Ring Energy(REI)2025-03-07 21:12Financial 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].