PART I — FINANCIAL INFORMATION [Item 1. Condensed Financial Statements](index=7&type=section&id=Item%201.%20Condensed%20Financial%20Statements) This section presents the unaudited condensed balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes on accounting policies and key financial components [Condensed Balance Sheets](index=8&type=section&id=Condensed%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows an increase in total assets to **$1.52 billion** from **$1.41 billion** at year-end 2024, primarily driven by growth in oil and natural gas properties, with total liabilities increasing to **$618.4 million** and total stockholders' equity growing to **$897.9 million** Condensed Balance Sheet Summary (in millions) | Balance Sheet Items | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 62.4 | 50.4 | | **Net Properties and Equipment** | 1,435.2 | 1,342.1 | | **Total Assets** | **1,516.3** | **1,408.1** | | **Total Current Liabilities** | 98.3 | 105.0 | | **Revolving line of credit** | 448.0 | 385.0 | | **Total Liabilities** | **618.4** | **549.5** | | **Total Stockholders' Equity** | **897.9** | **858.6** | [Condensed Statements of Operations](index=9&type=section&id=Condensed%20Statements%20of%20Operations) For the three months ended June 30, 2025, revenues decreased to **$82.6 million** from **$99.1 million** year-over-year, while net income slightly declined to **$20.6 million** from **$22.4 million**, though for the six-month period, net income increased to **$29.7 million** from **$27.9 million** due to derivative gains Key Operational Results (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $82.6 | $99.1 | $161.7 | $193.6 | | **Income from Operations** | $23.5 | $41.8 | $45.8 | $79.4 | | **Net Income** | $20.6 | $22.4 | $29.7 | $27.9 | | **Diluted EPS** | $0.10 | $0.11 | $0.15 | $0.14 | [Condensed Statement of Stockholders' Equity](index=10&type=section&id=Condensed%20Statement%20of%20Stockholders%20Equity) Stockholders' equity increased from **$858.6 million** at the end of 2024 to **$897.9 million** as of June 30, 2025, primarily driven by net income of **$29.7 million** and a **$7.4 million** common stock issuance for the Lime Rock Acquisition Changes in Stockholders' Equity (For the Six Months Ended June 30, 2025) | Description | Amount ($) | | :--- | :--- | | **Balance, December 31, 2024** | 858,639,982 | | Common stock issuance for Lime Rock Acquisition | 7,420,811 | | Net income | 29,745,625 | | Share-based compensation | 1,690,958 | | Payments for tax withholdings, net | (953,446) | | **Balance, June 30, 2025** | **897,895,769** | [Condensed Statements of Cash Flows](index=11&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities decreased to **$61.7 million** from **$95.8 million** year-over-year, while net cash used in investing activities significantly increased to **$121.0 million** due to the Lime Rock Acquisition, leading to net cash provided by financing activities of **$57.4 million** Cash Flow Summary (For the Six Months Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | 61,668,259 | 95,807,099 | | **Net Cash Used in Investing Activities** | (120,966,327) | (76,367,768) | | **Net Cash Provided by (Used in) Financing Activities** | 57,431,673 | (18,556,903) | | **Net (Decrease) Increase in Cash** | (1,866,395) | 882,428 | [Notes to the Condensed Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies and specific financial items, including the Lime Rock Acquisition, derivative instruments, the revolving line of credit, and the determination of a single reportable segment - The company completed the Lime Rock Acquisition on March 31, 2025, for a total consideration of **$87.7 million**, consisting of cash, common stock, and a deferred payment, with the transaction accounted for as an asset acquisition[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk) - The company utilizes derivative instruments (swaps and collars) to manage commodity price risk, with the fair value of derivative assets at **$21.4 million** and liabilities at **$6.2 million** as of June 30, 2025, which are not designated as hedges for accounting purposes[103](index=103&type=chunk)[106](index=106&type=chunk)[120](index=120&type=chunk) - On June 18, 2025, the company amended its credit agreement, which has a borrowing base of **$585 million** and matures in June 2029, with **$448 million** outstanding as of June 30, 2025[122](index=122&type=chunk)[123](index=123&type=chunk)[127](index=127&type=chunk) - The company determined it has a single reportable segment, Exploration and Production, as its operations in the Permian Basin exhibit similar economic characteristics and are managed by a single chief operating decision maker group[144](index=144&type=chunk)[146](index=146&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A section details the company's operational and financial performance, strategic focus, and market conditions, including the Lime Rock Acquisition, ongoing drilling activities, and the impact of commodity prices on revenues and production costs [Overview and 2025 Developments](index=43&type=section&id=Overview%20and%202025%20Developments) The company focuses on oil and natural gas development in the Permian Basin, balancing debt reduction and production growth, with a major development in 2025 being the Lime Rock Acquisition and continued drilling activities - The company's primary business strategy is to balance long-term debt reduction with the development of its oil and gas properties, aiming to operate within its generated cash flow[156](index=156&type=chunk) - On March 31, 2025, the company completed the Lime Rock Acquisition, acquiring oil and gas interests in Andrews County, Texas[158](index=158&type=chunk) Drilling and Completion Activity H1 2025 | Quarter | Area | Wells Drilled | Wells Completed | | :--- | :--- | :--- | :--- | | **1Q 2025** | Northwest Shelf (Horizontal) | 4 | 4 | | | Central Basin Platform (Vertical) | 3 | 3 | | **2Q 2025** | Central Basin Platform (Horizontal) | 1 | 1 | | | Central Basin Platform (Vertical) | 1 | 1 | | **Total** | | **9** | **9** | [Results of Operations](index=46&type=section&id=Results%20of%20Operations) This sub-section provides a detailed comparison of financial results for the three and six months ended June 30, 2025, and 2024, highlighting a **17%** decrease in Q2 2025 revenues to **$82.6 million** due to a **22%** drop in average realized oil price, despite an **8%** increase in total production volume Q2 2025 vs. Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Sales** | $82.6M | $99.1M | (17)% | | **Total Production (Boe)** | 1,937,850 | 1,800,570 | 8% | | **Average Oil Price (per Bbl)** | $62.69 | $80.09 | (22)% | | **Lease Operating Expenses (LOE)** | $20.2M | $19.3M | 5% | | **Average LOE per Boe** | $10.45 | $10.72 | (3)% | H1 2025 vs. H1 2024 Performance | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Sales** | $161.7M | $193.6M | (16)% | | **Total Production (Boe)** | 3,593,109 | 3,532,627 | 2% | | **Average Oil Price (per Bbl)** | $66.17 | $77.93 | (15)% | | **Lease Operating Expenses (LOE)** | $39.9M | $37.7M | 6% | | **Average LOE per Boe** | $11.11 | $10.66 | 4% | - For Q2 2025, the company recorded a gain on derivative contracts of **$14.6 million**, a significant reversal from the **$1.8 million** loss in Q2 2024, primarily due to changes in crude oil futures prices[197](index=197&type=chunk)[199](index=199&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had no cash on hand, with net cash from operations for H1 2025 at **$61.7 million**, down from **$95.8 million** YoY, and **$448 million** outstanding on its **$585 million** borrowing base credit facility, maintaining a strategic focus on maximizing cash flow and reducing debt - Net cash provided by operating activities for H1 2025 was **$61.7 million**, a decrease from **$95.8 million** in H1 2024, primarily due to lower revenues[209](index=209&type=chunk) - As of June 30, 2025, the company had **$448 million** outstanding on its credit facility, which has a borrowing base of **$585 million** and matures in June 2029[211](index=211&type=chunk) - The company maintains a portfolio of oil and gas hedges (swaps and collars) extending into Q2 2027 to manage price risk and increase cash flow predictability[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are commodity price volatility, customer credit risk, and interest rate fluctuations, with commodity price risk actively managed through hedging and interest rate risk on its variable-rate credit facility potentially impacting annual interest expense by an estimated **$4.5 million** for a **1%** rate change - The company's major market risk is commodity price volatility for its oil and natural gas production, which it mitigates by entering into hedging arrangements[223](index=223&type=chunk)[224](index=224&type=chunk) Customer Concentration (H1 2025) | Purchaser | % of Revenues | % of A/R | | :--- | :--- | :--- | | Phillips 66 Company | 66% | 73% | | Concord Energy LLC | 13% | 10% | | NGL Crude Partners | 9% | 7% | - The company is exposed to interest rate risk on its **$448 million** of variable-rate debt, where a **1%** change in interest rates would result in an estimated **$4.5 million** change in annual interest expense[227](index=227&type=chunk)[228](index=228&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[233](index=233&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[236](index=236&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) There were no material developments in legal proceedings during the quarter ended June 30, 2025 - No material developments occurred in the company's legal proceedings during the quarter ended June 30, 2025[238](index=238&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) This section refers the reader to the company's Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of risk factors, stating that the company is subject to various risks and hazards inherent in its business - For a discussion of risk factors, the report directs readers to "Item 1A. Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2024[239](index=239&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=61&type=section&id=Other%20Items%20(Items%202,%203,%204,%205,%206)) This section consolidates minor items, including the incorporation by reference of a Form 8-K regarding unregistered sales of equity securities, confirmation of no defaults on senior securities or mine safety issues, and a listing of exhibits filed with the report - Information regarding unregistered sales of equity securities was previously disclosed in a Form 8-K filed on April 4, 2025, and is incorporated by reference[240](index=240&type=chunk) - The company reports no defaults upon senior securities and has no mine safety disclosures to report[241](index=241&type=chunk)[242](index=242&type=chunk) - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement during the quarter[243](index=243&type=chunk)

Core Insights - Ring Energy, Inc. reported strong operational and financial performance for Q2 2025, achieving record oil sales and adjusted free cash flow despite a challenging pricing environment [3][5][8] - The company successfully reduced capital expenditures by 48% compared to Q1 2025, while maintaining a 2% year-over-year production growth [3][5] - Management emphasized a value-focused strategy that allows for adaptability in fluctuating market conditions, prioritizing debt reduction in the current low-price landscape [3][5] Financial Performance - Average daily sales volumes reached 21,295 Boe/d, a 16% increase from Q1 2025 and an 8% increase year-over-year [5][24] - Net income for Q2 2025 was $20.6 million, a 126% increase from Q1 2025, while adjusted net income was $11.0 million [5][21] - Adjusted EBITDA for the quarter was reported at $51.5 million, an 11% increase from Q1 2025 [5][21] Capital Expenditures and Cash Flow - Capital expenditures for Q2 2025 were $16.8 million, down 48% from the previous quarter and 53% year-over-year [5][21] - The company generated a record adjusted free cash flow of $24.8 million, a 328% increase from Q1 2025 [5][21] - Total liquidity as of June 30, 2025, was approximately $137.0 million, with $448 million in borrowings outstanding on its credit facility [8][27] Production and Sales - The company sold a record 14,511 barrels of oil per day, exceeding guidance, and total sales on a Boe basis were near the mid-point of guidance [5][24] - Realized prices for crude oil decreased by 11% to $62.69 per barrel compared to Q1 2025, reflecting a broader decline in commodity prices [5][24] - The company reaffirmed production and capital expenditure guidance for the second half of 2025, with a focus on maximizing cash flow and controlling costs [11][12] Operational Efficiency - Lease operating expenses (LOE) were reported at $10.45 per Boe, which is 9% below the low end of guidance due to cost reduction efforts [5][24] - The company successfully drilled and completed two new wells in Q2 2025, contributing to its production growth [9][10] - The operational strategy focuses on oil-rich assets with low operating costs, ensuring resilience against price volatility [3][5]

THE WOODLANDS, Texas, July 16, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today announced the timing of its second quarter 2025 earnings release and conference call. Ring plans to issue its second quarter 2025 earnings release after the close of trading on Wednesday, August 6, 2025. The Company has scheduled a conference call on Thursday, August 7, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its second quarter operational and financial results. To particip ...

Summary of Ring Energy Fireside Chat - July 15, 2025 Company Overview - **Company**: Ring Energy (REI) - **Industry**: Oil and Gas Exploration and Production - **Key Assets**: Concentrated in the Permian Basin, specifically the Central Basin Platform Key Points and Arguments 1. **Acquisition Details**: Ring Energy completed a $100 million acquisition of assets from Lime Rock Resources on March 31, 2025, enhancing its position in the Central Basin Platform [3] 2. **Production Metrics**: - Q1 2025 total production averaged 18,400 BOEs per day, with 12,100 barrels per day of oil - Projected Q2 2025 production is about 21,500 BOEs per day, and for the second half of 2025, it is expected to be around 20,000 BOEs per day [3] 3. **Operational Synergies**: The acquisition allows for operational efficiencies due to the proximity and similarity of the new assets to existing ones, leading to lower operating costs [4][5] 4. **Production Profile**: The acquired assets have a lower decline rate (13.5%) compared to Ring's overall decline rate (22%), which is beneficial for maintaining production levels and reducing capital expenditures [6][40] 5. **Development Locations**: The acquisition added approximately 40 gross development locations, which are competitive within Ring's existing portfolio [9][10] 6. **Cost Synergies**: Integration of operations has led to immediate cost savings, including the reduction of lease operators and workover rigs, and improved marketing agreements resulting in an additional $0.80 per barrel [12][14][15] 7. **Water Handling Capabilities**: The acquisition enhances water handling capabilities, crucial for drilling and produced water management in the Permian Basin [17][20] 8. **Debt Reduction Strategy**: Ring Energy is prioritizing debt reduction, with plans to pay off the Lime Rock acquisition within three to four quarters, even in a lower oil price environment [35][51] 9. **Market Conditions**: The current acquisition market is characterized by uncertainty, with sellers reluctant to sell at lower oil prices, impacting potential acquisition opportunities [64][65] 10. **Future Outlook**: The company is focused on maintaining flexibility in its operations to adapt to market volatility, with a long-term goal of reducing leverage and potentially introducing dividends in the future [73][74] Additional Important Insights - **Credit Facility**: Ring reaffirmed a credit facility borrowing base of $585 million, extended to June 2029, with a reduced pricing margin, indicating improved financial terms [53][56] - **Organic Growth**: While the focus has shifted towards debt reduction, the company remains interested in organic growth opportunities that offer high rates of return [68][70] - **Market Positioning**: The management emphasizes the importance of a strong balance sheet to withstand price volatility and maintain operational flexibility [49][51] This summary encapsulates the key discussions and insights from the Ring Energy fireside chat, highlighting the company's strategic focus on operational efficiency, debt reduction, and adaptability in a volatile market environment.

Core Viewpoint - Ring Energy, Inc. is actively engaging in discussions regarding its recent asset acquisition and strategies for maximizing synergies, which are crucial for its growth and operational efficiency [2][6]. Group 1: Event Participation - Ring Energy will participate in a fireside chat with Water Tower Research on July 15, 2025, at 10:00 AM Central Time [1]. - The discussion will be led by Jeff Robertson, Managing Director at WTR, and will feature Paul McKinney, Ring's Chairman and CEO [2]. Group 2: Discussion Topics - Key topics will include the integration of Central Basin Platform assets acquired from Lime Rock Resources IV, LP at the end of Q1 2025 [2]. - The conversation will also cover strategies to maximize cost synergies and adapt the capital program during market turbulence [6]. Group 3: Company Overview - Ring Energy, Inc. focuses on oil and gas exploration, development, and production, with current operations centered on its Permian Basin assets [4].

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility using well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value offers Covered Calls and focuses on capital preservation through lower volatility income investing [2][3] Group 2 - The team at Trapping Value has over 40 years of combined experience in generating options income while emphasizing capital preservation [3] - The investing group includes two income-generating portfolios and a bond ladder, indicating a diversified approach to income generation [3]

Group 1 - The core thesis is that Ring Energy (NYSE: REI) is currently undervalued in the small-cap upstream oil sector in the US market [1] - The analysis expands on previous evaluations of REI, indicating a more event-driven approach to understanding its market position [1] Group 2 - The article emphasizes the potential for investment opportunities in REI due to its mispricing compared to market peers [1] - The author holds a beneficial long position in REI, suggesting confidence in the company's future performance [1]

Core Insights - Veriforce has been selected by Ring Energy Inc. as its exclusive contractor management provider to enhance safety and compliance amid the company's growth [1][2][3] - The partnership aims to streamline contractor oversight processes and improve safety training for contractors, including courses on SafeLand and Hydrogen Sulfide (H2S) awareness [2][3] - Ring Energy's expansion has led to a more complex contractor network, necessitating a centralized solution for efficient management [2][3] Company Overview - Ring Energy, Inc. focuses on oil and gas exploration, development, and production, particularly in the Permian Basin [4] - Veriforce is a global leader in contractor management, providing integrated solutions for contractor qualification, training, evaluation, and compliance tracking [5][6] - Veriforce operates with a network of over 3,200 hiring companies across 140+ countries, supporting more than 130,000 contractors and millions of workers [6][7]

Core Insights - Ring Energy, Inc. has affirmed its borrowing base at $585 million under its $1.0 billion senior secured credit facility, with the term extended to June 2029 and Bank of America appointed as the new Administrative Agent [1][2]. Financial Highlights - The company has focused on strengthening its balance sheet and improving asset quality, maintaining a sufficient borrowing base despite slight reductions from the previous year due to oil and gas price volatility in 2025 [2]. - The company aims to generate free cash flow through cost reductions, divestitures of non-core assets, and acquisitions of high-margin, low-break-even assets, using excess cash to reduce debt and enhance shareholder value [2]. Banking Relationships - Ring Energy has expanded its banking relationships by adding Citibank, N.A. to its syndicate, which now includes a total of 11 banks, including Bank of America, N.A. and Goldman Sachs Lending Partners, LLC [2][5]. Credit Facility Details - The company entered into a Third Amended and Restated Credit Agreement with a borrowing base of $585 million, reflecting a 25 basis point reduction in the Applicable Margin pricing grid [5]. - The next regularly scheduled bank redetermination is set to occur in the fall of 2025 [5]. Company Overview - Ring Energy, Inc. is engaged in oil and gas exploration, development, and production, with a focus on developing its assets in the Permian Basin [3].

Group 1 - Ring Energy (REI) reported solid Q1 2025 results but is expected to generate minimal free cash flow for the remainder of 2025 at current strip prices with its original development plans [2] - The company has significantly reduced its capital expenditure (capex) budget in response to the anticipated cash flow challenges [2] Group 2 - The article highlights the expertise of Aaron Chow, also known as Elephant Analytics, who has over 15 years of analytical experience and is a top-rated analyst on TipRanks [2] - Aaron Chow co-founded a mobile gaming company that was acquired by PENN Entertainment and has a strong background in designing economic models for mobile apps [2]