Press Release
  

FOR IMMEDIATE RELEASE
May 8, 2014 NYSE American: REI

RING ENERGY ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2014
418% Increase In Revenue For The Three Months to $5.97 Million
221% Increase In Net Income For The Three Months to $1.1 Million

Midland, TX. May 8, 2014 – Ring Energy, Inc. (NYSE American: REI) (“Ring”)(“Company”) announced today record financial results for the first quarter ended March 31, 2014. For the three month period ended March 31, 2014, Ring had oil and gas revenues of $5,970,452 compared to $1,151,957 for the quarter ended March 31, 2013, a 418% increase and net income of $1,163,689, or $0.05 per diluted share, compared to net loss of $965,280 or $0.07 loss per diluted share, for the same period in 2013, a 221% increase.

The revenue increase was due to increases in production volumes, primarily due to development activity. For the three months ended March 31, 2014, oil sales volume increased to 63,944 barrels, compared to 14,245 barrels for the same period in 2013, a 349% increase and gas sales volume increased to 8,617 MCF (thousand cubic feet), compared to 5,757 MCF for the same period in 2013, a 50% increase. The remaining production that was not sold by March 31, 2014, was held in storage and sold in the second quarter. The average commodity prices received by Ring were $92.71 per barrel of oil and $4.88 per MCF of natural gas for the quarter ended March 31, 2014, compared to $88.62 per barrel of oil and $3.77 per MCF of natural gas for the quarter ended March 31, 2013.

Lease operating expenses for the three months ended March 31, 2014 were $11.79 per barrel of oil equivalent (“BOE”). Depreciation, depletion and amortization costs were $23.40 per BOE, and general and administrative costs, which included a $659,468 charge for stock based compensation, were $23.93 per BOE.

Net cash flow from operations for the three months ended March 31, 2014 was $4,061,171,or $0.16 per diluted share, compared to net cash flow of $205,544, or $0.01 per diluted share for the same period in 2013 (1).

Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “We continue to ramp up our 2014 development program. Our first quarter resulted in 24 development wells drilled and one re-completion on an existing well on our Permian Basin properties, where we continue to have a 100% success rate on newly drilled development wells. We now have two rigs drilling full time in Texas. We currently have a third rig drilling in Kansas and hope to announce the results of the initial five wells drilled in Kansas by mid-June. We plan to drill as many as 35 new wells in Texas in the second quarter, while continuing the re-stimulation of selected existing wells. We have increased our credit facility to a maximum of $50,000,000, with an immediate initial borrowing base of $25,000,000. We are in a position to maintain an aggressive development program, while continuing to seek additional acquisitions.”

(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
March 31,
 
2014
(Unaudited)
2013
(Unaudited)
Oil and Gas Revenues
$5,970,452 $1,151,957
     
Cost and Operating Expenses
   
     Oil and gas production costs 771,000 141,255
     Oil and gas production taxes 275,961 53,217
     Depreciation, depletion and amortization 1,530,196 343,608
     Accretion expense 24,382 11,453
     General and administrative expense 1,564,461 1,567,704
     
     Total Costs and Operating Expenses 4,188,100 2,117,237
     
Other Income (Expense)    
     Interest income 42,773
     
     Net Other Income 42,773
     
Income (Loss) Before Provision for Income Taxes 1,847,125 (965,280)
     
Income tax provision (683,436)
     
Net Income (Loss) $1,163,689 ($965,280)
     
Basic Net Income (Loss) Per Common Share $0.05 ($0.07)
Diluted Net Income (Loss) Per Common Share $0.05 ($0.07)
     
Basic Weighted-Average Common Shares Outstanding 23,581,357 14,229,166
Diluted Weighted-Average Common Shares Outstanding 24,704,652 14,229,166
     

RING ENERGY, INC.
CONSOLIDATED BALANCE SHEET
 
March 31,
2014
December 31,
2013
ASSETS
   
Current Assets
   
     Cash $37,732,846 $52,350,583
     Accounts receivable 2,881,127 3,888,402
     Prepaid expenses and retainers 47,213 66,051
     Total Current Assets 40,661,186 56,305,036
Property and Equipment, Using Full cost Accounting    
     Oil and Gas properties subject to amortization 80,615,298 58,040,724
     Office Equipment 381,762 257,911
        Total Property Equipment 80,997,060 58,298,635
     Less: Accumulated depreciation and amortization (4,410,449) (2,880,253)
     Net Property and Equipment 76,586,611 55,418,382
Total Assets $117,247,797 $111,723,418
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Liabilities    
     Accounts payable $7,346,378 $6,229,490
     Other accrued liabilities 2,323,456 1,002,153
     Total Current Liabilities 9,669,834 7,231,643
Noncurrent Liabilities    
     Deferred income taxes 1,387,087 703,651
     Asset retirement obligation 1,801,224 1,182,410
     Total Noncurrent Liabilites 3,188,311 1,886,061
     
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    
     23,601,674 shares and 23,576,313 shares outstanding, respectively 23,601 23,576
     Additional paid-in capital 109,638,389 109,018,165
     Accumulated deficit (5,272,338) (6,436,027)
     Total Stockholders' Equity 104,389,652 102,605,714
Total Liabilities and Stockholders' Equity $117,247,797 $111.723,418
     

RING ENERGY, INC.
STATEMENTS OF CASH FLOW
  Three Months Ended
March 31,
 
2014
2013
Cash Flows From Operating Activities
   
     Net Income $1,163,689 ($965,280)
     Adjustments to reconcile net income to net cash provided
     by operating activities:
   
       Depreciation, depletion and amortization 1,530,196 343,608
       Accretion expense 24,382 11,453
       Shared-based compensation 659,468 815,763
       Provision for income taxes 683,436
     Changes in assets and liabilities:    
       Accounts receivable 1,007,275 (66,356)
       Prepaid expenses 18,838 (2,635)
       Accounts payable 2,438,191 (509,975)
Net Cash Provided by Operating Activities 7,525,475 (373,422)
Cash Flows from Investing Activities    
     Payments to purchase oil and natural gas properties (8,121,630) (114,074)
     Payments to develop oil and natural gas properties (13,858,512) (1,368,992)
     Purchase of equipment and vehicles (123,851)
     Net Cash Used in Investing Activities (22,103,993) (1,483,066)
Cash Flows from Financing Activities    
     Proceeds from option exercise 22,500
     Payment of offering costs (61,719)
     Proceeds from issuance of common stock 450,000
     Net Cash Provided by Financing Activties (39,219) 450,000
Net Increase (Decrease) in Cash (14,617,737) (1,406,488)
Cash at Beginning of Period 52,350,583 5,404,167
Cash at End of Period $37,732,846 $3,997,679
Noncash Investing and Financing Activities    
     Revision of asset retirement obligation estimate   $ — $211,691
     Asset retirement obligation acquired 294,772
     Asset retirement obligation incurred during development 299,660
     
RECONCILIATION OF CASH FLOW FROM OPERATIONS
Net cash provided by operating activities $7,525,475 ($373,422)
Change in operating assets and liabilities (3,464,304 578,966
     
Cash flow from operations $4,061,171 $205,544
Management believes that the non-GAAP measure of cash flow from operators 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
 
March 31,
2014
March 31,
2013
NET INCOME (LOSS)
$1,163,689 ($965,280)
     
     Interest expense (Income) (42,773)
     Income tax expense 683,436
     Depreciation, depletion and amortization 1,530,196 343,608
     Accretion expense 24,382 11,453
     Shared-based compensation 659,468 815,763
     
ADJUSTED EBITDA $4,018,398 $205,544
     


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, 2013, its Form 10-Q for the quarter ended September 30, 2014 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 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


 
  December 2, 2014

RING ENERGY, INC. CONTINUES
2014 DEVELOPMENT PROGRAM

Company Operates Profitably At Current Commodity Prices
 
  November 6, 2014

RING ENERGY, INC.ANNOUNCES THIRD QUARTER AND NINE MONTH 2014 FINANCIAL AND OPERATING RESULTS
Third Quarter 2014 Revenues Increase 287% Over Third Quarter Revenues 2013
Nine Month 2014 Revenues Increase 434% Over Nine Month Revenues 2013
 
  October 7, 2014

RING ENERGY, INC.PROVIDES THIRD QUARTER
2014 OPERATIONS UPDATE

Production Increases 19% Over Second Quarter
Company Adds Third Drilling Rig
Company Increases 2014 CAPEX to $125 Million
 
  August 8, 2014

RING ENERGY, INC. ANNOUNCES SECOND QUARTER AND SIX MONTH 2014 FINANCIAL AND OPERATING RESULTS
88% Increase in Revenue Over First Quarter

142% Increase in Revenue Over First Quarter
83% Increase in Revenue Over First Quarter
 
  July 15, 2014

RING ENERGY, INC. PROVIDES SECOND QUARTER 2014 OPERATIONS UPDATE
Second Quarter Production Increases 69% Over First Quarter 2014
Company Provides Update on Kansas Joint Venture Pilot Drilling Program
 
  June 17, 2014

RING ENERGY, INC. ANNOUNCES $30 MILLION PRIVATE PLACEMENT OF COMMON STOCK
Company Also Establishes New Credit Facility
 
  May 8, 2014

RING ENERGY, INC. ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2014
418% Increase in revenue For The Three Months to $5.97 Million
221% Increase in Net Income For The Three Months to $1.1 Million
 
  April 22, 2014

RING ENERGY, INC. PROVIDES
FIRST QUARTER 2014 OPERATIONS UPDATE
2014 Capital Expenditure Budget Increased
to $115 Million
 
  March 21, 2014

RING ENERGY ANNOUNCES FINANCIAL AND OPERATIONAL RESULTS FOR FOURTH QUARTER AND YEAR END 2013
2013 Revenues Increase 487%
2013 Cash Flow Increases 817%
Fourth Quarter Revenues Increase 609%
 
  March 4, 2014

RING ENERGY, INC. CLOSES PERMIAN BASIN ACREAGE ACQUISITION
Adds Reserves, Drilling Locations / Contracts Second Drilling Rig
 
  January 14, 2014

RING ENERGY, INC. PROVIDES FOURTH QUARTER 2013 OPERATIONS UPDATE
 
 
 

 
   
   

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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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