Ring Energy, Inc. · AMEX:REI
Ring Energy — Q2 2025 Earnings Presentation
41 slides from Ring Energy's earnings presentation, Aug 7, 2025
Slide 1: Q2 2025 Earnings & Updated Guidance
Q2 2025 EARNINGS & UPDATED GUIDANCE www.ringenergy.com NYSE American: REI www.ringenergy.com
Slide 2: Forward-Looking Statements and Supplemental Non-GAAP Financial Measures
Forward-Looking Statements and Supplemental Non-GAAP Financial Measures 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 Supplemental Non-GAAP Financial Securities Ex
Slide 3: Ring Energy - Independent Oil & Gas Company
Ring Energy - Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas 2Q 2025 Net Production 21,295 Boe/d (68% oil and 85% liquids) Yoakum 2024 SEC Proved Reserves1,2 Differentiated approach by 134 MMBoe/PV10 ~$1.5 Billion Gaines applying unconventional Proved Developed ~69% te
Slide 4: Strength, Flexibility, & Resilience
Strength, Flexibility, & Resilience Proven, Value Focused Strategy Demonstrates Strength in Low & Volatile Oil Price Environments Since 2021, we have… Adding Size and • Increased our production by 23% CAGR from accretive acquisitions & organic development Scale to the Portfolio • Increased Proved Re
Slide 5: Q2 2025 Scorecard
Q2 2025 Scorecard Q2 First Full Quarter with LRR Benefit Oil Lease All-in Cash Adjusted Sales Realized Adjusted Debt Leverage Sales CapEx Operating Operating Free Cash Boe $/Boe EBITDA1 Balance Ratio3 Bo Costs Costs2 Flow1 Q2 2025 Q2 2025 Q2 2025 Q2 2025 Q2 2025 Q2 2025 Q2 2025 Q2 2025 Q2 2025 Q2 YE
Slide 6: Updated Guidance
Updated Guidance Q2 2025 Q2 2025 % Q3 2025 2H 2025 FY 2025 CAPEX Allocation Sales Volumes Guidance Actuals Difference Guidance Guidance D&C, Infrastructure & CTR Recompl / Workovers Total (Bo/d) 13,700 – 14,700 12,850 – 13,850 12,500 – 14,000 Land / Leasing Facilities / ESG 2% 4% Mid Point (Bo/d) 14
Slide 7: Focused on Maximizing FCF in 2025 & Beyond
Focused on Maximizing FCF in 2025 & Beyond Outlook – High Margin, Low Decline, High Netback Assets Drive Success Through Volatile Oil Prices Pursue Operational Excellence & Maximizing 2025E AFCF1,2 Building Scale Total Sales FY’25E Oil Sales FY’25E 48% $100 44% 50% Mid-point ~20,000 Boe/d Mid-point
Slide 8: Distinguishing Attributes: What Makes Ring Different?
Distinguishing Attributes: What Makes Ring Different? Differentiated Approach by Applying Unconventional Technology and Thinking to Conventional Permian Assets ✓ Ring Conventional Assets Characteristics: Shallow Base Decline, High Netbacks (NRI> 79%), Long Life Wells (> 35 years) and Highly Oil Weig
Slide 9: Distinguishing Attributes: High Operating Margins
Distinguishing Attributes: High Operating Margins Ring’s Conventional Assets with High Netbacks Drive Strong Cash Operating Margins vs. Peers1,2 1Q 2025 TTM Cash Operating Margin and Realized Pricing ($/Boe) Operational Excellence and Cost Control Drive $70 Profitability Cash Operating Margin Realiz
Slide 10: Enhanced Value for Stockholders
Enhanced Value for Stockholders Addition of Lime Rock CBP Assets and Strong Q2 Performance Led to Improved Metrics and AFCF Production/Share Boe/Share All-in-Cash Operating Costs1 $/Boe Adjusted Free Cash Flow1 $/Boe 0.010 $25 $14.00 $12.79 0.0094 $24.33 $12.00 $24 Up 264% Up 13% $10.00 0.0083 0.036
Slide 11: Track Record of Strategic Consolidation
Track Record of Strategic Consolidation Four Acquisitions Since 2019 Increases Net Production by >3.0x Legend Acquisition Track Record Ring Energy Legacy ~20,000 Lime Rock Resources ▪ Ring’s pursuit of accretive, balance Founders Oil & Gas sheet enhancing acquisitions is a Stronghold Energy Operatin
Slide 12: Permian Basin – Conventional Opportunities
Permian Basin – Conventional Opportunities Focused on Consolidating Conventional Assets in the Central Basin Platform & Northwest Shelf Publics NWS Acquire accretive, balance sheet enhancing CBP & NWS assets Privates CBP/NWS Publics ✓ CBP & NWS remain the “shale era” underexplored CBP/NWS opportunit
Slide 13: Ring Trading at Discount Compared to Recent Transactions
Ring Trading at Discount Compared to Recent Transactions REI Suggested Valuation Using APA Divestiture and MNR Acquisition Valuation Metrics for CBP & NWS Assets Public and Private Buyers Paying Higher Valuation Multiples for Conventional Permian Assets MNR Permian Acquisition5 $3.00 Date Announced
Slide 14: Robust Value Proposition Through Commodity Price Cycles
Robust Value Proposition Through Commodity Price Cycles 2025 and Beyond Remaining focused on maximizing FCF generation to strengthen the balance sheet Strong Cash Operating margins help deliver superior results & helps manage risk in market downturns Disciplined capital program retains flexibility t
Slide 15: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com
Slide 16: Historical Metrics
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)1 1.59x 1.59x 1.66x 1.90x 2.05x Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $66.4 $54.0 $50.9 $51.5 $46.4 $24.8 $21.4 $4.7 $5.8 $1.9 -$16.8 -$35.4 -$37.6 -$32.5 -$42.7 -$9.9 -$8.2 -$9.6 -$8.7 -$9.4 Realized $/Boe $55.06 $48.24 $46.14 $47
Slide 17: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating AFCF RBL Balance & Adjusted Debt Paydown1 ($ Million) Liquidity2 ($ Million) RBL Balance ($MM) $500 $460 $240 $450 $428 $220 $448 $217 $400 $200 $204 $208 $350 $385 Founders $194 $180 Acquisition $300 $175 $17
Slide 18: Competitive Value for Stockholders
Competitive Value for Stockholders Track Record of 3 Consecutive Years of Corporate Returns Above 15% Despite Drop in Commodity Prices Cash Return on Capital Employed1 Avg WTI $/Bbl & Avg Realized $/Boe (CROCE) % Strong CROCE % 25.0% $100.00 Avg Realized $94.90 $/Boe • Disciplined and successful cap
Slide 19: Asset Overview
ASSET OVERVIEW www.ringenergy.com
Slide 20: Committed to Sustainable Success
Committed to Sustainable Success 2024 Sustainability Report Progressing our ESG Journey A Target Zero Day is a Day that Results in: Download Report PDF • Created ESG Task Force and established Target Zero 365 (TZ-365) Safety & Environmental Initiative in 2021to Zero Company or monitor and guide comp
Slide 21: LRR Acquisition: Proved Reserves and Inventory
Proved Reserves1 and Inventory Reserves by Category (%) Reserves by PV-102 ($MM) Reserves by Product (%) Locations by Area3 19% NWS SEC YE 2024, excl. LRR 23% 21% 31% CBP-N REI Legacy ~134 $1,463 ~134 Penwell MMBoe MM MMBoe CBP-S 69% 60% 77% PD ~93 PUD ~42 PD $1,130 PUD $333 Oil Gas NGL 210+ PUDs, 2
Slide 22: Assets Overview
Assets Overview Deep Inventory of High-Return Drilling and Re-Completion Locations Select Recent New Drill Horizontal Well Results – Northwest Shelf Select Recent New Drill Vertical Well Results Peak IP Lateral Geological – Central Basin Platform Region Area Well Name 30 / 60 Oil (%) Length WI (%) (
Slide 23: LRR Acquisition Expands Legacy High-Return Area
LRR Acquisition Expands Legacy High-Return Area Continuing Our Transformation to a Scaled Conventional Permian Operator Legend Ring Energy Leasehold Transaction Summary ($MM) Asset Overview Lime Rock Resources ✓ Bolt-on acquisition of Lime Rock’s ✓ Closed on March 31, 2025 Shafter Lake and Midland F
Slide 24: Impact of Founders Acquisition
Impact of Founders Acquisition Performance Exceeded Initial Expectations REI Pro Forma – Post Closing Performance Founders Acquisition $75MM REI Net Prod. (MBoe/d) 1 REI Net Debt $MM $100 21.0 $450 Cash Due @ Close 16% growth to PF Net Debt reduced Eff date (Post Adj Close) company 20.1 over 5 qtrs
Slide 25: Assets Overview: New Drill Inventory Performance
Assets Overview New Drill Inventory Performance 2023 vs 2024 (2025 not enough wells drilled YTD for statistical comparison) Consistent HZ Well Performance Enhanced Vertical Well Performance San Andres Horizontal Play EUR (MBoe) per 1000’ Lateral Feet CBP Vertical Multi-Stacked Play 100 20,000 Thousa
Slide 26: San Andres Horizontal Play Characteristics
San Andres Horizontal Play Characteristics 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 $2.2 - $3.3 MM per Hz well Low
Slide 27: Vertical Multi-Stacked Pay Characteristics
Vertical Multi-Stacked Pay Characteristics Proven, Conventional, Top Tier Returns CBP Vt Stack & Frac Delaware Hz Midland Hz High ROR Oil Play ✓ ✓ ✓ • Central Basin Platform has produced >15 BBboe Low D&C Costs ✓ — Vertical multi-stage fracs targeting legacy reservoirs that have been productive thro
Slide 28: 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 (AGP) ROTH Capital Partners (281) 975-2146 Poe Fratt (314) 719-6084 John M. White (949) 720-7115 apetrie@ringenergy.com pfratt@
Slide 29: Appendix
APPENDIX www.ringenergy.com
Slide 30: REI Historical Price Performance
REI Historical Price Performance1 Price Performance Since January 1, 2022 5.5 6.5 MM warrants 140.00 exercised 5.0 Stronghold Announcement 120.00 4.5 3.0 MM warrants exercised 4.0 4.5 MM warrants 100.00 Founders exercised Announcement 3.5 80.00 70.03 3.0 Warburg Pincus sell 14.5 MM warrants down 12.
Slide 31: Financial Overview: Derivative Summary
Financial Overview Derivative Summary as of June 30, 2025 Oil Hedges (WTI) Gas Hedges (Henry Hub) Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Swaps: NYMEX Swaps: Hedged volume (Bbl) 471,917 241,755 608,350 577,101 17
Slide 32: 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, 2025 2024 2024 2025 2024 2025 2025 202
Slide 33: Balance Sheet and Statements of Cash Flows
(Unaudited) Balance Sheet June 30, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents $ — $ 1,866,395 (Unaudited) Accounts receivable 38,729,543 36,172,316 Statements of Cash Flows Three Months Ended Six Months Ended Joint interest billing receivables, net 781,362 1,083,164 June
Slide 34: 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 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income (Unaudited for All Periods) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Per Per Per Per Per share - share - share - share - share - Total diluted Total diluted Total diluted Total diluted Tota
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA (Unaudited for All Periods) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024 Net income $ 20,634,887 $ 9,110,738 $ 5,657,519 $ 33,878,424 $ 22,418,994 $29,745,625 $
Slide 37: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Adjusted Free Cash Flow (Unaudited for All Periods) Three Months Ended Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024 Net Cash Provided by Operating Activities $ 33,297,251 $ 28,371,008 $ 4
Slide 38: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio (Current Period End) Leverage Ratio (Comparative Period End) (Unaudited) (Unaudited) Three Months Ended Three Months Ended Last Four September 30, December 31, March 31, June 30, Quarters Last Four September 30, December 31, March 31, June 30, Quarters
Slide 39: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio (Summary of Other Periods) (Unaudited) Last Four Quarters Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Consolidated EBITDAX Calculation: Net Income (Loss) $ 69,281,568 $ 71,065,675 $ 67,470,314 $ 112,709,274 $ 7
Slide 40: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Adjusted Cash Flow from Operations (ACFFO) Cash Return on Capital Employed (CROCE) (Unaudited for All Periods) As of and for the twelve months ended Three Months Ended Six Months Ended December 31, December 31, December 31, June 30, March 31, June 30, June 30, June 3
Slide 41: All-In Cash Operating Costs
Non-GAAP Reconciliations (cont.) All-In Cash Operating Costs (Unaudited for All Periods) Three Months Ended Six Months Ended Trailing Twelve Months Ended June 30, March 31, June 30, June 30, June 30, June 30, March 31, 2025 2025 2024 2025 2024 2025 2025 All-In Cash Operating Costs: Lease operating e