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Ring Energy Announces Fourth Quarter and Full Year 2024 Results, Year-End 2024 Proved Reserves, and 2025 Guidance

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Ring Energy (NYSE: REI) reported strong operational and financial results for Q4 and full year 2024. The company achieved net income of $67.5 million ($0.34 per share) for FY2024, with record sales volumes of 19,648 Boe/d, representing an 8% year-over-year increase.

Key 2024 highlights include:

  • Generated Adjusted EBITDA of $233.3 million
  • Reduced year-over-year operating costs by 2%
  • Maintained capital spending at $151.9 million while improving efficiency
  • Paid down $40 million in debt
  • Grew proved reserves by 4.4 MMBoe to 134.2 MMBoe

For 2025, Ring Energy projects:

  • Average annual sales of 21,000 Boe/d (7% increase)
  • Capital spending of $154 million
  • Approximately 49 wells to be drilled, completed and brought online

Ring Energy (NYSE: REI) ha riportato risultati operativi e finanziari solidi per il quarto trimestre e l'intero anno 2024. L'azienda ha raggiunto un utile netto di 67,5 milioni di dollari (0,34 dollari per azione) per l'anno fiscale 2024, con volumi di vendita record di 19.648 Boe/d, che rappresentano un aumento dell'8% rispetto all'anno precedente.

I punti salienti del 2024 includono:

  • Generato un EBITDA rettificato di 233,3 milioni di dollari
  • Ridotto i costi operativi annuali del 2%
  • Mantenuto la spesa in conto capitale a 151,9 milioni di dollari migliorando l'efficienza
  • Ridotto il debito di 40 milioni di dollari
  • Aumentato le riserve accertate di 4,4 MMBoe a 134,2 MMBoe

Per il 2025, Ring Energy prevede:

  • Vendite medie annuali di 21.000 Boe/d (aumento del 7%)
  • Spesa in conto capitale di 154 milioni di dollari
  • Circa 49 pozzi da perforare, completare e mettere in produzione

Ring Energy (NYSE: REI) reportó resultados operativos y financieros sólidos para el cuarto trimestre y el año completo 2024. La compañía logró un ingreso neto de 67,5 millones de dólares (0,34 dólares por acción) para el año fiscal 2024, con volúmenes de ventas récord de 19,648 Boe/d, lo que representa un aumento del 8% en comparación con el año anterior.

Los aspectos destacados de 2024 incluyen:

  • Generó un EBITDA ajustado de 233,3 millones de dólares
  • Redujo los costos operativos interanuales en un 2%
  • Mantuvo el gasto de capital en 151,9 millones de dólares mientras mejoraba la eficiencia
  • Pagó 40 millones de dólares en deuda
  • Aumentó las reservas probadas en 4,4 MMBoe a 134,2 MMBoe

Para 2025, Ring Energy proyecta:

  • Ventas anuales promedio de 21,000 Boe/d (aumento del 7%)
  • Gasto de capital de 154 millones de dólares
  • Aproximadamente 49 pozos a perforar, completar y poner en línea

링 에너지 (NYSE: REI)는 2024년 4분기 및 연간 강력한 운영 및 재무 결과를 보고했습니다. 이 회사는 2024 회계연도에 대해 6750만 달러의 순이익 (주당 0.34달러)를 달성했으며, 19,648 Boe/d의 기록적인 판매량을 기록하여 전년 대비 8% 증가했습니다.

2024년 주요 사항은 다음과 같습니다:

  • 조정된 EBITDA 2억 3,330만 달러 생성
  • 연간 운영 비용 2% 감소
  • 효율성을 개선하면서 자본 지출을 1억 5,190만 달러로 유지
  • 4천만 달러의 부채 상환
  • 확인된 매장량을 4.4 MMBoe 증가시켜 134.2 MMBoe로 증가

2025년을 위해 링 에너지는 다음을 예상합니다:

  • 연평균 판매량 21,000 Boe/d (7% 증가)
  • 자본 지출 1억 5,400만 달러
  • 약 49개의 유정을 시추, 완공 및 가동 예정

Ring Energy (NYSE: REI) a rapporté de solides résultats opérationnels et financiers pour le quatrième trimestre et l'année complète 2024. L'entreprise a réalisé un bénéfice net de 67,5 millions de dollars (0,34 dollar par action) pour l'exercice 2024, avec des volumes de ventes record de 19 648 Boe/j, représentant une augmentation de 8 % par rapport à l'année précédente.

Les points forts de 2024 incluent :

  • Génération d'un EBITDA ajusté de 233,3 millions de dollars
  • Réduction des coûts d'exploitation de 2 % par rapport à l'année précédente
  • Maintien des dépenses d'investissement à 151,9 millions de dollars tout en améliorant l'efficacité
  • Remboursement de 40 millions de dollars de dettes
  • Augmentation des réserves prouvées de 4,4 MMBoe à 134,2 MMBoe

Pour 2025, Ring Energy prévoit :

  • Ventes annuelles moyennes de 21 000 Boe/j (augmentation de 7 %)
  • Dépenses d'investissement de 154 millions de dollars
  • Environ 49 puits à forer, compléter et mettre en service

Ring Energy (NYSE: REI) berichtete über starke operative und finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024. Das Unternehmen erzielte einen Nettogewinn von 67,5 Millionen Dollar (0,34 Dollar pro Aktie) für das Geschäftsjahr 2024, mit Rekordverkaufsvolumen von 19.648 Boe/d, was einem Anstieg von 8 % im Vergleich zum Vorjahr entspricht.

Die wichtigsten Highlights für 2024 umfassen:

  • Generierung eines bereinigten EBITDA von 233,3 Millionen Dollar
  • Reduzierung der Betriebskosten im Jahresvergleich um 2 %
  • Beibehaltung der Investitionsausgaben bei 151,9 Millionen Dollar bei gleichzeitiger Verbesserung der Effizienz
  • Tilgung von 40 Millionen Dollar Schulden
  • Steigerung der nachgewiesenen Reserven um 4,4 MMBoe auf 134,2 MMBoe

Für 2025 prognostiziert Ring Energy:

  • Durchschnittlicher Jahresumsatz von 21.000 Boe/d (7 % Anstieg)
  • Investitionsausgaben von 154 Millionen Dollar
  • Etwa 49 Bohrungen, die gebohrt, abgeschlossen und in Betrieb genommen werden sollen

Positive
  • Record production volumes: 19,648 Boe/d (+8% YoY)
  • Generated $233.3M Adjusted EBITDA
  • Reduced operating costs by 2% YoY
  • Improved horizontal well capital efficiency by 11%
  • Grew proved reserves by 4.4 MMBoe
  • Maintained positive free cash flow for 21 consecutive quarters
Negative
  • 7% reduction in realized prices
  • Natural gas sales price negative at -$1.44 per Mcf
  • Increased G&A expenses to $4.44 per Boe in Q4 from $3.47 in Q3
  • $6.3M net loss on commodity derivative contracts in Q4

Insights

Ring Energy's Q4 and full-year 2024 results demonstrate operational resilience amid challenging commodity prices. The company posted net income of $67.5 million ($0.34/share) for 2024 and achieved record production of 19,648 Boe/d, representing an 8% year-over-year increase. Most impressive is their ability to maintain capital efficiency - spending essentially flat at $151.9 million while improving horizontal well efficiency by 11% to ~$492 per foot.

Despite a 7% reduction in realized prices, Ring generated $233.3 million in Adjusted EBITDA and $43.6 million in Adjusted Free Cash Flow, marking their 21st consecutive quarter of positive cash flow. Their disciplined approach to debt reduction ($40 million paid down in 2024, $70 million since the Founders acquisition) has strengthened their balance sheet, ending with a healthy 1.66x leverage ratio and $217 million in liquidity.

For 2025, Ring projects continued growth with production expected to increase 7% to 21,000 Boe/d while maintaining flat capital spending at $154 million. The pending Lime Rock acquisition should provide additional scale, though management is appropriately conservative in their guidance by not including anticipated synergies.

The 3% organic growth in proved reserves to 134.2 MMBoe reinforces the sustainability of their asset base. Ring's consistent 15.9% Cash Return on Capital Employed for the third consecutive year demonstrates their disciplined capital allocation strategy is working, even in a challenging price environment.

Ring Energy's operational execution stands out in these results. Their production growth of 8% to record levels while simultaneously reducing all-in cash operating costs by 2% demonstrates excellent field management. The company's drilling program shows remarkable efficiency improvements - completing 13 more wells for slightly less capital than the previous year.

The capital efficiency gains are particularly noteworthy: 11% improvement on horizontal wells to ~$492 per foot and 3% improvement on vertical wells on a per-completed interval basis. These metrics exceed industry averages for similar Permian Basin operations and reflect sophisticated approaches to well design, completion techniques, and overall project management.

Their strategic divestiture of non-core vertical wells with high operating costs for $5.5 million shows commitment to portfolio optimization. The company maintained substantial drilling activity in the Central Basin Platform (16 horizontal and 22 vertical wells) while also developing Northwest Shelf assets (5 horizontal wells).

Looking ahead, Ring's guidance of 49 new wells for 2025 with flat capital spending indicates continued operational discipline. Their hedging strategy is prudent - securing price protection on 48% of projected oil production and 33% of natural gas while maintaining upside exposure. The $1.42/bbl oil price differential to WTI is competitive for Permian producers, reflecting quality output and favorable transportation arrangements.

Management's measured approach to integrating the Lime Rock assets, without banking on immediate synergies, demonstrates operational conservatism that typically leads to outperformance rather than disappointment.

THE WOODLANDS, Texas, March 05, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the fourth quarter and full year 2024, year-end 2024 proved reserves and provided 2025 operational and financial guidance.

Fourth Quarter 2024 Highlights

  • Recorded net income of $5.7 million, or $0.03 per diluted share;
  • Reported Adjusted Net Income1 of $12.3 million, or $0.06 per diluted share;
  • Sold 19,658 barrels of oil equivalent per day (“Boe/d”), exceeding midpoint of guidance and 12,916 barrels of oil per day (“Bo/d”);
  • Held all-in cash operating costs1 (on a Boe basis) substantially flat with Q3 2024;
  • Reduced total capital expenditures by 12% to $37.6 million as compared to Q3 2024;
  • Recorded Adjusted Cash Flow from Operations1 of $42.2 million and delivered Adjusted Free Cash Flow1 of $4.7 million, remaining cash flow positive for 21 consecutive quarters; and
  • Strengthened balance sheet by an additional $7.0 million in debt reduction.

Full Year 2024 Highlights

  • Recorded net income of $67.5 million, or $0.34 per diluted share;
  • Reported Adjusted Net Income1 of $69.5 million, or $0.35 per diluted share;
  • Grew sales volumes year-over-year (“Y-O-Y”) by 8% to a record 19,648 Boe/d and oil sales by 6% to a record 13,283 Bo/d;
  • Reduced Y-O-Y all-in cash operating costs1 (on a Boe basis) by 2%;
  • Generated Adjusted EBITDA1 of $233.3 million despite a 7% reduction in realized prices;
  • Maintained capital spending essentially flat at $151.9 million while improving capital efficiency on horizontal (“Hz”) wells by 11% to ~$492 per foot and vertical wells by ~3% on a per completed interval basis;
  • Generated a Cash Return on Capital Employed (“CROCE”)1 of 15.9% despite lower commodity pricing, which is the third consecutive year that Ring has achieved a CROCE in excess of 15%;
  • Recorded Adjusted Cash Flow from Operations1 of $195.3 million and delivered Adjusted Free Cash Flow1 of $43.6 million, remaining cash flow positive for over 5 years;
  • Divested non-core vertical wells with high operating cost for $5.5 million;
  • Paid down $40.0 million in debt and $70.0 million since closing the Founders acquisition in August 2023;
  • Reaffirmed the borrowing base at $600 million, exited 2024 with ~$217 million of liquidity, borrowings of $385 million, and a Leverage Ratio1 of 1.66x; and
  • Organically grew proved reserves by 4.4 MMBoe, or 3%, to 134.2 MMBoe.

2025 Outlook2

  • Average annual sales midpoint of 21,000 Boe/d and 13,900 Bo/d, a 7% and 5% increase, respectively;
  • Annual capital spending midpoint of $154 million, essentially flat with the prior year;
  • Total wells drilled, completed and online (midpoint) of ~49 wells; and
  • Assumes nine months of Lime Rock asset operations without the benefit of anticipated synergies and cost reductions.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We finished 2024 delivering on our promises during the fourth quarter, in a year in which the Ring Team enhanced nearly every controllable metric. We grew our sales by 8% over the prior year to a record 19,648 Boe/d and our oil sales by 6% to a record 13,283 Bo/d. We reduced our all-in cash operating costs per Boe by 2% and drilled 13 more wells for slightly less capital than the previous year representing a substantial increase in capital efficiency for both our horizontal and vertical wells. We paid down debt by $40 million and exited the year with $385 million borrowings and approximately $217 million of liquidity. During the fourth quarter of 2024, we reduced our capital expenditures in anticipation of seeking and completing a meaningful acquisition of producing properties, while achieving the midpoint of our guidance on a Boe basis. As we have previously stated, we intend to maintain or slightly grow our production through our organic drilling program and grow through accretive, balance sheet enhancing acquisitions of assets that meet specific criteria. Our strategy retains the flexibility to respond to changing conditions to ensure we continue to make progress profitably growing the Company, achieving the size and scale to earn more attractive market metrics, and build long term shareholder value. Looking forward to 2025, we intend to continue a reduced capital spending program in the first quarter to help us achieve a satisfactory leverage ratio upon closing the Lime Rock transaction. The rest of the year will be consistent with our past. We will continue our focus on maximizing cash flow generation and intend to allocate a portion of our cash flow from operations to maintain production and liquidity and allocate the balance to paying down debt. With the potential added benefit of the proposed Lime Rock production beginning in the second quarter and our historically successful capital spending program, we anticipate ending 2025 stronger than ever.”

Mr. McKinney concluded, “I would like to thank the Ring Team for the hard work and dedication it took to deliver our 2024 results. I also want to express our gratitude for the continued support of our shareholders. Despite an environment of lower realized commodity prices, being a member of a market segment where investor interest has waned, and other market conditions beyond our control, our shareholders continued to support us as we pursue our value focused proven strategy to build long-term value.”

Summary Results

 QuarterYear
 Q4 2024Q3 2024Q4 2024
to Q3
2024 %
Change		Q4 2023Q4 2024
to Q4
2023 %
Change		FY 2024FY 2023FY % Change
Average Daily Sales Volumes (Boe/d)19,65820,108(2)%19,3971%19,64818,1198%
Crude Oil (Bo/d)12,91613,204(2)%13,637(5)%13,28312,5486%
Net Sales (MBoe)1,808.51,849.9(2)%1,784.51%7,191.16,613.39%
Realized Price - All Products ($/Boe)$46.14$48.24(4)%$56.01(18)%$50.94$54.60(7)%
Realized Price - Crude Oil ($/Bo)$68.98$74.43(7)%$77.33(11)%$74.87$76.21(2)%
Revenues ($MM)$83.4$89.2(7)%$99.9(17)%$366.3$361.11%
Net Income/Loss ($MM)$5.7$33.9(83)%$50.9(89)%$67.5$104.9(36)%
Adjusted Net Income1 ($MM)$12.3$13.4(8)%$21.2(42)%$69.5$100.5(31)%
Adjusted EBITDA1 ($MM)$50.9$54.0(6)%$65.4(22)%$233.3$236.0(1)%
Capital Expenditures ($MM)$37.6$42.7(12)%$38.8(3)%$151.9$152.0—%
Adjusted Free Cash Flow1 ($MM)$4.7$1.9144%$16.3(71)%$43.6$45.3(4)%


Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Cash Flow from Operations, Cash Return on Capital Employed and PV-10 are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.”

Sales Volumes, Prices and Revenues: Sales volumes for the fourth quarter of 2024 are shown in the table above.

For the fourth quarter of 2024, realized average sales prices were $68.98 per barrel of crude oil, $(0.96) per Mcf of natural gas and $9.08 per barrel of NGLs. The realized natural gas and NGL prices are impacted by a fee reduction to the value received. For the fourth quarter of 2024, the weighted average natural gas price per Mcf was $0.87 offset by a weighted average fee value per Mcf of $(1.83), and the weighted average NGL price per barrel was $20.96 partially offset by a weighted average fee of $(11.88) per barrel. The combined average realized sales price for the period was $46.14 per Boe, down 4% versus $48.24 per Boe for the third quarter of 2024, and down 18% from $56.01 per Boe in the fourth quarter of 2023. The average oil price differential the Company experienced from WTI NYMEX futures pricing in the fourth quarter of 2024 was a negative $1.42 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $3.83 per Mcf.

Revenues were $83.4 million for the fourth quarter of 2024 compared to $89.2 million for the third quarter of 2024 and $99.9 million for the fourth quarter of 2023. The 7% decrease in fourth quarter 2024 revenues from the third quarter was driven by a ($3.8MM) price variance and a ($2.0MM) volume variance.

Lease Operating Expense (“LOE”): LOE, which includes expensed workovers and facilities maintenance, was $20.3 million, or $11.24 per Boe, in the fourth quarter of 2024 versus $20.3 million, or $10.98 per Boe, in the third quarter of 2024 and $18.7 million, or $10.50 per Boe, for the fourth quarter of 2023. Fourth quarter 2024 LOE per Boe was within the Company’s guidance range, and the Company remains focused on further improving the efficiencies of its operations.

Gathering, Transportation and Processing (“GTP”) Costs: As previously disclosed, due to a contractual change effective May 1, 2022, the Company no longer maintains ownership and control of the majority of its natural gas through processing. As a result, GTP costs are now substantially reflected as a reduction to the natural gas sales price and not as an expense item. There remains only one contract in place with a natural gas processing entity where the point of control of gas dictates requiring the fees to be recorded as an expense.

Ad Valorem Taxes: Ad valorem taxes, inclusive of an accrual for methane taxes of $527,687, were $1.34 per Boe for the fourth quarter of 2024, compared to $1.17 per Boe in the third quarter of 2024 and $0.92 per Boe for the fourth quarter of 2023.

Production Taxes: Production taxes were $2.13 per Boe in the fourth quarter of 2024 compared to $2.27 per Boe in the third quarter of 2024 and $2.78 per Boe in fourth quarter of 2023. Production taxes ranged between 4.6% to 5.0% of revenue for all three periods.

Depreciation, Depletion and Amortization (“DD&A”) and Asset Retirement Obligation Accretion: DD&A was $13.57 per Boe in the fourth quarter of 2024 versus $13.87 per Boe for the third quarter of 2024 and $13.76 per Boe in the fourth quarter of 2023. Asset retirement obligation accretion was $0.18 per Boe in the fourth quarter of 2024 compared to $0.19 per Boe for the third quarter of 2024 and $0.20 per Boe in the fourth quarter of 2023.

General and Administrative Expenses (“G&A”): G&A was $8.0 million ($4.44 per Boe) for the fourth quarter of 2024 versus $6.4 million ($3.47 per Boe) for the third quarter of 2024 and $8.2 million ($4.58 per Boe) in the fourth quarter of 2023. G&A, excluding share-based compensation1, was $6.4 million for the fourth quarter of 2024 ($3.52 per Boe) versus $6.4 million for the third quarter of 2024 ($3.45 per Boe) and $5.7 million in the fourth quarter of 2023 ($3.20 per Boe). The fourth quarter of 2024 included $21,017 of Transaction Costs. Excluding these costs and share-based compensation, G&A was $3.51 per Boe for the period.

Interest Expense: Interest expense was $10.1 million in the fourth quarter of 2024 versus $10.8 million for the third quarter of 2024 and $11.6 million for the fourth quarter of 2023.

Derivative (Loss) Gain: In the fourth quarter of 2024, Ring recorded a net loss of $6.3 million on its commodity derivative contracts, including a realized $0.7 million cash commodity derivative gain and an unrealized $7.0 million non-cash commodity derivative loss. This compared to a net gain of $24.7 million in the third quarter of 2024, including a realized $1.9 million cash commodity derivative loss and an unrealized $26.6 million non-cash commodity derivative gain, and a net gain of $29.3 million in the fourth quarter of 2023, including a realized $3.3 million cash commodity derivative loss and an unrealized $32.5 million non-cash commodity derivative gain.

A summary listing of the Company’s outstanding derivative positions at December 31, 2024 is included in the tables shown later in this release. A quarterly breakout is provided in the Company’s investor presentation.

For full year 2025, the Company currently has approximately 2.4 million barrels of oil (48% of oil sales guidance midpoint) hedged and 2.4 billion cubic feet of natural gas (33% of natural gas sales guidance midpoint) hedged.

Income Tax: The Company recorded a non-cash income tax provision of $1.8 million in the fourth quarter of 2024, $10.1 million in the third quarter of 2024, and $7.9 million for fourth quarter 2023.

Balance Sheet and Liquidity: Total liquidity at December 31, 2024 was $216.8 million, a 4% increase from September 30, 2024 and a 24% increase from December 31, 2023. Liquidity at December 31, 2024 consisted of cash and cash equivalents of $1.9 million and $215.0 million of availability under Ring’s revolving credit facility, which includes a reduction of $35 thousand for letters of credit. On December 31, 2024, the Company had $385.0 million in borrowings outstanding on its revolving credit facility that has a current borrowing base of $600.0 million. Ring paid down $7 million of debt during the fourth quarter of 2024 and $70.0 million since the closing of the Founders Transaction in August 2023. The Company is targeting further debt pay down during 2025 dependent on market conditions, the timing of capital spending, and other considerations.

During the fourth quarter of 2024, the Company’s borrowing base of $600 million under its revolving credit facility was reaffirmed. The next regularly scheduled bank redetermination is scheduled to occur during May 2025. Ring is currently in compliance with all applicable covenants under its revolving credit facility.

Capital Expenditures: During the fourth quarter of 2024, capital expenditures on an accrual basis were $37.6 million, which was near the midpoint of Ring’s guidance of $33 million to $41 million. The Company drilled five Hz and four vertical wells, and completed ten wells — with all drilling and completion activity occurring in the Central Basin Platform (“CBP”). Also included in fourth quarter 2024 capital spending were costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

For the year ended December 31, 2024, capital expenditures on an accrual basis were $151.9 million — substantially flat with full year 2023 despite more than a 40% increase in drilling and completion activity in 2024. Capital spending in 2024 included costs to drill, complete and place on production 21 Hz wells (five in the NWS and 16 in the CBP) and 22 vertical wells in the CBP, as well as costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

The table below sets forth Ring’s drilling and completions activities by quarter for 2024:

Quarter Area Wells
Drilled		 Wells
Completed		 Drilled
Uncompleted
("DUC") (2)
         
1Q 2024 Northwest Shelf (Horizontal) 2 2 —
  Central Basin Platform (Horizontal) 3 3 —
  Central Basin Platform (Vertical) 6 6 —
  Total (1) 11 11 —
         
2Q 2024 Northwest Shelf (Horizontal) — — —
  Central Basin Platform (Horizontal) 5 5 —
  Central Basin Platform (Vertical) 6 6 —
  Total 11 11 —
         
3Q 2024 Northwest Shelf (Horizontal) 3 3 —
  Central Basin Platform (Horizontal) 4 2 2
  Central Basin Platform (Vertical) 6 6 —
  Total 13 11 2
         
4Q 2024 Northwest Shelf (Horizontal) — — —
  Central Basin Platform (Horizontal) 5 6 1
  Central Basin Platform (Vertical) 4 4 —
  Total 9 10 1
         
FY 2024 Northwest Shelf (Horizontal) 5 5 —
  Central Basin Platform (Horizontal) 17 16 1
  Central Basin Platform (Vertical) 22 22 —
  Total 44 43 1

(1) First quarter total and full year total do not include one salt water disposal (“SWD”) well completed in the Central Basin Platform
(2) Note that the DUC wells represent period-end counts rather than period-to-date totals.

Full Year 2024 Summary Financial Review

The Company reported net income for full year 2024 of $67.5 million, or $0.34 per diluted share, and Adjusted Net Income of $69.5 million, or $0.35 per diluted share. For full year 2023, Ring reported net income of $104.9 million, or $0.54 per diluted share, and Adjusted Net Income of $100.5 million, or $0.51 per diluted share.

In full year 2024, the Company generated Adjusted EBITDA of $233.3 million, Adjusted Free Cash Flow of $43.6 million, and Adjusted Cash Flow from Operations of $195.3 million — representing a four percent or less decline in all three metrics from full year 2023, despite an almost seven percent decrease in overall realized commodity pricing.

Revenues totaled $366.3 million for 2024 compared to $361.1 million in 2023, with the increase driven by higher sales volumes partially offset by lower overall realized commodity prices.

Net sales for full year 2024 were a record 19,648 Boe/d, or 7,191,054 Boe, comprised of 4,861,628 Bbls of oil, 6,423,674 Mcf of natural gas, and 1,258,814 Bbls of NGLs. Full year 2023 net sales averaged 18,119 Boe/d, or 6,613,321 Boe, which included 4,579,942 Bbls of oil, 6,339,158 Mcf of natural gas, and 976,852 Bbls of NGLs. The increase in sales volumes was primarily associated with a full year of production from the Founders Acquisition that closed in August 2023, as well as strong organic growth from the Company’s targeted capital spending program.

For full year 2024, the Company’s realized crude oil sales price was $74.87 per barrel, the natural gas sales price was $(1.44) per Mcf, and the NGLs sales price was $9.23 per barrel. The combined average sales price for full year 2024 was $50.94 per Boe compared to $54.60 per Boe for full year 2023.

For the full year 2024, LOE was $78.3 million, or $10.89 per Boe (substantially at the midpoint of guidance of $10.70 to $11.00 per Boe). The increase in LOE on an absolute basis from full year 2023 was primarily due to the full year of expenses from the assets acquired with the Founders Acquisition (closed in August 2023) which contributed to the previously discussed 9% increase in production. Also affecting absolute LOE were higher activity levels, partially offset by the Company’s ongoing cost reduction and increased efficiency initiatives.

For the full year 2024, G&A was $29.6 million, or $4.12 per Boe, compared to $29.2 million, or $4.41 per Boe for full year 2023. G&A, excluding share-based compensation, was $24.1 million, or $3.36 per Boe, compared to $20.4 million, or $3.08 per Boe for full year 2023. Excluding Transaction Costs, full year 2024 G&A, net of share-based compensation, was $3.35 per Boe. The increase from full year 2023 was primarily associated with higher total compensation levels driven by higher activity levels in 2024 and a non-recurring employee retention tax credit in 2023, with the overall net increase partially offset by a $3.3 million year-over-year reduction in share-based compensation.

Recently Announced Proposed Accretive Bolt-On Acquisition

On February 25, 2025, the Company entered into an agreement to acquire Lime Rock’s CBP assets for $90 million in cash with $80 million due at closing and $10 million due on the nine month anniversary of closing, and approximately 7.4 million shares of our common stock. The purchase price is subject to customary purchase price adjustments. The transaction has an effective date of October 1, 2024, and is expected to close by the end of the first quarter of 2025.

Lime Rock’s CBP acreage is in Andrews County, Texas, where the majority of the acreage directly offsets Ring’s core Shafter Lake operations, and the remaining acreage is prospective for multiple horizontal targets and exposes the Company to new active plays. The transaction represents another opportunity for the Company to seamlessly integrate strategic, high-quality assets with Ring’s existing operations and create shareholder value through improved operations and synergy capture.

The Lime Rock position has been a key target for Ring as the Company has historically sought to consolidate producing assets in core counties in the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital. Additionally, these assets add significant near-term opportunities for field level optimization and cost savings that are core competencies of Ring’s operating team.

2025 Capital Investment, Sales Volumes, and Operating Expense Guidance

In January, the Company commenced its 2025 development program with one rig drilling horizontal wells followed by another rig drilling vertical wells. During the first quarter, this disciplined capital program is intended to achieve a satisfactory leverage ratio upon the closing of the Lime Rock transaction. The Company intends to utilize a phased (versus continuous) capital drilling program to maximize free cash flow and retain the flexibility to respond to changes in commodity prices and other market conditions.

For full year 2025, Ring expects total capital spending of $138 million to $170 million that includes a balanced and capital efficient combination of drilling, completing and placing on production 27 to 32 Hz and 15 to 22 vertical wells across the Company’s asset portfolio. Additionally, the full year capital spending program includes funds for the drilling of targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, leasing costs, ESG improvements, and the drilling of approximately three SWD wells, in addition to the Company’s pro-rata capital spending for non-operated drilling, completion, and capital workover activities.

All projects and estimates are based on assumed WTI oil prices of $65 to $75 per barrel and Henry Hub prices of $2.00 to $4.00 per Mcf.

Based on the $154 million midpoint of spending guidance, the Company expects the following estimated allocation of capital investment:

  • 73% for drilling, completion, and related infrastructure;
  • 19% for recompletions and capital workovers;
  • 5% for environmental and emission reducing facility upgrades; and
  • 3% for land and non-operated capital.

The Company remains focused on continuing to generate Adjusted Free Cash Flow. All 2025 planned capital expenditures will be fully funded by cash on hand and cash from operations, and excess Adjusted Free Cash Flow is currently targeted for further debt reduction.

The Company currently forecasts full year 2025 oil sales volumes of 13,600 to 14,200 Bo/d compared with full year 2024 oil sales volumes of 13,283 Bo/d, with the midpoint of guidance reflecting almost a 5% increase from last year.

The guidance in the table below represents the Company's current good faith estimate of the range of likely future results for the first quarter and full year of 2025 and assumes the closing of the Lime Rock transaction at the end of the first quarter of 2025. Guidance could be affected by the factors discussed below in the "Safe Harbor Statement" section. LOE per Boe assumes the full operating costs of the Lime Rock assets before anticipated synergies and cost reductions after the assets are integrated.

  Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025
           
Sales Volumes:          
Total Oil (Bo/d) 11,700 – 12,000 13,700 – 14,700 14,000 – 15,000 14,400 – 15,400 13,600 – 14,200
Midpoint (Bo/d) 11,850 14,200 14,500 14,900 13,900
Total (Boe/d) 18,000-18,500 20,500 – 22,500 20,700 – 22,700 21,000 – 23,000 20,000 - 22,000
Midpoint (Boe/d) 18,250 21,500 21,700 22,000 21,000
Oil (%) 65% 66% 67% 68% 66%
NGLs (%) 19% 18% 18% 18% 18%
Gas (%) 16% 16% 15% 14% 16%
           
Capital Program:          
Capital spending(1) (millions) $26 - $34 $34 - $42 $46 - $54 $32 - $40 $138 - $170
Midpoint (millions) $30 $38 $50 $36 $154
New Hz wells drilled 4 - 5 8 - 9 11 - 13 4 - 5 27 - 32
New Vertical wells drilled 3 - 4 3 - 5 4 - 6 5 - 7 15 - 22
Completion of DUC wells 0 1 0 0 1
Wells completed and online 7 - 9 12 - 15 15 - 19 9 - 12 43 - 55
           
Operating Expenses:          
LOE (per Boe) $11.75 - $12.25 $11.50 - $12.50 $11.25 - $12.25 $11.00 - $12.00 $11.25 - $12.25
Midpoint (per Boe) $12.00 $12.00 $11.75 $11.50 $11.75

(1) In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades and well reactivations. Also included is anticipated spending for leasing acreage and non-operated drilling, completion, capital workovers, and ESG improvements.

Year-End 2024 Proved Reserves

The Company's year-end 2024 SEC proved reserves were 134.2 MMBoe, up 3% compared to 129.8 MMBoe at year-end 2023. During 2024, Ring recorded reserve additions of 16.0 MMBoe for extensions, discoveries and improved recovery. Offsetting these additions were 1.2 MMBoe related to the sale of non-core assets, 7.2 MMBoe of production, and 3.2 MMBoe of revisions related to changes in pricing and performance.

The SEC twelve-month first day of the month average prices used for year-end 2024 were $71.96 per barrel of crude oil and $2.130 per MMBtu of natural gas, both before adjustment for quality, transportation, fees, energy content, and regional price differentials, while for year-end 2023 they were $74.70 per barrel of crude oil and $2.637 per MMBtu of natural gas — a decrease of four percent and two percent, respectively.

Year-end 2024 SEC proved reserves were comprised of approximately 60% crude oil, 19% natural gas, and 21% natural gas liquids. At year end, approximately 69% of 2024 proved reserves were classified as proved developed and 31% as proved undeveloped. This is compared to year-end 2023 when approximately 68% of proved reserves were classified as proved developed and 32% were classified as proved undeveloped. The Company’s year-end 2024 proved reserves were prepared by Cawley, Gillespie & Associates, Inc., and independent petroleum engineering firm.

The PV-10 value at year-end 2024 was $1,462.8 million versus $1,647.0 million at the end of 2023.

  Oil (Bbl) Gas (Mcf) Natural
Gas
Liquids
(Bbl)		 Net
(Boe)		 PV-10(1)
             
Balance, December 31, 2023 82,141,277  146,396,322  23,218,564  129,759,229  $1,647,031,127 
             
Purchase of minerals in place —  —  —  —     
Extensions, discoveries and improved recovery 11,495,236  10,630,769  2,738,451  16,005,482     
Sales of minerals in place (1,140,568) (56,020) (16,361) (1,166,266)    
Production (4,861,628) (6,423,674) (1,258,814) (7,191,054)    
Revisions of previous quantity estimates (6,730,246) (730,235) 3,621,245  (3,230,707)    
             
Balance, December 31, 2024 80,904,071  149,817,162  28,303,085  134,176,684  $1,462,827,136 

(1) PV-10 is a non-GAAP financial measure and is derived from the Standardized Measure of Discounted Futures Net Cash Flows, which is the most directly comparable generally accepted accounting principles (“GAAP”) measure.

In accordance with guidelines established by the SEC, estimated proved reserves as of December 31, 2024 were determined to be economically producible under existing economic conditions, which requires the use of the 12-month average commodity price for each product, calculated as the unweighted arithmetic average of the first-day-of-the-month price for the year ended December 31, 2024. The SEC average prices used for year-end 2024 were $71.96 per barrel of crude oil (WTI) and $2.130 per MMBtu of natural gas (Henry Hub), both before adjustment for quality, transportation, fees, energy content, and regional price differentials. Such prices were held constant throughout the estimated lives of the reserves. Future production and development costs are based on year-end costs with no escalations.

Standardized Measure of Discounted Future Net Cash Flows

Ring’s standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and changes in the standardized measure as described below were prepared in accordance with GAAP.

As of December 31,  2024   2023 
     
Future cash inflows $6,165,487,616  $6,622,410,752 
Future production costs  (2,432,555,200)  (2,413,303,488)
Future development costs (1)  (536,825,664)  (562,063,424)
Future income taxes  (465,768,645)  (548,664,988)
Future net cash flows  2,730,338,107   3,098,378,852 
10% annual discount for estimated timing of cash flows  (1,497,401,764)  (1,699,193,661)
     
Standardized Measure of Discounted Future Net Cash Flows $1,232,936,343  $1,399,185,191 

(1) Future development costs include not only development costs but also future asset retirement costs.

Reconciliation of PV-10 to Standardized Measure

PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. Moreover, GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves or for reserves calculated using prices other than SEC prices. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to represent the fair value of our oil and natural gas reserves.

The following table reconciles the PV-10 value of the Company’s estimated proved reserves as of December 31, 2024 to the Standardized Measure:

SEC Pricing Proved Reserves
Standardized Measure Reconciliation  
Present Value of Estimated Future Net Revenues (PV-10) $1,462,827,136 
Future Income Taxes, Discounted at 10%  229,890,793 
Standardized Measure of Discounted Future Net Cash Flows $1,232,936,343 


Conference Call Information

Ring will hold a conference call on Thursday, March 6, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its fourth quarter and full year 2024 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 2024 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com.

Safe Harbor Statement

This release contains 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 release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Additionally, forward-looking statements include statements about the expected benefits to the Company and its shareholders from the proposed Lime Rock acquisition and the anticipated completion of the Lime Rock acquisition or the timing thereof. When used in this release, the words “could,” “may,” “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “guidance,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company. Should one or more of the risks or uncertainties described in this release occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this release are expressly qualified in their entirety by this safe harbor statement. This safe harbor statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Ring undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact Information

Al Petrie Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com


RING ENERGY, INC.
Condensed Statements of Operations
 
 (Unaudited)    
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
          
Oil, Natural Gas, and Natural Gas Liquids Revenues$83,440,546  $89,244,383  $99,942,718  $366,327,414  $361,056,001 
          
Costs and Operating Expenses         
Lease operating expenses 20,326,216   20,315,282   18,732,082   78,310,949   70,158,227 
Gathering, transportation and processing costs 130,230   102,420   464,558   506,333   457,573 
Ad valorem taxes 2,421,595   2,164,562   1,637,722   8,069,064   6,757,841 
Oil and natural gas production taxes 3,857,147   4,203,851   4,961,768   16,116,565   18,135,336 
Depreciation, depletion and amortization 24,548,849   25,662,123   24,556,654   98,702,843   88,610,291 
Asset retirement obligation accretion 323,085   354,195   351,786   1,380,298   1,425,686 
Operating lease expense 175,090   175,091   175,090   700,362   541,801 
General and administrative expense 8,035,977   6,421,567   8,164,799   29,640,300   29,188,755 
          
Total Costs and Operating Expenses 59,818,189   59,399,091   59,044,459   233,426,714   215,275,510 
          
Income from Operations 23,622,357   29,845,292   40,898,259   132,900,700   145,780,491 
          
Other Income (Expense)         
Interest income 124,765   143,704   96,984   491,946   257,155 
Interest (expense) (10,112,496)  (10,754,243)  (11,603,892)  (43,311,810)  (43,926,732)
Gain (loss) on derivative contracts (6,254,448)  24,731,625   29,250,352   (2,365,917)  2,767,162 
Gain (loss) on disposal of assets —   —   44,981   89,693   (87,128)
Other income 80,970   —   72,725   106,656   198,935 
Net Other Income (Expense) (16,161,209)  14,121,086   17,861,150   (44,989,432)  (40,790,608)
          
Income Before Provision for Income Taxes 7,461,148   43,966,378   58,759,409   87,911,268   104,989,883 
          
Provision for Income Taxes (1,803,629)  (10,087,954)  (7,862,930)  (20,440,954)  (125,242)
          
Net Income$5,657,519  $33,878,424  $50,896,479  $67,470,314  $104,864,641 
          
Basic Earnings per Share$0.03  $0.17  $0.26  $0.34  $0.55 
Diluted Earnings per Share$0.03  $0.17  $0.26  $0.34  $0.54 
          
Basic Weighted-Average Shares Outstanding 198,166,543   198,177,046   195,687,725   197,937,683   190,589,143 
Diluted Weighted-Average Shares Outstanding 200,886,010   200,723,863   197,848,812   200,277,380   195,364,850 


RING ENERGY, INC.
Condensed Operating Data
(Unaudited)
 
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
 2024 2024 2023 2024 2023
          
Net sales volumes:         
Oil (Bbls)1,188,272  1,214,788  1,254,619  4,861,628  4,579,942 
Natural gas (Mcf)1,683,793  1,705,027  1,613,102  6,423,674  6,339,158 
Natural gas liquids (Bbls)339,589  350,975  261,020  1,258,814  976,852 
Total oil, natural gas and natural gas liquids (Boe)(1)1,808,493  1,849,934  1,784,490  7,191,054  6,613,321 
          
% Oil66% 66% 70% 68% 69%
% Natural gas15% 15% 15% 15% 16%
% Natural gas liquids19% 19% 15% 17% 15%
          
Average daily sales volumes:         
Oil (Bbls/d)12,916  13,204  13,637  13,283  12,548 
Natural gas (Mcf/d)18,302  18,533  17,534  17,551  17,368 
Natural gas liquids (Bbls/d)3,691  3,815  2,837  3,439  2,676 
Average daily equivalent sales (Boe/d)19,658  20,108  19,397  19,648  18,119 
          
Average realized sales prices:         
Oil ($/Bbl)68.98  74.43  77.33  74.87  76.21 
Natural gas ($/Mcf)(0.96) (2.26) (0.12) (1.44) 0.05 
Natural gas liquids ($/Bbls)9.08  7.66  11.92  9.23  11.95 
Barrel of oil equivalent ($/Boe)46.14  48.24  56.01  50.94  54.60 
          
Average costs and expenses per Boe ($/Boe):         
Lease operating expenses11.24  10.98  10.50  10.89  10.61 
Gathering, transportation and processing costs0.07  0.06  0.26  0.07  0.07 
Ad valorem taxes1.34  1.17  0.92  1.12  1.02 
Oil and natural gas production taxes2.13  2.27  2.78  2.24  2.74 
Depreciation, depletion and amortization13.57  13.87  13.76  13.73  13.40 
Asset retirement obligation accretion0.18  0.19  0.20  0.19  0.22 
Operating lease expense0.10  0.09  0.10  0.10  0.08 
G&A (including share-based compensation)4.44  3.47  4.58  4.12  4.41 
G&A (excluding share-based compensation)3.52  3.45  3.20  3.36  3.08 
G&A (excluding share-based compensation and transaction costs)3.51  3.45  3.00  3.35  3.01 

(1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, natural gas, and natural gas liquids may differ significantly.

RING ENERGY, INC.
Condensed Balance Sheets
 
As of December 31,  2024   2023 
ASSETS    
Current Assets    
Cash and cash equivalents $1,866,395  $296,384 
Accounts receivable  36,172,316   38,965,002 
Joint interest billing receivables, net  1,083,164   2,422,274 
Derivative assets  5,497,057   6,215,374 
Inventory  4,047,819   6,136,935 
Prepaid expenses and other assets  1,781,341   1,874,850 
Total Current Assets  50,448,092   55,910,819 
Properties and Equipment    
Oil and natural gas properties, full cost method  1,809,309,848   1,663,548,249 
Financing lease asset subject to depreciation  4,634,556   3,896,316 
Fixed assets subject to depreciation  3,389,907   3,228,793 
Total Properties and Equipment  1,817,334,311   1,670,673,358 
Accumulated depreciation, depletion and amortization  (475,212,325)  (377,252,572)
Net Properties and Equipment  1,342,121,986   1,293,420,786 
Operating lease asset  1,906,264   2,499,592 
Derivative assets  5,473,375   11,634,714 
Deferred financing costs  8,149,757   13,030,481 
Total Assets $1,408,099,474  $1,376,496,392 
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current Liabilities    
Accounts payable $95,729,261  $104,064,124 
Income tax liability  328,985   — 
Financing lease liability  906,119   956,254 
Operating lease liability  648,204   568,176 
Derivative liabilities  6,410,547   7,520,336 
Notes payable  496,397   533,734 
Asset retirement obligations  517,674   165,642 
Total Current Liabilities  105,037,187   113,808,266 
     
Non-current Liabilities    
Deferred income taxes  28,591,802   8,552,045 
Revolving line of credit  385,000,000   425,000,000 
Financing lease liability, less current portion  647,078   906,330 
Operating lease liability, less current portion  1,405,837   2,054,041 
Derivative liabilities  2,912,745   11,510,368 
Asset retirement obligations  25,864,843   28,082,442 
Total Liabilities  549,459,492   589,913,492 
Commitments and contingencies    
Stockholders' Equity    
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding  —   — 
Common stock - $0.001 par value; 450,000,000 shares authorized; 198,561,378 shares and 196,837,001 shares issued and outstanding, respectively  198,561   196,837 
Additional paid-in capital  800,419,719   795,834,675 
Retained earnings (Accumulated deficit)  58,021,702   (9,448,612)
Total Stockholders’ Equity  858,639,982   786,582,900 
Total Liabilities and Stockholders' Equity $1,408,099,474  $1,376,496,392 


RING ENERGY, INC.
Condensed Statements of Cash Flows
 
  (Unaudited)    
  Three Months Ended Twelve Months Ended
  December 31, September 30, December 31, December 31, December 31,
   2024   2024   2023   2024   2023 
Cash Flows From Operating Activities          
Net income $5,657,519  $33,878,424  $50,896,479  $67,470,314  $104,864,641 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation, depletion and amortization  24,548,849   25,662,123   24,556,654   98,702,843   88,610,291 
Asset retirement obligation accretion  323,085   354,195   351,786   1,380,298   1,425,686 
Amortization of deferred financing costs  1,299,078   1,226,881   1,221,479   4,969,174   4,920,714 
Share-based compensation  1,672,320   32,087   2,458,682   5,506,017   8,833,425 
Credit loss expense  (26,747)  8,817   92,142   160,847   134,007 
(Gain) loss on disposal of assets  —   —   —   (89,693)  — 
Deferred income tax expense (benefit)  1,723,338   10,005,502   7,735,437   19,935,413   (425,275)
Excess tax expense (benefit) related to share-based compensation  9,011   7,553   319,541   104,344   478,304 
(Gain) loss on derivative contracts  6,254,448   (24,731,625)  (29,250,352)  2,365,917   (2,767,162)
Cash received (paid) for derivative settlements, net  745,104   (1,882,765)  (3,255,192)  (5,193,673)  (9,084,920)
Changes in operating assets and liabilities:          
Accounts receivable  349,474   5,529,542   6,825,601   3,594,504   1,154,085 
Inventory  580,161   1,148,418   (588,100)  2,089,116   3,113,782 
Prepaid expenses and other assets  295,555   545,529   158,163   93,509   226,688 
Accounts payable  4,462,089   (225,196)  (4,952,335)  (5,076,738)  (1,451,422)
Asset retirement obligation  (613,603)  (222,553)  (836,778)  (1,588,480)  (1,862,385)
Net Cash Provided by Operating Activities  47,279,681   51,336,932   55,733,207   194,423,712   198,170,459 
           
Cash Flows From Investing Activities          
Payments for the Stronghold Acquisition  —   —   —   —   (18,511,170)
Payments for the Founders Acquisition  —   —   (12,324,388)  —   (62,227,145)
Payments to purchase oil and natural gas properties  (1,423,483)  (164,481)  (557,323)  (2,210,826)  (2,162,585)
Payments to develop oil and natural gas properties  (36,386,055)  (42,099,874)  (39,563,282)  (153,945,456)  (152,559,314)
Payments to acquire or improve fixed assets subject to depreciation  —   (33,938)  (282,519)  (185,524)  (492,317)
Proceeds from sale of fixed assets subject to depreciation  —   —   (1)  10,605   332,229 
Proceeds from divestiture of oil and natural gas properties  121,232   —   1,500,000   121,232   1,554,558 
Proceeds from sale of Delaware properties  —   —   (7,993)  —   7,600,699 
Proceeds from sale of New Mexico properties  —   —   (420,745)  (144,398)  3,891,757 
Proceeds from sale of CBP vertical wells  —   5,500,000   —   5,500,000   — 
Net Cash Used in Investing Activities  (37,688,306)  (36,798,293)  (51,656,251)  (150,854,367)  (222,573,288)
           
Cash Flows From Financing Activities          
Proceeds from revolving line of credit  22,000,000   27,000,000   46,000,000   130,000,000   225,000,000 
Payments on revolving line of credit  (29,000,000)  (42,000,000)  (49,000,000)  (170,000,000)  (215,000,000)
Proceeds from issuance of common stock from warrant exercises  —   —   —   —   12,301,596 
Payments for taxes withheld on vested restricted shares, net  —   (17,273)  (225,788)  (919,249)  (520,153)
Proceeds from notes payable  58,774   —   72,442   1,560,281   1,637,513 
Payments on notes payable  (475,196)  (442,976)  (488,776)  (1,597,618)  (1,603,659)
Payment of deferred financing costs  (42,746)  —   (52,222)  (88,450)  (52,222)
Reduction of financing lease liabilities  (265,812)  (257,202)  (224,809)  (954,298)  (776,388)
Net Cash Provided by (Used in) Financing Activities  (7,724,980)  (15,717,451)  (3,919,153)  (41,999,334)  20,986,687 
           
Net Increase (Decrease) in Cash  1,866,395   (1,178,812)  157,803   1,570,011   (3,416,142)
Cash at Beginning of Period  —   1,178,812   138,581   296,384   3,712,526 
Cash at End of Period $1,866,395  $—  $296,384  $1,866,395  $296,384 


RING ENERGY, INC.
Financial Commodity Derivative Positions
As of December 31, 2024

The following tables reflect the details of current derivative contracts as of December 31, 2024 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):

 Oil Hedges (WTI)
 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026
                
Swaps:               
Hedged volume (Bbl) 193,397   151,763   351,917   141,755   477,350   457,101   59,400   423,000 
Weighted average swap price$68.68  $68.53  $71.41  $69.13  $70.16  $69.38  $66.70  $66.70 
                
Two-way collars:               
Hedged volume (Bbl) 474,750   464,100   225,400   404,800   —   —   379,685   — 
Weighted average put price$57.06  $60.00  $65.00  $60.00  $—  $—  $60.00  $— 
Weighted average call price$75.82  $69.85  $78.91  $75.68  $—  $—  $72.50  $— 


 Gas Hedges (Henry Hub)
 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026
                
NYMEX Swaps:               
Hedged volume (MMBtu) 451,884   647,200   330,250   11,400   26,600   555,300   17,400   513,300 
Weighted average swap price$3.77  $3.46  $3.72  $3.74  $3.74  $3.39  $3.74  $3.74 
                
Two-way collars:               
Hedged volume (MMBtu) 22,016   27,300   308,200   598,000   553,500   —   515,728   — 
Weighted average put price$3.00  $3.00  $3.00  $3.00  $3.50  $—  $3.00  $— 
Weighted average call price$4.40  $4.15  $4.75  $4.15  $5.03  $—  $3.93  $— 


 Oil Hedges (basis differential)
 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026
                
Argus basis swaps:               
Hedged volume (Bbl) 177,000   273,000   276,000   276,000   —   —   —   — 
Weighted average spread price (1)$1.00  $1.00  $1.00  $1.00  $—  $—  $—  $— 

(1) The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude.

RING ENERGY, INC.
Non-GAAP Financial Information

Certain financial information included in this release are not measures of financial performance recognized by accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are “Adjusted Net Income”, “Adjusted EBITDA”, “Adjusted Free Cash Flow” or “AFCF,” “Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding Share-Based Compensation,” “G&A Excluding Share-Based Compensation and Transaction Costs,” “Leverage Ratio,” “Current Ratio,” “Cash Return on Capital Employed” or “CROCE,” “All-In Cash Operating Costs,” and “Cash Operating Margin.” Management uses these non-GAAP financial measures in its analysis of performance. In addition, Adjusted EBITDA is a key metric used to determine a portion of the Company’s incentive compensation awards. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Reconciliation of Net Income to Adjusted Net Income

“Adjusted Net Income” is calculated as net income minus the estimated after-tax impact of share-based compensation, ceiling test impairment, unrealized gains and losses on changes in the fair value of derivatives, and transaction costs for executed acquisitions and divestitures (A&D). Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current period to prior periods. The Company believes that the presentation of Adjusted Net Income provides useful information to investors as it is one of the metrics management uses to assess the Company’s ongoing operating and financial performance, and also is a useful metric for investors to compare our results with our peers.

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
 Total Per
share -
diluted		 Total Per
share -
diluted		 Total Per
share -
diluted		 Total Per
share -
diluted		 Total Per
share -
diluted
Net Income$5,657,519  $0.03  $33,878,424  $0.17  $50,896,479  $0.26  $67,470,314  $0.34  $104,864,641  $0.54 
                    
Share-based compensation 1,672,320   0.01   32,087   —   2,458,682   0.01   5,506,017   0.03   8,833,425   0.05 
Unrealized loss (gain) on change in fair value of derivatives 6,999,552   0.03   (26,614,390)  (0.13)  (32,505,544)  (0.16)  (2,827,756)  (0.02)  (11,852,082)  (0.07)
Transaction costs - executed A&D 21,017   —   —   —   354,616   —   24,556   —   417,166   — 
Tax impact on adjusted items (2,008,740)  (0.01)  6,132,537   0.03   (35,631)  —   (628,405)  —   (1,788,248)  (0.01)
                    
Adjusted Net Income$12,341,668  $0.06  $13,428,658  $0.07  $21,168,602  $0.11  $69,544,726  $0.35  $100,474,902  $0.51 
                    
Diluted Weighted-Average Shares Outstanding 200,886,010     200,723,863     197,848,812     200,277,380     195,364,850   
                    
Adjusted Net Income per Diluted Share$0.06    $0.07    $0.11    $0.35    $0.51   


Reconciliation of Net Income to Adjusted EBITDA

The Company defines “Adjusted EBITDA” as net income plus net interest expense (including interest income and expense), unrealized loss (gain) on change in fair value of derivatives, ceiling test impairment, income tax (benefit) expense, depreciation, depletion and amortization, asset retirement obligation accretion, transaction costs for executed acquisitions and divestitures (A&D), share-based compensation, loss (gain) on disposal of assets, and backing out the effect of other income. Company management believes Adjusted EBITDA is relevant and useful because it helps investors understand Ring’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
          
Net Income$5,657,519  $33,878,424  $50,896,479  $67,470,314  $104,864,641 
          
Interest expense, net 9,987,731   10,610,539   11,506,908   42,819,864   43,669,577 
Unrealized loss (gain) on change in fair value of derivatives 6,999,552   (26,614,390)  (32,505,544)  (2,827,756)  (11,852,082)
Income tax (benefit) expense 1,803,629   10,087,954   7,862,930   20,440,954   125,242 
Depreciation, depletion and amortization 24,548,849   25,662,123   24,556,654   98,702,843   88,610,291 
Asset retirement obligation accretion 323,085   354,195   351,786   1,380,298   1,425,686 
Transaction costs - executed A&D 21,017   —   354,616   24,556   417,166 
Share-based compensation 1,672,320   32,087   2,458,682   5,506,017   8,833,425 
Loss (gain) on disposal of assets —   —   (44,981)  (89,693)  87,128 
Other income (80,970)  —   (72,725)  (106,656)  (198,935)
          
Adjusted EBITDA$50,932,732  $54,010,932  $65,364,805  $233,320,741  $235,982,139 
          
Adjusted EBITDA Margin 61%  61%  65%  64%  65%


Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA to Adjusted Free Cash Flow

The Company defines “Adjusted Free Cash Flow” or “AFCF” as Net Cash Provided by Operating Activities less changes in operating assets and liabilities (as reflected on our Statements of Cash Flows), plus transaction costs for executed acquisitions and divestitures (A&D), current income tax expense (benefit), proceeds from divestitures of equipment for oil and natural gas properties, loss (gain) on disposal of assets, and less capital expenditures, credit loss expense, and other income. For this purpose, our definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and lease maintenance costs) but excludes acquisition costs of oil and gas properties from third parties that are not included in our capital expenditures guidance provided to investors. Our management believes that Adjusted Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of our current operating activities after the impact of capital expenditures and net interest expense (including interest income and expense, excluding amortization of deferred financing costs) and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. Other companies may use different definitions of Adjusted Free Cash Flow.

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
          
Net Cash Provided by Operating Activities$47,279,681  $51,336,932  $55,733,207  $194,423,712  $198,170,459 
Adjustments - Statements of Cash Flows         
Changes in operating assets and liabilities (5,073,676)  (6,775,740)  (606,551)  888,089   (1,180,748)
Transaction costs - executed A&D 21,017   —   354,616   24,556   417,166 
Income tax expense (benefit) - current 71,280   74,899   (192,048)  401,197   72,213 
Capital expenditures (37,633,168)  (42,691,163)  (38,817,080)  (151,946,171)  (151,969,735)
Proceeds from divestiture of equipment for oil and natural gas properties 121,232   —   —   121,232   54,558 
Credit loss expense 26,747   (8,817)  (92,142)  (160,847)  (134,007)
Loss (gain) on disposal of assets —   —   (44,981)  —   87,128 
Other income (80,970)  —   (72,725)  (106,656)  (198,935)
          
Adjusted Free Cash Flow$4,732,143  $1,936,111  $16,262,296  $43,645,112  $45,318,099 


 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
          
Adjusted EBITDA$50,932,732  $54,010,932  $65,364,805  $233,320,741  $235,982,139 
          
Net interest expense (excluding amortization of deferred financing costs) (8,688,653)  (9,383,658)  (10,285,429)  (37,850,690)  (38,748,863)
Capital expenditures (37,633,168)  (42,691,163)  (38,817,080)  (151,946,171)  (151,969,735)
Proceeds from divestiture of equipment for oil and natural gas properties 121,232   —   —   121,232   54,558 
          
Adjusted Free Cash Flow$4,732,143  $1,936,111  $16,262,296  $43,645,112  $45,318,099 


Reconciliation of Net Cash Provided by Operating Activities to Adjusted Cash Flow from Operations

The Company defines “Adjusted Cash Flow from Operations” or “ACFFO” as Net Cash Provided by Operating Activities, as reflected in our Statements of Cash Flows, less the changes in operating assets and liabilities, which includes accounts receivable, inventory, prepaid expenses and other assets, accounts payable, and settlement of asset retirement obligations, which are subject to variation due to the nature of the Company’s operations. Accordingly, the Company believes this non-GAAP measure is useful to investors because it is used often in its industry and allows investors to compare this metric to other companies in its peer group as well as the E&P sector.

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
          
Net Cash Provided by Operating Activities$47,279,681  $51,336,932  $55,733,207  $194,423,712  $198,170,459 
          
Changes in operating assets and liabilities (5,073,676)  (6,775,740)  (606,551)  888,089   (1,180,748)
          
Adjusted Cash Flow from Operations$42,206,005  $44,561,192  $55,126,656  $195,311,801  $196,989,711 


Reconciliation of General and Administrative Expense (G&A) to G&A Excluding Share-Based Compensation and Transaction Costs

The following table presents a reconciliation of General and Administrative Expense (G&A), a GAAP measure, to G&A excluding share-based compensation, and G&A excluding share-based compensation and transaction costs for executed acquisitions and divestitures (A&D).

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
          
General and administrative expense (G&A)$8,035,977  $6,421,567  $8,164,799  $29,640,300  $29,188,755 
Shared-based compensation 1,672,320   32,087   2,458,682   5,506,017   8,833,425 
G&A excluding share-based compensation 6,363,657   6,389,480   5,706,117   24,134,283   20,355,330 
Transaction costs - executed A&D 21,017   —   354,616   24,556   417,166 
G&A excluding share-based compensation and transaction costs$6,342,640  $6,389,480  $5,351,501  $24,109,727  $19,938,164 


Calculation of Leverage Ratio

“Leverage” or the “Leverage Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our consolidated total debt as of such date to (ii) our Consolidated EBITDAX for the four consecutive fiscal quarters ending on or immediately prior to such date for which financial statements are required to have been delivered under our existing senior revolving credit facility.

The Company defines “Consolidated EBITDAX” in accordance with our existing senior revolving credit facility that means for any period an amount equal to the sum of (i) consolidated net income (loss) for such period plus (ii) to the extent deducted in determining consolidated net income for such period, and without duplication, (A) consolidated interest expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation, depletion and amortization determined on a consolidated basis in accordance with GAAP, (D) exploration expenses determined on a consolidated basis in accordance with GAAP, and (E) all other non-cash charges acceptable to our senior revolving credit facility administrative agent determined on a consolidated basis in accordance with GAAP, in each case for such period minus (iii) all noncash income added to consolidated net income (loss) for such period; provided that, for purposes of calculating compliance with the financial covenants, to the extent that during such period we shall have consummated an acquisition permitted by the credit facility or any sale, transfer or other disposition of any property or assets permitted by the senior revolving credit facility, Consolidated EBITDAX will be calculated on a pro forma basis with respect to the property or assets so acquired or disposed of.

Also set forth in our existing senior revolving credit facility is the maximum permitted Leverage Ratio of 3.00. The following table shows the leverage ratio calculation for the Company’s most recent fiscal quarter.

 (Unaudited)
 Three Months Ended  
 March 31, June 30, September 30, December 31, Last Four
Quarters
  2024   2024   2024   2024  
Consolidated EBITDAX Calculation:         
Net Income (Loss)$5,515,377  $22,418,994  $33,878,424  $5,657,519  $67,470,314 
Plus: Consolidated interest expense 11,420,400   10,801,194   10,610,539   9,987,731   42,819,864 
Plus: Income tax provision (benefit) 1,728,886   6,820,485   10,087,954   1,803,629   20,440,954 
Plus: Depreciation, depletion and amortization 23,792,450   24,699,421   25,662,123   24,548,849   98,702,843 
Plus: non-cash charges acceptable to Administrative Agent 19,627,646   1,664,064   (26,228,108)  8,994,957   4,058,559 
Consolidated EBITDAX$62,084,759  $66,404,158  $54,010,932  $50,992,685  $233,492,534 
Plus: Pro Forma Acquired Consolidated EBITDAX$—  $—  $—  $—  $— 
Less: Pro Forma Divested Consolidated EBITDAX (124,084)  (469,376)  (600,460)  77,819   (1,116,101)
Pro Forma Consolidated EBITDAX$61,960,675  $65,934,782  $53,410,472  $51,070,504  $232,376,433 
          
Non-cash charges acceptable to Administrative Agent:         
Asset retirement obligation accretion$350,834  $352,184  $354,195  $323,085   
Unrealized loss (gain) on derivative assets 17,552,980   (765,898)  (26,614,390)  6,999,552   
Share-based compensation 1,723,832   2,077,778   32,087   1,672,320   
Total non-cash charges acceptable to Administrative Agent$19,627,646  $1,664,064  $(26,228,108) $8,994,957   
          
 As of        
 December 31,        
  2024         
Leverage Ratio Covenant:         
Revolving line of credit$385,000,000         
Pro Forma Consolidated EBITDAX 232,376,433         
Leverage Ratio 1.66         
Maximum Allowed ≤ 3.00x        


Calculation of Current Ratio

The “Current Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our Current Assets as of such date to (ii) our Current Liabilities as of such date. Based on its credit agreement, the Company defines Current Assets as all current assets, excluding non-cash assets under Accounting Standards Codification (“ASC”) 815, plus the unused line of credit. The Company’s non-cash current assets include the derivative asset marked to market value. Based on its credit agreement, the Company defines Current Liabilities as all liabilities, in accordance with GAAP, which are classified as current liabilities, including all indebtedness payable on demand or within one year, all accruals for federal or other taxes payable within such year, but excluding current portion of long-term debt required to be paid within one year, the aggregate outstanding principal balance and non-cash obligations under ASC 815.

Also set forth in our existing senior revolving credit facility is the minimum permitted Current Ratio of 1.00. The following table shows the current ratio calculation for the Company’s most recent fiscal quarter.

  As of 
  December 31, 
  2024 
Current Assets 50,448,092 
Less: Current derivative assets 5,497,057 
Current Assets per Covenant 44,951,035 
Revolver Availability (Facility less debt less LCs) 214,965,000 
Current Assets per Covenant 259,916,035 
    
Current Liabilities 105,037,187 
Less: Current financing lease liability 906,119 
Less: Current operating lease liability 648,204 
Less: Current derivative liabilities 6,410,547 
Current Liabilities per Covenant 97,072,317 
    
Current Ratio 2.68 
Minimum Allowed > or = 1.00x


Calculation of Cash Return on Capital Employed

The Company defines “Return on Capital Employed” or “CROCE” as Adjusted Cash Flow from Operations divided by average debt and shareholder equity for the period. Management believes that CROCE is useful to investors as a performance measure when comparing our profitability and the efficiency with which management has employed capital over time relative to other companies. CROCE is not considered to be an alternative to net income reported in accordance with GAAP.

CROCE (Cash Return on Capital Employed):As of and for the
 twelve months ended
 December 31, December 31, December 31,
  2024   2023   2022 
      
Total long term debt (i.e. revolving line of credit)$385,000,000  $425,000,000  $415,000,000 
Total stockholders' equity$858,639,982  $786,582,900  $661,103,391 
      
Average debt$405,000,000  $420,000,000  $352,500,000 
Average stockholders' equity 822,611,441   723,843,146   480,863,799 
Average debt and stockholders' equity 1,227,611,441   1,143,843,146   833,363,799 
      
Net Cash Provided by Operating Activities$194,423,712  $198,170,459  $196,976,729 
Less change in WC (Working Capital) (888,089)  1,180,748   24,091,577 
Adjusted Cash Flows From Operations (ACFFO)$195,311,801  $196,989,711  $172,885,152 
      
CROCE (ACFFO)/(Average D+E) 15.9%  17.2%  20.7%


All-In Cash Operating Costs

The Company defines All-In Cash Operating Costs, a non-GAAP financial measure, as “all in cash” costs which includes lease operating expenses, G&A costs excluding share-based compensation, net interest expense (including interest income and expense, excluding amortization of deferred financing costs), workovers and other operating expenses, production taxes, ad valorem taxes, and gathering/transportation costs. Management believes that this metric provides useful additional information to investors to assess the Company’s operating costs in comparison to its peers, which may vary from company to company.

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
All-In Cash Operating Costs:         
Lease operating expenses (including workovers) 20,326,216   20,315,282   18,732,082   78,310,949   70,158,227 
G&A excluding share-based compensation 6,363,657   6,389,480   5,706,117   24,134,283   20,355,330 
Net interest expense (excluding amortization of deferred financing costs) 8,688,653   9,383,658   10,285,429   37,850,690   38,748,863 
Operating lease expense 175,090   175,091   175,090   700,362   541,801 
Oil and natural gas production taxes 3,857,147   4,203,851   4,961,768   16,116,565   18,135,336 
Ad valorem taxes 2,421,595   2,164,562   1,637,722   8,069,064   6,757,841 
Gathering, transportation and processing costs 130,230   102,420   464,558   506,333   457,573 
All-in cash operating costs 41,962,588   42,734,344   41,962,766   165,688,246   155,154,971 
          
Boe 1,808,493   1,849,934   1,784,490   7,191,054   6,613,321 
          
All-in cash operating costs per Boe$23.20  $23.10  $23.52  $23.04  $23.46 


Cash Operating Margin

The Company defines Cash Operating Margin, a non-GAAP financial measure, as realized revenues per Boe less “all-in cash” operating costs per Boe. Management believes that this metric provides useful additional information to investors to assess the Company’s operating margins in comparison to its peers, which may vary from company to company.

 (Unaudited for All Periods)
 Three Months Ended Twelve Months Ended
 December 31, September 30, December 31, December 31, December 31,
  2024   2024   2023   2024   2023 
Cash Operating Margin         
Realized revenues per Boe$46.14  $48.24  $56.01  $50.94  $54.60 
All-in cash operating costs per Boe$23.20  $23.10  $23.52  $23.04  $23.46 
Cash Operating Margin per Boe$22.94  $25.14  $32.49  $27.90  $31.14 


1 Non-GAAP financial measure. Please see “Non-GAAP Information” at the end of this release for details and reconciliations of GAAP to Non-GAAP.
2 2025 outlook includes the assets to be acquired in the Lime Rock Acquisition, with an anticipated closing date before the end of Q1 2025.


FAQ

What were Ring Energy's (REI) production volumes for Q4 2024?

Ring Energy sold 19,658 barrels of oil equivalent per day (Boe/d) and 12,916 barrels of oil per day (Bo/d) in Q4 2024.

How much debt did Ring Energy (REI) reduce in 2024?

Ring Energy reduced debt by $40 million in 2024 and $70 million since closing the Founders acquisition in August 2023.

What is Ring Energy's (REI) production guidance for 2025?

Ring Energy projects average annual sales of 21,000 Boe/d and 13,900 Bo/d for 2025, representing 7% and 5% increases respectively.

How much were Ring Energy's (REI) proved reserves at the end of 2024?

Ring Energy grew proved reserves by 4.4 MMBoe to reach 134.2 MMBoe by the end of 2024, representing a 3% increase.

What was Ring Energy's (REI) capital expenditure in Q4 2024?

Ring Energy reduced total capital expenditures by 12% to $37.6 million in Q4 2024 compared to Q3 2024.
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Ring Energy

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REI Latest News

Feb 26, 2025
Ring Energy Announces Accretive Bolt-On Acquisition
Dec 31, 2024
Ring Energy Announces Issuance of 2024 Sustainability Report
Nov 25, 2024
Ring Energy Announces Addition to Management Team
Nov 6, 2024
Ring Energy Announces Third Quarter 2024 Results, Provides Guidance For Fourth Quarter and Updates Full Year 2024 Outlook
Oct 28, 2024
Ring Energy Announces Timing of Third Quarter 2024 Earnings Release and Conference Call

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Oil & Gas E&P
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