Slide 1: Value Focused Proven Strategy
VALUE FOCUSED PROVEN STRATEGY www.ringenergy.com NYSE American: REI
Slide 2: Forward-Looking Statements and Supplemental Non-GAAP Financial Measures
Forward-Looking Statements and Supplemental Non-GAAP Financial Measures Forward –Looking Statements Supplemental Non-GAAP Financial This Presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section Measures 21E of the Secur
Slide 3: Ring Energy - Independent Oil & Gas Company
Ring Energy - Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas Q2 2024 Net Production ~19,786 Boe/d Yoakum (69% oil and 86% liquids) Differentiated approach by 2023 SEC Proved Reserves1,2 Gaines applying unconventional 129.8 MMBoe/ technology and thinking to conventional
Slide 4: Track Record of Growth
Track Record of Growth Expanding Core Areas in NWS & CBP Acquisition Track Record 19,400E • Since 2018, Ring has successfully grown production by a ~22% CAGR1 through 2024E. • Founders Acquisition added accretive near-term cash flows 6,100 New Management as of combined with 5+ years of high October
Slide 5: Delivering Value YTD 2024
Delivering Value YTD 2024 Key Takeaways – Upgraded Portfolio and Efficient Execution Drive Results Adding Size Growing Adj and Scale EBITDA and AFCF1 Value Focused Proven Strategy Upgraded portfolio helped drive YTD 19 consecutive qtrs. generating performance; exceeded high end of positive AFCF; inc
Slide 6: 2024 Q2 Highlights
2024 Q2 Highlights Improved Portfolio Leads to Superior Results Oil Cash Adjusted Sales Operations Adjusted Debt Leverage Sales CapEx Operating Free Cash Liquidity4 Boe Lifting Cost EBITDA1 Balance Ratio3 Bo Costs2 Flow1 Q2 2024 Q2 2024 Q2 2024 Q2 2024 Q2 2024 Q2 2024 Q2 2024 Q2 2024 Q2 2024 Q2 2024
Slide 7: Enhanced Value for Stockholders YTD 2024
Enhanced Value for Stockholders YTD 2024 Executing Strategy Improves Key Metrics - Increased Production, Stable Operating Costs, and Enhanced FCF per Boe Production/Share Boe/Share All-in-Cash Operating Costs1 $/Boe Adjusted Free Cash Flow2 $/Boe 0.020 $25 $15 0.018 $24 Consistent all-in cash operat
Slide 8: Enhanced Value for Stockholders YTD 2024
Enhanced Value for Stockholders YTD 2024 Executing Strategy Improves Key Cash Flow Metrics Versus a Year Ago ACFFO1 $MM Adjusted EBITDA1 $MM Adjusted Free Cash Flow1 $MM $110 $109 $130 $128 $40 $37 $35 Up 16% Up 15% Up 60% $30 $100 $120 $25 $23 $93 $20 $112 $15 $90 $110 $10 $5 $80 $100 $0 1H 2023 1H
Slide 9: Outperforming YTD 2024 Stock Performance
Outperforming YTD 2024 Stock Performance Underlying Value and Operational Performance has Driven YTD Stock Performance 2024 YTD Stock Performance REI, Peers & XOP1,2 Outperforming Peers and Market YTD: 40% REI Distinguishing 30% Up 35% Drivers • Oil Weighted 20% • Low PDP Base Decline • Low Capital
Slide 10: Distinguishing Attributes: Low PDP Base Decline
Distinguishing Attributes: Low PDP Base Decline Ring’s Conventional Assets have Shallow Base Decline Versus Other Permian & Shale Players PDP Decline1: 2024E PDP Base Decline % 40% 36% 35% 35% 35% 34% 33% 33% Median 33% 32% 30% 27% 26% 25% 25% 20% 15% 10% 1 2 1 Peer Peer3 2 Peer4 3 5 4 Peer 6 5 Peer
Slide 11: Distinguishing Attributes: Low Capital Intensity
Distinguishing Attributes: Low Capital Intensity Ring’s Conventional Assets Provide Low D&C Capital Intensity Ratio Versus Other Permian & Shale Players Capital Intensity Ratio : 2024E D&C Only Capex / 2024E Annual Oil Production ($/Bo) $33.38 $33.51 $31.72 $28.50 $25.47 $26.53 $26.72 $27.19 Median
Slide 12: Distinguishing Attributes: Long Life Reserves & Oil %
Distinguishing Attributes: Long Life Reserves & Oil % Ring’s Conventional Assets have Extended Reserve Life and are Oily Versus Peers of Similar Size1,2 Reserve Life: YE 2023 SEC Proved Reserves / Q4’23 Annualized Production 20 Reserve Life (Yrs) 15 10 Median 12yrs 5 0 REI Peer 1 Peer 2 Peer 3 Peer
Slide 13: Distinguishing Attributes: High Operating Margins
Distinguishing Attributes: High Operating Margins Ring’s Conventional Assets with High Netbacks Drive Strong Cash Operating Margins vs. Peers1,2 1Q 2024 TTM Cash Operating Margin and Realized Pricing Operational Excellence and Cost Control Drive Profitability $80 $71.33 • High oil weighting of ~70%
Slide 14: Improved Outlook - Updated Guidance Q3 & FY 2024
Improved Outlook - Updated Guidance Q3 & FY 2024 Continue to Grow Oil Production, Disciplined Capex Spend, Optimize FCF, Pay Down Debt FY 2024 FY 2024 FY % Sales Volumes Q3 2024 Updated Original Diff FY 2024 CAPEX Allocation Total (Bo/d) 13,200 – 13,800 13,200 – 13,800 12,600 – 13,300 Mid Point (Bo/
Slide 15: Positioned for Success in 2024 & Beyond
Positioned for Success in 2024 & Beyond Updated Outlook Pursue Operational Excellence with an Maximizing Adj. Free Cash Flow1,2 Emphasis on Oil Production Growth $100 Expected continued growth 50% Oil Sales Bo/d Sales Boe/d 14,000 20,000 19,400 $80 40% Up ~8% 13,500 AFCF Yield % Up ~7% AFCF $MM 13,5
Slide 16: Permian Basin – Conventional Opportunities
Permian Basin – Conventional Opportunities Acquisition Strategy - Focus on Lower Cost CBP & NWS to Grow Publics Central Basin Platform (CBP) remains the underexplored Privates NWS Non-Basin opportunity of the Shale Era in Permian Basin Publics Non-Basin Other Conventional Shelf opportunities sui
Slide 17: Value Proposition
Value Proposition 2024 and Beyond Despite volatile energy markets, Ring has generated positive FCF for 19 quarters straight Delivering competitive returns to larger peers yet trading at a discount. Strong Cash Operating margins help deliver superior results & helps manage risk in market downturns Di
Slide 18: Appendix
APPENDIX www.ringenergy.com 18
Slide 19: Committed to ESG
Committed to ESG Critical to Sustainable Success 2023 Sustainability Report Progressing our ESG Journey A Target Zero Day is a Day that Results in: Download Report PDF • Created ESG Task Force in 2021 to monitor Zero Company or Company’s adherence to ESG standards and formally communicate to CEO and
Slide 20: REI Historical Price Performance
REI Historical Price Performance1 Price Performance Since January 1, 2022 5.5 6.5 MM warrants 140.00 exercised 5.0 Stronghold Announcement 120.00 4.5 3.0 MM warrants exercised 4.5 MM warrants 100.00 Founders Q4 & FY 2023 4.0 exercised Announcement Earnings Release 3.5 77.91 80.00 Warburg Pincus sell
Slide 21: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com 21
Slide 22: Adj. EBITDA / CapEx / Int Exp
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)2 1.64x 1.69x2 1.62x 1.67x 1.59x Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $80 Adj. EBITDA/ CapEx / Int Exp $70 $60 $65.4 $66.4 $50 $58.6 $62.0 $40 $53.5 $30 $21.4 $12.6 $16.3 $15.6 $20 $6.1 $10 $0 -$10 -$20 -$31.6 -$38.8 -$36.3 -$35.4
Slide 23: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating AFCF Adjusted Debt Paydown1,2 ($ Million) Liquidity3 ($ Million) $30 $220 $200 $25 $204 $194 $25 $180 $188 $179 $179 $20 $160 $171 $175 $165 $20 $19 $140 $15 $17 Founders $15 $120 Stronghold Acquisition2 Stron
Slide 24: Enhanced Value for Stockholders in 2023 Continued…
Enhanced Value for Stockholders in 2023 Continued… Track Record of Improving Corporate Returns Cash Return on Capital Employed1 (CROCE) % AVG WTI Pricing $/Bbl Strong CROCE % 30% $100 $94.90 • Disciplined and successful capital $90 program driving returns 25% $80 • Shallower declining production bas
Slide 25: Asset Overview
ASSET OVERVIEW www.ringenergy.com 25
Slide 26: Assets Overview
Assets Overview Core Assets in NWS & CBP Q2 2024 Net Production (MBoe/d) ~19.8 NWS (70% oil) ~8.0 CBP (68% oil) ~11.8 LOE ($ per Boe) $10.72 Capex ($MM) $35.4 YE23 PD Reserves1 PV10 ($MM) $1,263 Northern CBP YE23 PD Reserves1 (MMBoe) 88 YE23 PUD Reserves1 PV10 ($MM) $384 YE23 PUD Reserves1 (MMBoe) 4
Slide 27: Assets Overview
Assets Overview Deep Inventory of High-Return Drilling and Re-Completion Locations Select Recent New Drill Horizontal Well Results – Northwest Shelf Select Recent New Drill Vertical Well Results Peak IP Lateral – Central Basin Platform Geological Area Well Name 30 / 60 Oil Length WI (%) Region (%) (
Slide 28: Assets Overview
Assets Overview New Drill Inventory Performance Consistent HZ Well Performance Consistent Vertical Well Performance San Andres Horizontal Play 1 CBP Vertical Multi-Stacked Play 2 Cum 90-Day/ well Avg - BOE 30,000 16,000 Cum 90-Day/ well Avg - BOE 14,000 25,000 12,000 20,000 10,000 15,000 87-91% 90-9
Slide 29: San Andres Horizontal Play Characteristics
San Andres Horizontal Play Characteristics Proven, Conventional, Top Tier Returns San Andres Hz Delaware Hz Midland Hz High ROR Oil Play • Permian Basin has produced >30 BBbl Low D&C Costs — San Andres accounts for ~40% Lower 1st Year Decline • Low D&C costs1 $2.4 - $3.9 MM per Hz well Low
Slide 30: Vertical Multi-Stacked Zones Play Characteristics
Vertical Multi-Stacked Zones Play Characteristics Proven, Conventional, Top Tier Returns CBP Vt Stack & Frac Delaware Hz Midland Hz High ROR Oil Play • Central Basin Platform has produced >15 BBboe Low D&C Costs — Vertical multi-stage fracs targeting legacy reservoirs that have been producti
Slide 31: Proved Reserves and Inventory
Proved Reserves1 and Inventory SEC YE 2023 Reserves by Category (%) Reserves by PV-102 ($MM) Reserves by Product (%) Locations by Area 32% 23% 18% 19% 450+3 Total Gross Locations & Opportunities NWS ~130 $1,647 ~130 MMBoe $MM MMBoe CBP-N Penwell 68% 63% CBP-S 77% PD ~88 PUD ~42 $1,263 $384 Oil 82 Ga
Slide 32: 2024 Q2 Operations Update
2024 Q2 Operations Update Historical Quarterly Net Sales Production Capital allocation and drilling programs designed to maximize free cashflow generation Company Record Net Sales ~ 19,786 20,000 Oil Bopd Gas Boepd NGL Boepd Founders AQ Closed 8/15 & New Mexico Net Oil Sales Bopd + Gas Sales Boepd +
Slide 33: Management & Board of Directors
MANAGEMENT & BOARD OF DIRECTORS www.ringenergy.com 33
Slide 34: Experienced Management Team
Experienced Management Team Shared Vision with a Track Record of Success Hollie Lamb Paul D. McKinney Travis Thomas Alexander Dyes Phillip Feiner Shawn Young VP of NonOP Reservoir Chairman & Chief EVP & Chief EVP of Engineering & VP and General VP of Operations Engineering / O&G Executive Officer Fi
Slide 35: Board of Directors
Board of Directors Accomplished and Diversified Experience • 40+ years of domestic & international • 43+ years of banking, capital oil & gas industry experience markets, governance & financial experience • Executive & board roles include CEO, President, COO, Region VP and public • Executive and Boar
Slide 36: Board of Directors
Board of Directors Accomplished and Diversified Experience • 40+ years of domestic & international • 43+ years of banking, capital oil & gas industry experience markets, governance & financial experience • Executive & board roles include CEO, President, COO, Region VP and public • Executive and Boar
Slide 37: Financial Overview
Financial Overview Derivative Summary as of June 30, 2024 Oil Hedges (WTI) Gas Hedges (Henry Hub) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Swaps: NYMEX Swaps: Hedged volume (Bbl) 282,900 368,000 71,897 52,063 265,
Slide 38: Income Statement and Operational Stats
Income Statement and Operational Stats Income Statement Operational Stats (Unaudited) (Unaudited) Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30, March 31, June 30, June 30, June 30, 2024 2024 2023 2024 2023 2024 2024 202
Slide 39: Balance Sheet Statements of Cash Flows
(Unaudited) (Unaudited) Balance Sheet Statements of Cash Flows Three Months Ended Six Months Ended June 30, 2024 December 31, 2023 June 30, March 31, June 30, June 30, June 30, ASSETS 2024 2024 2023 2024 2023 Current Assets Cash Flows From Operating Activities Cash and cash equivalents $ 1,178,812 $
Slide 40: Non-GAAP Disclosure
Non-GAAP Disclosure Certain financial information included in this Presentation 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 Fr
Slide 41: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income Adjusted EBITDA (Unaudited for All Periods) (Unaudited for All Periods) Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30, March 31, June 30, June 30, June 30, 2024 2024 2023 2024
Slide 42: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio Adjusted Free Cash Flow (Unaudited for All Periods) Three Months Ended Three Months Ended Six Months Ended Last Four September 30, December 31, March 31, June 30, Quarters June 30, March 31, June 30, June 30, June 30, 2023 2023 2024 2024 2024 2024 2023
Slide 43: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Adjusted Cash Flow from Operations (ACFFO) Cash Return on Capital Employed (CROCE) As of and for the twelve months ended (Unaudited for All Periods) Three Months Ended Six Months Ended December 31, December 31, December 31, December 31, June 30, March 31, June 30, Ju
Slide 44: All-In Cash Operating Costs
Non-GAAP Reconciliations (cont.) All-In Cash Operating Costs (Unaudited for All Periods) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2024 2024 2023 2024 2023 All-In Cash Operating Costs: Lease operating expenses (including workovers) $ 19,309,017 $ 18,360,434 $
Slide 45: Thank You
THANK YOU Ring Headquarters 1725 Hughes Landing Blvd Ste 900 The Woodlands, TX 77830 Phone: 281-397-3699 Company Contact Analyst Coverage Al Petrie Alliance Global Partners (A.G.P.) Truist Financial Water Tower Research (281) 975-2146 Jeff Grampp (949) 296 4171 Neal Dingmann (713) 247-9000 Jeff Robe