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FOR IMMEDIATE RELEASE
November 9, 2015 NYSE MKT: REI

RING ENERGY, INC. ANNOUNCES THIRD QUARTER AND NINE MONTH 2015 FINANCIAL
AND OPERATING RESULTS

Midland, TX. November 9, 2015 – Ring Energy, Inc. (NYSE MKT: REI) (“Ring”)(“Company”) announced today financial results for the three months and nine months ended September 30, 2015. For the three month period ended September 30, 2015, Ring had oil and gas revenues of $8,629,007 compared to $10,929,771 for the quarter ended September 30, 2014, and net loss of $1,138,268 or $0.04 per fully diluted share, compared to a net income of $1,726,469, or $0.06 per fully diluted share, for the same period in 2014. For the nine month period ended September 30, 2015, the Company reported oil and gas revenues of $23,651,498, compared to oil and gas revenues of $28,104,461 for the nine month period ended September 30, 2014, and a net loss for the nine month period ended September 30, 2015 of $1,579,725, or $0.06 per fully diluted share, compared to a net income of $5,711,896, or $0.22 per fully diluted share, for the same period in 2014. The revenue decrease was primarily due to lower received oil and gas prices.

For the three months ended September 30, 2015, oil sales volume increased to 181,069 barrels, compared to 124,526 barrels for the same period in 2014, and gas sales volume increased to 165,942 MCF (thousand cubic feet), compared to 8,192 MCF for the same period in 2014. For the nine months ended September 30, 2015, oil sales volume increased to 483,918 barrels, compared to 307,003 barrels for the same period in 2014, and gas sales volume increased to 280,307 MCF, compared to 23,951 MCF for the same period in 2014. The average commodity prices received by Ring were $45.24 per barrel of oil and $2.64 per MCF of natural gas for the quarter ended September 30, 2015, compared to $87.58 per barrel of oil and $2.92 per MCF of natural gas for the quarter ended September 30, 2014. The average prices received for the nine months ended September 30, 2015 were $47.31 per barrel of oil and $2.70 per MCF of natural gas, compared to $91.21 per barrel of oil and $4.24 per MCF of natural gas for the nine month period ended September 30, 2014.

Lease operating expenses, including production taxes, for the three months ended September 30, 2015 were $15.94 per barrel of oil equivalent (“BOE”), an 8% increase from the prior year. Depreciation, depletion and amortization costs, including accretion, decreased 37% to $22.86 per BOE. General and administrative costs, which included a $650,968 charge for stock based compensation, were $9.59 per BOE, a 34% decrease. For the nine months ended September 30, 2015, lease operating expenses, including production taxes, were $15.27 per BOE, a 6% increase. Depreciation, depletion and amortization costs, including accretion, were $22.20 per BOE, a 28% decrease, and general and administrative costs, which included a $1,962,142 charge for stock based compensation, were $10.88 per BOE, a 33% decrease.

There was outstanding debt of $40,900,000 on the Company’s $500 million senior secured credit facility at September 30, 2015.

Net cash flow from operations for the three and nine months ended September 30, 2015 was $3,522,565 or $0.12 per fully diluted share, and $11,309,746, or $0.41 per fully diluted share, compared to net cash flow of $7,995,660 and $20,691,009, or $0.30 and $0.81 per fully diluted share for the same periods in 2014 (1).

Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “As commodity prices continue to be depressed, we have focused our attention on improving efficiencies at both our legacy properties in the Permian Basin and our recently acquired Delaware Basin acreage. We have made infrastructure improvements at both sites and continue to work closely with all our vendors. We remain patient and diligent as we evaluate additional acquisition opportunities. We have built a solid company with years of drilling inventory and are anxious to restart our development program.”

Non-GAAP Financial Measures:
Earnings for the three months ended September 30, 2015 include a non-cash charge for stock based compensation of $650,968. Earnings for the nine months ended September 30, 2015 include a non-cash charge for stock based compensation of $1,962,142. Excluding such items, the Company’s earnings would have been a net loss of $0.02 per diluted share for the three months ended September 30, 2015, and a net loss of $0.01 for the nine months ended September 30, 2015. The Company believes results excluding these items are more comparable to estimates provided by security analysts and, therefore, are useful in evaluating operational trends of the Company and its performance, compared to other similarly situated oil and gas producing companies.

(1) Cash Flow from Operations is a non-GAAP financial measure that represents “Net Cash Provided By Operating Activities” adjusted for the change in operating assets and liabilities. See below for a reconciliation of the related amounts.

RING ENERGY, INC.
STATEMENTS OF OPERATIONS
  Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2015
(Unaudited)
2014
(Unaudited)
2015
(Unaudited)
2014
(Unaudited)
Oil and Gas Revenues
$ 8,629,007 $ 10,929,771 $ 23,651,498 $ 28,104,461
     
Cost and Operating Expenses
   
     Oil and gas production costs 2,917,296 1,347,929 6,991,148 3,196,907
     Oil and gas production taxes 410,347 504,091 1,110,262 1,297,104
     Depreciation, depletion and amortization 4,668,353 4,494,868 11,527,684 9,502,880
     Accretion expense 103,887 42,548 250,266 104,242
     General and administrative expense 2,002,638 1,816,131 5,775,355 5,015,399
     
     Total Costs and Operating Expenses 10,102,521 8,205,567 25,654,715 19,116,532
         
     Income (Loss) from Operations (1,473,514) 2,724,204 (2,003,217) 8,987,929
     
Other Income    
     Interest expense (350,737) (429,742)
     Interest income 1,831 16,224 2,613 78,573
     
     Net Other Income (348,906) 16,224 (427,129) 78,573
     
Income (Loss) Before Tax Provision (1,822,420) 2,740,428 (2,430,346) 9,066,502
     
(Provision For) Benefit From Income Taxes 684,152 (1,013,959) 850,621 (3,354,606)
     
Net Income (Loss) ($ 1,138,167) $ 1,726,469 ($ 1,579,725) $ 5,711,896
     
Basic Net Income (Loss) Per Common Share ($0.04) $0.07 ($0.06) $0.23
Diluted Net Income (Loss) Per Common Share ($0.04) $0.06 ($0.06) $0.22
         
Basic Weighted-Average Common Shares Outstanding 30,372,701 25,707,371 27,430,624 24,406,581
Diluted Weighted-Average Common Shares Outstanding 30,372,701 26,881,710 27,430,624 25,568,065
     

RING ENERGY, INC.
COMPARATIVE OPERATING STATISTICS
    Three Months Ended September 30,
    2015
2014
Change
Net Production - BOE per day
  2,269 1,368 66%
Per BOE:    
     Average Sales Price   $41.34 $86.82 -52%
             
     Operating Costs (Includes Production Taxes)   $15.94 $14.71 8%
     DD&A (Includes Accretion)   $22.86 $36.04 -37%
     General and Administrative Expenses   $ 9.59 $14.43 -34%

    Nine Months Ended September 30,
    2015
2014
Change
Net Production - BOE per day
  1,944 1,139 66%
Per BOE:    
     Average Sales Price   $ 44.57 $ 90.37 -52%
             
     Operating Costs (Includes Production Taxes)   $15.27 $14.45 6%
     DD&A (Includes Accretion)   $22.20 $30.89 -28%
     General and Administrative Expenses   $10.88 $16.13 -33%


RING ENERGY, INC.
CONSOLIDATED BALANCE SHEET
 
September 30,
2015
December 31,
2014
ASSETS
   
Current Assets
   
     Cash $ 3,118,234 $ 8,622,235
     Accounts receivable 2,660,662 3,616,676
     Joint interest billing receivable 2,722,958 2,683,787
     Prepaid expenses and retainers 320,273 160,600
     Total Current Assets 8,822,127 15,083,298
Property and Equipment, Using Full Cost Accounting    
     Oil and Gas properties subject to amortization 266,979,567 166,036,400
     Office equipment and automobiles 1,539,991 1,209,809
        Total Property and Equipment 268,519,558 167,246,209
     Accumulated depreciation, depletion and amortization (26,215,731) (14,688,047)
     Net Property and Equipment 242,303,827 152,558,162
Deferred Financing Costs 744,379
Total Assets $ 251,870,33 $167,641,460
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Liabilities    
     Accounts payable $ 7,525,150 $16,241,022
     Other accrued liabilities 22,029
     Total Current Liabilities $ 7,525,150 16,263,051
Noncurrent Liabilities    
     Deferred income taxes 4,088,769 4,939,390
     Long term debt 40,900,000
     Asset retirement obligation 6,261,614 3,896,489
     Total Liabilites 58,775,533 25,098,930
     
Stockholders' Equity    
     Preferred stock - $0.001 par value; 50,000,000
     shares authorized; No shares issued or outstanding
     Common stock - $0.001 par value; 150,000,000
     shares authorized
   
     30,391,342 shares and 25,725,001 shares
     outstanding, respectively
30,391 25,734
     Additional paid-in capital 192,659,661 140,532,323
     Retained Earnings 404,748 1,984,473
     Total Stockholders' Equity 193,094,800 142,542,530
Total Liabilities and Stockholders' Equity $ 251,870,333 $167,641,460
     

RING ENERGY, INC.
STATEMENTS OF CASH FLOW
  Nine Months Ended
  September 30, September 30,
 
2015
2014
Cash Flows From Operating Activities
   
     Net Income ($ 1,579,457) $ 5,711,896
     Adjustments to reconcile net income (loss) to net cash
     provided by operating activities:
   
       Depreciation, depletion and amortization 11,527,684 9,502,880
       Accretion expense 250,266 104,242
       Shared-based compensation 1,962,142 1,930,335
       Stock issued for services 87,050
       (Benefit from) Provision for income taxes (850,621) 3,354,606
     Changes in assets and liabilities:    
       Accounts receivable 916,843 (477,660)
       Prepaid expenses (904,052) (150,802)
       Accounts payable (8,737,901) 1,925,940
Net Cash Provided by Operating Activities 2,584,636 21,988,487
Cash Flows from Investing Activities    
     Payments to purchase oil and natural gas properties (77,191,925) (12,438,370)
     Payments to develop oil and natural gas properties (21,449,757) (60,938,454)
     Purchase of office equipment (330,182) (599,387)
     Plugging and abandonment costs incurred (186,626) (37,287)
     Net Cash Used in Investing Activities (99,158,490) (74,013,498)
Cash Flows from Financing Activities    
     Proceeds from option exercise 130,000 215,000
     Proceeds from issuance of common stock 50,039,853 28,526,276
     Proceeds from issuance of notes payable 40,900,000
     Net Cash Provided by Financing Activities 91,069,853 28,741,276
Net Increase (Decrease) in Cash (5,504,001) (23,283,735)
Cash at Beginning of Period 8,622,235 52,350,583
Cash at End of Period $ 3,118,234 $ 29,066,848
Supplemental Cash Flow Information    
     Cash paid for interest $ 174,410
     
Non-Cash Investing and Financing Activities    
     Stock issued as consideration in property acquisition $ 130,428
     Asset retirement obligation acquired $2,177,110 $ 322,778792
     Asset retirement obligation incurred during development 124,375 1,220,566
     
RECONCILIATION OF CASH FLOW FROM OPERATIONS
Net cash provided by operating activities $ 2,584,636 $ 21,988,487
Change in operating assets and liabilities 8,725,110 (1,297,478)
     
Cash flow from operations $ 11,309,746 $ 20,691,009
Management believes that the non-GAAP measure of cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the Company's ability to fund its capital program. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
     

RING ENERGY, INC.
NON-GAAP DISCLOSURE RECONCILIATION
ADJUSTED EBITDA
 
 
Nine Months Ended
 
September 30,
2015
September 30,
2014
NET INCOME (LOSS)
($1,579,725) $ 5,711,896
     
     Interest expense (Income) 427,129 (78,573)
     Deferred Income taxes (850,621) 3,354,606
     Depreciation, depletion and amortization 11,527,684 9,502,880
     Accretion expense 250,266 104,242
     Share-based compensation 1,962,142 1,930,335
     
ADJUSTED EBITDA $ 11,736,875 $ 20,525,386
     


About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas.

Safe Harbor Statement
This release contains forward-looking statements within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the Company’s strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2014. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.

For further information contact:
Bill Parsons, K M Financial, Inc.
(702) 489-4447 office
(602) 315-5926 mobile


 
  November 9, 2015

RING ENERGY, INC. ANNOUNCES THIRD QUARTER AND NINE MONTH 2015 FINANCIAL AND OPERATING RESULTS
 
  November 5, 2015

RING ENERGY, INC., SCHEDULES CONFERENCE CALL ON ITS 2015 THIRD QUARTER, NINE MONTH FINANCIAL AND OPERATING RESULTS
 
  October 21, 2015

RING ENERGY INC. REPORTS THIRD QUARTER 2015 OPERATIONS UPDATE
 
  August 10, 2015

RING ENERGY INC. ANNOUNCES SECOND QUARTER AND SIX MONTH 2015 FINANCIAL AND OPERATING RESULTS
 
  July 30, 2015

RING ENERGY, INC. SCHEDULES CONFERENCE CALL ON ITS 2015 SECOND QUARTER FINANCIAL AND OPERATING RESULTS
 
  July 27, 2015

RING ENERGY, INC. ISSUES CORRECTION OF SECOND QUARTER 2015 INTERNAL RESERVE ESTIMATES
 
  July 27, 2015

RING ENERGY, INC. RELEASES SECOND QUARTER 2015 OPERATIONS UPDATE
Management Highlights Delaware Basin Acquisition
 
  June 30, 2015

RING ENERGY, INC. ANNOUNCES COMPLETION OF DELAWARE BASIN ACQUISITION
 
  June 23, 2015

RING ENERGY, INC. ANNOUNCES COMPLETION OF PUBLIC COMMON STOCK OFFERING OF 4,500,00 SHARES
 
  June 18, 2015

RING ENERGY, INC. ANNOUNCES PRICING OF
PUBLIC OFFERING OF COMMON STOCK
 
  June 17, 2015

RING ENERGY, INC. LAUNCHES COMMON
STOCK OFFERING
 
  May 26, 2015

RING ENERGY, INC. SIGNS PURCHASE AND SALE AGREEMENT ON DELAWARE BASIN ACREAGE
 
  May 6, 2015

RING ENERGY ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2015
 
  May 5, 2015

RING ENERGY, INC., SCHEDULES CONFERENCE CALL ON ITS 2015 FIRST QUARTER FINANCIAL AND OPERATING RESULTS
 
  April 16, 2015

RING ENERGY, INC. RELEASES FIRST QUARTER 2015 OPERATIONS UPDATE
 
  March 16, 2015

RING ENERGYANNOUNCES FINANCIAL AND OPERATIONAL RESULTS FOR FOURTH QUARTER AND YEAR END 2014
2014 Revenues Increase 269%
Fourth Quarter Revenues Increase 98%
Proved Reserves Increase 43%
 
  March 9, 2015

RING ENERGY, INC. SCHEDULES CONFERENCE CALL ON ITS 2014 4TH QUARTER AND YEAR END FINANCIAL AND OPERATING RESULTS
 
  January 29, 2015

RING ENERGY, INC. ANNOUNCES FOURTH QUARTER AND YEAR END 2014 UPDATE
Company Production Increases 297% Over 2013 Management Discusses 2015 Strategy
 
 

 
   
   

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Ring Energy, Inc. is an independent oil and gas exploration company with headquarters in Midland, Texas. Ring Energy’s business strategy is focused on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States.

   
   

 

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