Ring Energy, Inc. · AMEX:REI
Ring Energy — Merger or Acquisition (July 2023)
13 slides from Ring Energy's merger presentation, Jul 11, 2023
Slide 1: 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 July 11, 2023 www.ringenergy.com NYSE American: REI
Slide 2: Forward-Looking Statements and Cautionary Notes
Forward-Looking Statements and Cautionary Notes This Presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amende
Slide 3: Proposed Accretive Acquisition Expands Core Operating Area
Proposed Accretive Acquisition Expands Core Operating Area Transaction Highlights Accretive acquisition expands Ring’s core Central Basin Platform (“CBP”) operating area New Mexico Texas Central Basin Platform Strengthens balance sheet by lowering leverage ratio and accelerates ability to pay do
Slide 4: Asset & Pro Forma Company Highlights
Asset & Pro Forma Company Highlights Asset Highlights Founders O&G Profile Predictable PDP base with shallow declines, long-life reserves, and highly oil weighted (>80%) Q2’23 Est. Net Sales1 : ~2.5 MBoe/d Prod Mix: 86% Oil Margin enhancing ownership with high working interests (~ 99%) & net rev
Slide 5: Purchase Price and Funding Overview: $75 Million in Total Consideration
Purchase Price and Funding Overview $75 Million in Total Consideration $60 million cash at closing, subject to customary closing adjustments $15 million deferred cash payment, 4 months after closing All cash consideration funded from cash on hand and borrowings under recently reaffirmed senior
Slide 6: Positioning Company for Long-Term Value
Positioning Company for Long-Term Value Immediately Accretive Metrics Track Record of Reducing Leverage Since YE’20 Leverage Ratio5 4.00 $125 4.0 Production increase1 7% Legend 3.48 Leverage Ratio WTI Oil Price Reserves2 increase 7% 3.0 $100 2.80 NTM EBITDA / Total Debt NTM Adjusted EBITDA inc
Slide 7: 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 other recently drilled vertical
Slide 8: Ring Energy Expanding Core Areas in NWS & CBP
Ring Energy Expanding Core Areas in NWS & CBP Acquisition Track Record Since 2018, Ring will have successfully grown production by a ~27% CAGR1 through 4Q 2023 assuming the Founders acquisition closes as planned Founders acquisition adds highly accretive near-term cash flows combined with 5+ yea
Slide 9: Executing on our Value Focused Proven Strategy
Executing on our Value Focused Proven Strategy Proposed Acquisition is immediately accretive to Ring’s shareholders regarding production, reserves, Adjusted Free Cash Flow , and other metrics 1 Will continue to pursue accretive, balance sheet enhancing acquisitions to further increase scale and
Slide 10: Company Contact and Analyst Coverage
COMPANY CONTACT Al Petrie (281) 975-2146 apetrie@ringenergy.com Chris Delange (281) 975-2146 cdelange@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
Slide 11: 2023 Second Half Pro Forma Guidance
2023 Second Half Pro Forma Guidance Sales Volumes Q3 2023 Q4 2023 Total (Boe/d) 18,100 – 18,600 18,900 – 19,500 2H 2023 Mid Point (Boe/d) 18,350 19,200 CAPEX Allocation Oil (%) 68% 69% NGLs (%) 15% 15% 8% Gas (%) 17% 16% 19% Capital Program Mid Point Capital spending1 (millions) $37 – $42 $30 – $35
Slide 12: 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
Slide 13: Non-GAAP Information continued
Non-GAAP Information continued The table below provides a reconciliation of PV-10 to the standardized measure of discounted future net cash flows as of December 31, 2022. The NTM Adjusted EBITDA calculations were prepared solely by Ring Management. The calculations use NYMEX strip pricing as of July