Ring Energy, Inc. · AMEX:REI
Ring Energy — Q1 2025 Earnings Presentation
40 slides from Ring Energy's earnings presentation, May 8, 2025
Slide 1: Q1 2025 Earnings & Updated Guidance
Q1 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 Exc
Slide 3: Ring Energy - Independent Oil & Gas Company
Ring Energy - Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas Pro Forma “PF” Net Production1 ~21,500 Boe/d Yoakum (66% oil and 84% liquids) 2024 SEC Proved Reserves2,3 Differentiated approach by 134 MMBoe/PV10 ~$1.5 Billion applying unconventional Proved Developed ~69%
Slide 4: Flexible and Resilient in 2025
Flexible and Resilient in 2025 Value Proven Strategy Designed to Endure Volatile Oil Prices ▪ Since 2021 our production has increased 23% CAGR from accretive acquisitions & organic development Adding Size and Scale to the ▪ Successfully closed accretive acquisition of Lime Rock CBP assets on March 3
Slide 5: Q1 2025 Scorecard
Q1 2025 Scorecard Closed LRR AQ at end of Q1 – LRR did not affect production, EBITDA, Capex or FCF Oil Lease Adjusted Sales Realized Adjusted Debt Leverage SEC 1P Sales CapEx Operating Free Cash Boe $/Boe EBITDA1 Balance Ratio3 Reserves4 Bo Costs2 Flow1 Q1 2025 Q1 2025 Q1 2025 Q1 2025 Q1 2025 Q1 202
Slide 6: LRR Acquisition Expands Legacy High-Return Area
LRR Acquisition Expands Legacy High-Return Area Continuing Our Transformation to a Scaled Conventional Permian Operator Legend Ring Energy Leasehold Transaction Summary ($MM) Asset Overview Lime Rock Resources ✓ Bolt-on acquisition of Lime Rock’s ✓ Closed on March 31, 2025 Shafter Lake and Midland F
Slide 7: LRR Acquisition: Proved Reserves and Inventory
Proved Reserves1 and Inventory Reserves by Category (%) Reserves by PV-102 ($MM) Reserves by Product (%) Locations by Area 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, 22
Slide 8: Updated Pro Forma Guidance
Updated Pro Forma Guidance 3 Full Quarters of Lime Rock Asset1 Operations Q1 2025 Q1 2025 % Q2 2025 2H 2025 FY 2025 CAPEX Allocation Sales Volumes REI Only Actuals Difference PF UPDATE PF UPDATE D&C / Infrastructure / CTR Recompl / Cap Workovers Total (Bo/d) 11,700 – 12,000 13,700 – 14,700 12,500 –
Slide 9: 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 Q2-Q4 PF Oil Sales Q2-Q4 PF $100 43% 50% 19,500 to 21,500 Boe/d 12,750 to 1
Slide 10: Distinguishing Attributes: What Makes Ring Different?
Distinguishing Attributes: What Makes Ring Different? Differentiated Approach by Applying Unconventional Technology and Thinking to Conventional Permian Assets ✓ Ring Conventional Assets Characteristics: Shallow Base Decline, High Netbacks (NRI> 79%), Long Life Wells (> 35 years) and Highly Oil Weig
Slide 11: Distinguishing Attributes: High Operating Margins
Distinguishing Attributes: High Operating Margins Ring’s Conventional Assets with High Netbacks Drive Strong Cash Operating Margins vs. Peers1,2 4Q 2024 TTM Cash Operating Margin and Realized Pricing ($/Boe) Operational Excellence and Cost Control Drive $70 Profitability $69.65 • High oil weighting
Slide 12: Enhanced Value for Stockholders
Enhanced Value for Stockholders Improved Metrics - Increased Production, Reduction in Costs, and Increased Proved Reserves on per Share Basis Production/Share Boe/Share All-in-Cash Operating Costs1 $/Boe SEC 1P Reserves/Share2 Boe/Share 0.040 $25 0.700 all-in cash operating costs decreased despite i
Slide 13: Consistent Value for Stockholders
Consistent Value for Stockholders Minimized the Effect of a 7% Reduction in Realized Prices ACFFO1 $MM Adjusted EBITDA1 $MM Adjusted Free Cash Flow1 $MM $250 $275 $55 $225 $250 $50 $236 $233 $45 $200 $197 $195 $225 $45 $44 $175 $200 $40 $150 $175 $35 2023 2024 2023 2024 2023 2024 1. Adjusted Cash Fl
Slide 14: 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 15: 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 16: 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 $2.50 Asset Date Announced 9/10/2024 Metrics APA S
Slide 17: 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 18: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com
Slide 19: Historical Metrics
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)1 1.67x 1.59x 1.59x 1.66x 1.9x Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $66.4 $62.0 $54.0 $50.9 $46.4 $21.4 $15.6 $4.7 $5.8 $1.9 -$36.3 -$35.4 -$37.6 -$32.5 -$42.7 -$8.2 -$10.2 -$9.6 -$8.7 -$9.4 Realized $/Boe $54.56 $55.06 $48.24 $46
Slide 20: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating AFCF RBL Balance & Adjusted Debt Paydown1,2 ($ Million) Liquidity3 ($ Million) RBL Balance ($MM) $500 $460 $240 $450 $428 $220 $400 $217 $200 $208 $204 $350 $385 Founders $194 $180 Acquisition $300 $179 $175 $
Slide 21: 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 22: Asset Overview
ASSET OVERVIEW www.ringenergy.com
Slide 23: 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 24: 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 25: New Drill Inventory Performance
Assets Overview New Drill Inventory Performance Consistent HZ Well Performance Enhanced Vertical Well Performance San Andres Horizontal Play EUR (MBoe) per 1000’ Lateral Feet CBP Vertical Multi-Stacked Play 2 100 20,000 Thousands Cum 90-Day/ well Avg - BOE 15,000 75 87-91% 10,000 ~79% Oil Oil ~70% ~
Slide 26: 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 27: 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 - $3.4 MM per Hz well Low
Slide 28: 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 29: 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 ROTH Capital Partners Tuohy Bothers Investment (281) 975-2146 John M. White (949) 720-7115 Noel Parks (215) 913-7320 apetrie@ringenergy.com jwhite@roth.
Slide 30: Appendix
APPENDIX www.ringenergy.com
Slide 31: 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 58.32 3.0 14.5 MM warrants Warburg Pincus sell exercise
Slide 32: Derivative Summary as of March 31, 2025
Financial Overview Derivative Summary as of March 31, 2025 (1) The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the (2) The gas basis swap hedges are calculated as the Henry Hub natural gas price less the fixed amount specified as difference betw
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, 2025 2024 2024 2025 2024 2024 Oil, Natural Gas, and Natural Gas Liquids Revenues $ 79,091,207 $ 83
Slide 34: Balance Sheet Statements of Cash Flows
(Unaudited) Balance Sheet March 31, 2025 December 31, 2024 Statements of Cash Flows (Unaudited) Three Months Ended ASSETS March 31, December 31, March 31, Current Assets 2025 2024 2024 Cash and cash equivalents $ 1,100,851 $ 1,866,395 Accounts receivable 35,680,686 36,172,316 Cash Flows From Operati
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, 2025 2024 2024 2025 2024 2024 Per Per Per share - share - share - Total diluted
Slide 37: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Adjusted Free Cash Flow (Unaudited for All Periods) Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Net Cash Provided by Operating Activities $ 28,371,008 $ 47,279,681 $ 45,189,169 Adjustments - Condensed Statements of Cash Flows Changes in operati
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 Last Four June 30, September 30, December 31, March 31, Quarters June 30, September 30, December 31, March 31, Quarters
Slide 39: 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) December 31, December 31, December 31, Three Months Ended 2024 2023 2022 March 31, December 31, March 31, 2025 2024 20
Slide 40: 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, 2025 2024 2024 All-In Cash Operating Costs: Lease operating expenses (including workovers) $ 19,677,552 $ 20,326,216 $ 18,360,434 G&A excluding share-based com