Slide 1: Value Focused Proven Strategy: Q1 Earnings Review
VALUE FOCUSED PROVEN STRATEGY Q1 EARNINGS REVIEW 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 Measures 21E of the Secur
Slide 3: Ring Energy - Independent Oil & Gas Company
Ring Energy - Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas Q1 2024 Net Production ~19,034 Boe/d Yoakum (70% oil and 85% liquids) Differentiated approach by 2023 SEC Proved Reserves1,2 Gaines applying unconventional 129.8 MMBoe/ technology and thinking to conventional
Slide 4: Delivering Value in Q1 2024
Delivering Value in Q1 2024 Key Takeaways – Upgraded Portfolio and Efficient Execution Drove Superior Results Adding Size Growing Adj and Scale EBITDA and AFCF1 Value Focused Proven Strategy Upgraded portfolio helped drive Q1 18 consecutive qtrs. generating performance; exceeded high end of positive
Slide 5: 2024 Q1 Highlights
2024 Q1 Highlights Proven Strategy Leads to Superior Results Oil Adjusted Sales Operations Adjusted Cash G&A Debt Leverage Sales CapEx Free Cash Liquidity4 Boe Lifting Cost EBITDA1 Costs2 Balance Ratio3 Bo Flow1 Q1 2024 Q1 2024 Q1 2024 Q1 2024 Q1 2024 Q1 2024 Q1 2024 Q1 2024 Q1 2024 Q1 2024 13,394 1
Slide 6: Enhanced Value for Stockholders in 2023
Enhanced Value for Stockholders in 2023 Executing Strategy Improves YOY Production and Operating Cost per Boe Metrics Production/Share Boe/Share Cash G&A Expense1 $/Boe All-in-Cash Operating Costs2 $/Boe 0.040 $5 $30 $4.42 $4 0.035 $3.08 0.034 $3 Up 6% $24.84 $24.84 0.032 $25 $2 $23.46 $23.46 0.030
Slide 7: Enhanced Value for Stockholders in 2023 Continued
Enhanced Value for Stockholders in 2023 Continued… Track Record of Improving Corporate Returns Cash Return on Capital Employed1 (CROCE) % AVG WTI Pricing $/Bbl Strong CROCE % 30% $100 $94.90 • Disciplined and successful capital $90 program driving returns 25% $80 • Shallower declining production bas
Slide 8: Year End 2023 Compelling Value Proposition
Year End 2023 Compelling Value Proposition1,2 Ring Traded at Discount to Peers in Late 2023 EV/PV-103 YE23 1P Reserves & % Oil EV/2023 Adjusted EBITDA2,3 2023 Adjusted FCF3,4 Yield 2.0x 100% 6.0x 40% 1.8x 90% 5.0x 30% 1.6x 80% 1.4x 70% 20% 4.0x % Oil of 1P Reserves 1.2x 60% EV/PV-10 3.0x 10% 1.0x 50
Slide 9: Continue Enhancing Value for Stockholders Q1 2024
Continue Enhancing Value for Stockholders Q1 2024 Executing Strategy Improves Key Cash Flow Metrics Versus a Year Ago ACFFO1 $MM Adjusted EBITDA Margin1 % Adjusted Free Cash Flow $ per Boe $55 75% $10.00 66% 66% $8.99 Stable Up 40% $52 EBITDA 50% Margin $6.40 Up 5% $50 $49 $5.00 25% $45 0% $0.00 Q1'
Slide 10: Distinguishing Attributes: Low PDP Base Decline
Distinguishing Attributes: Low PDP Base Decline Ring’s Conventional Assets have Shallow Base Decline Versus Other Shale & Permian Players PDP Decline: 2024E PDP Base Decline % 40% 39% 37% 36% 35% 35% 34% 34% 31% 32% Median 34.5% 26% 22% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9
Slide 11: Distinguishing Attributes: Low Capital Intensity
Distinguishing Attributes: Low Capital Intensity Ring’s Conventional Assets Provide Low Capital Intensity Ratio Versus Other Shale & Permian Players Capital Intensity Ratio : 2024E D&C Capex / 2024E Annual Production ($/Boe) $34.40 $35.35 $33.77 $31.65 $28.85 $26.58 $27.01 $27.10 $27.52 $27.64 $24.1
Slide 12: Distinguishing Attributes: Long Life Reserves & Oil %
Distinguishing Attributes: Long Life Reserves & Oil % Ring’s Conventional Assets have Extended Reserve Life and are Oily Versus Peers of Similar Size1,2 Reserve Life: YE 2023 SEC Proved Reserves / Q4’23 Annualized Production 20 Reserve Life (Yrs) 15 10 Median 12yrs 5 0 REI Peer 1 Peer 2 Peer 3 Peer
Slide 13: Distinguishing Attributes: High Operating Margins
Distinguishing Attributes: High Operating Margins Ring’s Conventional Assets with High Netbacks Drive Strong Cash Operating Margins vs. Peers1,2 FY 2023 Cash Operating Margin and Realized Pricing Operational Excellence and Cost Control Drive Profitability $80 $72.27 • High oil weighting of ~70% (85%
Slide 14: Outperforming YTD 2024 Stock Performance
Outperforming YTD 2024 Stock Performance Underlying Value and Operational Performance has Driven YTD Stock Performance 2024 YTD Stock Performance REI, Peers & XOP1,2 Outperforming Peers and Market YTD: 40% REI Distinguishing Up 36% Drivers 30% • Oil Weighted 20% • Low PDP Base Decline • Low Capital
Slide 15: Positioned for Success in 2024 & Beyond
Positioned for Success in 2024 & Beyond Current 2024 Outlook Pursue Operational Excellence with an Focus on Maximizing Free Cash Flow1,2 Emphasis on Oil Production Growth $100 Expected continued growth 50% Oil Sales Bo/d Sales Boe/d 14,000 19,000 18,500 $80 40% Up ~2% AFCF Yield % 12,950 AFCF $MM Up
Slide 16: Value Proposition
Value Proposition 2024 and Beyond Despite volatile energy markets, Ring has generated positive FCF for 18 quarters straight Trading at a discount yet delivering competitive returns Strong Cash Operating margins help deliver superior results & helps manage risk in market downturns Disciplined capital
Slide 17: Committed to ESG
Committed to ESG Critical to Sustainable Success 2023 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 18: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com 18
Slide 19: Q2 & FY 2024 Guidance
Q2 & FY 2024 Guidance Grow Oil Production, Generate FCF, Pay Down Debt Sales Volumes Q2 2024 FY 2024 FY 2024 CAPEX Allocation Total (Bo/d) 13,000 – 13,400 12,600 – 13,300 Mid Point (Bo/d) 13,200 12,950 3% Total (Boe/d) 18,500 – 19,100 18,000 – 19,000 - Oil (%) ~70% ~70% - NGLs (%) ~15% ~15% 24% - Ga
Slide 20: Historical Metrics: Quarterly Analysis of AFCF
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)2 1.65x 1.64x 1.69x2 1.62x 1.67x Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $80 Adj. EBITDA/ CapEx / Int Exp $70 $60 $65.4 $50 $58.6 $58.6 $62.0 $40 $53.5 $30 $16.3 $15.6 $20 $12.6 $6.1 $10 $0 $10.5 -$10 -$20 -$38.9 -$31.6 -$38.8 -$36.3
Slide 21: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating AFCF Adjusted Debt Paydown1,2 ($ Million) Liquidity3 ($ Million) $30 $220 $200 $25 $204 $25 $180 $188 $179 $179 $20 $160 $171 $175 $20 $165 $19 $140 $15 $17 Stronghold Founders $120 Acquisition1 Acquisition2 S
Slide 22: Asset Overview
ASSET OVERVIEW www.ringenergy.com 22
Slide 23: Track Record of Growth
Track Record of Growth Expanding Core Areas in NWS & CBP Acquisition Track Record ~19,400 • Since 2018, Ring has successfully grown production by a ~26% CAGR1 through Q4 2023 • Founders Acquisition added accretive near-term cash flows 6,100 New Management as of combined with 5+ years of high October
Slide 24: Assets Overview
Assets Overview Core Assets in NWS & CBP Q1 2024 Net Production (MBoe/d) ~19.0 NWS (75% oil) ~7.9 CBP (67% oil) ~11.1 LOE ($ per Boe) $10.60 Capex ($MM) $36.3 YE23 PD Reserves1 PV10 ($MM) $1,263 Northern CBP YE23 PD Reserves1 (MMBoe) 88 YE23 PUD Reserves1 PV10 ($MM) $384 YE23 PUD Reserves1 (MMBoe) 4
Slide 25: 2024 Q1 Operations Update
2024 Q1 Operations Update Historical Quarterly Net Sales Production1 Capital allocation and drilling programs designed to maximize free cash flow generation Company Record Net Sales Net Sales 20,000 DLWR Sale & pullback ~ 19,400 in capex spend in Founders AQ Closed 19,034 Oil Bopd Company Oil Bopd G
Slide 26: Proved Reserves and Inventory
Proved Reserves1 and Inventory SEC YE 2023 Reserves by Category (%) Reserves by PV-102 ($MM) Reserves by Product (%) Locations by Area 32% 23% 18% 19% 450+3 Total Gross Locations & Opportunities NWS ~130 $1,647 ~130 MMBoe $MM MMBoe CBP-N Penwell 68% 63% 77% CBP-S PD ~88 PUD ~42 $1,263 $384 Oil 82 Ga
Slide 27: Assets Overview: Recent New Drill Well Results
Assets Overview Deep Inventory of High-Return Drilling and Re-Completion Locations Select Recent New Drill Horizontal Well Results Select Recent New Drill Vertical Well Results – Northwest Shelf – Central Basin Platform Peak IP Lateral Geological Oil Area Well Name 30 / 60 Length WI (%) Region (%) P
Slide 28: Assets Overview: New Drill Inventory Performance
Assets Overview New Drill Inventory Performance Consistent HZ Well Performance Consistent Vertical Well Performance San Andres Horizontal Play 1 CBP Vertical Multi-Stacked Play 2 35,000 14,000 Cum 90-Day/ well Avg - BOE Cum 90-Day/ well Avg - BOE 30,000 12,000 25,000 10,000 20,000 8,000 15,000 86-91
Slide 29: Assets Overview: Penwell Area Inventory
Assets Overview Penwell Area Inventory of High-Return Locations Compete for Capital in 2024 High Quality Inventory Penwell Acreage Existing Acreage • Inventory of 50+ low risk, high rate-of-return drilling locations lowers Ring’s breakeven costs Central Basin • Recent Penwell vertical wells demonstr
Slide 30: 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 $3.0 - $4.4 MM per well Low Lease Acquisition Cost
Slide 31: Appendix
APPENDIX www.ringenergy.com 31
Slide 32: Financial Overview: Derivative Summary
Financial Overview Derivative Summary as of March 31, 2024 Oil Hedges (WTI) Gas Hedges (Henry Hub) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Swaps: NYMEX Swaps: Hedged volume (Bbl) 156,975 282,900 368,000 — — 184,0
Slide 33: Income Statement and Operational Stats
Income Statement and Operational Stats Income Statement Operational Stats (Unaudited) (Unaudited) Three Months Ended Three Months Ended March 31, December 31, March 31, March 31, December 31, March 31, 2024 2023 2023 2024 2023 2023 Oil, Natural Gas, and Natural Gas Liquids Revenues $ 94,503,136 $ 99
Slide 34: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Balance Sheet (Unaudited) Statements of Cash Flows March 31, 2024 December 31, 2023 ASSETS (Unaudited) Current Assets Three Months Ended March 31, December 31, March 31, Cash and cash equivalents $ 1,376,075 $ 296,384 2024 2023 2023 Accounts receivable 44,392,62
Slide 35: 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 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income Adjusted EBITDA (Unaudited for All Periods) (Unaudited for All Periods) Three Months Ended Three Months Ended March 31, December 31, March 31, March 31, December 31, March 31, 2024 2023 2023 2024 2023 2023 Per Per Per share - share - share - Net Income (L
Slide 37: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio Adjusted Free Cash Flow (Unaudited for All Periods) Three Months Ended Three Months Ended Last Four June 30, September 30, December 31, March 31, Quarters March 31, December 31, March 31, 2023 2023 2023 2024 2024 2023 2023 Consolidated EBITDAX Calculat
Slide 38: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Adjusted Cash Flow from Operations (ACFFO) Cash Return on Capital Employed (CROCE) As of and for the twelve months ended (Unaudited for All Periods) Three Months Ended December 31, December 31, December 31, December 31, March 31, December 31, March 31, 2023 2022 2021
Slide 39: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) All-In Cash Operating Costs (Unaudited for All Periods) Three Months Ended March 31, December 31, March 31, 2024 2023 2023 All-In Cash Operating Costs: Lease operating expenses (including workovers) $ 18,360,434 $ 18,732,082 $ 17,472,691 G&A excluding share-based com
Slide 40: 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 41: Board of Directors
Board of Directors Accomplished and Diversified Experience • 40+ 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 42: Thank You
THANK YOU Ring Headquarters 1725 Hughes Landing Blvd Ste 900 The Woodlands, TX 77830 Phone: 281-397-3699 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 Robe