year cost synergies.

The purchase price includes $22.5 million in cash and $5 million in equity, with the equity portion to be priced using a 30-day trailing volume-weighted average price. Ranger said the deal will be funded with revolver borrowings and expects post-close borrowings of about $30 million.

Step’s U.S. coiled tubing business operates from five facilities across Ranger’s existing footprint, stretching from the Bakken to South Texas, with its largest presence in the Permian Basin. Ranger said the deal gives it added scale in the Permian and Bakken and creates pull-through opportunities for its high-specification rig segment.

The company said the acquisition is expected to be earnings accretive in 2027, with nominal contribution in 2026 as integration begins. It also said 2026 cash flows will be lower by about $10 million because of first-quarter post-close borrowings for working capital and pre-close capital commitments.

Ranger said Step’s business brings in coil+ extended reach technology and ultra-deep intervention capabilities, while Ranger’s coiled tubing footprint expands from its Rockies business into a broader U.S. platform. Today the company's shares have moved 3.9% to a price of $17.195. For more information, read the company's full 8-K submission here.

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