Ring Energy Announces Debt Paydown, Reaffirmation of Borrowing Base and Enhanced Liquidity Position

Ring Energy (NYSE American: REI) reduced debt under its senior revolving credit facility by $66 million in Q2 2026, bringing total credit facility debt to $360 million at June 30, 2026.

Rhea-AI Summary

Ring Energy (NYSE American: REI) reduced debt under its senior revolving credit facility by $66 million in Q2 2026, bringing total credit facility debt to $360 million at June 30, 2026.

The $585 million borrowing base was reaffirmed, liquidity rose ~41% to $226.1 million, and the credit facility was amended to remove the 10-basis-point SOFR credit spread adjustment.

Positive

• Debt under the credit facility reduced by $66 million in Q2 2026
• Total credit facility debt at June 30, 2026 lowered to $360 million
• Liquidity increased from $160 million to $226.1 million (~41%)
• Borrowing base reaffirmed at $585 million after semi-annual redetermination
• Credit facility amended to eliminate 10-basis-point SOFR credit spread

Negative

• None.

Argus Jul 2 session

-1.83% close to close Open Argus

Details

News Market Reaction – REI

On Jul 2, the day this news came out, REI closed 1.83% below the previous close.

Data tracked by StockTitan Argus for the Jul 2 session.

Key Figures

Debt paydown: $66 million Credit facility size: $1.0 billion Borrowing base: $585 million +5 more

Debt paydown

$66 million

Debt reduction under senior revolving credit facility in 2Q 2026

Credit facility size

$1.0 billion

Total capacity of senior revolving credit facility

Borrowing base

$585 million

Borrowing base reaffirmed after semi-annual redetermination

Liquidity at June 30, 2026

$226.1 million

Liquidity position after debt paydown and equity proceeds

Liquidity at March 31, 2026

$160 million

Previous quarter-end liquidity for comparison

Liquidity improvement

41%

Increase in liquidity from March 31 to June 30, 2026

Total debt outstanding

$360 million

Debt outstanding under credit facility at June 30, 2026

SOFR spread adjustment

10 basis points

SOFR credit spread adjustment eliminated in credit facility amendment

Historical Context

5 past events · Latest: Jun 29

5 events

1. Jun 29

   Index inclusion

   24h Move

   +2.8%

   Added to Russell 3000 and related indexes following 2026 reconstitution.

2. May 18

   Investor event notice

   24h Move

   -1.5%

   Announcement of participation in Water Tower Research fireside chat.

3. May 12

   Equity offering pricing

   24h Move

   -29.2%

   Priced 44.4M shares at $1.35 for about $60M gross proceeds.

4. May 12

   Equity offering launch

   24h Move

   -29.2%

   Proposed $60M common stock offering plus $9M over-allotment option.

5. May 06

   1Q26 earnings results

   24h Move

   -8.3%

   Reported net loss driven by ceiling test impairment and derivative loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

greenshoe, sofr, credit facility, borrowing base

4 terms

greenshoe financial

"including the full exercise of the greenshoe, the underwriters’ option"

A greenshoe is an option given to the underwriters of a public share offering to sell up to a set extra percentage of shares beyond the original amount, usually to stabilize the stock price after the offering. Think of it as a short-term reserve that underwriters can tap to meet extra demand or buy back shares to stop the price from dipping; for investors it can reduce early volatility and signal strong demand, though it can also modestly increase dilution if exercised.

sofr financial

"amended to eliminate the 10-basis point SOFR credit spread adjustment."

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

credit facility financial

"its $1.0 billion senior revolving credit facility (the “Credit Facility”)"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

borrowing base financial

"its borrowing base reaffirmed at $585 million following the Company’s"

A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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THE WOODLANDS, Texas, July 02, 2026 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today announced that it has recently paid down debt by $66 million and that its $1.0 billion senior revolving credit facility (the “Credit Facility”) has been amended and its borrowing base reaffirmed at $585 million following the Company’s most recent semi-annual redetermination. Ring’s next borrowing base redetermination is scheduled for fall 2026.

The Company reduced outstanding borrowings under the Credit Facility by $66 million during the second quarter of 2026, using net proceeds from its recently completed equity offering, including the full exercise of the greenshoe, the underwriters’ option to purchase additional shares, as well as cash flow from operations. The combination of these actions increased liquidity at June 30, 2026 to $226.1 million from $160 million at March 31, 2026, a ~41% improvement.

Key Highlights

• Borrowings were reduced by $66 million during the second quarter of 2026, resulting in $360 million of total debt outstanding under the Credit Facility at June 30 and liquidity was increased ~41 %;
• Borrowing base reaffirmed at $585 million; and
• Credit Facility was amended to eliminate the 10-basis point SOFR credit spread adjustment.
  

Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “The reaffirmation of our $585 million borrowing base underscores the strength of Ring’s asset base and the continued confidence of our lending group. Coupled with the $66 million debt reduction with proceeds from our recent equity offering and cash flow from operations, we have enhanced our liquidity, lowered leverage, and provided additional flexibility to execute our disciplined capital allocation strategy. We remain focused on strengthening the balance sheet, improving operating efficiency, and positioning Ring to deliver sustainable long-term value for our stockholders.”

About Ring Energy, Inc.

Ring Energy, Inc. is a growth-oriented independent oil and natural gas exploration and production company based in The Woodlands, Texas, engaged in the development, production, acquisition, and exploration of oil and natural gas properties, with current operations focused in the Permian Basin of Texas. The Company’s drilling operations target oil- and liquids-rich producing formations in the Northwest Shelf and Central Basin Platform of the Permian Basin.

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 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties and include, without limitation, statements regarding the Company’s strategy and prospects. Such statements are subject to certain risks and uncertainties disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2025, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements.

Contact Information

Sonu Singh Johl
Executive Vice President, Chief Financial Officer and Treasurer
Phone: 281-397-3699
Email: IR@ringenergy.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What debt reduction did Ring Energy (REI) announce on July 2, 2026?

Ring Energy reported paying down $66 million of debt on its senior revolving credit facility in Q2 2026. According to Ring Energy, this reduced total debt under the facility to $360 million as of June 30, 2026.

How did Ring Energy's liquidity change as of June 30, 2026 (REI)?

Ring Energy stated that liquidity rose to $226.1 million at June 30, 2026, from $160 million at March 31, 2026. According to Ring Energy, this represents an improvement of approximately 41% during the second quarter.

What is Ring Energy's current borrowing base under its credit facility (REI)?

Ring Energy's senior revolving credit facility borrowing base was reaffirmed at $585 million following its latest semi-annual redetermination. According to Ring Energy, the next borrowing base redetermination is scheduled for fall 2026, providing visibility on near-term borrowing capacity.

How was Ring Energy's $66 million debt paydown funded (REI)?

Ring Energy used net proceeds from a recent equity offering, including full greenshoe exercise, plus cash flow from operations to reduce debt by $66 million. According to Ring Energy, these actions helped enhance liquidity and lower leverage.

What amendment did Ring Energy make to its credit facility SOFR terms (REI)?

Ring Energy amended its senior revolving credit facility to remove the 10-basis-point SOFR credit spread adjustment. According to Ring Energy, this change applies to its $1.0 billion facility and follows the reaffirmation of a $585 million borrowing base.

When is the next borrowing base redetermination for Ring Energy's credit facility (REI)?

The next borrowing base redetermination for Ring Energy's senior revolving credit facility is scheduled for fall 2026. According to Ring Energy, the current borrowing base remains at $585 million following the most recent semi-annual review.