Ranger Energy Services said it will acquire the U.S. coiled tubing assets of STEP Energy Services for approximately $27.5 million in cash and stock, expanding its onshore oilfield services footprint. The consideration includes $22.5 million in cash and $5 million in Ranger common stock, priced at the 30-day trailing volume-weighted average price as of Aug. 30.
The transaction, expected to close on or about Sept. 11, is financed through revolver borrowings and will increase Ranger’s post-close debt by roughly $30 million. The acquired assets comprise 13 coiled tubing spreads, related equipment, inventory, and lease obligations, along with COIL+ Extended Reach technology for deep-capacity applications.
STEP’s U.S. coiled tubing operations span five facilities, from the Bakken to South Texas, with its largest concentration in the Permian Basin. Ranger plans to hire about 220 professionals and support staff upon completion, positioning itself as the second-largest onshore coiled tubing operator in the U.S.
The deal is expected to add $80 million to $90 million in revenue and more than $10 million in EBITDA for 2027, with at least $2.5 million in first-year cost synergies. The acquisition is valued at slightly more than 2.5 times projected 2027 EBITDA and is anticipated to be earnings accretive in 2027, with minimal 2026 impact as integration begins.
STEP Energy Services, founded in 2011 and headquartered in Canada, has been restructuring since its 2025 privatization and completed a merger earlier this year combining STEP, Sanjel Energy Services, and Wayfinder Corp. The transaction remains subject to customary closing conditions, including third-party consents.
