Slide 1: Value Focused Proven Strategy: Q3 Earnings Review
VALUE FOCUSED PROVEN STRATEGY Q3 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 Q3 2024 Net Production ~20,108 Boe/d Yoakum (66% 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: 2024 Q3 Highlights – Improved Portfolio Comparison
2024 Q3 Highlights – Improved Portfolio Comparison REI Portfolio with Founders Acquisition and Non-Core Divestitures Leads to Superior Results Oil Cash Adjusted Sales Operations Adjusted Debt Leverage Sales CapEx Operating Free Cash Liquidity4 Boe Lifting Cost EBITDA1 Balance Ratio3 Bo Costs2 Flow1
Slide 5: Delivering Value YTD 2024
Delivering Value YTD 2024 Key Takeaways – Upgraded Portfolio and Efficient Execution Drove Results Adding Size Growing Adj and Scale EBITDA and AFCF1 Value Focused Proven Strategy Upgraded portfolio helped drive YTD 20 consecutive qtrs. generating performance; increased Oil Sales (Bo/d) positive AFC
Slide 6: Q4 & FY 2024 Guidance Update
Q4 & FY 2024 Guidance Update Update Q4’24 Guidance Due to Non-Core Divestiture1 in Q3’24 Q4 2024 FY 2024 FY 2024 Sales Volumes Updated Updated Mid Year FY 2024 CAPEX Allocation Total (Bo/d) 12,950 – 13,550 13,250 – 13,450 13,200 – 13,800 Mid Point (Bo/d) 13,250 13,350 13,500 Total (Boe/d) 19,200 – 2
Slide 7: Positioned for Success in 2024 & Beyond
Positioned for Success in 2024 & Beyond Updated Outlook Pursue Operational Excellence with an Maximizing Adj. Free Cash Flow1,2 Emphasis on Oil Production Growth $80 Expected continued growth 50% Oil Sales Bo/d Sales Boe/d 13,500 13,350 20,000 19,650 Up ~6% 40% Up ~8% $60 AFCF Yield % AFCF $MM 13,00
Slide 8: Enhanced Value for Stockholders YTD 2024
Enhanced Value for Stockholders YTD 2024 Executing Strategy Improves Metrics - Increased Production, Stable Operating Costs, and Enhanced FCF per Boe Production/Share Boe/Share All-in-Cash Operating Costs1 $/Boe Adjusted Free Cash Flow2 $/Boe 0.030 $25 all-in cash operating costs decreased $10 0.027
Slide 9: Continue Enhancing Value for Stockholders YTD 2024
Continue Enhancing Value for Stockholders YTD 2024 Executing Strategy Improves Key Cash Flow Metrics Versus a Year Ago ACFFO1 $MM Adjusted EBITDA1 $MM Adjusted Free Cash Flow1 $MM $160 $190 $40 $39 $153 $182 Up 34% $150 Up 8% $180 Up 7% $35 $142 $171 $140 $170 $30 $29 $130 $160 $25 $120 $150 $20 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 Permian & Shale Players PDP Decline1: 2024E PDP Base Decline % 40% 37% 37% 35% 35% 35% 35% 34% Median 34% 30% 28% 27% 25% 25% 24% 24% 20% 15% 10% 5% 0% Peer 1 Peer 2 Ring Peer 3 Peer 4 P
Slide 11: 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 18.5 15 10 Median 11yrs 5 0 REI Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer
Slide 12: 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 2Q 2024 TTM Cash Operating Margin and Realized Pricing Operational Excellence and Cost Control Drive Profitability $80 $72.93 • High oil weighting of ~68%
Slide 13: Ring Stock Price Outperforms Most Peers YTD
Ring Stock Price Outperforms Most Peers YTD Underlying Value and Operational Performance has Driven YTD Stock Performance 2024 YTD Stock Performance REI, Peers & XOP1,2 In top 2 of Peers in Market Stock Performance YTD: 20% REI Distinguishing Drivers 10% • Oil Weighted Up 4% • Low PDP Base Decline 0
Slide 14: Compelling Value Proposition: Ring Trading at Discount to Peers
Compelling Value Proposition Ring Trading at Discount to Peers1,2 EV/PV-103 YE23 1P Reserves & % Oil EV/2024 Adjusted EBITDA3 4.5x 1.6x 100% 90% 4.0x 1.4x 80% 3.5x 1.2x 70% 3.0x 1.0x 60% EV/PV-10 2.5x % Oil 0.8x 50% 2.0x 40% 0.6x 30% 1.5x 0.4x 20% 1.0x 0.2x 10% 0.5x 0.0x 0% 0.0x Despite a Track Reco
Slide 15: Ring Trading at Discount Compared to Recent Transaction
Ring Trading at Discount Compared to Recent Transaction REI Suggested Valuation Using APA CBP & NWS Assets Divestiture Valuation Metrics Private Buyers Paying Higher Valuation Multiples for Conventional Permian Assets APA Permian Divestiture1 $1,000 $3.00 Asset Date Announced 9/10/2024 Metrics APA S
Slide 16: Permian Basin – Conventional Opportunities
Permian Basin – Conventional Opportunities Acquisition Strategy - Focus on Lower Cost CBP & NWS to Grow Publics Privates NWS Central Basin Platform (CBP) remains the underexplored CBP/NWS opportunity of the shale era in Permian Publics CBP/NWS Privates Other Conventional Shelf opportunities suit
Slide 17: Value Proposition
Value Proposition 2024 and Beyond Despite volatile energy markets, Ring has generated positive FCF for 20 quarters straight Delivering competitive returns to larger peers yet trading at a discount. Strong Cash Operating margins help deliver superior results & helps manage risk in market downturns Di
Slide 18: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com
Slide 19: Track Record of Growth
Track Record of Growth Expanding Core Areas in NWS & CBP Acquisition Track Record • Since 2018, Ring has 19,650E successfully grown production by a ~22% CAGR1 through 2024E. • Founders Acquisition added accretive near-term cash flows 6,100 New Management as of combined with 5+ years of high October
Slide 20: Historical Metrics: Quarterly Analysis of AFCF
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)2 1.69x2 1.62x 1.67x 1.59x 1.59x Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $70 Adj. EBITDA/ CapEx / Int Exp $60 $65.4 $66.4 $50 $58.6 $62.0 $54.0 $40 $30 $21.4 $16.3 $15.6 $20 $6.1 $10 $1.9 $0 -$10 -$20 -$42.4 -$38.8 -$36.3 -$35.4 -$42
Slide 21: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating AFCF Adjusted Debt Paydown1,2 ($ Million) Liquidity3 ($ Million) $30 $220 $200 $208 $25 $204 $25 $194 $180 $188 $179 $175 $179 $20 $160 $171 $20 $165 $19 $140 $15 $17 Stronghold Founders $15 $15 $120 Acquisiti
Slide 22: Asset Overview
ASSET OVERVIEW www.ringenergy.com
Slide 23: Assets Overview: Core Assets in NWS & CBP
Assets Overview Core Assets in NWS & CBP Q3 2024 Net Production (MBoe/d) ~20.1 NWS (65% oil) ~8.2 CBP (66% oil) ~11.9 LOE ($ per Boe) $10.98 Capex ($MM) $42.7 YE23 PD Reserves1 PV10 ($MM) $1,263 Northern CBP YE23 PD Reserves1 (MMBoe) 88 YE23 PUD Reserves1 PV10 ($MM) $384 YE23 PUD Reserves1 (MMBoe) 4
Slide 24: Committed to ESG
Committed to ESG Critical to Sustainable Success 2023 Sustainability Report Progressing our ESG Journey A Target Zero Day is a Day that Results in: Download Report PDF • Created ESG Task Force and established Target Zero Zero Company or 365 (TZ-365) Safety & Environmental Initiative in 2021to Contra
Slide 25: 2024 Q3 Operations Update
2024 Q3 Operations Update Historical Quarterly Net Sales Production1 Capital allocation and drilling programs designed to maximize free cashflow generation Company Record 22,000 Company Record Company Record Net Sales 21,000 Company Oil Bopd Company Gas Boepd Company NGL Boepd Net Sales Net Sales ~
Slide 26: Proved Reserves and Inventory
Proved Reserves1 and Inventory SEC YE 2023 Reserves by Category (%) Reserves by PV-102 ($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: 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 30,000 Cum 90-Day/ well Avg - BOE 15,000 Cum 90-Day/ well Avg - BOE 20,000 10,000 87-91% 87-91% 88-94% 73% 77-81% Oil Oil
Slide 28: Assets Overview: Deep Inventory of High-Return Locations
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 29: 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 $2.3 - $3.7 MM per Hz well Low
Slide 30: 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 31: Appendix
APPENDIX www.ringenergy.com
Slide 32: 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 4.5 MM warrants 100.00 Founders 4.0 exercised Announcement 3.5 $69.26 80.00 Warburg Pincus sell 3.0 14.5 MM warrants down 12
Slide 33: 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 34: Experienced Management Team
Experienced Management Team Shared Vision with a Track Record of Success Hollie Lamb Paul D. McKinney Travis Thomas Alexander Dyes Phillip Feiner Shawn Young VP of NonOP Reservoir Chairman & Chief EVP & Chief EVP of Engineering & VP and General VP of Operations Engineering / O&G Executive Officer Fi
Slide 35: Board of Directors
Board of Directors Accomplished and Diversified Experience • 40+ years of domestic & international • 43+ years of banking, capital oil & gas industry experience markets, governance & financial experience • Executive & board roles include CEO, President, COO, Region VP and public • Executive and Boar
Slide 36: Financial Overview: Derivative Summary
Financial Overview Derivative Summary as of September 30, 2024 Oil Hedges (WTI) Gas Hedges (Henry Hub) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Swaps: NYMEX Swaps: Hedged volume (Bbl) 368,000 71,897 52,063 265,517
Slide 37: Income Statement and Operational Stats
Income Statement and Operational Stats Income Statement Operational Stats (Unaudited) (Unaudited) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September September September September September September September September June 30, June 30, 30, 30, 30, 30, 30, 30, 30, 30
Slide 38: Balance Sheet and Statements of Cash Flows
(Unaudited) (Unaudited) Three Months Ended Nine Months Ended Balance Sheet Statements of Cash Flows September September September September September 30, 2024 December 31, 2023 June 30, 30, 30, 30, 30, ASSETS Current Assets 2024 2024 2023 2024 2023 Cash Flows From Operating Activities Cash and cash
Slide 39: 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 40: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income Adjusted EBITDA (Unaudited for All Periods) (Unaudited for All Periods) Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, September September 2024 2024 2023 2024 2023
Slide 41: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio Adjusted Free Cash Flow (Unaudited for All Periods) (Unaudited) Three Months Ended Nine Months Ended Three Months Ended September September September September June 30, Last Four 30, 30, 30, 30, December 31, March 31, June 30, September 30, Quarters 20
Slide 42: 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 Nine Months Ended December 31, December 31, December 31, December 31, September September September
Slide 43: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) All-In Cash Operating Costs (Unaudited for All Periods) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2024 2024 2023 2024 2023 All-In Cash Operating Costs: Lease operating expenses (including workovers) $ 20,315
Slide 44: 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