Ring Energy, Inc. · AMEX:REI
Ring Energy — Q1 2025 Earnings Presentation
40 slides from Ring Energy's earnings presentation, May 9, 2025
Slide 1: Q1 2025 Earnings & Updated Guidance
NYSE American: REIwww.ringenergy.com May 8, 2025 Q1 2025 EARNINGS & UPDATED GUIDANCE
Slide 2: Forward-Looking Statements
Ring Energy, Inc. Forward –Looking Statements This Presentation includes 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. All statements, other than statements of historical fac
Slide 3: Ring Energy - Independent Oil & Gas Company Focused on Conventional Permian Assets
Ring Energy, Inc. Ring Energy - Independent Oil & Gas Company 3 Focused on Conventional Permian Assets in Texas Ring Energy Assets Northwest Shelf Central Basin Platform 1.Pro Forma net production Q2 ‘25 guidance 2.SEC Proved Reserves as of 12/31/2024 utilizing SEC prices, YE 2024 SEC Pricing Oil $7
Slide 4: Adding Size and Scale to the Portfolio
Ring Energy, Inc. Adding Size and Scale to the Portfolio • Since 2021 our production has increased 23% CAGR from accretive acquisitions & organic development • Successfully closed accretive acquisition of Lime Rock CBP assets on March 31, 2025 • Proved Reserves including LRR assets increased by ~88%
Slide 5: Q1 2025 Scorecard
Ring Energy, Inc. 1. Adjusted EBITDA and Adjusted Free Cash Flow are Non-GAAP financial measures. See Appendix for reconciliation to GAAP measures. 2. Total Operating costs is defined as all “cash” costs including LOE, cash G&A, interest expense, workovers and other operating expenses, production ta
Slide 6: LRR Acquisition Expands Legacy High-Return Area
Ring Energy, Inc. LRR Acquisition Expands Legacy High-Return Area 6 Continuing Our Transformation to a Scaled Conventional Permian Operator Asset Overview ü Closed on March 31, 2025 ü ~19,250 gross / 17,700 net acres (100% HBP) mostly contiguous to Ring’s existing footprint ü ~2,300 Boe/d (>75% Oil)
Slide 7: Proved Reserves and Inventory
Ring Energy, Inc. ~12 MMBoe $160 MM PD $127MM PUD $33MM Oil Gas NGL ~12 MMBoe 16 PUDs Proved Reserves1 and Inventory 7 Reserves by Category (%) Reserves by PV-102 ($MM) Reserves by Product (%) Locations by Area PD ~93 MMBoe PUD ~42 MMBoe Organic Reserve Replacement in 2024 Increased Proved Reserves
Slide 8: Updated Pro Forma Guidance
Ring Energy, Inc. Updated Pro Forma Guidance 8 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI 3 Full Quarters of Lime Rock Asset1 Operations FY 2025 CAPEX Allocation $99 million Mid Point 61% 33% 2% 1. LRR Acquisition closed on March 31, 2025. 2. In addition to Company-directed dri
Slide 9: Focused on Maximizing FCF in 2025 & Beyond
Ring Energy, Inc. Oil Sales Q2-Q4 PF 12,750 to 14,250 Bo/d Mid-point 13,500 Bo/d FY 2026E Focused on Maximizing FCF in 2025 & Beyond 9 1. Estimated AFCF is based on actuals in Q1’25 and projections of internal management financial model assumes mid point of guidance for Net Sales production & capex
Slide 10: Distinguishing Attributes: What Makes Ring Different?
Ring Energy, Inc. Distinguishing Attributes: What Makes Ring Different? 10 Netbacks: NRI % 1. Source: Enverus as of Feb 2025, using ENVERUS base decline model function. The declines are all yearly declines using Aug/Sep/Oct 2024 as starting period for each company selected (by any size). Includes: C
Slide 11: Distinguishing Attributes: High Operating Margins
Ring Energy, Inc. Distinguishing Attributes: High Operating Margins 11 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Ring’s Conventional Assets with High Netbacks Drive Strong Cash Operating Margins vs. Peers1,2 4Q 2024 TTM Cash Operating Margin and Realized Pricing ($/Boe) Operat
Slide 12: Enhanced Value for Stockholders
Ring Energy, Inc. Enhanced Value for Stockholders 12 Improved Metrics - Increased Production, Reduction in Costs, and Increased Proved Reserves on per Share Basis Production/Share Boe/Share 0.034 Up 6% 1. See Appendix for calculation of All-in Cash Operating Costs. 2. YE 2023 & 2024 CGA SEC Proved R
Slide 13: Consistent Value for Stockholders
Ring Energy, Inc. Consistent Value for Stockholders 13 Minimized the Effect of a 7% Reduction in Realized Prices 1. Adjusted Cash Flow from Operations (ACFFO), Adjusted EBITDA and Adjusted FCF are Non-GAAP financial measures. See Appendix and prior releases for reconciliation to GAAP measures. Value
Slide 14: Track Record of Strategic Consolidation
Ring Energy, Inc. Track Record of Strategic Consolidation 14 Acquisition Track Record § Ring’s pursuit of accretive, balance sheet enhancing acquisitions is a key component of our future growth § M&A wave of conventional Permian assets from majors, large independents, private equity-backed operators
Slide 15: Permian Basin – Conventional Opportunities
Ring Energy, Inc. G ro ss P ro d uc ti o n (2 -S tr ea m M b o e/ d ) Permian Basin – Conventional Opportunities Source: Enverus, Companies include Basin O&G, Blackbeard Operating, Boyd & McWilliams, Burk Royalty, Citation O&G, ConocoPhillips, Crescent Energy, Diversified, Elevation Resources, Forme
Slide 16: Trading at Discount Compared to Recent Transaction
Ring Energy, Inc. Ring Trading at Discount Compared to Recent Transaction REI Suggested Valuation Using APA CBP & NWS Assets Divestiture Valuation Metrics Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI16 Private Buyers Paying Higher Valuation Multiples for Conventional Permian Asse
Slide 17: Robust Value Proposition Through Commodity Price Cycles
Ring Energy, Inc. Robust Value Proposition Through Commodity Price Cycles 17 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI 2025 and Beyond Target leverage ratio below 1.0x and position Ring to return capital to stockholders Remaining focused on maximizing FCF generation to strengt
Slide 18: Financial Overview
www.ringenergy.com FINANCIAL OVERVIEW VALUE FOCUSED PROVEN STRATEGY | MAY 8, 2025 | NYSE AMERICAN: REI
Slide 19: Historical Metrics
Ring Energy, Inc. 1.67x 1.59x 1.59x 1.66x Historical Metrics 19 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Quarterly Analysis of AFCF1 Leverage Ratio (LTM)1 Disciplined and Efficient Capital Spending Focused on Sustainably Generating AFCF Enhances Our Unrelenting Goal to Streng
Slide 20: Reducing Debt & Increasing Liquidity
Ring Energy, Inc. Reducing Debt & Increasing Liquidity 20 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Disciplined Capital Spending & Sustainably Generating AFCF RBL Balance & Adjusted Debt Paydown1,2 ($ Million) Liquidity3 ($ Million) 1. Paydown of $17 million is net of the $182
Slide 21: Competitive Value for Stockholders: Cash Return on Capital Employed
Ring Energy, Inc. Competitive Value for Stockholders 21 Track Record of 3 Consecutive Years of Corporate Returns Above 15% Despite Drop in Commodity Prices Cash Return on Capital Employed1 (CROCE) % Strong CROCE % • Disciplined and successful capital program driving returns • Shallow decline product
Slide 22: Asset Overview
www.ringenergy.com ASSET OVERVIEW VALUE FOCUSED PROVEN STRATEGY | MAY 8, 2025 | NYSE AMERICAN: REI
Slide 23: Committed to Sustainable Success
Ring Energy, Inc. Committed to Sustainable Success 23 2024 Sustainability Report Progressing our ESG Journey A Target Zero Day is a Day that Results in: Zero Company or Contractor OSHA Recordable Injury, and Zero Agency Reportable Spill or Release as Defined by TRRC, EPA, TCEQ, etc., and Zero Preven
Slide 24: Assets Overview: Deep Inventory of High-Return Locations
Ring Energy, Inc. Assets Overview 24 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Deep Inventory of High-Return Drilling and Re-Completion Locations Select Recent New Drill Vertical Well Results – Central Basin Platform 1. Vertical completion no lateral length noted. 2. Peak IP 6
Slide 25: New Drill Inventory Performance
Ring Energy, Inc. Assets Overview 25 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI New Drill Inventory Performance Consistent HZ Well Performance San Andres Horizontal Play EUR (MBoe) per 1000’ Lateral Feet Enhanced Vertical Well Performance CBP Vertical Multi-Stacked Play 2 D&C C
Slide 26: Impact of Founders Acquisition
Ring Energy, Inc. Impact of Founders Acquisition 26 Net Sept. 2023 Sept 2024 % Diff Boe/d 1,887 2,654 41% Bo/d 1,497 1,821 22% Lift Cost $/Boe $14.84 $12.27 -17% (MMBoe) YE 2023 Q3 2024 % Diff YE'23 1P 7.9 8 1% Sales Prod. 0.9 PDP 4.2 5.3 26% # of Wells Drilled 0 12 # Locations Remaining1 ~50 ~50 Re
Slide 27: San Andres Horizontal Play Characteristics
Ring Energy, Inc. San Andres Horizontal Play Characteristics 27 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Proven, Conventional, Top Tier Returns San Andres Hz Delaware Hz Midland Hz High ROR Oil Play ü ü ü Low D&C Costs ü Lower 1st Year Decline ü Low Lease Acquisition Cost ü L
Slide 28: Vertical Multi-Stacked Pay Characteristics
Ring Energy, Inc. Vertical Multi-Stacked Pay Characteristics 28 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Proven, Conventional, Top Tier Returns CBP Vt Stack & Frac Delaware Hz Midland Hz High ROR Oil Play ü ü ü Low D&C Costs ü Lower 1st Year Decline ü Low Lease Acquisition Co
Slide 29: Thank You / Company Contact
www.ringenergy.com VALUE FOCUSED PROVEN STRATEGY | MAY 8, 2025 | NYSE AMERICAN: REI THANK YOU Company Contact Al Petrie (281) 975-2146 apetrie@ringenergy.com Wes Harris (281) 975-2146 wharris@ringenergy.com Analyst Coverage ROTH Capital Partners John M. White (949) 720-7115 jwhite@roth.com Tuohy Bot
Slide 30: Appendix
www.ringenergy.com APPENDIX VALUE FOCUSED PROVEN STRATEGY | MAY 8, 2025 | NYSE AMERICAN: REI
Slide 31: REI Historical Price Performance
Ring Energy, Inc. REI Historical Price Performance1 31 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Price Performance Since January 1, 2022 (1) Sources Factset as of 5/2/2025 Stronghold Announcement Founders Announcement 6.5 MM warrants exercised 3.0 MM warrants exercised 4.5 MM
Slide 32: Financial Overview: Derivative Summary
Ring Energy, Inc. Financial Overview 32 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI (1) The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude
Slide 33: Income Statement and Operational Stats
Ring Energy, Inc. Income Statement and Operational Stats 33 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Income Statement Operational Stats (1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion r
Slide 34: Balance Sheet and Statements of Cash Flows
Ring Energy, Inc.34 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Statements of Cash FlowsBalance Sheet (Unaudited) March 31, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents $ 1,100,851 $ 1,866,395 Accounts receivable 35,680,686 36,172,316 Joint interest bil
Slide 35: PV-10 Non-GAAP Measure
Ring Energy, Inc. “PV-10” is a non-GAAP financial measure that differs from a financial measure under GAAP known as “standardized measure of discounted future net cash flows” in that PV-10 is calculated without including future income taxes. Management believes that the presentation of the PV-10 mea
Slide 36: Adjusted Net Income and Adjusted EBITDA
Ring Energy, Inc. (Unaudited for All Periods) Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Net income $ 9,110,738 $ 5,657,519 $ 5,515,377 Interest expense, net 9,408,728 9,987,731 11,420,400 Unrealized loss (gain) on change in fair value of derivatives 375,196 6,999,552 17,552,
Slide 37: Non-GAAP Reconciliations: Adjusted Free Cash Flow
Ring Energy, Inc. Non-GAAP Reconciliations (cont.) 37 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Adjusted Free Cash Flow (Unaudited for All Periods) Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Net Cash Provided by Operating Activities $ 28,371,008 $ 47,27
Slide 38: Non-GAAP Reconciliations: Leverage Ratio
Ring Energy, Inc. Non-GAAP Reconciliations (cont.) 38 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Leverage Ratio (Comparative Period End)Leverage Ratio (Current Period End) (Unaudited) Three Months Ended Last Four QuartersJune 30, September 30, December 31, March 31, 2024 2024 2
Slide 39: Non-GAAP Reconciliations: ACFFO, CROCE, G&A, PV-10
Ring Energy, Inc. Non-GAAP Reconciliations (cont.) 39 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI Adjusted Cash Flow from Operations (ACFFO) Cash Return on Capital Employed (CROCE) G&A Reconciliations PV-10 (Unaudited for All Periods) Three Months Ended March 31, December 31, Ma
Slide 40: Non-GAAP Reconciliations: All-In Cash Operating Costs
Ring Energy, Inc. Non-GAAP Reconciliations (cont.) 40 Value Focused Proven Strategy | May 8, 2025 | NYSE American: REI All-In Cash Operating Costs Cash Operating Margin (Unaudited for All Periods) Three Months Ended March 31, December 31, March 31, 2025 2024 2024 All-In Cash Operating Costs: Lease o