Slide 1: Value Focused Proven Strategy: Q4 & FY 2023 Review
VALUE FOCUSED PROVEN STRATEGY Q4 & FY 2023 REVIEW 2024 GUIDANCE 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 21E of the Securities Exc
Slide 3: Independent Oil & Gas Company Focused on Conventional Permian Assets
Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas Q4 2023 Net Production ~19,400 Boe/d Yoakum (70% oil and 85% liquids) Differentiated approach by 2023 SEC Proved Reserves1,2 Gaines applying unconventional 129.8 MMBoe/ technology and thinking to conventional Permian asset
Slide 4: Delivering Value by Executing Strategic Vision
Delivering Value by Executing Strategic Vision Key Takeaways of Value Focused Proven Strategy Adding Size Growing AFCF and and Scale Adj EBITDA1 Value Focused Proven Strategy Upgraded portfolio and more than 17 consecutive quarters of AFCF, doubled production through accretive Increased YOY AFCF by
Slide 5: 2023 Year-End Highlights
2023 Year-End Highlights Proven Strategy Leads to Superior Results - Comparing Q4’2023 vs Q4’2022 Adjusted Sales Sales Operating Adjusted Cash G&A Debt Leverage SEC PD CapEx Free Cash Boe Bo Lifting Cost EBITDA1 Costs2 Balance Ratio3 Reserves4 Flow1 Q4 2023 Q4 2023 Q4 2023 Q4 2023 Q4 2023 Q4 2023 Q4
Slide 6: Expanding Core Areas in NWS & CBP
Expanding Core Areas in NWS & CBP Acquisition Track Record • Since 2018, Ring has ~19,400 successfully grown production by a ~26% CAGR1 through 4Q 2023 • Founders Acquisition added accretive near-term cash flows 6,100 New Management as of combined with 5+ years of high October 2020 return drilling i
Slide 7: 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 8: Enhancing Value for Stockholders
Enhancing Value for Stockholders Executing Strategy Improves YOY Production and Operating Cost per Boe Metrics Production/Share Boe/Share Cash G&A Expense2 $/Boe All-in-Cash Operating Costs1 $/Boe 0.040 $5 $30 $4.42 $29 $4 $28 $27 0.035 $3.08 0.034 $3 $26 Up 6% $24.84 $24.84 0.032 $25 $2 $23.46 $24
Slide 9: Enhancing Value for Stockholders Continued
Enhancing Value for Stockholders Continued… Executing Strategy Improves Key YOY Cash Flow Metrics ACFFO1 $MM Adjusted EBITDA Margin1 % Free Cash Flow Yield2 % $200 $197 75% 20% $195 65% 18% Up 14% 16% 57% Up 16% 16% $190 Up 58% 14% 50% $185 12% $180 10% 10% $175 $173 8% 25% 6% $170 4% $165 2% $160 0
Slide 10: Strong Cash Operating Margins vs. Peers
Strong Cash Operating Margins vs. Peers1,2 Operational Excellence and Cost Control Drive Profitability YTD Q3 2023 Cash Operating Margin and Realized Pricing Top Quartile Cash Operating Margin $80 • High oil weighting of ~70% (85% mix of oil + liquids) $72.25 contributes to high realized pricing per
Slide 11: Enhancing Value for Stockholders: Track Record of Improving Corporate Returns
Enhancing Value for Stockholders Track Record of Improving Corporate Returns Cash Return on Capital Employed1 (CROCE) % AVG WTI Pricing $/Bbl Strong CROCE % 30% $100 • Disciplined and successful capital $94.90 $90 program driving returns 25% • Generating solid returns by $80 $77.58 benefitting from
Slide 12: Compelling Value Proposition
Compelling Value Proposition 1,2 EV/PV-103 YE23 1P Reserves & % Oil EV/2023E Adjusted EBITDA3 2023E Adjusted FCF3,4 Yield 7.0x 35% 1.6x 100% 90% 30% 1.4x 6.0x 80% 25% 1.2x 5.0x 20% 70% 1.0x 60% 15% EV/PV-10 4.0x % Oil 0.8x 50% 10% 40% 3.0x 5% 0.6x 30% 0% 0.4x 2.0x 20% -5% 0.2x 10% 1.0x -10% 0.0x 0%
Slide 13: Positioned for Success in 2024 & Beyond
Positioned for Success in 2024 & Beyond Current 2024 Outlook Oil Sales Bo/d Sales Boe/d Pursue Operational Net Sales 14,000 19,000 18,500 Excellence with an Oil 12,700 to 13,100 Bo/d 12,950 Up ~2% Up ~3% Emphasis on Oil Mid-point 12,900 Bo/d 13,000 18,000 18,119 Production Growth Total 18,000 to19,0
Slide 14: Compelling Value Proposition
Compelling Value Proposition1,2 EV/2024E Adjusted EBITDA3 2024E Adjusted FCF3,4 Yield 5.0x 40% 4.5x 35% 4.0x 30% 3.5x 25% 3.0x 20% 2.5x 15% 2.0x 1.5x 10% 1.0x 5% 0.5x 0% 0.0x -5% Ring Currently Trades at a Discount to Peers, Despite Superior 2024 Consensus Estimates 1. Peers include: Berry Corporati
Slide 15: Value Proposition: 2024 and Beyond
Value Proposition 2024 and Beyond Despite volatile energy markets, Ring has generated positive FCF for 17 quarters straight Trading at a discount yet delivering competitive returns Strong Cash Operating margins help deliver superior results & helps manage risk in market downturns Disciplined capital
Slide 16: 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 in 2021 to monitor Zero Company or Company’s adherence to ESG standards and formally communicate to CEO and
Slide 17: Financial Overview
FINANCIAL OVERVIEW www.ringenergy.com 17
Slide 18: Q1 & FY 2024 Guidance
Q1 & FY 2024 Guidance Grow Oil Production, Generate FCF, Pay Down Debt Sales Volumes Q1 2024 FY 2024 FY 2024 CAPEX Allocation Total (Bo/d) 12,420 – 12,765 12,600 – 13,300 Mid Point (Bo/d) 12,593 12,950 3% Total (Boe/d) 18,000 – 18,500 18,000 – 19,000 - Oil (%) 69% 70% - NGLs (%) 15% 15% 24% - Gas (%
Slide 19: Historical Metrics: Quarterly Analysis of AFCF
Historical Metrics Quarterly Analysis of AFCF1 Leverage Ratio (LTM)2 1.56x2 1.65x2 1.64x2 1.69x2 1.62x2 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 $80 Adj. EBITDA/ CapEx / Int Exp $70 $60 $65.4 $50 $56.3 $58.6 $58.6 $40 $53.5 $30 $16.3 $20 $10.5 $12.6 $6.1 $10 $0 $5.5 -$10 -$20 -$38.9 -$31.6 -$38.8 -$4
Slide 20: Reducing Debt & Increasing Liquidity
Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating AFCF Adjusted Debt Paydown1,2 ($ Million) Liquidity3 ($ Million) $30 $220 $200 $25 $204 $25 $180 $188 $179 $20 $160 $171 $175 $20 $165 $19 $140 $15 $17 Founders $120 Stronghold Founders $10 Acquisition2 Acquis
Slide 21: Asset Overview
ASSET OVERVIEW www.ringenergy.com
Slide 22: Assets Overview: Core Assets in NWS & CBP
Assets Overview Core Assets in NWS & CBP Q4 2023 Net Production (MBoe/d) ~19.4 NWS (76% oil) ~8.0 CBP (66% oil) ~11.4 LOE ($ per Boe) $10.50 Capex ($MM) $38.8 YE23 PD Reserves1 PV10 ($MM) $1,263 Northern CBP YE23 PD Reserves1 (MMBoe) 88 YE23 PUD Reserves1 PV10 ($MM) $384 YE23 PUD Reserves1 (MMBoe) 4
Slide 23: Assets Overview: Historical Quarterly Net Sales Production
Assets Overview Historical Quarterly Net Sales Production1 Company Record Capital allocation and drilling programs designed to maximize free cashflow generation Production 19,397 20,000 DLWR Sale & Gaines Co Sale Oil Bopd Company Oil Bopd Gas Boepd Company Gas Boepd NGL Boepd Company NGL Boepd pullb
Slide 24: 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 86-91% 65-70% 73% 72-76% Oil Oil Oil Oil Expected Capex Range 2024 Expected Capex Range 2024 1. San Andres Horizontal inc
Slide 25: Capitalizing on High-Return Drilling and Recompletion Locations
Assets Overview Capitalizing on High-Return Drilling and Recompletion Locations Select Recent New Drill Horizontal Well Results Select Recent New Drill Vertical Well Results – Northwest Shelf – Central Basin Platform Geological Peak IP 30 / 60 Oil Lateral Area Well Name WI (%) Region (Boepd) (%) Len
Slide 26: Penwell Area Inventory of High-Return Locations
Assets Overview Penwell Area (Founders) Inventory of High-Return Locations Compete for Capital in 2024 High Quality Inventory • Inventory of 50+ low risk, high rate-of-return drilling locations lowers Ring’s break-even costs Central Basin • Recent Founders’ vertical wells demonstrate superior initia
Slide 27: San Andres Reservoir
San Andres Reservoir 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 $3.0 - $4.4 MM per well Low Lease Acquisition Cost ✓
Slide 28: Appendix
APPENDIX www.ringenergy.com
Slide 29: Financial Overview: Derivative Summary
Financial Overview Derivative Summary as of December 31, 2023 Oil Hedges (WTI) Gas Hedges (Henry Hub) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Swaps: NYMEX Swaps: Hedged volume (Bbl) 170,625 156,975 282,900 368,00
Slide 30: Income Statement and Operational Stats
Income Statement and Operational Stats Income Statement Operational Stats (Unaudited) Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, December 31, September 30, December 31, December 31, December 31, 2023
Slide 31: Balance Sheet and Cash Flow Statement
Balance Sheet and Cash Flow Statement Balance Sheet Cash Flow (Unaudited) (Unaudited) Three Months Ended Twelve Months Ended As of December 31, 2023 2022 December 31, September 30, December 31, December 31, December 31, ASSETS 2023 2023 2022 2023 2022 Current Assets Cash Flows From Operating Activit
Slide 32: 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 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income Adjusted EBITDA (Unaudited for All Periods) (Unaudited for All Periods) Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, December 31, September 30, December 31,
Slide 34: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) Leverage Ratio Adjusted Free Cash Flow (Unaudited for All Periods) Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 $ 55,733,207 $ 55,390,975 $ 63,641,506 $ 198,170,459 $ 196,976,729 Net
Slide 35: 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 (Unaudited for All Periods) twelve months ended Three Months Ended Twelve Months Ended September December 31, December 31, December 31, December 31, December 31, 30,
Slide 36: Non-GAAP Reconciliations (cont.)
Non-GAAP Reconciliations (cont.) All-In Cash Operating Costs . (Unaudited for All Periods) Three Months Ended Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2023 2023 2022 2023 2022 18,732,082 18,015,348 17,411,645 70,158,227 47,695,351 Lease operating expenses
Slide 37: Experienced Management Team
Experienced Management Team Shared Vision with a Track Record of Success Hollie Lamb Paul D. McKinney Stephen D. Brooks Alexander Dyes Travis Thomas Marinos Baghdati VP of NonOP Reservoir Chairman & Chief EVP of Land, Legal, EVP of Engineering & EVP & Chief EVP of Operations Engineering / O&G Execut
Slide 38: Board of Directors
Board of Directors Accomplished and Diversified Experience • 40+ years of domestic & international • 43+ years of banking, capital • 14+ years of finance & capital markets oil & gas industry experience markets, governance & financial experience experience • Executive & board roles include CEO, • Ext
Slide 39: 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