Ring Energy Announces Credit Facility Extension and Amendment
Ring Energy announced the extension and amendment of its senior secured credit facility, maintaining a borrowing base of $585 million under its $1.0 billion facility.
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Rhea-AI Summary
Positive
- Maintained substantial borrowing base of $585 million despite market volatility
- Extended credit facility term by 34 months to June 2029
- Secured 25 basis point reduction in pricing grid, potentially lowering borrowing costs
- Expanded banking relationships to 11-member syndicate, including addition of Citibank
Negative
- Slight reduction in borrowing base compared to previous year
- Continued reliance on debt financing
Details
News Market Reaction – REI
The recorded move for REI in the trading session of this news was -7.09%.
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THE WOODLANDS, Texas, June 18, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today announced that the borrowing base was affirmed at
KEY HIGHLIGHTS
- Entered into a Third Amended and Restated Credit Agreement with a borrowing base of
$585 million ; - Extended Credit Facility term 34 months to June 2029, supported by an 11-member banking syndicate;
- Reflects a 25 basis point reduction in the Applicable Margin pricing grid; and
- Next regularly scheduled bank redetermination to occur during the fall of 2025.
Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “Ring has worked to strengthen our balance sheet and improve the quality of assets supporting our Credit Facility. We value the ongoing support from our bank group and are pleased to have Bank of America as our new administrative agent. Despite oil and gas price volatility in 2025, our asset base enabled us to maintain a sufficient borrowing base, with only a slight reduction from last year. We continue to focus on generating free cash flow through cost reductions, divestitures of non-core assets, and acquiring high-margin, low-break-even assets, using excess cash to reduce debt and create value for stockholders across commodity price cycles.”
We further expanded our banking relationships by adding Citibank, N.A. to the syndicate which now includes Bank of America, N.A., Citizens Bank, N.A., KeyBanc National Association, Mizuho Bank, Ltd., Truist Bank, U.S. Bank National Association, Cathay Bank, First Horizon Bank, Amegy Bank and Goldman Sachs Lending Partners, LLC.
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 Company’s efforts to manage commodity price volatility, and other areas of focus. Forward-looking statements are based on current expectations and subject to numerous assumptions and analyses made by Ring and its management considering 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. 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 Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com
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