Ranger Energy Services agreed to buy the U.S. coiled tubing assets of STEP Energy Services for about $27.5 million, a deal that Ranger said will make it the second-largest coiled tubing operator in the U.S. onshore market. The acquisition adds scale in the Permian and Bakken basins, where Ranger already operates.

The deal terms

Total consideration is approximately $27.5 million, subject to certain adjustments:

  • $22.5 million in cash
  • $5.0 million in Ranger equity, valued on a 30-day trailing volume-weighted average price as of the day before closing

Ranger said the price equals slightly more than 2.5 times the assets' anticipated 2027 EBITDA of more than $10 million, which includes at least $2.5 million of first-year cost synergies. Ranger will fund the cash portion with revolver borrowings; post-close borrowings are expected to be about $30 million.

Asset and workforce details

The deal includes 13 full coiled tubing spreads, related equipment and inventory, and certain property and vehicle lease obligations. STEP's U.S. coiled tubing business runs from five facilities spanning the Bakken through South Texas, with its largest presence in the Permian. Ranger expects to hire about 220 coiled tubing professionals and support staff and take over operations at closing.

Why Ranger is buying

CEO Stuart Bodden said STEP "had built an industry leading technology platform and a reputation for differentiated service." He said Ranger had been evaluating ways to scale its Rockies coiled tubing business before entering talks with STEP. The acquired technology includes STEP's COIL+ extended-reach system and ultra-deep intervention capability for the deepest U.S. wells, plus command center technology that Ranger said adds flexibility. Ranger said the deal also creates pull-through opportunities for its high-specification rig segment and added flexibility for drill-out programs.

STEP's side of the deal

STEP Energy Services was founded in 2011 and is headquartered in Canada. CEO Steve Glanville said the sale lets STEP focus on growing its integrated Canadian energy services business, which now spans coiled tubing, hydraulic fracturing, cementing and proppant supply after STEP combined with Sanjel Energy Services and Wayfinder Corp earlier this year. Glanville called Ranger "the right organization to carry this business forward."

Financial impact and timeline

On a pro forma basis, Ranger expects the acquired assets to add $80 million to $90 million of revenue and more than $10 million of EBITDA in 2027. The deal is expected to be accretive to earnings and EBITDA, with only a nominal uplift in 2026 as integration begins. Ranger said 2026 cash flows will be lower because of about $10 million in first-quarter post-close borrowings for working capital and pre-close capital commitments. Completion is expected on or about September 11, 2026, subject to customary closing conditions including required third-party consents. King & Spalding LLP is serving as Ranger's legal counsel.