Slide 1: Value Focused Proven Strategy – Q2 2023 Earnings
VALUE FOCUSED PROVEN STRATEGY Q2 2023 EARNINGS 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 21E of the Securities Exc
Slide 3: Independent Oil & Gas Company Focused on Conventional Permian Assets
Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas Q2 2023 Net Sales 17,271 Boe/d NWS 84% liquids 16% gas Highly oil weighted 69% oil 2022 SEC Proved Reserves1,2 138.1 MMBoe/ PV10 $2.77 Billion Proved Developed 65% CBP Gross / Net Acres3 Permian Basin 102,557 / 83,709 400+
Slide 4: Value Focused Proven Strategy
Value Focused Proven Strategy Sustainably Deliver Competitive Returns 1. Attract and Retain 5. Pursue Strategic A&D to Highly Qualified People Lower Breakeven Costs & Build Inventory 2. Pursue Operational 4. Focus on Maximizing Excellence with AFCF1 and Strengthening a Sense of Urgency Balance Sheet
Slide 5: Q2 2023 Highlights
Q2 2023 Highlights Proven Strategy Leads to Record Results Adjusted Adjusted BOE Cash Adjusted Leverage CapEx Free Cash Liquidity3 Production Flow From EBITDA1 Ratio2 Operations1 Flow1 2022 Transformational Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 Year 17,271 $44.0 $53.5 $31.6 $12.6 1
Slide 6: Enhancing Value for Stockholders
Enhancing Value for Stockholders Executing Strategy Improves Annual Key Metrics1 Production/Share MBOE PV-101/Share 0.04 $25.00 $22.88 0.04 $20.00 0.03 Up 33% $13.40 Up 70% $15.00 0.03 $10.00 $5.00 0.02 $- 2021 2022 2021 2022 ACFFO1 $million FCF Yield2 % $200 $173 14% 12% $150 Up 149% 9% 9% Up ~30%
Slide 7: Enhancing Value for Stockholders
Enhancing Value for Stockholders Executing Strategy Improves Annual Key Metrics CROCE1 All-in Cost Operating Margins2/BOE 20.7% $90.00 20% Up 79% $80.00 Annual $76.95 Realized $70.00 Pricing $63.14 15% $60.00 11.6% $52.59 $50.00 10% 9.3% $39.33 Up 34% $40.00 $35.13 $30.00 5% $20.00 $12.96 $10.00 0%
Slide 8: 2023 Second Half Revised Outlook
2023 Second Half Revised Outlook Proven Strategy Leads to Stockholder Value Sales Boe/d Oil Sales Bo/d Pursue Operational Net Sales 20,000 15,000 Excellence with a 18,350 to 19,200 Boe/d 15,000 10,000 10,000 Sense of Urgency Mid-point 18,775 Boe/d Up ~50% 5,000 Up 30% 5,000 (68% Oil, 15% NGLs, 17% G
Slide 9: Committed to ESG
Committed to ESG Critical to Sustainable Success 2022 Sustainability Report Progressing our ESG Journey A Target Zero Day is a Day that Results in: Download Report PDF • Created ESG Task Force in 2021 to monitor Zero Company or Company’s adherence to ESG standards and formally communicate to CEO and
Slide 10: Proved Reserves and Inventory
Proved Reserves1 and Inventory SEC YE 2022 Reserves by Category (%) Reserves by PV-102 ($MM) Reserves by Product (%) Locations 17% 19% 400+3 Total Gross Locations & Opportunities 35% 31% Gaines Lea 138 $2,774 138 MMBoe MMBoe MMBoe Yoakum Andrews 65% 69% Crane 64% PD ~90 PUD ~48 $1,907 $867 Oil 64% G
Slide 11: Value Proposition
Value Proposition 2023 and Beyond Trading at a discount Delivering competitive returns Proven strategy delivering superior results Disciplined capital program focused on maintaining production, FCF generation and debt reduction Pursuing accretive, balance sheet enhancing acquisitions to increase sca
Slide 12: Asset Overview
ASSET OVERVIEW www.ringenergy.com
Slide 13: Company Overview
Company Overview Core Assets Q2 2023 Net Production (MBoe/d) 17.3 Oil (Bo/d) ~ 69% 11.9 NGLs (Bbls/d) ~ 15% 2.6 Gas (Mcf/d) ~ 16% 17.1 LOE ($ per Boe) $10.14 YE22 PD Reserves1 PV10 ($MM) $1,907 YE22 PD Reserves1 (MMBoe) 90 YE22 PUD Reserves1 PV10 ($MM) $867 YE22 PUD Reserves1 (MMBoe) 48 Capex ($MM)
Slide 14: Core Assets in NWS and CBP
Core Assets in NWS and CBP Record Sales Significant Increase in “Proved” Reserves1 Focus investments on growing core asset areas in NWS & CBP ~107% Increase in “PD” Reserves YOY ~78% Increase in “1P” Reserves YOY 14,000 NWS CBP DLWR 160,000 PD PUD 2% 140,000 12,000 120,000 10,000 35% 42% Proved Rese
Slide 15: Assets Overview – New Drill Inventory Performance
Assets Overview New Drill Inventory Performance Consistent Hz Well Performance Consistent Vertical Well Performance Shorter Cycles Times & Lower Capex Drive Capital Efficiency SA Horizonal Play1 CBP Vertical Multi-Stacked Pay2 60,000 30,000 50 50,000 25,000 Cum 180-Day/well Avg., BOE Cum 180-Day/wel
Slide 16: Assets Overview
Assets Overview Deep Inventory of High-Return Drilling and Re-Completion Locations Select Recent New Drill Vertical Well Results Select Recent New Drill Horizontal Well Results – Central Basin Platform – Northwest Shelf Peak IP Peak IP Lateral Geological Geological Area Well Name 60 Oil (%) WI (%) A
Slide 17: San Andres Reservoir
San Andres Reservoir 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 $3.2 - $4.4 MM per well Low Lease Acquisition Cost
Slide 18: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com 18
Slide 19: 2023 Second Half Pro Forma Guidance
2023 Second Half Pro Forma Guidance Grow Production, Generate FCF, Pay Down Debt Sales Volumes Q3 2023 Q4 2023 2H 2023 CAPEX Allocation Total (Boe/d) 18,100 – 18,600 18,900 – 19,500 Mid Point (Boe/d) 18,350 19,200 8% - Oil (%) 68% 69% - NGLs (%) 15% 15% 19% - Gas (%) 17% 16% Capital Program $72 Capi
Slide 20: Historical Metrics: Quarterly Analysis of AFCF
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)2 2.13x 1.41x2 1.56x2 1.65x2 1.64x2 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 $70 Adj. EBITDA/ CapEx / Int Exp $60 $50 $56.0 $56.3 $58.6 $53.5 $40 $47.4 $30 $20 $9.7 $10.5 $12.6 $5.5 $10 $0 $2.5 -$10 -$20 -$38.9 -$31.6 -$41.8 -$40.3 -$
Slide 21: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating FCF is the Key Debt Paydown ($ Million) Liquidity1 ($ Million) $30 $220 $200 $25 $204 $25 $180 $188 $179 $20 $160 $20 $165 $140 $15 $17 Stronghold Acquisition final $120 Stronghold deferred Stronghold $10 Acqu
Slide 22: Appendix
APPENDIX www.ringenergy.com
Slide 23: Financial Overview: Derivative Summary
Financial Overview Derivative Summary Oil Hedges (WTI) Gas Hedges (Henry Hub) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 NYMEX Swaps: Swaps: Hedged volume (MMBtu) 144,781 203,706 152,
Slide 24: 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, 2023 2023 2022 2023 2022 2023 2023 202
Slide 25: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Balance Sheet Cash Flow (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2023 2023 2022 2023 2022 Cash Flows From Operating Activities Net income $ 28,791,605 $ 32,715,779 $ 41,944,422 $ 61,507,384 $ 49,056,465 Adjust
Slide 26: 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 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income Adjusted EBITDA (Unaudited for All Periods) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2023 2023 2022 2023 2022 Net Income $ 28,791,605 $ 32,715,779 $ 41,944,422 $ 61,507,384 $ 49,056,465 Interest expense, net 10,471
Slide 28: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio Adjusted Free Cash Flow (Unaudited) (Unaudited for All Periods) Three Months Ended Three Months Ended Six Months Ended September December March 31, June 30, Last Four June 30, March 31, June 30, June 30, June 30, 30, 31, Quarters 2023 2023 2022 2023 20
Slide 29: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Adjusted Cash Flow from Operations (ACFFO) PV-10 (Unaudited for All Periods) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2023 2023 2022 2023 2022 Net Cash Provided by Operating Activities $ 43,366,181 $ 43,680,096 $ 40,722,650 $
Slide 30: Experienced Management Team
Experienced Management Team Shared Vision with a Track Record of Success Hollie Lamb Paul D. McKinney Stephen D. Brooks Alexander Dyes Travis Thomas Marinos Baghdati VP of NonOP Reservoir Chairman & Chief EVP of Land, Legal, EVP of Engineering & EVP & Chief EVP of Operations Engineering / O&G Execut
Slide 31: Board of Directors
Board of Directors Accomplished and Diversified Experience • 35+ years of domestic & international • 43+ years of banking, capital • 14+ years of finance & capital markets oil & gas industry experience markets, governance & financial experience experience • Executive & board roles include CEO, • Ext
Slide 32: Proposed Accretive Acquisition Expands Core Operating Area
PROPOSED ACCRETIVE ACQUISITION EXPANDS CORE OPERATING AREA RING ENERGY PROPSED ACQUISITION OF FOUNDERS OIL & GAS PROPOSED TRANSACTION SUMMARY www.ringenergy.com NYSE American: REI
Slide 33: Proposed Accretive Acquisition Expands Core Operating Area
Proposed Accretive Acquisition Expands Core Operating Area Central Basin Transaction Highlights Immediately Accretive to… Platform • Accretive acquisition expands Ring’s • Cash Flow New Mexico Texas core Central Basin • Adjusted FCF Platform (“CBP”) operating area • Production • Strengthens balance
Slide 34: Asset & Pro Forma Company Highlights
Asset & Pro Forma Company Highlights FOUNDERS O&G PROFILE Asset Highlights Q2’23 Est. Net Sales1 : ~2.5 MBoe/d • Predictable PDP base with shallow declines, long-life reserves, Prod Mix: 86% Oil New Mexico and highly oil weighted (>80%) Texas Acreage: ~ 3.6K (100% HBP) County: Ector, TX • Margin enh
Slide 35: Purchase Price and Funding Overview
Purchase Price and Funding Overview $75 Million in Total Consideration $60 million $15 million All cash Effective date is Anticipated cash at closing, deferred cash consideration April 1, 2023 closing date is subject to payment, four funded from August 15, 2023 customary months after cash on hand cl
Slide 36: Positioning Company for Long-Term Value
Positioning Company for Long-Term Value Immediately Accretive Metrics Track Record of Reducing Leverage Since YE’20 4.00 $125 4.0 Production increase1 7% Leverage Ratio5 3.48 WTI Oil Price Reserves2 increase 7% $100 3.0 2.80 NTM EBITDA / Total Debt NTM Adjusted EBITDA increase3 15% $75 WTI ($/Bbl) 2
Slide 37: High Quality Inventory Provides Superior Economic Returns
High Quality Inventory Provides Superior Economic Returns Undeveloped Drilling Locations • Inventory of 50+ low risk, high rate-of-return drilling locations lowers Ring’s break-even costs • Recent Founders’ vertical wells demonstrate superior initial performance than Central Basin other recently dri
Slide 38: Ring Energy Expanding Core Areas in NWS & CBP
Ring Energy Expanding Core Areas in NWS & CBP Acquisition Track Record • Since 2018, Ring will have 19,2004 successfully grown production by a ~27% CAGR1 through 4Q 2023 assuming the closing of the Founders acquisition • Founders acquisition adds 6,100 New Management as of accretive near-term cash f
Slide 39: Executing on our Value Focused Proven Strategy
Executing on our Value Focused Proven Strategy Proposed Founders acquisition is immediately accretive to Ring’s stockholders regarding production, reserves, Adjusted Free Cash Flow1, and other metrics Will continue to pursue accretive, balance sheet enhancing acquisitions to further increase scale a
Slide 40: Thank You
THANK YOU 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 Robertson (469) 343-9962 apetrie@ringenergy.com jgrampp@allianceg.com neal.dingmann@truist.com jeff