Ring Energy Releases Fourth Quarter and Full Year 2025 Results, Year-End 2025 Proved Reserves, and Provides 2026 Guidance

Core Insights - Ring Energy reported strong operational and financial results for 2025, despite an 18% decline in realized prices year-over-year, demonstrating effective strategic adjustments [4][6]. Fourth Quarter 2025 Highlights - Average daily sales volumes were 20,508 Boe/d, a 3% increase year-over-year [8]. - The company reported a net loss of $12.8 million, or $(0.06) per diluted share, which included a $35.9 million non-cash ceiling test impairment [8]. - Adjusted Free Cash Flow was $5.7 million, maintaining positive cash flow for the 25th consecutive quarter [8]. - Lease Operating Expenses (LOE) were reduced to $10.02 per Boe, 7% below the low end of guidance [8]. - Capital expenditures were $24.3 million, within guidance [8]. Full Year 2025 Highlights - Ring Energy generated a record Adjusted Free Cash Flow of $50.1 million, a 15% increase year-over-year [6]. - Proved reserves increased by 14% to 153.3 MMBoe, with 169% of 2025 production replaced organically [5][19]. - The company paid down $40 million of debt since the Lime Rock acquisition [6]. - Capital expenditures decreased by 35% year-over-year to $98.2 million [8]. 2026 Outlook - The company plans to maintain production and reduce debt at a $60 oil price, with potential acceleration of debt reduction if prices exceed $60 [6]. - Sales volumes for 2026 are projected to be approximately flat compared to the previous year, with a production midpoint of 20,150 Boe/d [8][17]. - The capital spending program for 2026 is estimated at $100 to $130 million, with a focus on drilling new horizontal wells [18]. Year-End 2025 Proved Reserves - Year-end 2025 proved reserves were comprised of approximately 59% crude oil, 19% natural gas, and 22% natural gas liquids [21]. - The PV-10 value at year-end 2025 was $1,318.2 million, down from $1,462.8 million at the end of 2024 [22]. Financial Performance Metrics - Revenues for Q4 2025 were $66.9 million, a 15% decrease from Q3 2025 [9]. - Adjusted EBITDA for FY 2025 was $184 million, a 21% decrease year-over-year [9]. - Interest expense decreased by 10% to $9.1 million in Q4 2025 [10]. Drilling and Completion Activity - In Q4 2025, the company completed four wells, contributing to a total of 18 wells drilled and completed for the year [13][14]. Balance Sheet and Liquidity - Total liquidity at December 31, 2025, was $165.9 million, consisting of cash and cash equivalents of $0.9 million and $165 million available under the revolving credit facility [10][11]. - The company had $420 million in borrowings outstanding on its revolving credit facility, with a borrowing base of $585 million [11].