Ring Energy, Inc. · AMEX:REI
Ring Energy — Investor Presentation (February 2019)
27 slides from Ring Energy's investor presentation, Feb 28, 2019
Slide 1: Corporate Presentation February 2019
www.ringenergy.com NYSE American: REI www.ringenergy.com OTCQX:RNGE www.ringenergy.com Corporate Presentation February 2019
Slide 2: Forward-Looking Statements and Cautionary Note Regarding Hydrocarbon Disclosures
www.ringenergy.com 2 NYSE American: REI Forward - Looking Statements and Cautionary Note Regarding Hydrocarbon Disclosures Forward – Looking Statements This Presentation includes "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 , the Securitie
Slide 3: Ring Energy Team
www.ringenergy.com 3 NYSE American: REI Kelly Hoffman Chief Executive Officer and Director ▪ Co - Founded AOCO and pioneered Fuhrman Mascho field down - spacing beginning in 1996 David A. Fowler President and Director ▪ Co - Founder and former President of Simplex Energy Solutions, the leading Permi
Slide 4: Investment Highlights
www.ringenergy.com 4 NYSE American: REI Investment Highlights • The management team has extensive experience in the Central Basin Platform and has successfully operated through multiple cycles • Ring’s co - founders were formerly co - founders and senior managers of Arena Resources Proven Management
Slide 5: Ring Co-Founders' Prior Success
www.ringenergy.com 5 NYSE American: REI 0.0 0.2 0.4 0.6 1.4 2.9 4.3 6.4 6.5 8.2 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 2010 (MBoe/d) Ring Co - Founders ’ Prior Success ▪ Proven and simple strategy ▪ Arena Resources was formed in 2001 by Tim Rochford and
Slide 6: Company Strategy
www.ringenergy.com 6 NYSE American: REI Company Strategy Acquire ▪ Look for “ upside opportunity ” ▪ Focus on the Permian Basin ▪ Low Risk Multipay Reserves ▪ Credit facility in place ▪ Access to capital markets Exploit ▪ Apply new horizontal technologies ▪ Add Additional Pay Zones ▪ Potential down
Slide 7: Texas Executive Summary
www.ringenergy.com 7 NYSE American: REI Gross Acres Net Acres Central Basin Platform 107,203 76,028 Delaware Basin 20,218 19,917 Total Texas Acreage 127,421 95,945 Texas Executive Summary 1 Cawley Gillespie and Williamson Petroleum YE2017 SEC report with prices of $47.93/ bbl and $ 3.61/ mmbtu 2 Pro
Slide 8: Exploiting with Improved Technology
www.ringenergy.com 8 NYSE American: REI TX NM Gaines Andrews Exploiting with Improved Technology ▪ Of Ring’s 107,203 gross acres position in Andrews and Gaines Counties approximately 105,500 acres is dedicated to horizontal ▪ Ring will drill the San Andres with increased efficiency via horizontal te
Slide 9: Central Basin Platform
www.ringenergy.com 9 NYSE American: REI Central Basin Platform Asset 1 Reviewed by Cawley Gillespie & Associates for YE2017 SEC report 2 Ring Energy internal estimates Asset Description ▪ 107 , 203 gross / 76 , 028 net total acres ▪ 193 total drilled gross vertical wells (as of December 31 , 2018 )
Slide 10: San Andres Overview
www.ringenergy.com 10 NYSE American: REI Proven Reservoir Source: US Department of Energy & DrillingInfo San Andres Overview Permian Basin Geology Denotes Ring acreage San Andres Hz Delaware Basin Hz Midland Basin Hz High ROR Oil Play x x x IPs >750 Bo/d x x Low 1 st Year Decline x Low Terminal Decl
Slide 11: San Andres Cross Section
www.ringenergy.com 11 NYSE American: REI San Andres Cross Section
Slide 12: San Andres Well Economics
www.ringenergy.com 12 NYSE American: REI San Andres Well Economics 1 $1,000 / acre times 640 acres 2 $1,000 / acre times 960 acres 3 Includes infrastructure cost 4 LOE includes $2,550 per month plus $ 5.25/ Bbl of oil 5 Excludes location acreage cost 6 Includes location acreage cost 7 Economics base
Slide 13: Type Curve
www.ringenergy.com 13 NYSE American: REI Type Curve D&C costs of $2.2 MM includes infrastructure cost LOE includes $2,550 per month plus $5.25 per bbl Oil Economics based on a lateral length of 5,080’ 100 % WI / 75% NRI Oil Gas Initial Rate305 BOPD74 MCFPD Initial Decline 93.5 96.6 B Factor 1.8 1.8
Slide 14: Central Basin Drilling Inventory
www.ringenergy.com 14 NYSE American: REI 147 132 396 796 PUD Probable & Possible Potential San Andres Vertical Potential San Andres Horizontal Includes a combination of 10s / 20s / 40s 6 wells per 640 - acre section Includes 10s / 20s / 40s Spacing Assumptions: Central Basin Drilling Inventory Note:
Slide 15: Delaware Basin Assets
www.ringenergy.com 15 NYSE American: REI Delaware Basin Assets 1 Reviewed by Cawley Gillespie & Associates for YE2017 SEC report 2 Ring Energy internal estimates Asset Description ▪ 20,218 gross / 19,917 net total acres ▪ Bell Canyon: 20,218 gross / 19,917 net ▪ Cherry Canyon: 14,098 gross / 13,798
Slide 16: Delaware Basin Drilling Inventory
www.ringenergy.com 16 NYSE American: REI 39 180 210 452 109 182 561 PUD Vertical Probable & Possible Vertical Potential Delaware Mountain Group Horizontal Additional Potential Locations Delaware Basin Drilling Inventory Note: Locations reflect gross locations on this page 1 Number of locations per S
Slide 17: Recent Developments & 2018 Capex Guidance
www.ringenergy.com 17 NYSE American: REI Recent Developments & 2018 Capex Guidance ▪ 2018 capital expenditure drilling and operational budget of ~ $ 197 MM largely focused on the Central Basin Platform ▪ Summary of activity : ▪ Central Basin Platform ▪ 54 + new horizontal San Andres wells ▪ Completi
Slide 18: Growth in Reserves & Production
www.ringenergy.com 18 NYSE American: REI 59 317 1,270 1,401 1,189 1,004 1,140 1,551 1,824 2,739 3,180 3,636 4,652 5,607 6,343 6,120 625 1,384 1,134 1,215 1,164 1,132 975 907 951 981 998 951 979 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 3.9 7.3 10.4 8.7
Slide 19: Ring Energy Acreage Growth
www.ringenergy.com 19 NYSE American: REI 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Texas Gross Acres Texas Net Acres Texas Acreage Growth Date TX Gross Acres TX Net Acres 12/31/2018 127,421 95,945 9/30/2018 121,813 90,530 6/30/2018 123,266 90,563 3/31/2018 122,850 89,673 12/31/2017 122,9
Slide 20: Appendix
www.ringenergy.com NYSE American: REI Appendix
Slide 21: Management Team
www.ringenergy.com 21 NYSE American: REI Management Team Lloyd T . (Tim) Rochford Co - Founder and Chairman of the Board Mr. Rochford, 72, has been active as an individual consultant and entrepreneur in the oil and gas industry since 1973. During that time, he has be en an operator of wells in the m
Slide 22: Management Team (cont'd)
www.ringenergy.com 22 NYSE American: REI Management Team (cont ’ d) David A. Fowler President and Director Mr. Fowler, 60, has served in several management positions for various companies in the insurance and financial services industries. In 1994, he joined Petroleum Listing Service as Vice Preside
Slide 23: Oil and Gas Reserves
www.ringenergy.com 23 NYSE American: REI Oil and Gas Reserves 1 Report prepared by independent petroleum engineers using average prices of $47.93 per barrel of oil / $3.61 per Mcf of natural gas 2 Ring Internal engineering report using average prices of $47.93 per barrel of oil / $3.61 per Mcf of na
Slide 24: Income Statement
www.ringenergy.com 24 NYSE American: REI Income Statement 1 Per Fully Diluted Share 2 Cash flow from operations before working capital changes 3 Months Ended September 30, 9 Months Ended September 30, 2018 2017 2018 2017 Revenue $32,687,179 $ 16,643,930 $92,503,453 $43,391,032 Pre - Tax Income $6,29
Slide 25: Balance Sheet
www.ringenergy.com 25 NYSE American: REI Balance Sheet 1 Includes Deferred Income Taxes and Deferred Financing Costs As of As of ($ thousands) 9/30/2018 12/31/2017 Assets: Cash and Cash Equivalents $3,771 $15,007 Other Current Assets 13,832 14,117 Total Current Assets $17,603 $29,124 PP&E, net 509,1
Slide 26: Analyst Coverage
www.ringenergy.com 26 NYSE American: REI Analyst Coverage Ring Energy, Inc. Analyst Coverage FIRM ANALYST(S) Alliance Global Partners Joel Musante , CFA (800) 727 - 7922 ext : 4782 B. Riley FBR, Inc. Rehan Rashid (703) 469 - 1184 rrashid@brileyfbr.com Capital One Securities, Inc. Richard Tullis (504
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