Q3 2025 Performance - Q3 2025 net production reached 20,789 Boe/d, with 64% oil and 84% liquids[7] - The company sold 13,332 barrels of oil per day[15] - Lifting costs were reduced to $10.73 per Boe, a 2% improvement compared to guidance[15] - Capital expenditures totaled $24.6 million[16] - Adjusted Free Cash Flow was $13.9 million, marking the 24th consecutive quarter of positive cash flow[17] - Debt was reduced by $20 million, exceeding guidance by $2 million, increasing liquidity to $157.3 million[17] Financial Highlights - Q3 2025 realized price was $41.10 per Boe[19] - Adjusted EBITDA for Q3 2025 was $47.7 million[19] - All-in cash operating costs were $22.35 per Boe in Q3 2025[19] - The company's leverage ratio was 2.10x in Q3 2025[19] - 2024 SEC Proved Reserves are 134 MMBoe with PV10 ~$1.5 Billion[7] Acquisitions and Strategy - The Lime Rock Acquisition added ~12 MMBoe with PV10 ~$160 million[7] - The Lime Rock Acquisition added ~18,000 net acres and ~40 locations[7] - The company operates ~96% of its working interest[7] - The company's net revenue interest is ~79% for oil and ~82% for gas[7]

Core Insights - Ring Energy (REI) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.07 per share a year ago, indicating an earnings surprise of +20.00% [1] - The company posted revenues of $78.6 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.03%, but down from $89.24 million year-over-year [2] - Ring Energy shares have declined approximately 29.3% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $75.6 million, and for the current fiscal year, it is $0.18 on revenues of $315.1 million [7] - The estimate revisions trend for Ring Energy was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $78.6 million, a decrease of 12% compared to $89.2 million for the same period in 2024[17]. - Net income for the three months ended September 30, 2025, was a loss of $51.6 million, compared to a net income of $33.9 million for the same period in 2024[17]. - For the nine months ended September 30, 2025, the net income was a loss of $21,885,905 compared to a net income of $61,812,795 for the same period in 2024[21]. - The company reported a net loss of $51.63 million compared to a net income of $33.88 million for the same period in 2024[93]. - For the three months ended September 30, 2025, oil, natural gas, and natural gas liquids revenues were $78,601,336, a decrease from $89,244,383 in the same period of 2024[144]. - Oil revenues decreased by $11.5 million, or 13%, from $90.4 million to $78.9 million, primarily due to a price variance of $(12.4) million from a decrease in the average realized price per barrel from $74.43 to $64.32[168]. - For the nine months ended September 30, 2025, total sales decreased by approximately $42.6 million, or 15%, to $240.3 million compared to $282.9 million in 2024[171]. Assets and Liabilities - Total current assets increased to $55.8 million as of September 30, 2025, compared to $50.4 million as of December 31, 2024, reflecting a growth of 10%[15]. - The company's total assets reached $1.43 billion as of September 30, 2025, up from $1.41 billion as of December 31, 2024[15]. - Total liabilities increased to $587.0 million as of September 30, 2025, compared to $549.5 million as of December 31, 2024, marking an increase of 7%[15]. - The company’s retained earnings decreased to $36.1 million as of September 30, 2025, down from $58.0 million as of December 31, 2024[15]. - The company’s total stockholders' equity was $847.7 million as of September 30, 2025, compared to $858.6 million as of December 31, 2024[15]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $106,160,584, down from $147,144,031 in 2024[21]. - Total cash used in investing activities for the nine months ended September 30, 2025, was $144,231,398, compared to $113,166,061 in 2024[21]. - The cash at the end of the period for September 30, 2025, was $286,907, compared to no cash at the end of the period in 2024[21]. - The company reported cash paid for interest of $23,559,423 for the nine months ended September 30, 2025, down from $30,208,974 in 2024[23]. Impairments and Expenses - The company reported a ceiling test impairment of $72.9 million for the three months ended September 30, 2025[17]. - The Company recorded impairments on oil and natural gas properties of $72,912,330 for both the three and nine months ended September 30, 2025, due to lower oil prices impacting the present value of estimated future net revenues[54]. - General and administrative expenses increased by approximately $2.3 million from $21.6 million to $23.9 million, driven by higher salaries and bonuses[193]. - The depletion expense for the three months ended September 30, 2025, was $24,902,199, with a depletion rate of $13.02 per barrel-of-oil-equivalent[52]. Derivative Instruments and Hedging - The company utilized derivative strategies to manage cash flow variability associated with future oil and natural gas production[101]. - The company recorded a current state income tax provision of $(39,816) for the three months ended September 30, 2025, compared to $(74,899) in 2024[67]. - The total gain or loss on derivative contracts is reflected as an adjustment to net cash provided by operating activities[75]. - The company recorded a gain on derivative contracts of $14.2 million for the nine months ended September 30, 2025, compared to a gain of $3.9 million for the same period in 2024[201]. Operational Activities - The company drilled and completed three 1-mile horizontal wells in the Northwest Shelf and multiple vertical wells in the Central Basin Platform, demonstrating ongoing operational activity and resource development[156][157][158]. - The company plans to reduce long-term debt primarily through excess cash flow and potential sales of non-core assets, aiming to strengthen its balance sheet[153][154]. - The company intends to employ industry-leading drilling and completion techniques to maximize returns and build future development opportunities[154]. Tax Provisions - The provision for income taxes changed from a provision of $10.1 million for the three months ended September 30, 2024, to a benefit of $12.8 million for the same period in 2025, representing a change of $22.9 million or 227%[203]. - For the nine months ended September 30, 2025, the provision for income taxes changed from a provision of $18.6 million in 2024 to a benefit of $3.7 million in 2025, reflecting a change of $22.3 million or 120%[204]. Future Outlook - The Company expects ongoing oil price volatility, which could materially impact oil revenue, although hedge contracts provide some mitigation[33]. - The company aims to maximize cash flow in 2025 through cost monitoring and prudent capital allocation, focusing on high-return projects in the current commodity price environment[206]. - The company is actively pursuing acquisitions and business combinations to enhance its portfolio with high-margin properties[206].

Core Insights - Ring Energy, Inc. reported strong cash generation and operational discipline in Q3 2025 despite volatile commodity prices, achieving $13.9 million in Adjusted Free Cash Flow and reducing debt by $20 million [3][9][11] - The company reaffirmed its plan to reduce capital spending by 36% year-over-year while maintaining a production growth rate of 2% or more [3][4] Financial Performance - Average daily sales volumes were 20,789 Boe/d, a 2% decrease from Q2 2025 but a 3% increase year-over-year [5] - Crude oil production averaged 13,332 Bo/d, down 8% from Q2 2025 but up 1% from Q3 2024 [5] - Revenues for Q3 2025 were $78.6 million, a 5% decrease from Q2 2025 and a 12% decrease from Q3 2024 [5] - The company reported a net loss of $51.6 million, significantly impacted by a non-cash ceiling test impairment charge of $72.9 million [5][12] Operational Highlights - Lease Operating Expense (LOE) was $10.73 per Boe, 2% below the low end of guidance due to cost reduction efforts [9][10] - Capital expenditures for Q3 2025 were $24.6 million, below the mid-point of guidance [9] - The company drilled and completed five wells in Q3 2025, all in the Central Basin Platform [13][14] Liquidity and Debt Management - Total liquidity as of September 30, 2025, was approximately $157.3 million, with $428 million in borrowings outstanding on its credit facility [11] - The company aims for continued debt reduction, having reduced its debt by $20 million during the quarter [11] Future Guidance - For Q4 2025, the company expects total oil sales volumes between 12,700 and 13,600 Bo/d and total equivalent sales volumes between 19,100 and 20,700 Boe/d [16] - Capital spending guidance for FY 2025 is set at $92 to $102 million, with a midpoint of $97 million [17]

Core Points - Ring Energy, Inc. announced the timing of its third quarter 2025 earnings release and conference call [1] - The earnings release will be issued after the close of trading on November 6, 2025, with a conference call scheduled for November 7, 2025, at 11:00 a.m. ET [2] - The company focuses on oil and gas exploration, development, and production, particularly in the Permian Basin [3] Earnings Release and Conference Call - The third quarter 2025 earnings release will be available after market close on November 6, 2025 [2] - A conference call to discuss the results will take place on November 7, 2025, at 11:00 a.m. ET, with participation details provided [2] - The call will be accessible via a webcast on the company's website, and an audio replay will be available afterward [2] Company Overview - Ring Energy, Inc. specializes in oil and gas exploration, development, and production [3] - The company's current operations are primarily focused on developing its assets in the Permian Basin [3]

Company Performance - Ring Energy, Inc. reported a revenue of $82.60 million for the fiscal second quarter of 2025, which represents a 16.68% decrease year-over-year and fell short of expectations by $265,910 [2] - The company achieved an EPS of $0.05, exceeding Wall Street estimates by $0.02 [2] - Following the earnings release, the stock price increased by more than 48.5% [1] Analyst Ratings - Michael Markidis from BMO Capital raised the price target for Ring Energy from C$19 to C$20, maintaining a Buy rating [2] - Pammir Bir from RBC Capital reiterated a Buy rating with a price target of C$21 [2] Debt Management - Ring Energy announced a target to reduce its debt by approximately $18 million during the third quarter [3] - The company is focused on exploration, development, and production in the Permian Basin of Texas [3]

Company Overview - Ring Energy, Inc. is a Texas-based independent oil and natural gas company founded in 2004, focused on delivering competitive and sustainable returns [4] Investment Activity - Goldman Sachs Group Inc. reduced its holdings in Ring Energy by 33.5%, selling 394,814 shares, resulting in ownership of 783,618 shares valued at approximately $901,000, representing about 0.38% of the company [1] Debt Management Strategy - The company has been actively reducing its debt by acquiring assets to increase production, which has led to cost savings and a relatively low debt ratio [2] Production Forecast - For the second half of 2025, Ring Energy anticipates an average total sales volume of around 20,000 BOEPD, including 13,250 barrels per day of oil sales, with increased credit facility utilization in the mid-70% range due to the Lime Rock acquisition [3]

Group 1 - The Chief Financial Officer of Ring Energy, Inc., Travis T. Thomas, has resigned effective immediately to pursue other opportunities, and his resignation was not due to any disagreements with the company [1] - Rocky Kwon, the Vice President of Accounting, has been appointed as the Interim Chief Financial Officer while the company searches for a new CFO; Kwon has been with Ring since 2021 and has extensive financial leadership experience [2] - Paul D. McKinney, the Chairman and CEO, expressed confidence in the company's financial goals and thanked Thomas for his five years of service, emphasizing the company's commitment to shareholder value and debt reduction [3] Group 2 - Ring Energy, Inc. is focused on oil and gas exploration, development, and production, with current operations centered on its Permian Basin assets [4]

Core Viewpoint - Prairie Operating Co. (PROP) and Ring Energy (REI) are two smaller oil and energy companies in the U.S. market, both trading under $5 per share and facing a challenging environment, making it essential for investors to compare their prospects [1][2]. Company Overview - PROP is aggressively expanding in the Denver-Julesburg (DJ) Basin, while REI is adopting a more measured growth strategy in the Permian Basin [2]. Prairie Operating Co. (PROP) Analysis - PROP has expanded its land to approximately 60,000 acres, allowing for a decade of drilling potential, and achieved a fivefold production increase in Q2 2025 compared to the previous quarter [3]. - The company plans to bring 41 new wells online in 2025, but faces risks from ambitious growth targets and rising drilling costs, which may impact profitability [4]. - Financially, PROP's foundation is weakening due to significant equity dilution, with Q2 2025 average output at 21,052 barrels of oil-equivalent per day, falling short of expectations [5]. - Well costs exceeded projections, further reducing project returns, and the fully diluted share count increased significantly due to Series F preferred equity [6]. Ring Energy (REI) Analysis - REI reported record oil sales in Q2 2025, exceeding forecasts, with over 70% of its production being oil, leading to higher profit margins [7]. - The company generated $25 million in free cash flow, allowing for debt repayment and future project funding, while managing costs effectively with a 12% reduction in lease operating expenses [8]. - Despite its strengths, REI faces challenges with high debt levels nearing $450 million, which could limit financial flexibility if oil prices decline [9]. Price Performance - Over the past year, PROP's stock has dropped 74%, while REI's shares have decreased by 40%, indicating greater investor skepticism towards PROP's growth strategy and dilution risks [10][11]. Valuation Comparison - REI trades at 0.58X forward price-to-sales with a Zacks Value Score of A, reflecting its high-margin production and cash generation, while PROP trades at 0.21X forward sales with a Value Score of C, indicating concerns over dilution and financial stability [13]. Earnings Outlook - The Zacks Consensus Estimate for REI's 2025 earnings has increased by 20% over the past 30 days, while PROP has seen no upward revisions and a 38% cut to 2026 estimates, suggesting analysts view REI more favorably [14][16]. Conclusion - PROP's rapid expansion presents significant risks due to financial weaknesses and operational challenges, while REI offers more stable cash flow and better cost management, positioning it more favorably in the current market [18].

Core Insights - Ring Energy has been facing debt issues since the market changed its rules, with gradual improvement in its debt situation since fiscal year 2020 [1] Group 1: Company Overview - The improvement in Ring Energy's debt ratio has been noted, indicating a positive trend in financial health [1] - The company operates in the oil and gas sector, which is characterized as a boom-bust, cyclical industry [1] Group 2: Analyst Perspective - The analyst emphasizes the importance of patience and experience in navigating the oil and gas industry [1] - The analyst holds a beneficial long position in Ring Energy shares, indicating confidence in the company's future performance [2]