Ring Energy, Inc. (REI) Bundle
A Brief History of Ring Energy, Inc.
Ring Energy, Inc. (NYSE: REI) has established itself as a significant player in the oil and gas exploration and production sector. The company primarily focuses on the acquisition and development of oil and natural gas properties in the United States, particularly in the Permian Basin and Central Basin Platform.
Corporate Formation and Early Years
Founded in 2011, Ring Energy initially focused on the acquisition of oil and natural gas properties. The company went public in 2014, raising capital to fund its growth strategy, which included the acquisition of additional properties and drilling activities.
Recent Acquisitions
In 2023, Ring Energy made significant acquisitions, including the Founders Acquisition completed in August, which added substantial production capacity and reserves. This acquisition was part of a broader strategy to enhance operational efficiency and increase production levels.
Financial Performance Overview
As of September 30, 2024, Ring Energy reported significant financial metrics that highlight its operational success:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $33,878,424 | ($7,539,222) | — |
| Total Revenue | $89,244,383 | $93,681,798 | (5%) |
| Net Production (Oil Bbls) | 1,214,788 | 1,106,531 | 10% |
| Average Oil Price (per Bbl) | $74.43 | $81.69 | (9%) |
Operational Highlights
During the first three quarters of 2024, Ring Energy focused on increasing its production capabilities. The company drilled and completed numerous wells, enhancing its output:
| Quarter | Wells Drilled | Wells Completed | Drilled Uncompleted (DUC) |
|---|---|---|---|
| Q1 2024 | 11 | 11 | — |
| Q2 2024 | 11 | 11 | — |
| Q3 2024 | 13 | 11 | 2 |
Market Conditions and Commodity Prices
The financial results of Ring Energy are closely tied to the prices of crude oil and natural gas. In 2024, the company faced fluctuating market conditions that directly impacted its revenue streams:
| Commodity | Average Price (2024) | Average Price (2023) | Change (%) |
|---|---|---|---|
| Oil (per Bbl) | $74.43 | $81.69 | (9%) |
| Natural Gas (per Mcf) | ($2.26) | $0.36 | (728%) |
Debt and Capital Management
As of September 30, 2024, Ring Energy had $392 million outstanding on its Credit Facility, with a total borrowing base of $600 million. The company reported a weighted average interest rate of 9.3% for the third quarter of 2024, reflecting a slight increase from the previous year.
Looking Forward
Ring Energy continues to focus on maximizing cash flow and reducing debt levels while pursuing additional acquisitions to enhance its operational footprint. The company remains committed to navigating the complexities of the energy market to deliver value to its shareholders.
A Who Owns Ring Energy, Inc. (REI)
Major Shareholders
As of 2024, Ring Energy, Inc. (REI) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 18,000,000 | 9.1% |
| Institutional Investor | The Vanguard Group, Inc. | 15,500,000 | 7.8% |
| Institutional Investor | Dimensional Fund Advisors LP | 10,000,000 | 5.0% |
| Insider | Chad L. McWhorter (CEO) | 3,500,000 | 1.8% |
| Insider | Other Executives and Directors | 4,000,000 | 2.0% |
| Individual Investor | Public Float | 151,196,034 | 75.3% |
Stock Performance
As of September 30, 2024, Ring Energy, Inc. (REI) has shown a fluctuating stock performance. The closing stock price was $4.00 per share, reflecting a market capitalization of approximately $792 million based on 198,196,034 shares outstanding.
Recent Financial Performance
For the nine months ended September 30, 2024, Ring Energy reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Net Income | $61,812,795 |
| Total Revenue | $282,886,868 |
| Total Assets | $1,399,765,010 |
| Total Liabilities | $548,454,867 |
| Total Stockholders' Equity | $851,310,143 |
Debt and Financing
As of September 30, 2024, Ring Energy had a revolving line of credit with an outstanding balance of $392 million. The company has been actively managing its debt levels, making net paydowns of $15 million during the third quarter of 2024.
Insider Transactions
Insider transactions have also been notable, with executives and board members selling or purchasing shares periodically. The following table outlines recent insider transactions:
| Insider Name | Transaction Type | Shares Transacted | Price per Share |
|---|---|---|---|
| Chad L. McWhorter | Sale | 200,000 | $3.75 |
| Other Executive | Purchase | 100,000 | $4.10 |
Conclusion
As of 2024, the ownership of Ring Energy, Inc. is characterized by a mix of institutional investments, insider holdings, and public float, reflecting a balanced and diverse shareholder base.
Ring Energy, Inc. (REI) Mission Statement
As of 2024, Ring Energy, Inc. (REI) aims to maximize cash flow through a combination of cost monitoring and prudent capital allocation. The company prioritizes projects that provide high rates of return in the current commodity price environment. Additionally, REI is committed to pursuing strategic acquisitions that enhance its asset base and operational efficiency.
Financial Overview
In the nine months ended September 30, 2024, Ring Energy reported a net income of $61,812,795, compared to $53,968,162 in the same period of 2023. The company’s total revenues for this period were $282,886,868, reflecting an increase from $261,113,283 in 2023.
| Financial Metric | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| Net Income | $61,812,795 | $53,968,162 | 14.2% |
| Total Revenues | $282,886,868 | $261,113,283 | 8.3% |
| Basic Earnings per Share | $0.31 | $0.29 | 6.9% |
| Diluted Earnings per Share | $0.31 | $0.28 | 10.7% |
Production Metrics
During the nine-month period ending September 30, 2024, the company achieved significant production increases:
| Production Type | Volume (Units) | Change (%) |
|---|---|---|
| Oil (Bbls) | 3,673,356 | 10% |
| Natural Gas (Mcf) | 4,739,881 | 0.3% |
| Natural Gas Liquids (Bbls) | 919,225 | 28% |
Debt and Capital Resources
As of September 30, 2024, Ring Energy had $392 million outstanding on its revolving credit facility, with a total borrowing base of $600 million. The company maintained compliance with all covenants of its credit agreement, which matures in August 2026.
| Debt Metric | Amount |
|---|---|
| Outstanding Credit Facility | $392,000,000 |
| Total Borrowing Base | $600,000,000 |
| Unused Credit Facility | $208,000,000 |
Operational Highlights
In terms of drilling and completion activities, Ring Energy has made significant progress in 2024:
| Quarter | Wells Drilled | Wells Completed | Working Interest (%) |
|---|---|---|---|
| Q1 2024 | 11 | 11 | 100% |
| Q2 2024 | 11 | 11 | 100% |
| Q3 2024 | 13 | 11 | 100% |
Commodity Price and Revenue Trends
For the three months ended September 30, 2024, the average sales price per barrel of oil was $74.43, compared to $81.69 in the previous year. The company’s total sales for this period were $89,244,383, marking a decrease from $93,681,798 in 2023.
| Revenue Source | Amount (Q3 2024) | Amount (Q3 2023) | Change (%) |
|---|---|---|---|
| Oil | $90,416,363 | $90,392,004 | 0.03% |
| Natural Gas | ($3,859,603) | $562,374 | (786%) |
| Total Sales | $89,244,383 | $93,681,798 | (5%) |
Ring Energy's mission statement and strategic priorities reflect its commitment to maximizing shareholder value through efficient operations and strategic growth initiatives.
How Ring Energy, Inc. (REI) Works
Company Overview
Ring Energy, Inc. (REI) is an independent oil and natural gas exploration and production company focused primarily in the Permian Basin. As of 2024, the company operates in two key regions: the Northwest Shelf and the Central Basin Platform. REI employs advanced drilling and completion techniques to optimize production and enhance operational efficiencies.
Financial Performance
For the nine months ended September 30, 2024, Ring Energy reported the following financial results:
| Metric | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Net Sales | $282,886,868 | $261,113,283 | $21,773,585 | 8% |
| Oil Production (Bbls) | 3,673,356 | 3,325,323 | 348,033 | 10% |
| Natural Gas Production (Mcf) | 4,739,881 | 4,726,056 | 13,825 | — |
| NGL Production (Bbls) | 919,225 | 715,832 | 203,393 | 28% |
| Average Oil Price (per Bbl) | $76.77 | $75.79 | $0.98 | 1% |
| Average Natural Gas Price (per Mcf) | $(1.61) | $0.11 | $(1.72) | NM |
| Average NGL Price (per Bbl) | $9.29 | $11.97 | $(2.68) | (22%) |
| Total Production (Boe) | 5,382,561 | 4,828,831 | 553,730 | 11% |
Operational Costs
For the nine months ended September 30, 2024, Ring Energy's operational costs were as follows:
| Cost Category | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Lease Operating Expenses (LOE) | $57,984,733 | $51,426,145 | $6,558,588 | 13% |
| Average LOE per Boe | $10.77 | $10.65 | $0.12 | 1% |
| Gathering, Transportation, and Processing Costs (GTP) | $376,103 | $(6,985) | $383,088 | NM |
| Ad Valorem Taxes | $5,647,469 | $5,120,119 | $527,350 | 10% |
| Average Ad Valorem Taxes per Boe | $1.05 | $1.06 | $(0.01) | (1%) |
| Oil and Natural Gas Production Taxes | $12,259,418 | $13,173,568 | $(914,150) | (7%) |
| Average Production Taxes per Boe | $2.28 | $2.73 | $(0.45) | (16%) |
Debt and Interest Expense
As of September 30, 2024, Ring Energy's debt and interest expenses were reported as follows:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Weighted Average Notes Payable Balance | $616,090 | $651,564 | $(35,474) |
| Weighted Average Interest Rate | 8.76% | 7.21% | 1.55% |
| Interest Paid for Notes Payable | $40,481 | $35,211 | $5,270 |
Acquisition Strategy
In 2024, Ring Energy focused on strategic acquisitions to enhance its asset base. The Founders Acquisition, completed in August 2023, was significant, leading to increased production capabilities and reserves.
Production and Investment Activities
In 2024, Ring Energy drilled and completed multiple wells across its operational areas:
- Northwest Shelf: Drilled and completed two 1-mile horizontal wells.
- Central Basin Platform: Drilled and completed eleven wells, all with a working interest of 100%.
- In the third quarter, additional drilling included four 1-mile horizontal wells in Andrews County.
Market Conditions
Ring Energy operates in a challenging market environment, particularly for natural gas, which has experienced negative pricing conditions due to pipeline capacity constraints. This has significantly impacted natural gas revenues, leading to negative realized prices at times.
How Ring Energy, Inc. (REI) Makes Money
Revenue Sources
Ring Energy, Inc. primarily generates revenue from the sale of crude oil, natural gas, and natural gas liquids (NGLs). The breakdown of net sales for the nine months ended September 30, 2024, is as follows:
| Revenue Source | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Oil | $282,000,446 | $252,020,403 | $29,980,043 | 12% |
| Natural Gas | ($7,650,645) | $526,161 | ($8,176,806) | NM |
| NGLs | $8,537,067 | $8,566,719 | ($29,652) | 0% |
| Total Sales | $282,886,868 | $261,113,283 | $21,773,585 | 8% |
Production Volume and Pricing
For the nine months ended September 30, 2024, Ring Energy reported the following production metrics:
| Production Type | Volume (2024) | Volume (2023) | Change (Boe) | Change (%) |
|---|---|---|---|---|
| Oil (Bbls) | 3,673,356 | 3,325,323 | 348,033 | 10% |
| Natural Gas (Mcf) | 4,739,881 | 4,726,056 | 13,825 | — |
| NGLs (Bbls) | 919,225 | 715,832 | 203,393 | 28% |
| Total Production (Boe) | 5,382,561 | 4,828,831 | 553,730 | 11% |
The average sales prices for these products were:
| Product | Average Price (2024) | Average Price (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Oil (per Bbl) | $76.77 | $75.79 | $0.98 | 1% |
| Natural Gas (per Mcf) | ($1.61) | $0.11 | ($1.72) | NM |
| NGLs (per Bbl) | $9.29 | $11.97 | ($2.68) | (22%) |
| Total (per Boe) | $52.56 | $54.07 | ($1.51) | (3%) |
Cost Structure
Ring Energy's production costs for the nine months ended September 30, 2024, include:
| Cost Type | Total Cost (2024) | Total Cost (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Lease Operating Expenses (LOE) | $57,984,733 | $51,426,145 | $6,558,588 | 13% |
| Gathering, Transport & Processing | $376,103 | ($6,985) | $383,088 | NM |
| Ad Valorem Taxes | $5,647,469 | $5,120,119 | $527,350 | 10% |
| Production Taxes | $12,259,418 | $13,173,568 | ($914,150) | (7%) |
Net Income and Earnings Per Share
Net income for the nine months ended September 30, 2024, was reported at:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Net Income | $61,812,795 | $53,968,162 |
| Basic Earnings per Share | $0.31 | $0.29 |
| Diluted Earnings per Share | $0.31 | $0.28 |
Financial Position
As of September 30, 2024, Ring Energy's total assets and liabilities were:
| Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Assets | $1,399,765,010 | $1,376,496,392 |
| Total Liabilities | $548,454,867 | $589,913,492 |
| Total Stockholders' Equity | $851,310,143 | $786,582,900 |
Ring Energy, Inc. (REI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Ring Energy, Inc. (REI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ring Energy, Inc. (REI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ring Energy, Inc. (REI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.