Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Equity

Note 8 — Equity

Equity-Based Compensation

In 2017, the Company adopted the Ranger Energy Services, Inc. 2017 Long Term Incentive Plan (the “2017 Plan”). The Company has granted shares of restricted stock (“restricted shares”) and performance-based restricted stock units (“performance stock units”) under the 2017 Plan.

Restricted Stock Awards

During the nine months ended September 30, 2020 and 2019, the Company granted 649,039 and 580,091 restricted shares, respectively, and the aggregate value of the restricted shares granted was $2.5 million and $4.4 million, respectively. As of September 30, 2020, there was an aggregate $4.1 million of unrecognized expense related to restricted shares issued which are expected to be recognized over a weighted average period of 1.8 years.

Performance Stock Units

The performance criteria applicable to performance stock units that have been granted by the Company are based on relative total shareholder return, which measures the Company’s total shareholder return as compared to the total shareholder return of a designated peer group, and absolute total shareholder return. Generally, the performance stock units are subject to a three-year performance period.

During the nine months ended September 30, 2020, the Company granted 121,262 target shares of market based performance stock units at a relative and absolute grant date fair value of approximately $6.33 per share and $3.62 per share, respectively, which are expected to vest on April 3, 2023. During the nine months ended September 30, 2019, the Company granted 105,920 target shares of market based performance stock units at a relative and absolute grant date fair value of approximately $11.96 per share and $9.50 per share, respectively, which are expected to vest on March 21, 2022. As of September 30, 2020, there was an aggregate $1.1 million of unrecognized compensation cost related to performance stock units which are expected to be recognized over a weighted average period of 1.6 years.

Share Repurchases

During the nine months ended September 30, 2020, the Company repurchased 344,827 shares of the Company’s Class A Common Stock for an aggregate $2.4 million in a privately negotiated transaction with ESCO. See Note 12 — Commitments and Contingencies for further details.

In June 2019, the Board of Directors approved a share repurchase program, authorizing the Company to purchase up to 10% of the outstanding Class A Common Stock held by non-affiliates, not to exceed 580,000 shares or $5.0 million in aggregate value. Share repurchases may have taken place from time to time on the open market or through privately negotiated transactions. The duration of the share repurchase program was 12 months and therefore ended in June 2020. During the nine months ended September 30, 2020 and 2019, the Company repurchased 93,063 and 47,474 shares of the Company’s Class A Common Stock for an aggregate $0.7 million and $0.3 million, respectively.

Share Issuance to Related Party

In connection with the IPO, we entered into a master reorganization agreement (the “Master Reorganization Agreement”) under which the parties thereto effected a series of restructuring transactions. Under the Master Master Reorganization Agreement, an aggregate $3.0 million liability was settled by the Company and CSL Energy Holdings I, LLC during the nine months ended September 30, 2019. At the Company’s discretion, the liability was settled through the issuance of 206,897 Class A Common Stock.