Q4 & FY 2024 OVERVIEW 2025 GUIDANCE www.ringenergy.com NYSE American: REI Forward-Looking Statements and Supplemental Non-GAAP Financial Measures Forward –Looking Statements This Presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this Presentation, regarding our strategy, future operations, financia ...

分组1 - Ring Energy reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.08 per share, and down from $0.11 per share a year ago, representing an earnings surprise of -25% [1] - The company posted revenues of $83.44 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.49%, and down from $99.94 million year-over-year [2] - Over the last four quarters, Ring Energy has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] 分组2 - The stock has lost about 11% since the beginning of the year, compared to the S&P 500's decline of -1.8% [3] - The current consensus EPS estimate for the coming quarter is $0.09 on revenues of $88.61 million, and for the current fiscal year, it is $0.52 on revenues of $385.87 million [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the top 10% of over 250 Zacks industries, indicating strong industry performance [8]

Production and Reserves - The company reported a significant increase in oil production, achieving an average of 10,000 barrels of oil equivalent per day (Boe/d), representing a 15% increase year-over-year[8] - The total proved reserves increased to 50 million barrels of oil equivalent (MMBoe), a 10% rise compared to the previous year[9] - The company plans to expand its drilling operations, targeting an additional 20 wells in the upcoming fiscal year, which is expected to increase production capacity by 25%[12] - The company anticipates capital expenditures of approximately $30 million for the upcoming fiscal year, focusing on drilling and completion activities[9] - The company is exploring potential acquisition opportunities to enhance its asset portfolio and increase production capacity[9] Financial Performance - The average realized price for oil was $75 per barrel, reflecting a 5% increase from the previous quarter[9] - The company reported a net income of $20 million for the quarter, a 25% increase compared to the same period last year[9] - The company anticipates a revenue growth of 12% for the next fiscal year, driven by increased production and favorable market conditions[12] - The management provided guidance for the next quarter, projecting a revenue increase of 12% based on current market conditions[9] Cost Management and Efficiency - Operating expenses were reduced by 8% due to improved operational efficiencies and cost management strategies implemented over the past year[8] - A new technology for hydraulic fracturing is expected to reduce costs by 10% and improve production efficiency[9] - The company has allocated $50 million for new technology development aimed at enhancing extraction efficiency, which is projected to improve production rates by 20%[12] Market Expansion and Strategy - The company is exploring potential acquisitions to expand its market presence, with a focus on regions with high growth potential in the oil and gas sector[9] - The company plans to expand its operations into new geographic regions, targeting a 20% increase in market share over the next two years[9] - The company has secured a $50 million credit facility to support its growth initiatives and operational needs[9] Environmental, Social, and Governance (ESG) Initiatives - The company has established a new partnership to enhance its ESG initiatives, aiming to reduce carbon emissions by 30% over the next five years[12] - Environmental, Social, and Governance (ESG) initiatives are being prioritized, with a commitment to reduce carbon emissions by 25% over the next five years[9]

Core Viewpoint - Ring Energy, Inc. reported operational and financial results for Q4 and full year 2024, highlighting growth in sales volumes and a focus on capital efficiency while preparing for a significant acquisition in 2025 [1][3]. Q4 2024 Highlights - Average daily sales volumes reached 19,658 Boe/d, an increase of 8% year-over-year [4][5]. - Crude oil sales averaged 12,916 Bo/d, a 6% increase from the previous year [4][5]. - Revenues for Q4 2024 were $83.4 million, down 7% from Q3 2024 and 17% from Q4 2023 [4][8]. - Net income for Q4 2024 was $5.7 million, a significant decrease of 83% from Q3 2024 [4][5]. - Adjusted EBITDA for Q4 2024 was $50.9 million, down 6% from Q3 2024 [4][5]. Full Year 2024 Highlights - Full year net income was $67.5 million, down 36% from 2023 [4][23]. - Adjusted net income for the year was $69.5 million, a 31% decrease from 2023 [4][23]. - Total revenues for 2024 were $366.3 million, a slight increase from $361.1 million in 2023 [4][25]. - Average realized price for crude oil was $74.87 per barrel, with a combined average sales price of $50.94 per Boe, down from $54.60 per Boe in 2023 [4][27]. 2025 Outlook - The company plans to maintain a reduced capital spending program in Q1 2025, targeting a leverage ratio improvement upon closing the Lime Rock acquisition [3][34]. - Expected total capital spending for 2025 is between $138 million and $170 million, with a focus on drilling and completing 27 to 32 horizontal wells and 15 to 22 vertical wells [3][35]. - Anticipated oil sales volumes for 2025 are projected to be between 13,600 and 14,200 Bo/d, reflecting a nearly 5% increase from 2024 [3][37]. Year-End 2024 Proved Reserves - Year-end 2024 proved reserves were 134.2 MMBoe, a 3% increase from 129.8 MMBoe at year-end 2023 [4][40]. - The reserves were comprised of approximately 60% crude oil, 19% natural gas, and 21% natural gas liquids [4][43]. - The PV-10 value at year-end 2024 was $1,462.8 million, down from $1,647.0 million at the end of 2023 [4][44]. Acquisition and Strategic Focus - The company announced a proposed acquisition of Lime Rock's CBP assets for $90 million, expected to close by the end of Q1 2025 [3][30]. - The acquisition is aimed at enhancing operational efficiency and creating shareholder value through strategic asset integration [3][32].

Core Insights - Ring Energy, Inc. has announced an agreement to acquire Central Basin Platform assets from Lime Rock Resources for $100 million, which includes $80 million in cash, a $10 million deferred payment, and up to 7.4 million shares of common stock [1][7] Transaction Overview - The acquisition is expected to close by the end of Q1 2025 and has an effective date of October 1, 2024 [1][2] - The Lime Rock assets are located in Andrews County, Texas, adjacent to Ring's existing operations, providing opportunities for integration and operational synergies [2][5] Strategic Rationale - The acquisition is aimed at enhancing shareholder value through improved operations and synergy capture, with a focus on consolidating high-quality, oil-weighted assets [2][4] - The transaction is expected to increase Ring's scale, enhance its portfolio of high-return drilling locations, and accelerate debt reduction [4][6] Financial Metrics - The acquisition is valued at less than 85% of Proved Developed PV-10, indicating an attractive valuation for shareholders [6] - The Lime Rock assets are projected to generate $34 million in 2025E Adjusted EBITDA, contributing to higher adjusted free cash flow and reduced reinvestment rates [6][13] Operational Highlights - The acquired assets consist of approximately 17,700 net acres that are 100% held by production, providing immediate opportunities for field-level optimization and cost savings [5][6] - The transaction marks Ring's fourth acquisition since 2019, totaling approximately $940 million in assets, demonstrating a proven M&A strategy [4][6]

Company Overview - Ring Energy (NYSE: REI) is a Permian exploration and production company operating in the Central (CPB) and Northwest Shelf (NWS) regions [1] - The company has a production rate of 20.1 kboe/d (thousands of barrels of oil equivalent per day) with a liquid mix of 85% and an oil mix of 66% [1] - REI boasts higher-than-peer reserves, indicating a strong position in the market [1] Leadership and Background - Benjamin Halliburton, the founder of Building Benjamins, has a notable background in investment management, having founded Tradition Capital Management in 2000 [1] - Halliburton has been recognized as "PSN Manager of the Decade" for All-Cap in the 2000s and for Dividend Value in the 2010s, showcasing his successful investment strategies [1] - He began his investment career at Merrill Lynch in 1986 and has continuously been involved in the investment sector, earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1]

Group 1 - Recent increases in interest rates are putting pressure on the share prices of certain REITs, including RioCan REIT [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Industry Analysis - The oil and gas industry is described as a boom-bust, cyclical industry that requires patience and experience to navigate effectively [2] - The Matterhorn pipeline has begun operations, transporting natural gas from an oversupplied area to a region where the gas can be utilized, potentially impacting market dynamics [2] - Cold weather forecasts could influence natural gas prices, creating opportunities or challenges for companies in the sector [2] Company Analysis - Ring Energy and related companies are analyzed for undervalued opportunities, with a focus on balance sheets, competitive positioning, and development prospects [1] - The analysis provided to Oil & Gas Value Research members includes exclusive insights not available on the free site, offering a competitive edge to subscribers [1] Analyst Perspective - The analyst has a beneficial long position in Ring Energy (REI) through stock ownership, options, or other derivatives, indicating a positive outlook on the company [3] - The analyst emphasizes that the article reflects personal opinions and is not influenced by external compensation or business relationships with the mentioned companies [3]

I'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over long periods of time.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. ...

Group 1 - The article focuses on analyzing oil and gas companies, particularly Ring Energy, to identify undervalued opportunities in the sector [1] - It highlights the cyclical nature of the oil and gas industry, emphasizing the importance of patience and experience in navigating it [2] Group 2 - The CEO of Ring Energy, Paul McKinney, provides insights into the company's strategy regarding acquisitions and debt management [2]