Ring Energy, Inc. · AMEX:REI
Ring Energy — Merger or Acquisition (February 2025)
14 slides from Ring Energy's merger presentation, Feb 26, 2025
Slide 1: Accretive Bolt-On Acquisition
ACCRETIVE BOLT-ON ACQUISITION CAPTURING SYNERGIES & EXPANDING OUR HIGH-RETURN OPERATING AREA IN THE CENTRAL BASIN PLATFORM TRANSACTION SUMMARY 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 the Private Securities Litigation Reform Act of 1995, Section 27A of the Measures Securitie
Slide 3: Expands Legacy High-Return Operating Area
Expands Legacy High-Return Operating Area Continuing Our Transformation to a Scaled Conventional Permian Operator Operator Transaction Summary Legend Ring Energy Leasehold Strategic and accretive acquisition of Lime Rock Resources’ assets in Andrews County, TX Lime Rock Resources $100mm purchase
Slide 4: Investment Highlights
Investment Highlights Compelling Transaction Leads to Shareholder Value Creation • Accretive to key Ring per share financial and operating metrics Highly Accretive CBP Acquisition • Attractively valued at <85% of PD PV-103 • Expands legacy Central Basin Platform operations Increased Scale and Operat
Slide 5: Ring's Proven M&A Strategy
Ring’s Proven M&A Strategy Enhances Free Cash Flow and Accelerates Debt Reduction Differentiated approach by applying unconventional What Do We Like About This Transaction? technology and thinking to conventional Permian assets Ring Assets Characteristics: ~13% ~80% ~70% PDP Decline Rate7 Net Produc
Slide 6: Track Record of Strategic Consolidation
Track Record of Strategic Consolidation Four Acquisitions Since 2019 Increased Production by >3.5x Legend Acquisition Track Record Ring Energy Legacy ~22,000 Lime Rock Resources Ring’s Value Focused Proven Founders Oil & Gas Strategy pursuing accretive, Stronghold Energy Operating balance sheet en
Slide 7: Immediate Impact from Accretive Asset
Immediate Impact from Accretive Asset Leveraging Ring’s Operational Excellence to Drive Cost Reduction Synergies Asset Overview Operational synergies reduce costs and increase operational efficiencies Ring’s modern completion techniques result in ~40% improvement in recoveries vs. early style Sa
Slide 8: Outstanding Results Across Multiple Benches
Outstanding Results Across Multiple Benches Lime Rock’s Acreage Offers Access to Emerging Plays with Encouraging Results San Andres Barnett Devonian Legend Ring Energy Legacy • Successful recent results continue to define • Significant historical LRR asset activity on • Well-defined proven inventory
Slide 9: Disciplined Financial Approach
Disciplined Financial Approach Liquidity Impact: Pro Forma Borrowings ($mm) Transaction Details Liquidity $100mm purchase price, subject to customary purchase price adjustments2 RBL Outstanding $80mm of upfront cash consideration 7.4mm shares of Ring common stock valued at $10mm based on 10-da
Slide 10: Opportunity-Rich Basin
Opportunity-Rich Basin Why is Ring Focused on Consolidating Conventional Assets in the Central Basin Platform & Northwest Shelf? Publics NWS Acquire accretive, balance sheet enhancing CBP & NWS assets Privates CBP/NWS CBP & NWS remain the “shale era” underexplored Publics opportunity in the Permia
Slide 11: Value Proposition
Value Proposition Lime Rock CBP Assets Acquisition Attractive acquisition price at <85% of PD PV-103 Similar to the Founders acquisition, Lime Rock acquisition accelerates FCF and debt reduction – complements our focus on maximizing FCF generation and paying down debt Acquired assets are liter
Slide 12: Company Contact and Analyst Coverage
COMPANY CONTACT Al Petrie (281) 975-2146 apetrie@ringenergy.com ANALYST COVERAGE Alliance Global Partners (A.G.P.) Jeff Grampp (949) 296-4171 jgrampp@allianceg.com ROTH Capital Partners John M. White (949) 720-7115 jwhite@roth.com Truist Financial Neal Dingmann (713) 247-9000 neal.dingmann@truist.co
Slide 13: Footnotes
Footnotes • February 19, 2025 NYMEX Strip Pricing for WTI / HH used throughout the Presentation: 2024: $69.37 / $2.80; 2025: $71.71 / $4.38; 2026; $67.26 / $4.30; 2027+: $65.25 / $3.88 • Based on NYMEX Strip Pricing as of February 19, 2025. Expected impact on Ring’s guidance is dependent upon the ti
Slide 14: Non-GAAP Information
Non-GAAP Information 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 ““NTM Adjusted EBITDA”, “Adjusted EBITDA,” “Adjusted