Ring Energy Provides Operational Update - Amended to Correct Wells Drilled in First Quarter 2025
Ring Energy (NYSE American: REI) reported strong operational performance for Q1 2025, with oil production exceeding 12,000 Bo/d and total production surpassing 18,300 Boe/d, both above guidance. The company successfully completed 7 wells (4 horizontal, 3 vertical), all outperforming pre-drill estimates.
A significant milestone was the completion of the Central Basin Platform (CBP) assets acquisition from Lime Rock Resources on March 31, 2025. This acquisition has already shown positive results, with production exceeding expectations by over 200 Boe/d and averaging above 2,500 Boe/d in the first two weeks. The company also achieved a 5% reduction in LOE through operational synergies.
Ring Energy has secured hedging positions for over 6,300 barrels of oil per day with weighted average downside protection of $64.44 per barrel for the remainder of 2025. The company maintains a strategy focused on free cash flow generation, disciplined capital spending, and debt reduction.
Ring Energy (NYSE American: REI) ha riportato una solida performance operativa nel primo trimestre del 2025, con una produzione di petrolio superiore a 12.000 barili al giorno e una produzione totale che ha superato i 18.300 barili equivalenti al giorno, entrambe oltre le previsioni. L'azienda ha completato con successo 7 pozzi (4 orizzontali, 3 verticali), tutti con risultati migliori rispetto alle stime preliminari.
Un traguardo importante è stato il completamento dell'acquisizione degli asset della Central Basin Platform (CBP) da Lime Rock Resources il 31 marzo 2025. Questa acquisizione ha già mostrato risultati positivi, con una produzione superiore alle aspettative di oltre 200 barili equivalenti al giorno e una media superiore a 2.500 barili equivalenti al giorno nelle prime due settimane. L'azienda ha inoltre ottenuto una riduzione del 5% delle spese operative (LOE) grazie a sinergie operative.
Ring Energy ha assicurato posizioni di copertura per oltre 6.300 barili di petrolio al giorno, con una protezione media al ribasso di 64,44 dollari per barile per il resto del 2025. L'azienda mantiene una strategia focalizzata sulla generazione di flusso di cassa libero, una spesa disciplinata in conto capitale e la riduzione del debito.
Ring Energy (NYSE American: REI) reportó un sólido desempeño operativo en el primer trimestre de 2025, con una producción de petróleo que superó los 12,000 barriles diarios y una producción total que superó los 18,300 barriles equivalentes diarios, ambos por encima de las previsiones. La compañía completó con éxito 7 pozos (4 horizontales, 3 verticales), todos con resultados superiores a las estimaciones previas a la perforación.
Un hito importante fue la finalización de la adquisición de los activos de Central Basin Platform (CBP) de Lime Rock Resources el 31 de marzo de 2025. Esta adquisición ya ha mostrado resultados positivos, con una producción que superó las expectativas en más de 200 barriles equivalentes diarios y un promedio superior a 2,500 barriles equivalentes diarios en las primeras dos semanas. La compañía también logró una reducción del 5% en los costos operativos (LOE) gracias a sinergias operativas.
Ring Energy ha asegurado posiciones de cobertura para más de 6,300 barriles de petróleo por día, con una protección promedio a la baja de $64.44 por barril para el resto de 2025. La compañía mantiene una estrategia centrada en la generación de flujo de caja libre, gasto disciplinado de capital y reducción de deuda.
Ring Energy (NYSE American: REI)는 2025년 1분기에 강력한 운영 실적을 보고했으며, 석유 생산량은 하루 12,000 배럴을 넘었고 총 생산량은 하루 18,300 배럴 등가를 초과하여 모두 예상치를 상회했습니다. 회사는 7개의 유정(수평 4개, 수직 3개)을 성공적으로 완료했으며, 모두 시추 전 예상치를 뛰어넘는 성과를 보였습니다.
중요한 이정표는 2025년 3월 31일 Lime Rock Resources로부터 Central Basin Platform(CBP) 자산 인수를 완료한 것입니다. 이 인수는 이미 긍정적인 결과를 나타내고 있으며, 생산량은 예상치를 하루 200 배럴 등가 이상 초과했고 첫 2주 동안 평균 2,500 배럴 등가를 넘었습니다. 또한 운영 시너지 효과를 통해 운영비용(LOE)을 5% 절감하는 데 성공했습니다.
Ring Energy는 2025년 남은 기간 동안 하루 6,300 배럴 이상의 석유에 대해 평균 하방 보호 가격을 배럴당 64.44달러로 헤지 포지션을 확보했습니다. 회사는 자유 현금 흐름 창출, 엄격한 자본 지출 관리, 부채 감소에 중점을 둔 전략을 유지하고 있습니다.
Ring Energy (NYSE American : REI) a annoncé de solides performances opérationnelles pour le premier trimestre 2025, avec une production pétrolière dépassant 12 000 barils par jour et une production totale dépassant 18 300 barils équivalent pétrole par jour, toutes deux supérieures aux prévisions. La société a achevé avec succès 7 puits (4 horizontaux, 3 verticaux), tous surpassant les estimations préalables au forage.
Une étape importante a été la finalisation de l'acquisition des actifs de la Central Basin Platform (CBP) auprès de Lime Rock Resources le 31 mars 2025. Cette acquisition a déjà donné des résultats positifs, avec une production dépassant les attentes de plus de 200 barils équivalent pétrole par jour et une moyenne supérieure à 2 500 barils équivalent pétrole par jour durant les deux premières semaines. La société a également réalisé une réduction de 5 % des coûts d'exploitation (LOE) grâce à des synergies opérationnelles.
Ring Energy a sécurisé des positions de couverture pour plus de 6 300 barils de pétrole par jour, avec une protection moyenne à la baisse de 64,44 $ par baril pour le reste de l'année 2025. La société maintient une stratégie axée sur la génération de flux de trésorerie disponible, des dépenses en capital disciplinées et la réduction de la dette.
Ring Energy (NYSE American: REI) meldete eine starke operative Leistung im ersten Quartal 2025, mit einer Ölproduktion von über 12.000 Barrel pro Tag und einer Gesamtproduktion von über 18.300 Barrel Öläquivalent pro Tag, beides über den Prognosen. Das Unternehmen hat erfolgreich 7 Bohrungen abgeschlossen (4 horizontal, 3 vertikal), die alle die vorläufigen Schätzungen übertrafen.
Ein bedeutender Meilenstein war der Abschluss der Übernahme der Central Basin Platform (CBP) Vermögenswerte von Lime Rock Resources am 31. März 2025. Diese Übernahme hat bereits positive Ergebnisse gezeigt, mit einer Produktion, die die Erwartungen um mehr als 200 Barrel Öläquivalent pro Tag übertraf und in den ersten zwei Wochen durchschnittlich über 2.500 Barrel Öläquivalent pro Tag lag. Das Unternehmen erzielte zudem eine 5%ige Reduzierung der Betriebskosten (LOE) durch operative Synergien.
Ring Energy hat Absicherungspositionen für über 6.300 Barrel Öl pro Tag mit einem gewichteten durchschnittlichen Abwärtsschutz von 64,44 USD pro Barrel für den Rest des Jahres 2025 gesichert. Das Unternehmen verfolgt weiterhin eine Strategie, die auf die Generierung von freiem Cashflow, disziplinierte Kapitalausgaben und Schuldenabbau ausgerichtet ist.
- Oil production exceeded guidance at 12,000 Bo/d
- All 7 new wells outperformed pre-drill estimates
- Lime Rock acquisition immediately accretive with production exceeding expectations by 200 Boe/d
- Achieved 5% reduction in LOE through operational synergies
- Strong hedging position with 6,300 Bo/d at $64.44/barrel floor price
- Experienced some weather-related downtime in Q1
Insights
Ring Energy's Q1 operations exceeded guidance with strong well performance and successful Lime Rock acquisition integration, demonstrating solid execution capabilities.
Ring Energy's Q1 operational update demonstrates exceptional execution in their core drilling program. The company surpassed production guidance with
What's particularly impressive is the 100% success rate of their drilling program, with all 7 new wells (4 horizontal, 3 vertical) outperforming pre-drill estimates. This suggests Ring's technical team has developed superior geological models and optimized completion techniques in their operating areas. The consistent outperformance indicates strong reservoir understanding rather than mere conservative pre-drill estimates.
The recently completed Lime Rock acquisition already shows promising results. Production from these Central Basin Platform assets is exceeding expectations by over 200 Boe/d, averaging above 2,500 Boe/d in initial operations. More importantly, Ring has quickly identified and captured operational synergies, reducing Lease Operating Expenses by
Ring's strategy emphasizes portfolio optimization focusing on shallow-declining, long-life, oil-weighted assets. This approach typically yields more predictable production profiles and extended cash flow generation compared to higher-decline unconventional assets. Their flexible contracting structure with service providers demonstrates prudent operational management, enabling rapid capital allocation adjustments as market conditions fluctuate - a critical capability in today's volatile commodity environment.
Ring Energy's oil outperformance, successful acquisition integration, and strategic hedging provide enhanced financial stability and improved cash flow generation potential.
Ring Energy's operational outperformance translates directly to improved financial positioning. Exceeding oil production guidance is particularly significant as oil typically generates substantially higher margins than natural gas - likely delivering Q1 revenue outperformance when full results are released. The company's emphasis on oil production (12,000+ Bo/d) in its asset portfolio provides greater financial resilience compared to gas-weighted peers.
The Lime Rock acquisition completion represents a key strategic milestone. Management's characterization as "highly accretive" with "immediate and meaningful increased cash flow" suggests the transaction was executed at favorable valuation metrics. The immediate
Ring's hedging strategy reveals prudent risk management. With 6,300+ Bo/d hedged at a weighted average floor of
The company's strategic focus on free cash flow generation, disciplined capital allocation, and debt reduction demonstrates a value-oriented approach aligned with investor preferences in the current market environment. The combination of production outperformance, successful acquisition integration, cost reduction initiatives, and strategic hedging positions Ring to potentially accelerate its deleveraging efforts, which could ultimately lead to improved shareholder returns through potential dividend increases or share repurchases once target debt levels are achieved.
~ Announces Timing of First Quarter Earnings Conference Call ~
THE WOODLANDS, Texas, April 18, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today provided an operational update, including first quarter 2025 oil sales volumes above the high end of the Company’s guidance range and total sales volumes above the midpoint of guidance. The Company also announced the timing of Ring’s quarterly results conference call.
KEY HIGHLIGHTS
- Produced over 12,000 barrels of oil per day (“Bo/d”), exceeding high end of guidance;
- Produced over 18,300 barrels of oil equivalent per day (“Boe/d”), exceeding the midpoint of guidance;
- Oil production outperformance was driven by the success of Ring's drilling program, featuring 7 wells (4 horizontal and 3 vertical wells) coming online, all surpassing the Company's pre-drill estimates;
- Completed the acquisition of the Central Basin Platform (“CBP”) assets of Lime Rock Resources IV, LP (“Lime Rock”) on March 31, 2025;
- Highly accretive transaction provides immediate and meaningful increased cash flow from shallow declining, long life, oil weighted assets;
- Realized initial operational synergies by reducing LOE over
5% ; - Production during the first two weeks of Ring’s operations exceeded expectations by over 200 Boe/d, averaging over 2,500 Boe/d; and
- Company has over 6,300 barrels of oil per day hedged with weighted average downside protection of
$64.44 per barrel for the remainder of the year, as of April 1, 2025.
Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “The first quarter has set a strong foundation for 2025, and we look forward to sharing our full results in early May. Despite some initial weather-related downtime, we are pleased to report that oil sales volumes surpassed our highest projections, thanks to the outstanding performance of the wells drilled this quarter. Every well not only met but exceeded our pre-drill expectations, showcasing our operational excellence. Additionally, we successfully completed our Lime Rock asset acquisition before the quarter's end, and we are actively integrating these new properties into our portfolio—yielding an impressive 200 Boe/d increase over earlier estimates during the first two weeks of operations. We are confident that these achievements will propel us toward continued success in the upcoming months.”
Mr. McKinney concluded, “Our value-focused and proven strategy is designed to effectively navigate both high and low commodity price cycles, emphasizing the generation of free cash flow, maintaining a disciplined capital spending program, and prioritizing debt reduction. The flexibility in our contracting terms with drilling rigs and oil field service providers empowers us to quickly adapt our capital spending to stay aligned with our objectives. Our steadfast, value-focused strategy ensures we maintain the discipline and agility needed to navigate price volatility, positioning the Company for enduring success.”
First Quarter Earnings Conference Call
Ring plans to issue its first quarter 2025 earnings release after the close of trading on Wednesday, May 7, 2025. The Company has scheduled a conference call on Thursday, May 8, 2025 at 11:00 a.m. central standard time to discuss its first quarter 2025 operational and financial results. To participate, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy First Quarter 2025 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. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company’s strategy and prospects, including: expected first quarter 2025 sales volumes and capital projects activity levels; the potential impact of and the Company’s efforts to manage commodity price volatility through targeted contracting, hedging and other Company-directed strategies; and, the expected benefits and related timing afforded by the recent completion for the Lime Rock acquisition – all of which are designed to further position the Company for long-term success. The forward-looking statements include the Company’s ability to execute its proven strategy designed to further position the Company for long-term success. Forward-looking statements are based on current expectations and subject to numerous assumptions and analyses made by Ring and its management considering their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including its Form 10-K for the fiscal year ended December 31, 2024, and its other SEC filings. 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
FAQ
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