Ring Energy Announces Reaffirmation of Borrowing Base Under Its Credit Facility

Rhea-AI Summary

Ring Energy (NYSE American: REI) announced a reaffirmation of its borrowing base at $585 million under its $1.0 billion senior revolving credit facility.

Key points: the borrowing base was reaffirmed at $585 million; there were no changes to the Credit Facility terms; and the next scheduled bank redetermination is set for spring 2026. Management said the company will focus on strengthening the balance sheet, managing costs, and maintaining production in 2026.

Positive

• Borrowing base reaffirmed at $585 million
• No changes to credit facility terms reported

Negative

• Borrowing base subject to redetermination in spring 2026

Key Figures

Borrowing base $585 million Reaffirmed under senior revolving credit facility

Credit facility size $1.0 billion Total capacity of senior revolving credit facility

Market Reality Check

$0.8558 Last Close

Volume Volume 1,326,573 is 1.06x the 20-day average of 1,247,132 shares. normal

Technical Price $0.8558 is trading below the 200-day MA at $0.93, and 44.79% below the 52-week high.

Peers on Argus

REI was down 2.58% pre-news while key peers like INR (-6.17%), BRY (-4.03%), and WTI (-4.12%) also traded lower, suggesting broader pressure in Oil & Gas E&P even though the momentum scanner did not flag a coordinated sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 03	Investor event	Neutral	+3.9%	Announcement of participation in a Water Tower Research fireside chat.
Nov 06	Earnings update	Neutral	-0.3%	Q3 2025 results with non-cash impairment but positive adjusted metrics and FCF.
Oct 16	Earnings timing	Neutral	-8.6%	Scheduling of Q3 2025 earnings release and conference call details.
Sep 12	Management change	Negative	-4.7%	Immediate resignation of CFO and appointment of an interim CFO.
Aug 26	Debt reduction plan	Positive	+8.0%	Announcement of Q3 2025 debt reduction target and credit facility paydown.

Pattern Detected

Recent news reactions mostly aligned with the tone of announcements, with one notable selloff on a neutral scheduling update.

Recent Company History

Over the last few months, Ring Energy has focused on leverage reduction, liquidity, and governance changes. In August 2025, it set a Q3 2025 debt reduction target and highlighted a major shareholder exit, which coincided with an 8.02% gain. Subsequent CFO departure news in September 2025 saw a negative reaction. Third-quarter results in November 2025 showed a non‑cash impairment but ongoing adjusted profitability and liquidity. The latest reaffirmation of the $585 million borrowing base fits this ongoing balance sheet and credit-capacity narrative.

Market Pulse Summary

This announcement reaffirmed Ring Energy’s $585 million borrowing base under its $1.0 billion senior revolving credit facility, with no changes to key terms and the next bank redetermination set for spring 2026. It continues a recent focus on leverage reduction, liquidity, and balance sheet strength seen in earlier debt-target and earnings updates. Investors may watch future borrowing levels, cash flow generation, and upcoming redeterminations to assess how this credit capacity supports longer-term production and growth plans.

Key Terms

borrowing base financial

"the borrowing base was reaffirmed at $585 million under its $1.0 billion"

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.

redetermination financial

"next regularly scheduled bank redetermination for the Company to occur"

A redetermination is an official re-evaluation of a prior decision—such as eligibility, coverage, payment amount, or regulatory status—conducted by an insurer, government agency, or regulator. For investors, it matters because a change after review can alter a company’s expected revenue, reimbursement rates, or legal obligations; think of it like a store re-checking a past receipt and either charging more, issuing a refund, or changing what’s covered.

AI-generated analysis. Not financial advice.

THE WOODLANDS, Texas, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today announced that the borrowing base was reaffirmed at $585 million under its $1.0 billion senior revolving credit facility (the “Credit Facility”).

KEY HIGHLIGHTS

• Reaffirmation of the Credit Facility borrowing base at $585 million;        
• No changes to the terms under the Credit Facility, with next regularly scheduled bank redetermination for the Company to occur during the spring of 2026.

Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We are grateful for the partnership with our banking syndicate, the reaffirmation of our $585 million borrowing base, and their confidence in our management team and assets. As we look to 2026, our primary focus will remain on strengthening our balance sheet, managing costs, and maintaining our production levels. We believe that pursuing our value focused proven strategy will not only allow us to weather this price cycle, but it will also better prepare Ring Energy to create value for our stockholders through future growth.”

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

FAQ

What borrowing base did Ring Energy (REI) announce on December 16, 2025?

Ring announced a borrowing base reaffirmation of $585 million under its credit facility.

Does the December 16, 2025 announcement change Ring Energy's credit facility terms?

No, the company stated there were no changes to the terms of the Credit Facility.

When is Ring Energy's next bank redetermination after the December 16, 2025 notice?

The next regularly scheduled bank redetermination is set for spring 2026.

How did Ring Energy say it will prioritize capital and operations after the reaffirmation?

Management said it will focus on strengthening the balance sheet, managing costs, and maintaining production in 2026.

What is the total size of Ring Energy's senior revolving credit facility as of December 16, 2025?

The senior revolving credit facility has a total size of $1.0 billion.