Ring Energy, Inc. · AMEX:REI
Ring Energy — Investor Presentation (January 2018)
26 slides from Ring Energy's investor presentation, January 2018
Slide 1: Corporate Presentation January 2018
Corporate Presentation January 2018 www.ringenergy.com www.ringenergy.com OTCQX:RNGE NYSE American: REI
Slide 2: Forward-Looking Statements and Cautionary Note Regarding Hydrocarbon Disclosures
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 1995, the Securities Act of 1933 and the Securities Exchange Act
Slide 3: Investment Highlights
Investment Highlights • Build strong Permian acreage position with a focused asset base in the Central Basin Platform and Delaware Basins Permian Focus • The Permian offers industry-leading break-evens and is one of the major producing oil plays in North America Robust & Scaled • Ring has experience
Slide 4: Ring Energy Team
Ring Energy Team Management Team Key Board Members Kelly Hoffman Lloyd T. (Tim) Rochford CEO and Director Co-Founder and Chairman of the Board Co-Founded AOCO and pioneered Fuhrman Mascho Co-Founder of Arena Resources field down-spacing beginning in 1996 Stanley M. McCabe David A. Fowler Co-Foun
Slide 5: Ring Co-Founders' Prior Success
Ring Co-Founders’ Prior Success Proven and simple strategy Arena Resources was formed in 2001 by Tim Rochford and Stan McCabe with a focus of growing production and reserves organically and via acquisition Sold in July 2010 for $1.6BN Ring’s management team desires to execute a similar growt
Slide 6: Company Strategy
Company Strategy Build premiere Permian Basin E&P company headquartered in Midland Exploit acreage position through highly economic, vertical and horizontal wells using the most recent drilling and completion techniques Acquire attractive acreage positions within Ring’s areas of interest Acqui
Slide 7: Executive Summary
Executive Summary Company Profile Midland, Texas based E&P company focused on domestic exploration and production of oil and natural gas with current operations in Texas Year End 2016 Proved Reserves: 27.7 MMBoe with PV-10 of $217.3 MM ¹ 90% Oil / 37% Developed Q4’17 average net production
Slide 8: Exploiting with Improved Technology
Exploiting with Improved Technology Of Ring’s 102,747 gross acres position in Andrews and Gaines Counties approximately 94,000 acres is dedicated to horizontal Ring will drill the San Andres with increased efficiency via horizontal technology, but will continue drilling vertically as needed Ri
Slide 9: Central Basin Platform Asset
Central Basin Platform Asset Asset Description 102,747 gross / 70,604 net total acres 193 total drilled gross vertical wells (as of December 31, 2017) 50 total drilled gross horizontal San Andres wells and 10 SWDs (as of December 31, 2017) December 2017 average net production of 4,088 Boe/d
Slide 10: Proven Reservoir
Proven Reservoir San Andres Formation Permian Basin Geology Over 30 BBL produced from the Permian over the past 90 years with approximately 12 BBL and 2 TCF from the San Andres The San Andres is a Permian Age Carbonate Reservoir (conventional) that traditionally produced from vertical wells acro
Slide 11: San Andres Cross Section
San Andres Cross Section www.ringenergy.com NYSE American: REI 11
Slide 12: San Andres Well Economics
San Andres Well Economics San Andres San Andres (1.0 mile lateral) (1.5 mile lateral) Average Well Cost $2.0MM $2.4MM Cost per DSU $640k 1 $960k 2 6 6 Locations per DSU (1 Bench) (1 Bench) Acreage Cost per Location $107k $160k Well Cost + Acreage Cost $2.2MM $2.6MM per Location 3 Net EUR at 75% NRI
Slide 13: Central Basin Drilling Inventory
Central Basin Drilling Inventory 1,000+ 840 187 202 Horizontal 13 Horizontal 16 Vertical Vertical 174 186 1,2 1,4 PUD Probable & Possible Potential San 3,4 Additional Potential San Andres Horizontal Andres Vertical 4 Spacing 6 wells per Includes a combination of 10s / 20s / 40s Includes 10s / 20s /
Slide 14: Delaware Basin Assets
Delaware Basin Assets Asset Description 20,794 gross / 20,490 net total acres Culberson and Reeves Bell Canyon: 20,794 gross / 20,490 net Counties, Texas Cherry Canyon: 14,154 gross / 13,850 net Brushy Canyon: 12,029 gross / 11,735 net 10 total drilled gross Cherry Canyon vertical wells an
Slide 15: Delaware Basin Drilling Inventory
Delaware Basin Drilling Inventory 647 Behind pipe zones 109 of interest Vertical Cherry 538 Canyon 210 182 44 1 PUD Vertical Probable & Possible Potential Delaware 2 Additional Potential Vertical 2 Mountain Group Horizontal Locations 2 Spacing 6 wells per Includes a combination of 20s / 40s Vertical
Slide 16: Recent Developments & 2017 Capex Guidance
Recent Developments & 2017 Capex Guidance Recent Developments In April 2017, Ring announced the acquisition of 33,000 undeveloped acres in Gaines County, Texas for approximately $16.6 MM ($500 per acre) More than 50% of the acquired acres are contiguous to Ring’s existing Central Basin Platform
Slide 17: Growth in Reserves & Production
Growth in Reserves & Production Ring was able to add scale through its leasing, acquisition, and horizontal drilling activity significantly growing production over the last several years The low-decline nature of the Permian Basin assets help Ring maintain production during times of limited dril
Slide 18: Texas Acreage Growth
Texas Acreage Growth Date TX Gross TX Net Ring Energy Acreage Growth Acres Acres 12/31/2017 123,541 91,094 140,000 YE 2013 YE 2014 YE 2015 YE 2016 YE 2017 9/30/2017 123,541 91,094 6/30/2017 124,856 91,526 120,000 3/31/2017 84,481 56,709 12/31/2016 74,376 53,153 100,000 9/30/2016 63,646 46,280 6/30/2
Slide 19: Appendix
Appendix www.ringenergy.com NYSE American: REI
Slide 20: Management Team
Management Team Lloyd T. (Tim) Rochford Co-Founder and Chairman of the Board Mr. Rochford, 71, has been active as an individual consultant and entrepreneur in the oil and gas industry since 1973. During that time, he has been an operator of wells in the mid-continent of the United States, evaluated
Slide 21: Management Team (cont'd)
Management Team (cont’d) David A. Fowler President and Director Mr. Fowler, 59, has served in several management positions for various companies in the insurance and financial services industries. In 1994, he joined Petroleum Listing Service as Vice President of Operations, overseeing oil and gas pr
Slide 22: Oil and Gas Reserves
Oil and Gas Reserves As Of December 31, 2016 Crude Oil Natural Gas Total PV-10 (MBbls) (MMcf) (MBoe) (in thousands) Proved Developed Reserves: Texas 8,451 10,224 10,155 $112,853 Kansas 28 258 71 523 Total PD Reserves 8,479 10,482 10,226 $113,376 Proved Undeveloped Reserves: Texas 16,520 5,974 17,516
Slide 23: Income Statement
Income Statement 3 Months Ended September 30, 9 Months Ended September 30, 2016 2017 2016 2017 Revenue $7,822,543 $16,643,930 $21,019,540 $43,391,032 Pre-Tax Income ($9,210,648) $4,443,462 ($58,985,208) $9,713,916 Net Income ($5,944,137) $3,073,760 ($31,216,544) $6,263,804 Earnings Per Share1 ($0.14
Slide 24: Balance Sheet
Balance Sheet As of As of ($ thousands) 12/31/2016 9/30/2017 Assets: Cash and Cash Equivalents $71,086 $40,876 Other Current Assets 4,135 8,839 Total Current Assets $75,221 $49,715 PP&E, net 211,919 321,949 Total Assets 1 $307,597 $390,114 Liabilities and Stockholder's Equity: Current Liabilities $9
Slide 25: Analyst Coverage
Analyst Coverage Ring Energy, Inc. Analyst Coverage FIRM ANALYST(S) Capital One Securities, Inc. Richard Tullis (504) 593-6118 richard.tullis@capitalone.com Coker Palmer Institutional David Beard, CFA (631) 725-8810 beard@cokerpalmer.com Euro Pacific Capital, Inc. Joel Musante, CFA (800) 727-7922 ex
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