Ring Energy, Inc. · AMEX:REI
Ring Energy — Merger or Acquisition (February 2019)
13 slides from Ring Energy's merger presentation, Feb 28, 2019
Slide 1: Acquisition of Wishbone Energy's Assets
www.ringenergy.com Acquisition of Wishbone Energy’s Assets February 2019
Slide 2: Forward-Looking Statements and Cautionary Note Regarding Hydrocarbon Disclosures
T:\FINANCE\Clients\Ring Energy\LevFin 2016\Ring-Energy-Logo.png 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 1
Slide 3: Impactful Accretive Acquisition
Impactful Accretive Acquisition (1) Proved NAV/share calculated as YE2018 Proved PV-10 based on SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas) less total debt divided by current shares outstanding (2) Pro forma Proved NAV/share calculated as pro forma YE2018 Proved PV-10 based on SEC pricing (
Slide 4: i Si yoakum / | TERR
i Si yoakum / | TERR wwweringenergy.com NYSE American: REI 4
Slide 5: Strategic Acquisition Consistent with Ring Strategy
Strategic Acquisition Consistent with Ring Strategy Transaction Overview Wishbone Acreage Map •Ring Energy, Inc. has entered into an agreement to acquire Wishbone Energy Partners, LLC’s (“Wishbone”) assets in southwest Yoakum County, TX and eastern Lea County, NM •Total purchase price of $300 MM, co
Slide 6: Ring's acquisition solidifies position as The Horizontal San Andres Consolidator
•Ring’s acquisition of Wishbone’s position solidifies Ring’s position as “The Horizontal San Andres Consolidator” •Well economics of greater than 80% IRR expands premium inventory High Return Inventory •Stacked potential in San Andres could add additional drilling locations •Expands Ring’s leadershi
Slide 7: Core San Andres Position with Strong Offset Well Results
Core San Andres Position with Strong Offset Well Results Source: DrillingInfo Well Name Operator Peak Month Oil (Bbl/d) 1 Sooner 662 A 1H Wishbone 480 2 Badger 709 C 5XH Wishbone 615 3 Badger 709 B 3XH Wishbone 426 4 12th Man 660 1H Wishbone 369 5 Badger 709 A 2XH Wishbone 380 6 Bevo 664 SA ‘A’ 2H W
Slide 8: Overview of Wishbone's Owned Infrastructure
Overview of Wishbone's Owned Infrastructure • Owned surface lands/water infrastructure creates high margins and provides operational flexibilities • 1,385 acres of owned surface rights • 21 SWD wells with capacity of ~178,000 Bw/d — Cost of water disposal is ~$0.04/Bw • 15 source water wells with gr
Slide 9: Significant Value at an Attractive Price
$1,252 MM PV-10 @ SEC Pricing Reserve Category – SEC Pricing PV-10 ($MM) Proved $582 Probable $74 Possible $42 Total 3P $698 Prospective $554 Total $1,252 Significant Value at an Attractive Price Note: Wishbone PV-10 per Ring internal estimates as of 12/31/2018 and based on SEC pricing ($62.04/Bbl o
Slide 10: Increased Scale and Growth Potential
Increased Scale and Growth Potential (1) Estimated January 2019 production Note: Ring reserves as of 12/31/2018 based on SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas); Wishbone reserves per Ring internal estimates as of 12/31/2018 and based on SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of g
Slide 11: Accretive to Key Per Share Metrics
Accretive to Key Per Share Metrics Net Production(Boe/d)San AndresNet Acres Prospective Hz San Proved PV-10($MM)Andres Locations Ring6,10076,028882$542Wishbone6,00037,206363$582Pro Forma 12,100113,2341,245$1,123 SharesOutstanding (MM) Ring 63.2 Wishbone (1)5.0 Pro Forma 68.2(Per Million Shares, Exce
Slide 12: Pro Forma Net Asset Value
Pro Forma Net Asset Value Total Proved PV-10 ($MM) $137 $542 $42 $363 $290 $582 $288 $4 $653 $1,123 $425 $46 Net Asset Value (Debt Adjusted) / Share Proved NAV/Share Accretion Proved NAV/Share $7.46(1) 52% $11.33(2) The acquisition is immediately accretive on a Net Asset Value (Debt Adjusted) basis
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