Ranger Energy Services to Buy STEP’s U.S. Coiled-Tubing Assets for $27.5 Million

Ranger Energy Services agreed to acquire STEP Energy Services’ U.S. coiled tubing assets for approximately $27.5 million, adding 13 full coiled tubing spreads and a sizable operating workforce to Ranger’s onshore well-services platform. The purchase extends Ranger into a larger position in a service line used for well intervention and completion work across major U.S. oil-producing basins.

The consideration is expected to consist of $22.5 million in cash and $5 million of Ranger Class A common stock. Ranger said the acquired business operates from five facilities across its existing footprint, from the Bakken through South Texas, with the largest presence in the Permian Basin. The company expects to hire about 220 STEP coiled tubing professionals and support staff and assume operations when the acquisition closes.

Cash, stock and 13 coiled tubing spreads

Ranger’s Form 8-K filed with the Securities and Exchange Commission says the company entered into the asset purchase agreement on August 31 with several STEP entities. The filing describes the assets more broadly than the headline shorthand: they are associated with STEP’s coiled tubing, fluid and nitrogen pumping, and related well-services business in the United States. They also include certain operating assets, contractual rights such as customer and vendor contracts, and lease rights tied to the acquired operations.

The roughly $27.5 million purchase price is subject to adjustments under the agreement. The number of Ranger shares issued for the $5 million equity portion will be based on the volume-weighted average trading price of the company’s Class A stock over a 30-trading-day period ending before closing. Ranger also expects to assume certain obligations connected with facility, vehicle and equipment leases.

According to Ranger’s acquisition announcement, the cash portion will be funded with borrowings under its revolving credit facility, and post-closing borrowings are expected to be about $30 million. At June 30, before this agreement, Ranger reported $61.3 million of total liquidity, including $57.1 million of available revolver capacity and $4.2 million of cash. Second-quarter revenue was $176.5 million and adjusted EBITDA was $28.6 million, giving the purchase some scale relative to Ranger’s recent operating results without making it a balance-sheet-sized acquisition.

Ranger is betting on 2027 scale and utilization

Ranger expects the acquired assets to contribute approximately $80 million to $90 million of revenue and more than $10 million of EBITDA in 2027, including at least $2.5 million of first-year cost synergies. It also expects the acquisition to be accretive to earnings and EBITDA in 2027, while management sees only a nominal contribution in 2026 as integration begins. Those figures are company forecasts rather than historical results for the assets, so the eventual economics will depend on utilization, pricing, integration and customer activity.

The company characterized the price as slightly more than 2.5 times anticipated 2027 EBITDA. That valuation rests on the projected earnings contribution, including the planned synergies, rather than a separately disclosed trailing EBITDA figure for the STEP assets. Ranger identified higher asset utilization and improved profitability as priorities after closing, which makes the 2027 forecast partly an execution target rather than a simple continuation of the seller’s recent performance.

Operationally, Ranger said the purchase will make it the second-largest coiled tubing provider in the Lower 48. That ranking is the company’s own market assessment. The acquired equipment includes STEP’s COIL+ technology and ultra-deep intervention capabilities, which Ranger says are suited to demanding extended-reach and drill-out work. The added engineering capability is also intended to broaden the services Ranger can offer customers already using its high-specification rig business.

The workforce transfer is an important part of the purchase. Ranger expects roughly 220 STEP employees and support staff to join at closing, while the acquired operations span five locations already within Ranger’s geographic footprint. That combination means the acquisition is not simply a purchase of idle equipment. Ranger is taking on people, customer and vendor relationships, leased operating infrastructure and a functioning service line alongside the 13 coiled tubing spreads and related inventory.

STEP narrows its focus to Canada

For STEP, the sale fits a broader shift toward its Canadian operations. STEP CEO Steve Glanville said the company became privately held in 2025 and earlier this year brought STEP, Sanjel Energy Services and Wayfinder Corp. together under one organization. Management now sees stronger growth opportunities in its integrated Canadian business and in the Western Canadian Sedimentary Basin, making the U.S. coiled tubing sale a way to concentrate resources closer to that strategy.

STEP has spent years building the U.S. service line that Ranger is buying. The company entered the U.S. market with coiled tubing operations in 2015, and in 2022 expanded its ultra-deep capability by acquiring four high-specification coiled tubing units and related equipment from ProPetro for about C$17.2 million. That earlier purchase helped deepen STEP’s position in long-lateral work, particularly in the Permian Basin. The current agreement does not state that those exact four units are among the assets changing hands, but it shows how STEP developed the U.S. platform over time before deciding to refocus on Canada.

Ranger, meanwhile, has also been expanding through acquisitions. It bought American Well Services in November 2025 for approximately $90.5 million, adding Permian-focused well-service assets and complementary service lines. Ranger’s second-quarter 2026 results reflected a full contribution from that business, with revenue and adjusted EBITDA both higher than a year earlier. The STEP purchase is smaller by headline value, but it extends the same broader strategy of adding scale and adjacent services in basins where Ranger already operates.

Completion remains subject to customary closing conditions, including required third-party consents. Ranger’s SEC filing says closing is expected in early September, while the company announcement gives a more specific target of on or about September 11, 2026. Until those conditions are satisfied, the assets and employees remain with STEP and the projected 2027 revenue, EBITDA and synergy contribution remain forward-looking expectations.