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]

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]