Ranger Energy Services agreed to acquire the U.S. coiled tubing business of STEP Energy Services for approximately $27.5 million, the companies said on Friday.
The transaction, structured as a cash-and-equity deal, includes $22.5 million in cash and $5 million in Ranger equity based on the volume-weighted average price over the 30 days prior to closing. Financing will be arranged through revolving credit facilities, with post-closing debt projected at about $30 million.
The acquisition comprises 13 coiled tubing spreads, related equipment, inventory, and certain lease and vehicle obligations. It also includes STEP’s COIL+ Extended Reach technology, which supports deep-reach applications. The U.S. operations span five facilities across the Bakken region, South Texas, and the Permian Basin, with the largest concentration in the latter.
Ranger expects to hire roughly 220 coiled tubing professionals and support staff following the deal’s completion. The transaction is slated to close on or around September 11, 2026, subject to customary conditions and third-party consents.
The acquisition is valued at just over 2.5 times projected 2027 EBITDA. Ranger anticipates adding $80 million to $90 million in revenue and more than $10 million in EBITDA in 2027. The deal is expected to generate at least $2.5 million in cost synergies in the first year and to be earnings accretive in 2027, with a modest impact in 2026 during early integration.
Based in Canada, STEP Energy Services was founded in 2011 and transitioned to private ownership in 2025 after merging with Sanjel Energy Services and Wayfinder Corp. The acquisition will position Ranger as the second-largest onshore coiled tubing operator in the United States.
