Ring Energy Updates Second Quarter 2025 Guidance
Ring Energy (NYSE American: REI) has updated its second quarter 2025 guidance, highlighting significant changes in capital spending while maintaining production targets. The company has reduced its capital spending guidance by over 50% to a midpoint of $18 million in response to recent oil price declines.
Despite the reduced spending, Ring Energy has reaffirmed its sales volume guidance with midpoints of 14,200 barrels of oil per day (Bo/d) and 21,500 barrels of oil equivalent per day (Boe/d). The production mix is expected to be 66% oil, 18% NGLs, and 16% gas. The company also maintained its Lease Operating Expense (LOE) guidance range with a midpoint of $12.00 per Boe.
CEO Paul D. McKinney emphasized the company's strategy to maximize cash flow and strengthen the balance sheet during volatile commodity prices. The decision to reduce capital spending is attributed to strong performance from first-quarter drilling, PDP assets, and recently acquired Lime Rock assets. Updated guidance for the remainder of the year will be provided with first-quarter results in early May.
Ring Energy (NYSE American: REI) ha aggiornato le previsioni per il secondo trimestre 2025, evidenziando cambiamenti significativi nella spesa in conto capitale pur mantenendo gli obiettivi di produzione. La società ha ridotto la previsione della spesa in conto capitale di oltre il 50%, fissandola a un valore medio di 18 milioni di dollari in risposta al recente calo dei prezzi del petrolio.
Nonostante la riduzione della spesa, Ring Energy ha confermato le previsioni di volume delle vendite con valori medi di 14.200 barili di petrolio al giorno (Bo/g) e 21.500 barili di petrolio equivalente al giorno (Boe/g). La composizione della produzione è prevista al 66% petrolio, 18% NGL e 16% gas. La società ha inoltre mantenuto l'intervallo di previsione per le spese operative di locazione (LOE) con un valore medio di 12,00 dollari per Boe.
Il CEO Paul D. McKinney ha sottolineato la strategia dell'azienda di massimizzare il flusso di cassa e rafforzare il bilancio durante la volatilità dei prezzi delle materie prime. La decisione di ridurre la spesa in conto capitale è dovuta alle buone performance delle perforazioni del primo trimestre, degli asset PDP e degli asset Lime Rock recentemente acquisiti. Le previsioni aggiornate per il resto dell'anno saranno fornite con i risultati del primo trimestre all'inizio di maggio.
Ring Energy (NYSE American: REI) ha actualizado sus previsiones para el segundo trimestre de 2025, destacando cambios significativos en el gasto de capital mientras mantiene los objetivos de producción. La compañía ha reducido su guía de gasto de capital en más del 50% hasta un punto medio de 18 millones de dólares en respuesta a la reciente caída de los precios del petróleo.
A pesar del gasto reducido, Ring Energy ha reafirmado sus previsiones de volumen de ventas con puntos medios de 14,200 barriles de petróleo por día (Bo/d) y 21,500 barriles de petróleo equivalente por día (Boe/d). Se espera que la mezcla de producción sea 66% petróleo, 18% NGL y 16% gas. La compañía también mantuvo su rango de guía de Gastos Operativos de Arrendamiento (LOE) con un punto medio de 12,00 dólares por Boe.
El CEO Paul D. McKinney enfatizó la estrategia de la empresa para maximizar el flujo de caja y fortalecer el balance durante la volatilidad de los precios de las materias primas. La decisión de reducir el gasto de capital se atribuye al buen desempeño de la perforación del primer trimestre, los activos PDP y los activos Lime Rock recientemente adquiridos. La guía actualizada para el resto del año se proporcionará con los resultados del primer trimestre a principios de mayo.
Ring Energy (NYSE American: REI)는 2025년 2분기 가이던스를 업데이트하며 자본 지출에 큰 변화를 주었지만 생산 목표는 유지했습니다. 최근 유가 하락에 대응하여 회사는 자본 지출 가이던스를 50% 이상 줄여 중간값을 1,800만 달러로 조정했습니다.
지출이 줄었음에도 불구하고 Ring Energy는 판매량 가이던스를 하루 평균 14,200 배럴의 원유(Bo/d)와 21,500 배럴의 원유 환산량(Boe/d)으로 재확인했습니다. 생산 구성은 66% 원유, 18% NGL, 16% 가스로 예상됩니다. 또한 회사는 임대 운영비(LOE) 가이던스 범위를 배럴당 12.00달러 중간값으로 유지했습니다.
CEO Paul D. McKinney는 변동성이 큰 원자재 가격 속에서 현금 흐름 극대화와 재무 건전성 강화를 위한 회사 전략을 강조했습니다. 자본 지출 축소 결정은 1분기 시추, PDP 자산, 최근 인수한 Lime Rock 자산의 강력한 성과에 기인합니다. 연말까지의 업데이트된 가이던스는 5월 초 1분기 실적 발표와 함께 제공될 예정입니다.
Ring Energy (NYSE American: REI) a mis à jour ses prévisions pour le deuxième trimestre 2025, mettant en avant des changements significatifs dans les dépenses en capital tout en maintenant ses objectifs de production. La société a réduit ses prévisions de dépenses en capital de plus de 50 %, pour atteindre un point médian de 18 millions de dollars en réponse à la récente baisse des prix du pétrole.
Malgré cette réduction des dépenses, Ring Energy a confirmé ses prévisions de volume de ventes avec des points médians de 14 200 barils de pétrole par jour (Bo/j) et 21 500 barils équivalent pétrole par jour (Boe/j). La répartition de la production devrait être de 66 % pétrole, 18 % NGL et 16 % gaz. La société a également maintenu sa fourchette de prévisions pour les dépenses opérationnelles de location (LOE) avec un point médian de 12,00 dollars par Boe.
Le PDG Paul D. McKinney a souligné la stratégie de l'entreprise visant à maximiser le flux de trésorerie et à renforcer le bilan face à la volatilité des prix des matières premières. La décision de réduire les dépenses en capital est attribuée à la bonne performance des forages du premier trimestre, des actifs PDP et des actifs Lime Rock récemment acquis. Les prévisions mises à jour pour le reste de l'année seront communiquées avec les résultats du premier trimestre début mai.
Ring Energy (NYSE American: REI) hat seine Prognose für das zweite Quartal 2025 aktualisiert und dabei bedeutende Änderungen bei den Investitionsausgaben hervorgehoben, während die Produktionsziele beibehalten wurden. Das Unternehmen hat seine Investitionsausgaben-Prognose um über 50 % auf einen Mittelwert von 18 Millionen US-Dollar gesenkt als Reaktion auf den jüngsten Rückgang der Ölpreise.
Trotz der reduzierten Ausgaben hat Ring Energy seine Absatzmengen-Prognose mit Mittelwerten von 14.200 Barrel Öl pro Tag (Bo/d) und 21.500 Barrel Öläquivalent pro Tag (Boe/d) bestätigt. Die Produktionsmischung wird voraussichtlich 66 % Öl, 18 % NGL und 16 % Gas betragen. Das Unternehmen behielt zudem seine Prognose für die Leasingbetriebskosten (LOE) mit einem Mittelwert von 12,00 USD pro Boe bei.
CEO Paul D. McKinney betonte die Strategie des Unternehmens, den Cashflow zu maximieren und die Bilanz in Zeiten volatiler Rohstoffpreise zu stärken. Die Entscheidung zur Reduzierung der Investitionsausgaben wird auf die starke Leistung der Bohrungen im ersten Quartal, der PDP-Anlagen und der kürzlich erworbenen Lime Rock-Anlagen zurückgeführt. Aktualisierte Prognosen für den Rest des Jahres werden mit den Ergebnissen des ersten Quartals Anfang Mai veröffentlicht.
- Maintained production guidance despite 50% capital spending reduction
- Strong performance from Q1 drilling program and PDP assets
- Breakeven costs reported well below current oil prices
- Strategic focus on debt reduction to strengthen balance sheet
- Over 50% reduction in capital spending guidance to $18M midpoint
- Response to declining oil prices indicates market pressure
- Uncertainty in future oil prices affecting strategic decisions
Insights
Ring Energy maintains production despite 50% capex cut, prioritizing debt reduction - demonstrating exceptional capital efficiency amid oil price volatility.
Ring Energy's decision to slash Q2 capital spending by over 50% to
The reaffirmed production guidance (14,200 Bo/d oil and 21,500 Boe/d total) despite halving investment indicates their recent drilling program and Lime Rock acquisition are significantly outperforming expectations. The company's ability to maintain output with substantially reduced investment suggests high-quality well performance and efficient operations.
Most importantly, Ring's deliberate pivot to prioritize debt reduction during this period of lower oil prices demonstrates prudent financial management. With breakeven costs "well below the current price of oil," the company maintains healthy margins while strengthening its balance sheet - creating valuable financial flexibility should prices deteriorate further.
The maintained LOE guidance (
By demonstrating this level of operational efficiency while prioritizing balance sheet strength, Ring Energy is positioning itself to weather commodity price volatility far better than peers requiring higher sustained investment to maintain production.
~ Reaffirms Sales Volume Guidance and Substantially Reduces Capital Guidance ~
THE WOODLANDS, Texas, April 24, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today provided updated guidance for the second quarter of 2025, which included reaffirming its previous outlook for oil and total sales volumes despite a significant reduction in the Company’s capital spending guidance, which was lowered in response to the recent decline in oil prices.
KEY Q2 UPDATED GUIDANCE HIGHLIGHTS
- Reduced capital spending guidance range with a midpoint decrease of over
50% to$18 million ; - Reaffirmed guidance range for both oil and total sales volumes with midpoints of 14,200 barrels of oil per day (“Bo/d”) and 21,500 barrels of oil equivalent per day (“Boe/d”) respectively and;
- Reaffirmed Lease Operating Expense (“LOE”) range with a midpoint of
$12.00 per Boe.
Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “In the past we have discussed the benefits of our value-focused proven strategy designed to maximize cash flow generation and effectively navigate the volatility of commodity prices to strengthen the balance sheet. The better-than-expected performance of our first quarter drilling program, underlying PDP assets, and recently acquired Lime Rock assets provided us the opportunity to quickly respond to lower oil prices by reducing our second quarter capital spending by more than
Q2 UPDATED GUIDANCE TABLE
| Sales Volumes | |
| Total (Bo/d) | 13,700 – 14,700 |
| Mid Point (Bo/d) | 14,200 |
| Total (Boe/d) | 20,500 – 22,500 |
| Mid Point (Boe/d) | 21,500 |
| - Oil (%) | |
| - NGLs (%) | |
| - Gas (%) | |
| Capital Program | |
| Capital Spending1 (millions) | |
| Mid Point (millions) | |
| Operating Expenses | |
| LOE (per Boe) | |
| Mid Point (per Boe) | |
(1) In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, well reactivations and leasing acreage. Also included is anticipated spending for non-operated drilling, completions, capital workovers, and facility improvements.
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 second quarter 2025 sales volumes and capital spending 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 afforded by the recent completion of the recent Lime Rock acquisition. The forward-looking statements include the Company’s ability to keep operating costs low while maintaining production targets and generally 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
This press release was published by a CLEAR® Verified individual.
FAQ
What is Ring Energy's Q2 2025 production guidance for oil and total sales volumes?
How much did Ring Energy reduce its Q2 2025 capital spending guidance?
What is Ring Energy's expected production mix for Q2 2025?
What is Ring Energy's projected Lease Operating Expense (LOE) for Q2 2025?
When will Ring Energy provide updated guidance for the rest of 2025?
