RNGR · 10-Q · 2026Q1 · Full report

Interest Rate and Refinancing Exposure

Ranger Energy Services, Inc. · 2026-04-28 · Importance 49 · Surprise 6

Ranger's primary debt instrument is a secured Wells Fargo Revolving Credit Facility entered May 31, 2023 with an aggregate principal commitment of $75.0 million; the borrowing base produced a loan capacity of $66.5 million as of March 31, 2026. As of March 31, 2026 the Company had $26.7 million outstanding borrowings and $4.2 million in Letters of Credit, leaving $35.6 million available; the facility is secured by substantially all assets and matures May 31, 2028. Borrowings bear interest at rates ranging from 1.75% to 2.25% above SOFR (or 0.75% to 1.25% above Base Rate) depending on average excess availability, and Ranger reported a weighted average interest rate of approximately 5.8% for Q1 2026. The agreement includes an acceleration clause and cash dominion provisions and, as of March 31, 2026, the borrowing base did not include accounts receivable or unbilled revenue from the AWS acquisition, which the Company is evaluating to include as integration continues.

Key facts

• Interest expense, net increased from $0.5 million for the three months ended March 31, 2025 to $0.8 million for the three months ended March 31, 2026, attributable to the increased principal balance on the Wells Fargo Revolving Credit Facility.
• The weighted average interest rate for the Wells Fargo Revolving Credit Facility loan was approximately 5.8% for the three months ended March 31, 2026.
• Borrowings under the Wells Fargo Revolving Credit Facility bear interest at a rate per annum ranging from 1.75% to 2.25% in excess of SOFR and 0.75% to 1.25% in excess of the Base Rate, dependent on average excess availability.
• The interest rate applicable to the Letters of Credit was approximately 2.0% for the month ended March 31, 2026.

Impact estimates