Ring Energy Stock Price, News & Analysis

Ring Energy, Inc. (NYSE American: REI) announced successful results from its Phase II drilling program in Yoakum County, Texas. Three new wells achieved an average production of approximately 300 barrels of oil per day per well shortly after coming online. The company's working interest in these wells is around 74%. All seven wells from both Phase I and II were completed on time and within budget. With favorable production outcomes and a robust oil price environment, the company plans to initiate Phase III in the third quarter of 2021, aiming to maximize free cash flow.

Ring Energy, Inc. (NYSE American: REI) announced the reaffirmation of its senior revolving credit facility borrowing base at $350 million. This revision also eases the minimum required oil hedges for 2022 from 4,000 Bbls/d to 3,100 Bbls/d, ensuring full coverage by existing hedges. The changes are expected to enhance cash flow generation for 2021 and offer greater price optionality. The next bank redetermination is scheduled for November 1, 2021. The CEO highlighted improved economic conditions and operational strategies as factors contributing to this positive outcome.

Ring Energy, Inc. (NYSE American: REI) provided an update on its derivative positions, highlighting a shift to a more opportunistic hedging strategy due to improved crude oil prices. Key adjustments include the buyback of a 1,500 Bbl/d call option for 2021 and new swap contracts targeting approximately 879 Bbl/d for 2022, both at favorable prices. The company anticipates over 320,000 barrels of crude oil sales at prices exceeding $55.35 per barrel. Increased cash flow from these sales will primarily be utilized to pay down debt, enhancing financial stability.

Ring Energy, Inc. reported operational and financial results for Q1 2021, marking the sixth consecutive quarter of positive Free Cash Flow at $2.9 million. Despite a net loss of $19.1 million, or $0.19 per share, adjusted net income was $7.0 million, or $0.07 per share. Production averaged 7,960 Boe/d, impacted by a severe winter storm. The company reduced debt by $7.5 million and reaffirmed its full year guidance, expecting to drill 6 to 8 new wells. Revenues increased to $39.5 million, thanks to higher commodity prices, despite a decline in sales volumes.

Ring Energy, Inc. (NYSE American: REI) announced its financial update for Q1 2021, reporting a $7.5 million debt reduction, bringing the total to $305.5 million against a $350 million borrowing base. Liquidity improved to $46.2 million. The Northwest Shelf (NWS) drilling program produced 37,550 barrels of oil equivalent in March. Average net sales were 7,960 Boepd for Q1, affected by a severe winter storm. However, guidance for 2021 net sales remains at 9,000 to 9,500 Boepd. The earnings release is scheduled for May 10, with a conference call on May 11.

Ring Energy, Inc. (NYSE American: REI) has launched its next phase of the Northwest Shelf drilling program with three new wells in Yoakum County, Texas. The first well, Bevo 664 C #2H, is complete, while the second well is underway, and the third will start later this month. The previous four wells produced a cumulative 37,550 gross barrels of oil equivalent in March 2021. CEO Paul D. McKinney emphasized the focus on high-return projects and operational excellence to maintain production and control costs, aiming to generate free cash flow and reduce debt in 2021.

American Resources, Inc. and SK Energy encourage Ring Energy, Inc. (NYSE: REI) for its recent actions aligning with their March 2020 recommendations. These include board reconstitution, consolidation of operations, and a focus on core assets. Ring Energy's share price rose over 270% since their last letter, outperforming industry benchmarks. However, challenges remain, including accelerated deadlines for shareholder nominations and high debt levels, which could hinder future growth unless effectively managed.

Travis Thomas has been promoted to Chief Financial Officer (CFO) of Ring Energy, effective March 24, 2021. He previously served as Vice President of Finance and will work from the company's new headquarters in The Woodlands, Texas. Former CFO Randy Broaddrick is stepping down to focus on personal interests but will continue to support the company in a limited capacity. Travis brings 16 years of financial leadership, including 11 years in the energy sector, and is expected to enhance the company's strategic goals aimed at growth and shareholder value.

Ring Energy, Inc. (NYSE American: REI) reported its fourth quarter and full year 2020 operational and financial results on March 16, 2021. Despite challenges from the pandemic, the company achieved 9,307 Boe/d sales volumes, exceeding guidance, and generated Free Cash Flow of $12.7 million in Q4, marking its fifth consecutive quarter of positive cash flow. However, it faced a net loss of $160.3 million in Q4 and $253.4 million for the year. The company utilized cash flow to pay down $75 million of debt and initiated a drilling program in response to rising oil prices.