Ring Energy(REI) Globenewswire·2025-05-07 21:07Core Insights - Ring Energy, Inc. reported strong operational and financial results for Q1 2025, exceeding guidance targets due to exceptional oil sales volumes and the successful acquisition of Lime Rock's CBP assets [1][3][5]. Financial Performance - Average daily sales volumes for Q1 2025 were 18,392 Boe/d, a decrease of 6% from Q4 2024 and 3% from Q1 2024 [6][7]. - The company sold 12,074 barrels of oil per day, exceeding the high end of guidance [5]. - Net income for Q1 2025 was $9.1 million, or $0.05 per diluted share, representing a 60% increase from Q4 2024 [6][9]. - Adjusted EBITDA was reported at $46.4 million, a 9% decrease from Q4 2024 [6][9]. - Revenues for Q1 2025 totaled $79.1 million, down 5% from Q4 2024, primarily due to a negative volume variance [9]. Operational Highlights - The company completed the acquisition of CBP assets from Lime Rock, which added approximately 2,300 Boe/d of low-decline net production and increased operational synergies [16][17]. - Capital expenditures for Q1 2025 were $32.5 million, 14% lower than Q4 2024, and within guidance [5][13]. - The company drilled and completed seven wells during Q1 2025, enhancing production capabilities [14][15]. Guidance and Strategy - For the remainder of 2025, Ring Energy has updated its guidance to reflect a 36% reduction in capital spending while maintaining sales volume guidance [3][20]. - The company expects total capital spending for 2025 to be between $85 million and $113 million, down from previous estimates [20][21]. - The updated guidance includes a focus on drilling, recompletions, and infrastructure upgrades, with flexibility to adapt to market conditions [20][21]. Balance Sheet and Liquidity - As of March 31, 2025, total liquidity was approximately $141.1 million, with $460 million in borrowings outstanding on its credit facility [19]. - The company is targeting continued debt reduction, contingent on market conditions and capital spending [19].