Slide 1: Fresh Perspective, Proven Strategy
www.ringenergy.com NYSE American: REI www.ringenergy.com NYSE American: REI FRESH PERSPECTIVE PROVEN STRATEGY
Slide 2: Forward-Looking Statements and Cautionary Note Regarding Hydrocarbon Disclosures
www.ringenergy.com NYSE American: REI Forward-Looking Statements and Cautionary Note Regarding Hydrocarbon Disclosures 2 Forward –Looking Statements This Presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, the Securities Act
Slide 3: Currently Focused on Conventional Permian Assets in Texas & New Mexico
www.ringenergy.com NYSE American: REI Currently Focused on Conventional Permian Assets in Texas & New Mexico 2020 SEC Proved Reserves 76.5 MMBoe/PV10 $638MM 87% Oil 2Q21 EBITDA / FCF1 $20.6 MM / $5.6 MM 2Q21 Avg Net Sales 8,709 Boe/d 89% oil 2Q21 Capital Projects2 ~$6.0 MM 5 CTR’s3, 13 Cap Workovers
Slide 4: Corporate Strategy: Targeted Initiatives for Long-Term Success
www.ringenergy.com NYSE American: REI Corporate Strategy Targeted Initiatives for Long-Term Success Attract and Retain the Best People Pursue Operational Excellence with a Sense of Urgency Invest in High-Margin, High RoR Projects Focus on FCF and Strengthen Balance Sheet Pursue Strategic Acquisition
Slide 5: Q2/YTD 2021 and Recent Highlights
www.ringenergy.com NYSE American: REI Q2/YTD 2021 and Recent Highlights Executing our Strategy 5 ▪ Further reduced debt by utilizing a portion of Free Cash Flow ▪ Reduced long-term debt by $12.5 million in the first half of 2021 ▪ Q2 2021 sales of 8,709 Boe/d with 89% oil an increase of 11% from Q1
Slide 6: Committed to ESG
www.ringenergy.com NYSE American: REI Committed to ESG Foundational Cornerstone of Our Culture 6 • Providing a safe work environment and corporate culture that promotes the health and well-being of all employees • Investing in our workforce, the communities in which we operate, and future generation
Slide 7: Focus on FCF and Strengthening the Balance Sheet
www.ringenergy.com NYSE American: REI Focus on FCF and Strengthening the Balance Sheet Invest in High- Margin, High RoR Projects Drilled 8 Successful Wells2 Reduced Capex to $30 MM Decreased LOE 25% & G&A 31% Generated $40 MM FCF Reduced $75 MM Debt 7 Performed 29 CTRs3 Provided Value Through Operat
Slide 8: Proven, Conventional, Oily San Andres
www.ringenergy.com NYSE American: REI Proven, Conventional, Oily San Andres Hz Delaware Hz Midland Hz High ROR Oil Play ✓ ✓ ✓ Low D&C Costs ✓ Lower 1st Year Decline ✓ Low Lease Acquisition Cost ✓ Long life wells ✓ IPs >750 Bo/d ✓ ✓ Multiple Benches ✓ ✓ > 90% Black Oil ✓ < $25/Bbl D&C Break-even ✓ ▪
Slide 9: Significant Organic Growth Platform: Northwest Shelf Asset
www.ringenergy.com NYSE American: REI Significant Organic Growth Platform 2020 Avg Sales 5,399 Boe/d (85% Oil) YTD 2021 D&C Completed 4 Phase I wells (~99% WI) Completed 3 Phase II wells (~74% WI) Gross / Net Acres 46,972 / 32,915 ▪ Actively developing asset ▪ Commenced 2 HZ wells in Phase III drill
Slide 10: Improving Performance & Cost
www.ringenergy.com NYSE American: REI $2.0 M $2.5 M $3.0 M $3.5 M 2019 2020 2021 1,000 10,000 100,000 0 365 2015 2016 2017 2018 2019 2020 Improving Performance & Cost Significant Improvement Driving Top Tier Returns 10 Annual D&C Cost Range (1 Mile)1 NWS Annual Average Cum BOE vs Time (1 Mile)2,3 1)
Slide 11: Central Basin Platform Asset
www.ringenergy.com NYSE American: REI ▪ Commenced 2 HZ wells in Phase III drilling program in August (100% WI) ▪ Plan 1 or more HZ wells in Phase IV drilling program in 4Q21 (100% WI) ▪ Low D&C and LOE costs drive strong economics ▪ Actively working through CTR inventory to reduce costs and extend r
Slide 12: Maintains Solid PDP Reserve Base that Generates Consistent FCF
www.ringenergy.com NYSE American: REI 0 50 100 150 200 2018 2019 2020 2021 YTD NWS CBP Maintains Solid PDP Reserve Base that Generates Consistent FCF ▪ Increasing reserves by extending well longevity and reducing operating & well repair costs ▪ ~50% long-term reduction in LOE ▪ Up to 80% reduction i
Slide 13: Delaware Basin Asset
www.ringenergy.com NYSE American: REI Turnkey Asset with Predictable Cash Flow and Upside Potential Delaware Basin Asset 13 ▪ Launched sales process for Delaware Assets in 2Q 2021 ▪ Truist Securities running a marketed process ▪ Asset infrastructure in-place to enable efficient development ▪ Produce
Slide 14: SEC Proved Reserves Year-End 2020
www.ringenergy.com NYSE American: REI PDP 69% PUD 31% PDP 58% PUD 42% 1P Summary Reserve Category Net Oil, MBbl Net Gas, MMcf Net MBOE Net Capex, $MM PV-10, $MM PD 38,261 34,336 43,983 $25 $438 PUD 28,004 26,970 32,499 $219 $200 TOTAL 66,264 61,305 76,482 $244 $638 SEC Proved Reserves1 Year-End 2020
Slide 15: Generating Sustainable Results
www.ringenergy.com NYSE American: REI Generating Sustainable Results1 5,487 9,549 9,307 7,960 8,709 0 2,000 4,000 6,000 8,000 10,000 12,000 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Boe /d Net Sales $9.2 $10.8 $12.5 $11.8 $10.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Slide 16: Historical Metrics: Quarterly Analysis of FCF
www.ringenergy.com NYSE American: REI Historical Metrics Quarterly Analysis of FCF1 $MM Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Adj EBITDA1 $13.7 $19.9 $24.5 $19.0 $20.6 Capital -$1.9 -$4.3 -$7.8 -$14.5 -$11.5 Interest Exp. -$4.0 -$4.3 -$4.0 -$3.6 -$3.5 Proceeds from Divestiture $2.0 Free Cash Flow1
Slide 17: Continued FCF Generation is Key
www.ringenergy.com NYSE American: REI $375.0 $360.0 $313.0 $305.5 $300.5 $0.0 $100.0 $200.0 $300.0 $400.0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 RBL Balance $313 MM outstanding debt with $36 MM in Surplus Cash Continued FCF Generation is Key Pays Down Debt and Improves Balance Sheet 17 $20.0 $32.2
Slide 18: Building a Sustainable Corporate Culture
www.ringenergy.com NYSE American: REI Building a Sustainable Corporate Culture Operate Efficiently and Effectively Highly Profitable Development Drilling Generate FCF and Strengthen Balance Sheet Evaluate Accretive Acquisition Opportunities Fresh Prospective Proven Strategy 18
Slide 19: Appendix
Appendix
Slide 20: Second Half 2021 Guidance
www.ringenergy.com NYSE American: REI 52% 44% 4% D&C Cap Workover/CTRs Land/Other CAPEX Allocation Mid Point $32.5 million Second Half 2021 Guidance Maintain Production, Generate FCF, Pay Down Debt 20 Sales Volumes 2nd Half 2021 Total (Boe/d) 8,700 – 9,200 Oil (Bo/d) 7,700 – 8,100 Operating Expenses
Slide 21: Management Team
www.ringenergy.com NYSE American: REI Add Photo Add Photo Add Photo Add Photo Add Photo Paul D. McKinney Chairman & Chief Executive Officer 35+ years of domestic & international oil & gas industry experience Executive & board roles include CEO, President, COO, Region VP and public & private board di
Slide 22: Board of Directors
www.ringenergy.com NYSE American: REI 22 Add Photo Paul D. McKinney Chairman & Chief Executive Officer 35+ years of domestic & international oil & gas industry experience Executive & board roles include CEO, President, COO, Region VP and public & private board directorships Anthony D. Petrelli Lead
Slide 23: Financial Overview: Oil Hedges as of 8/9/2021
www.ringenergy.com NYSE American: REI 459,000 688,500 1,142,250 $42.22 $45.42 $46.60 $30.00 $34.00 $38.00 $42.00 $46.00 $50.00 $54.00 $58.00 $62.00 $66.00 $70.00 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 FY'21 Collars FY'21 Swaps FY'22 Swaps Price ($/ Bbl ) Volume ( Bbls ) Financial Over
Slide 24: Income Statement and Operational Stats
www.ringenergy.com NYSE American: REI Income Statement and Operational Stats 24 Income Statement Operational Stats Oil and Natural Gas Revenues $ 47,760,102 $ 39,502,532 $ 10,636,593 $ 87,262,634 $ 50,206,921 Costs and Operating Expenses Lease operating expenses 7,424,488 8,226,575 5,646,330 15,651,
Slide 25: Balance Sheet and Cash Flow Statement
www.ringenergy.com NYSE American: REI Balance Sheet and Cash Flow Statement 25 Balance Sheet Cash Flow Statement ASSETS Current Assets Cash and cash equivalents $ 2,670,242 $ 3,578,634 Accounts receivable 21,679,567 14,997,979 Joint interest billing receivable 1,909,804 1,327,262 Derivative receivab
Slide 26: Non-GAAP Disclosure
www.ringenergy.com NYSE American: REI Non-GAAP Disclosure 26 Non-GAAP Information Certain financial information included in Ring’s financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financia
Slide 27: Non-GAAP Reconciliations
www.ringenergy.com NYSE American: REI Non-GAAP Reconciliations 27 Net (Loss) Income $ (15,887,159) $ (19,066,093) $ (135,000,066) $ (34,953,252) $ (91,195,948) Share-based compensation 351,775 355,494 1,317,542 707,269 1,991,337 Ceiling test write impairment - - 147,937,943 - 147,937,943 Unrealized
Slide 28: Analyst Coverage and Company Contact
ANALYST COVERAGE Alliance Global Partners (A.G.P.) Jeff Campbell (203) 577-5427 jcampbell@allianceg.com Tuohy Brothers Investment Noel Parks (215) 913-7320 nparks@tuohybrothers.com ROTH Capital Partners John M. White (949) 720-7115 jwhite@roth.com Truist Financial Neal Dingmann (713) 247-9000 neal.d