~ Reaffirms Sales Volume Guidance and Substantially Reduces Capital Guidance ~THE WOODLANDS, Texas, April 24, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today provided updated guidance for the second quarter of 2025, which included reaffirming its previous outlook for oil and total sales volumes despite a significant reduction in the Company’s capital spending guidance, which was lowered in response to the recent decline in oil prices. KEY Q2 UPDATED GUIDANCE H ...

Core Insights - Ring Energy, Inc. reported strong operational performance in Q1 2025, with oil sales volumes exceeding guidance and a successful asset acquisition [2][4][7] - The company emphasizes a value-focused strategy aimed at generating free cash flow and maintaining disciplined capital spending [4][7] Operational Performance - Oil production reached over 12,000 barrels per day (Bo/d), surpassing the high end of guidance [7] - Total sales volumes exceeded the midpoint of guidance, with over 18,300 barrels of oil equivalent per day (Boe/d) [7] - The success of the drilling program, which included 7 new wells, contributed to the outperformance [7] Asset Acquisition - The acquisition of Lime Rock's Central Basin Platform assets was completed on March 31, 2025, enhancing cash flow from long-life, oil-weighted assets [4][7] - Initial operational synergies were realized, reducing lease operating expenses (LOE) by over 5% [7] Future Outlook - The company plans to release its Q1 2025 earnings on May 7, 2025, followed by a conference call on May 8, 2025 [5] - Management expressed confidence in the company's ability to navigate commodity price volatility through flexible contracting and hedging strategies [4][7]

~ Announces Timing of First Quarter Earnings Conference Call ~ THE WOODLANDS, Texas, April 17, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today provided an operational update, including first quarter 2025 oil sales volumes above the high end of the Company’s guidance range and total sales volumes above the midpoint of guidance. The Company also announced the timing of Ring’s quarterly results conference call. KEY HIGHLIGHTS Produced over 12,000 barrels of oil p ...

THE WOODLANDS, Texas, April 11, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today provided an update concerning its Board of Directors (the “Board”), including the retirement of Ms. Regina Roesener effective April 14, 2025 and the appointment of Ms. Carla Tharp to the Board effective April 14, 2025 who will serve as an independent Director. Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “It has been a pleasure to work closely ...

Core Insights - Ring Energy, Inc. has successfully completed the acquisition of Lime Rock Resources IV, LP's Central Basin Platform assets in the Permian Basin, enhancing its operational footprint and production capabilities [1][3]. Transaction Details - The acquisition includes approximately 17,700 net acres, primarily contiguous to Ring's existing operations, which will facilitate quick integration and operational synergies [1][3][7]. - The total cash payment for the transaction was approximately $63.6 million, with a deferred cash payment of $10 million due by December 31, 2025, and the issuance of about 6.5 million shares of common stock [8]. Financial Impact - The acquired assets are expected to generate approximately 2,300 barrels of oil equivalent per day, contributing an estimated $34 million to the 2025 Adjusted EBITDA [7]. - The acquisition is projected to be accretive to Ring's key financial metrics, valued at less than 85% of Proved Developed PV-10 reserves, which are estimated at $120 million [7][8]. Strategic Benefits - The transaction strengthens Ring's position as a leading conventional Permian consolidator, providing a robust inventory of over 40 gross drilling locations that are economically viable and ready for capital allocation [7]. - The integration of these assets is anticipated to yield cost reduction opportunities and enhance the company's operational efficiency [3][7].

Group 1 - Ring Energy, Inc. (NYSE: REI) has received generally unfavorable updates, leading to an expectation that its share price will continue to underperform relative to its estimated asset value [2] - The company is under scrutiny due to its performance in the energy sector, which is a focus area for distressed value investing [2] Group 2 - The article emphasizes the importance of analytical skills in evaluating investment opportunities, particularly in the context of the energy sector [2] - The author, Aaron Chow, has over 15 years of analytical experience and has previously co-founded a mobile gaming company, indicating a diverse background that may influence his investment insights [2]

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on Ring Energy and its acquisition prior to earnings reporting [2] - The cyclical nature of the oil and gas industry is highlighted, emphasizing the need for patience and experience in navigating market fluctuations [2] - The analysis includes a breakdown of companies' balance sheets, competitive positions, and development prospects, aimed at identifying undervalued opportunities in the sector [1] Group 2 - The article indicates that the author has a beneficial long position in Ring Energy shares, suggesting a positive outlook on the company's performance [3] - The acquisition mentioned is part of Ring Energy's strategy to enhance its market position, although specific details of the acquisition are not provided in the summary [2]

Core Viewpoint - Ring Energy, Inc. is actively engaging with investors through a fireside chat to discuss its recent $100-million acquisition and its implications for the company's future outlook in 2025 and beyond [2][5]. Group 1: Acquisition Details - The company announced a $100-million acquisition of producing assets located on the Central Basin Platform of the Permian Basin [2]. - The acquisition is expected to significantly impact Ring's conventional asset base in the Permian Basin [5]. Group 2: Financial Implications - The discussion will cover the funding aspects of the acquisition and its effect on Ring's financial scale [5]. - The economic tradeoff between acquiring production versus drilling in the current commodity and cost environment will be analyzed [5]. Group 3: Strategic Focus - The company aims to maximize free cash flow to strengthen its balance sheet as part of its strategic approach [5]. - The fireside chat will be led by Jeff Robertson, Managing Director at Water Tower Research, with participation from Paul McKinney, Ring's Chairman and CEO [2].

Financial Performance - Recorded net income of $5.7 million, or $0.03 per diluted share, for Q4 2024, with an adjusted net income of $12.3 million, or $0.06 per diluted share[4]. - For the full year 2024, the Company reported net income of $67.5 million, or $0.34 per diluted share, compared to $104.9 million, or $0.54 per diluted share in 2023[24]. - Adjusted net income for the twelve months ended December 31, 2024, was $69,544,726, representing a decrease of 29.5% from $100,474,902 in 2023[74]. - The net income for the three months ended December 31, 2024, was $5,657,519, a significant decrease from $33,878,424 in the previous quarter[58]. - Adjusted EBITDA for 2024 was $233.3 million, representing a decline of approximately 4% from 2023, despite a nearly 7% decrease in overall realized commodity pricing[25]. Sales and Production - Sold 19,658 barrels of oil equivalent per day (Boe/d) in Q4 2024, exceeding the midpoint of guidance, and achieved a record annual sales volume of 19,648 Boe/d, an 8% increase year-over-year[4]. - Full year 2024 net sales averaged a record 19,648 Boe/d, up from 18,119 Boe/d in 2023, attributed to production from the Founders Acquisition and strong organic growth[27]. - The Company forecasts full year 2025 oil sales volumes of 13,600 to 14,200 Bo/d, reflecting an almost 5% increase from 2024[38]. - Average daily sales volumes of oil were 12,916 Bbls/d in Q4 2024, down from 13,637 Bbls/d in Q4 2023, reflecting a decline of 5.3%[61]. - Natural gas liquids sales volumes increased to 339,589 Bbls in Q4 2024, up 30% from 261,020 Bbls in Q4 2023[61]. Capital Expenditures and Cash Flow - Reduced total capital expenditures by 12% to $37.6 million in Q4 2024 compared to Q3 2024, maintaining capital spending essentially flat at $151.9 million for FY 2024[4]. - The Company expects total capital spending for 2025 to be between $138 million and $170 million, including drilling and completing 27 to 32 horizontal wells and 15 to 22 vertical wells[35]. - Achieved adjusted free cash flow of $4.7 million in Q4 2024, remaining cash flow positive for 21 consecutive quarters[4]. - The company reported a net cash used in investing activities of $150,854,367 for the twelve months ended December 31, 2024, compared to $222,573,288 in 2023, showing a decrease of about 32.3%[66]. Debt and Liquidity - Strengthened the balance sheet with an additional $7.0 million in debt reduction during Q4 2024, totaling $70.0 million since the Founders acquisition in August 2023[4]. - Exited 2024 with approximately $217 million of liquidity and a leverage ratio of 1.66x, with $385 million in borrowings against a borrowing base of $600 million[4]. - The leverage ratio as of December 31, 2024, was 1.66, well below the maximum allowed ratio of 3.00[88]. - The company reported total long-term debt of $385,000,000 as of December 31, 2024, down from $425,000,000 in 2023[96]. Reserves and Valuation - Year-end 2024 proved reserves were 134.2 MMBoe, a 3% increase from 129.8 MMBoe at year-end 2023, with reserve additions of 16.0 MMBoe[42]. - The PV-10 value at year-end 2024 was $1,462.8 million, down from $1,647.0 million at the end of 2023[45]. - The Present Value of Estimated Future Net Revenues (PV-10) is reported at $1,462,827,136 as of December 31, 2024[51]. Operational Costs - The total costs and operating expenses for the twelve months ended December 31, 2024, were $233,426,714, compared to $215,275,510 in 2023, reflecting an increase of approximately 8.5%[58]. - The company reported lease operating expenses of $78,310,949 for the year ended December 31, 2024, an increase from $70,158,227 in 2023[58]. - All-in cash operating costs for the twelve months ended December 31, 2024, were $165,688,246, compared to $155,154,971 in 2023[99]. - Cash Operating Margin per Boe for Q4 2024 was $22.94, a decrease from $25.14 in Q3 2024 and $32.49 in Q4 2023[102]. Future Outlook - Plans to maintain or slightly grow production through organic drilling and pursue accretive acquisitions, including the Lime Rock Acquisition expected to close before the end of Q1 2025[4]. - The company entered into an agreement to acquire Lime Rock's CBP assets for $90 million in cash and approximately 7.4 million shares of common stock, expected to close by the end of Q1 2025[31]. - The company plans to utilize a phased capital drilling program in 2025 to maximize free cash flow and respond to market conditions[34]. Conference Call - The company plans to hold a conference call on March 6, 2025, to discuss its fourth quarter and full year 2024 operational and financial results[52].

Financial Data and Key Metrics Changes - Total sales grew 8% year-over-year to a record 19,648 barrels of oil equivalent per day, with oil sales increasing 6% to a record 13,283 barrels of oil per day [10] - Adjusted EBITDA reached $233.3 million despite a 7% reduction in realized prices [12] - Net income for Q4 2024 was $5.7 million or $0.03 per diluted share, down from $33.9 million or $0.17 per diluted share in Q3 2024 [27] - Adjusted net income for Q4 2024 was $12.3 million or $0.06 per diluted share, compared to $13.4 million or $0.07 per diluted share in Q3 2024 [27] Business Line Data and Key Metrics Changes - Production in Q4 2024 was 19,658 Boe per day, a slight decrease of 2% from Q3 2024 [21] - Overall realized price declined 4% to $46.14 per Boe in Q4 2024 from $48.24 per Boe in Q3 2024 [23] - Oil revenue decreased by $5.8 million, while gas and NGL revenues saw a combined increase of $2.6 million quarter-to-quarter [24] Market Data and Key Metrics Changes - The average crude oil price differential from NYMEX WTI futures pricing was a negative $1.42 per barrel in Q4 2024, compared to a negative $0.56 per barrel in Q3 2024 [23] - The average natural gas price differential from NYMEX futures pricing improved to a negative $3.83 per Mcf in Q4 2024 from a negative $4.43 per Mcf in Q3 2024 [23] Company Strategy and Development Direction - The company plans to maintain a disciplined capital spending program while focusing on maximizing free cash flow generation [18] - The acquisition of Lime Rock's assets is expected to enhance the company's strategic foothold in the Central Basin Platform and increase undeveloped inventory [15] - The company aims to organically grow reserves and undeveloped inventory over time, reducing reliance solely on acquisitions for growth [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage challenges posed by low oil prices due to its high margin and low production decline rate compared to peers [40] - The company intends to focus on reducing debt if WTI oil prices remain at or below $65 per barrel for an extended period [41] - Management highlighted the importance of technology in improving drilling and completion methods to enhance capital efficiency [105] Other Important Information - The company paid down $40 million in debt for the full year 2024 and generated $43.6 million in adjusted free cash flow [33] - The company has approximately $217 million in liquidity and a leverage ratio of 1.66 times at year-end 2024 [32] Q&A Session Summary Question: Can you discuss potential synergies from the recent acquisition? - Management identified opportunities in water handling and oil infrastructure that could lead to cost reductions [56][58] Question: How do you view the current M&A environment? - Management noted that volatility could bring buyers and sellers' expectations closer, potentially leading to more transactions [72] Question: What is the quality of your inventory and how do bolt-ons like Shafter Lake benefit you? - Management emphasized the superior economics of their undeveloped locations compared to other plays in the Permian Basin [82][88] Question: Can you elaborate on organic growth opportunities? - The company is evaluating potential zones under existing acreage and exploring horizontal development in traditionally vertical areas [102][104]