Ring Energy Announces Second Quarter 2025 Results and Updates Guidance
THE WOODLANDS, Texas, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE:REI) ("Ring" or the "Company") today reported operational and financial results for the second quarter of 2025 and updated guidance for the remainder of the year.
Second Quarter 2025 Highlights
Sold record 14,511 barrels of oil per day ("Bo/d"), exceeding the mid point of guidance and record 21,295 barrels of oil equivalent per day ("Boe/d") which was near the mid point of guidance;
Reported net income of $20.6 million, or $0.10 per diluted share, and Adjusted Net Income1 of $11.0 million, or $0.05 per diluted share;
Recorded Adjusted EBITDA1 of $51.5 million;
Incurred Lease Operating Expense ("LOE") of $10.45 per Boe, 9% below the low end of guidance due to proactive efforts to reduce costs;
Invested $16.8 million in capital expenditures which was lower than the mid point of guidance and 48% lower than 1Q 2025;
Generated Adjusted Cash Flow from Operations1 of $41.6 million and record Adjusted Free Cash Flow ("AFCF")1 of $24.8 million;
Remained cash flow positive for the 23rd consecutive quarter, paid down $12 million of debt during the period, and had liquidity of $137.0 million at June 30, 2025;
Entered into a Third Amended and Restated Credit Agreement with a borrowing base of $585 million and an extended maturity of 34 months, to June 2029, supported by an 11-member banking syndicate; and
Reaffirmed production and capital expenditures guidance and lowered LOE per BOE guidance for the second half of 2025, provided 3Q 2025 guidance, and updated capital expenditures guidance for the full year 2025.
Management Commentary
Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, "We are excited to announce our second quarter operational and financial performance and the results of our reduced capital spending initiatives. In response to the drop in oil prices that occurred early in the second quarter, we provided revised guidance reducing our second quarter and annual capital spending plans to reflect a year-over-year ("YOY") reduction of 36% while maintaining 2% YOY production growth. Our Q2 results demonstrate that we are successfully executing this plan. With the benefit of our first full quarter operating the Lime Rock assets, our oil sales set a new Company record this quarter coming in near the high-end of guidance and our total sales on a Boe basis were near to the mid-point of guidance, also setting a new Company record. We reduced our second quarter capex by 48% over the previous quarter which was near the low end of our revised Q2 guidance. Contributing to our success this quarter was the outperformance of our existing PDP assets and recently acquired Lime Rock assets as well as the robust performance of the new wells drilled and brought online so far this year. Thanks to the operational excellence of our team, we have continued to make progress reducing operating costs in this volatile commodity price environment. Our progress in this regard was evidenced by our lease operating expense of $10.45 per Boe in the quarter, which is below the low end of guidance which is why we reduced our LOE/Boe guidance by $0.50 for the last half of the year. As a result of our strong production, reduced capital expenditures, and reduced LOE, we generated a record of $24.8 million in Adjusted Free Cash Flow for the quarter despite an 11% reduction in realized pricing per Boe as compared to Q1. We are proud of the team and their efforts that led to these results and encouraged by the success and flexibility provided by our value-focused, proven strategy. The results of our second quarter demonstrate the quality and resilience of our team and assets and the changes we implemented this quarter should allow us to pay down debt more aggressively than we have in previous quarters despite lower commodity prices."
Mr. McKinney concluded, "This quarter underscores a key strength of our value-focused, proven strategy, the ability to swiftly adapt to changing market conditions while delivering consistent shareholder value, even in low-price environments. Our focus on oil-rich assets with shallow declines, long lifespans, and low operating costs ensures resilience against commodity price volatility. Through a disciplined capital program that prioritizes high-return wells with low breakeven costs, we are more able to sustain production and liquidity. In higher-price markets, we balanced growth with improving the balance sheet; in today's lower-price landscape, we are prioritizing debt reduction. For the second half of 2025, we will seek to maximize cash flow, control costs, and further strengthen our financial position."
Summary Results and Additional Key Items
Q2 2025
Q1 2025
Q2 2025 to Q1 2025 % Change
Q2 2024
Q2 2025 to Q2 2024 % Change
YTD 2025
YTD 2024
YTD % Change
Average Daily Sales Volumes (Boe/d)
21,295
18,392
16
%
19,786
8
%
19,851
19,410
2
%
Crude Oil (Bo/d)
14,511
12,074
20
%
13,623
7
%
13,299
13,509
(2
)%
Net Sales (MBoe)
1,937.9
1,655.3
17
%
1,800.6
8
%
3,593.1
3,532.6
2
%
Realized Price - All Products ($/Boe)
$
42.63
$
47.78
(11
)%
$
55.06
(23
)%
$
45.00
$
54.82
(18
)%
Realized Price - Crude Oil ($/Bo)
$
62.69
$
70.40
(11
)%
$
80.09
(22
)%
$
66.17
$
77.93
(15
)%
Revenues ($MM)
$
82.6
$
79.1
4
%
$
99.1
(17
)%
$
161.7
$
193.6
(16
)%
Net Income ($MM)
$
20.6
$
9.1
126
%
$
22.4
(8
)%
$
29.7
$
27.9
6
%
Adjusted Net Income1 ($MM)
$
11.0
$
10.7
3
%
$
23.4
(53
)%
$
21.7
$
43.8
(50
)%
Adjusted EBITDA1 ($MM)
$
51.5
$
46.4
11
%
$
66.4
(22
)%
$
97.9
$
128.4
(24
)%
Capital Expenditures ($MM)
$
16.8
$
32.5
(48
)%
$
35.4
(53
)%
$
49.3
$
71.6
(31
)%
Adjusted Free Cash Flow1 ($MM)
$
24.8
$
5.8
328
%
$
21.4
16
%
$
30.6
$
37.0
(17
)%
Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under "Non-GAAP Financial Information." In addition, see section titled "Condensed Operating Data" for additional details concerning costs and expenses discussed below.
Select Expenses and Other Items
Q2 2025
Q1 2025
Q2 2025 to Q1 2025 % Change
Q2 2024
Q2 2025 to Q2 2024 % Change
YTD 2025
YTD 2024
YTD % Change
Lease operating expenses ("LOE") ($MM)
$
20.2
$
19.7
3
%
$
19.3
5
%
$
39.9
$
37.7
6
%
Lease operating expenses ($/BOE)
$
10.45
$
11.89
(12
)%
$
10.72
(3
)%
$
11.11
$
10.66
4
%
Depreciation, depletion and amortization ($MM)
$
25.6
$
22.6
13
%
$
24.7
4
%
$
48.2
$
48.5
(1
)%
Depreciation, depletion and amortization ($/BOE)
$
13.19
$
13.66
(3
)%
$
13.72
(4
)%
$
13.41
$
13.73
(2
)%
General and administrative expenses ("G&A") ($MM)
$
7.1
$
8.6
(17
)%
$
7.7
(8
)%
$
15.8
$
15.2
4
%
General and administrative expenses ($/BOE)
$
3.68
$
5.21
(29
)%
$
4.28
(14
)%
$
4.39
$
4.30
2
%
G&A excluding share-based compensation ($MM)
$
5.8
$
6.9
(16
)%
$
5.6
4
%
$
12.7
$
11.4
11
%
G&A excluding share-based compensation ($/BOE)
$
2.99
$
4.19
(29
)%
$
3.13
(4
)%
$
3.54
$
3.22
10
%
G&A excluding share-based compensation & transaction costs ($MM)
$
5.8
$
6.9
(16
)%
$
5.6
4
%
$
12.7
$
11.4
11
%
G&A excluding share-based compensation & transaction costs ($/BOE)
$
2.99
$
4.18
(28
)%
$
3.13
(4
)%
$
3.54
$
3.22
10
%
Interest expense ($MM)
$
11.8
$
9.5
24
%
$
10.9
8
%
$
21.3
$
22.4
(5
)%
Interest expense ($/BOE)
$
6.07
$
5.74
6
%
$
6.08
—
%
$
5.92
$
6.35
(7
)%
Gain (loss) on derivative contracts ($MM) (1)
$
14.6
$
(0.9
)
1722
%
$
(1.8
)
911
%
$
13.7
$
(20.8
)
166
%
Realized gain (loss) on derivative contracts ($MM)
$
0.6
$
(0.5
)
220
%
$
(2.6
)
123
%
$
0.1
$
(4.0
)
103
%
Unrealized gain (loss) on derivative contracts ($MM)
$
14.0
$
(0.4
)
3600
%
$
0.8
1650
%
$
13.6
$
(16.8
)
181
%
(1) A summary listing of the Company's outstanding derivative positions at June 30, 2025 is included in the tables shown later in this release. For the remainder (July through December) of 2025, the Company has approximately 1.3 million barrels of oil (approximately 55% of oil sales guidance midpoint) hedged at an average downside protection price of $64.87 and approximately 1.5 billion cubic feet of natural gas (approximately 42% of natural gas sales guidance midpoint) hedged at an average downside protection price of $3.37.
Balance Sheet and Liquidity
Total liquidity (defined as cash and cash equivalents plus borrowing base availability under the Company's credit facility) at June 30, 2025 was approximately $137.0 million. On June 30, 2025, the Company had $448 million in borrowings outstanding on its credit facility that has a current borrowing base of $585 million. This reflects a reduction of $12 million from the balance of $460 million at March 31, 2025. The Company is targeting continued debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.
Drilling and Completion Activity
In 2Q 2025, the Company drilled, completed, and placed on production two wells in the Central Basin Platform. This included one 1-mile horizontal well in Andrews County and one vertical well in Crane County, both with a working interest of 100%.
The table below sets forth Ring's drilling and completion activities in the first and second quarter of 2025:
Quarter
Area
Wells Drilled
Wells Completed
1Q 2025
Northwest Shelf (Horizontal)
4
4
Central Basin Platform (Vertical)
3
3
Total
7
7
2Q 2025
Central Basin Platform (Horizontal)
1
1
Central Basin Platform (Vertical)
1
1
Total
2
2
Second Half 2025 and Q3 Sales Volumes, Capital Investment and Operating Expense Guidance
The guidance in the table below represents the Company's current good faith estimate of the range of likely future results. Guidance could be affected by the factors discussed below in the "Safe Harbor Statement" section.
Q3
2H
2025
2025
Sales Volumes:
Total Oil (Bo/d)
12,850 - 13,850
12,500 - 14,000
Midpoint (Bo/d)
13,350
13,250
Total (Boe/d)
19,200 - 21,200
19,000 - 21,000
Midpoint (Boe/d)
20,200
20,000
Oil (%)
66%
66%
NGLs (%)
18%
18%
Gas (%)
16%
16%
Capital Program:
Capital spending(1)(3)(4) (millions)
$23 - $31
$38 - $58
Midpoint (millions)
$27
$48
New Hz and vertical wells (2)
4 - 6
11 - 13
Recompletions and CTRs
9 - 12
17 - 22
Operating Expenses:
LOE (per Boe)
$11.00 - $12.00
$11.00 - $12.00
Midpoint (per Boe)
$11.50
$11.50
(1) In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, and well reactivations. Also included is anticipated spending for leasing acreage; and non-operated drilling, completion, capital workovers, and facility improvements.
(2) Includes wells drilled, completed, and placed online.
(3) Based on the $48 million midpoint of spending guidance in the second half of 2025, the Company continues to expect the following estimated allocation of capital, including:
61% for drilling, completion, and related infrastructure;
33% for recompletions and capital workovers;
4% for land, non-operated capital, and other; and
2% for facility improvements (environmental and emission reducing upgrades).
(4) Capital expenditures for the full year 2025 are now at a midpoint of $97 million (low of $87 million and high of $107 million).
Conference Call Information
Ring will hold a conference call on Thursday, August 7, 2025 at 11:00 a.m. ET (10 a.m. CT) to discuss its 2Q 2025 operational and financial results. An updated investor presentation will be posted to the Company's website prior to the conference call.
To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the "Ring Energy 2Q 2025 Earnings Conference Call". International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring's website at www.ringenergy.com under "Investors" on the "News & Events" page. An audio replay will also be available on the Company's website following the call.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company's strategy and prospects. The forward-looking statements include statements about the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company, expected benefits to the Company and its stockholders from the Lime Rock Acquisition, and plans and objectives of management for future operations. Forward-looking statements also include assumptions and projections for third quarter and second half 2025 guidance for sales volumes, oil mix as a percentage of total sales, capital expenditures, operating expenses and the projected impacts thereon, and the number of wells expected to be drilled and completed. Forward-looking statements are based on current expectations and assumptions and analyses made by Ring and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities particularly in the winter; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company's credit facility; Ring's ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; changes in U.S. energy, environmental, monetary, tax and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; cost and availability of transportation and storage capacity as a result of oversupply, government regulation or other factors; and Ring's ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company's reports filed with the Securities and Exchange Commission ("SEC"), including its Form 10-K for the fiscal year ended December 31, 2024, and its other SEC filings. Ring undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.
Contact Information
Al Petrie AdvisorsAl Petrie, Senior PartnerPhone: 281-975-2146 Email:
RING ENERGY, INC.Condensed Statements of Operations(Unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2025
2025
2024
2025
2024
Oil, Natural Gas, and Natural Gas Liquids Revenues
$
82,602,759
$
79,091,207
$
99,139,349
$
161,693,966
$
193,642,485
Costs and Operating Expenses
Lease operating expenses
20,245,981
19,677,552
19,309,017
39,923,533
37,669,451
Gathering, transportation and processing costs
133,809
203,612
107,629
337,421
273,683
Ad valorem taxes
1,648,647
1,532,108
1,337,276
3,180,755
3,482,907
Oil and natural gas production taxes
3,832,607
3,584,455
3,627,264
7,417,062
8,055,567
Depreciation, depletion and amortization
25,569,914
22,615,983
24,699,421
48,185,897
48,491,871
Asset retirement obligation accretion
382,251
326,549
352,184
708,800
703,018
Operating lease expense
175,090
175,091
175,090
350,181
350,181
General and administrative expense
7,138,519
8,619,976
7,713,534
15,758,495
15,182,756
Total Costs and Operating Expenses
59,126,818
56,735,326
57,321,415
115,862,144
114,209,434
Income from Operations
23,475,941
22,355,881
41,817,934
45,831,822
79,433,051
Other Income (Expense)
Interest income
69,658
90,058
144,933
159,716
223,477
Interest (expense)
(11,757,404
)
(9,498,786
)
(10,946,127
)
(21,256,190
)
(22,445,071
)
Gain (loss) on derivative contracts
14,648,054
(928,790
)
(1,828,599
)
13,719,264
(20,843,094
)
Gain (loss) on disposal of assets
155,293
124,610
51,338
279,903
89,693
Other income
150,770
8,942
,
159,712
25,686
Net Other Income (Expense)
3,266,371
(10,203,966
)
(12,578,455
)
(6,937,595
)
(42,949,309
)
Income Before Provision for Income Taxes
26,742,312
12,151,915
29,239,479
38,894,227
36,483,742
Provision for Income Taxes
(6,107,425
)
(3,041,177
)
(6,820,485
)
(9,148,602
)
(8,549,371
)
Net Income
$
20,634,887
$
9,110,738
$
22,418,994
$
29,745,625
$
27,934,371
Basic Earnings per Share
$
0.10
$
0.05
$
0.11
$
0.15
$
0.14
Diluted Earnings per Share
$
0.10
$
0.05
$
0.11
$
0.15
$
0.14
Basic Weighted-Average Shares Outstanding
206,522,356
199,314,182
197,976,721
202,964,856
197,684,638
Diluted Weighted-Average Shares Outstanding
206,982,327
201,072,594
200,428,813
204,085,207
199,845,512
RING ENERGY, INC.Condensed Operating Data(Unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
June 30,
2025
2025
2024
2025
2024
Net sales volumes:
Oil (Bbls)
1,320,508
1,086,694
1,239,731
2,407,202
2,458,568
Natural gas (Mcf)
1,703,808
1,615,196
1,538,347
3,319,004
3,034,854
Natural gas liquids (Bbls)
333,374
299,366
304,448
632,740
568,250
Total oil, natural gas and natural gas liquids (Boe)(1)
1,937,850
1,655,259
1,800,570
3,593,109
3,532,627
% Oil
68
%
66
%
69
%
67
%
70
%
% Natural Gas
15
%
16
%
14
%
15
%
14
%
% Natural Gas Liquids
17
%
18
%
17
%
18
%
16
%
Average daily sales volumes:
Oil (Bbls/d)
14,511
12,074
13,623
13,299
13,509
Natural gas (Mcf/d)
18,723
17,947
16,905
18,337
16,675
Natural gas liquids (Bbls/d)
3,663
3,326
3,346
3,496
3,122
Average daily equivalent sales (Boe/d)
21,295
18,392
19,786
19,851
19,410
Average realized sales prices:
Oil ($/Bbl)
$
62.69
$
70.40
$
80.09
$
66.17
$
77.93
Natural gas ($/Mcf)
(1.31
)
(0.19
)
(1.93
)
(0.77
)
(1.25
)
Natural gas liquids ($/Bbls)
6.19
9.65
9.27
7.83
10.29
Barrel of oil equivalent ($/Boe)
$
42.63
$
47.78
$
55.06
$
45.00
$
54.82
Average costs and expenses per Boe ($/Boe):
Lease operating expenses
$
10.45
$
11.89
$
10.72
$
11.11
$
10.66
Gathering, transportation and processing costs
