Press Release
  

FOR IMMEDIATE RELEASE
August 10, 2015 NYSE American: REI

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

Midland, TX. August 10, 2015 – Ring Energy, Inc. (NYSE American: REI) (“Ring”)(“Company”) announced today financial results for the three months and six months ended June 30, 2015. For the three month period ended June 30, 2015, Ring had oil and gas revenues of $8,976,790, compared to $11,204,238 for the quarter ended June 30, 2014, and net income of $534,167, or $0.02 per fully diluted share, compared to net income of $2,821,738, or $0.11 per fully diluted share, for the same period in 2014. For the six month period ended June 30, 2015, the Company reported oil and gas revenues of $15,022,491, compared to oil and gas revenues of $17,174,690 for the six month period ended June 30, 2014. The Company had a net loss for the six month period ended June 30, 2015 of $441,457, or $0.02 per fully diluted share, compared to net income of $3,985,427, or $0.16 per fully diluted share, for the same period in 2014. The revenue decrease was a result of lower oil and gas prices received.

For the three months ended June 30, 2015, oil sales volume increased to 165,759 barrels, compared to 118,533 barrels for the same period in 2014, a 40 % increase, and gas sales volume increased to 94,517 MCF (thousand cubic feet), compared to 7,142 MCF for the same period in 2014, a 1,223% increase. For the six months ended June 30, 2015, oil sales volume increased to 302,848 barrels, compared to 182,477 barrels for the same period in 2014, a 66% increase and gas sales volume increased to 114,364 MCF, compared to 15,759 MCF for the same period in 2014, a 626% increase.

The average commodity prices received by Ring were $52.52 per barrel of oil and $2.87 per MCF of natural gas for the quarter ended June 30, 2015, compared to $94.22 per barrel of oil and $4.98 per MCF of natural gas for the quarter ended June 30, 2014. The average prices received for the six months ended June 30, 2015 were $48.55 per barrel of oil and $2.78 per MCF of natural gas, compared to $93.69 per barrel of oil and $4.93 per MCF of natural gas for the six month period ended June 30, 2014.

Lease operating expenses, including production taxes, for the three months ended June 30, 2015 were $14.48 per barrel of oil equivalent (“BOE”). Depreciation, depletion and amortization costs were $17.66 per BOE, and general and administrative costs, which included a $656,486 charge for stock based compensation, were $11.26 per BOE. For the six months ended June 30, 2015, lease operating expenses, including production taxes, were $14.83 per BOE. Depreciation, depletion and amortization costs were $21.31 per BOE, and general and administrative costs, which included a $1,311,174 charge for stock based compensation, were $11.72 per BOE,

Net cash flow from operations for the three and six months ended June 30, 2015 was $4,960,605, or $0.18 per fully diluted share, and $7,787,181, or $0.30 per fully diluted share, compared to net cash flow of
$8,614,602, or $0.34, and $12,633,000, or $0.51 per fully diluted share for the same periods in 2014 (1).

In June 2015, the Company received approximately $49 million in net proceeds from the public sale of 4,500,000 shares of the Company’s registered common stock. Also in June, the Company entered into a new five-year, $500 million senior credit facility, increased from $150 million, with an immediate borrowing base of $100 million, increased from $40 million. There was an outstanding balance of $40.9 million on the Company’s $500 million senior secured credit facility at June 30, 2015.

On June 30, 2015, the Company announced it had finalized the acquisition of Delaware Basin acreage located in Culberson and Reeves Counties, Texas for a purchase price of $75 million. The acquisition was financed with proceeds from the Company’s June 2015 public common stock offering and the Company’s new senior credit facility.

Internal estimates of net 3P reserves (Proved, Probable and Possible), including the recent Delaware Basin acquisition, as of June 30, 2015, were 24.677 million barrel of oil equivalents (BOE) Proved, 10.521 million BOE Probable and 8.152 million BOE Possible for a 3P total of 43.35 million BOE. Future net revenues before income taxes, discounted at 10% (“PV-10”), based on $55.00 per barrel of oil and $3.50 per MCF of gas, were $292.764 million Proved, $106.351 million Probable and $37.049 million Possible for a 3P total of $436.164 million.

Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “We have firmly believed that an extended environment of low commodity prices would offer acquisition opportunities for companies like ours, which have been diligent in reducing costs and maintaining a strong balance sheet. Our recent acquisition of 14,700 acres in the Delaware Basin is a prime example. This addition has significantly increased our net acreage in Texas, added over 400 potential drilling locations and substantially enhanced our daily production. Our field personnel are doing an excellent job in the renovation of the present infrastructure resulting in cost reduction and additional production. We are ready to resume development activity once prices improve and continue to look for additional acquisition opportunities that complement our existing properties.”

Non-GAAP Financial Measures:

Earnings for the three months ended June 30, 2015 include a non-cash charge for stock based compensation of $656,486. Earnings for the six months ended June 30, 2015 include a non-cash charge for stock based compensation of $1,311,174. Excluding such items, the Company’s earnings would have been $0.03 per diluted share for the three months ended June 30, 2015, and $0.01 for the six months ended June 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
June 30,
Six Months Ended
June 30,
 
2015
(Unaudited)
2014
(Unaudited)
2015
(Unaudited)
2014
(Unaudited)
Oil and Gas Revenues
$ 8,976,790 $ 11,204,238 $ 15,022,491 $ 17,174,690
     
Cost and Operating Expenses
   
     Oil and gas production costs 2,206,057 1,077,878 4,073,852 1,848,978
     Oil and gas production taxes 422,884 517,052 699,915 793,013
     Depreciation, depletion and amortization 3,205,033 3,477,816 6,859,331 5,008,012
     Accretion expense 79,400 37,312 146,379 61,694
     General and administrative expense 2,043,730 1,634,807 3,772,717 3,199,268
     
     Total Costs and Operating Expenses 7,957,104 6,744,865 15,552,194 10,910,965
         
     Income (Loss) from Operations 1,019,686 4,459,373 (529,703) 6,263,725
     
Other Income (Expense)    
     Interest expense (79,005)   (79,005)  
     Interest income 2 19,576 782 62,349
     
     Net Other Income (79,005) 19,576 (78,223) 62,349
     
Income (Loss) Before Provision for Income Taxes 940,683 4,478,949 (607,926) 6,326,074
     
(Provision For) Benefit From Income Taxes (406,516) (1,657,211) 166,469 (2,340,647)
     
Net Income (Loss) $ 534,167 $ 2,821,738 ($441,457) ($3,985,427)
     
Basic Earnings (Loss) Per Common Share $0.02 $0.12 ($0.02) $0.17
Diluted Earnings (Loss) Per Common Share $0.02 $0.11 ($0.02) $0.16
         
Basic Weighted-Average Common Shares Outstanding 26,121,822 23,907,651 25,935,204 23,745,406
Diluted Weighted-Average Common Shares Outstanding 27,172,598 25,151,932 25,935,204 24,926,088
     

RING ENERGY, INC.
COMPARATIVE OPERATING STATISTICS
    Three Months Ended June 30,
    2015
2014
Change
Net Production - BOE per day
  1,995 1,316 52%
Per BOE:    
     Average Sales Price   $ 49.46 $ 93.58 -47%
             
     Operating Costs (excluding production taxes)   $12.15 $ 9.00 35%
     DD&A   $17.66 $29.05 -39%
     General and Administrative Expenses   $11.26 $13.65 -18%

    Six Months Ended June 30,
    2015
2014
Change
Net Production - BOE per day
  1,779 1,023 74%
Per BOE:    
     Average Sales Price   $ 46.67 $ 92.78 -50%
             
     Operating Costs   $12.66 $ 9.99 27%
     DD&A   $21.31 $27.06 -21%
     General and Administrative Expenses   $11.72 $17.28 -32%

Net Oil and Gas Reserves*
As of June 30, 2015
 
 

Crude Oil
(MMBbls)

Nat. Gas
(MMcf)
Total
(MMBOE)
PV-10
(MM$)
Proved Developed Reserves
7.391 6.503 8.474 141.791
Proved Developed Non-Producing 0.902 1.287 1.117 20.778
Proved Undeveloped Reserves 12.949 12.821 15.086 130.195
             
Total Proved Reserves 21.242 20.611 24.677 292.764
Total Probable Reserves 9.901 3.722 10.521 106.351
Total Possible Reserves 7.244 5.448 8.151 37.049
Total 3P Reserves 38.387 29.781 43.35 436.164
* Note: Internal Estimates based on $55.00 per barrelof oil / $3.50 per Mcf of natural gas


RING ENERGY, INC.
CONSOLIDATED BALANCE SHEET
 
June 30,
2015
December 31,
2014
ASSETS
   
Current Assets
   
     Cash $ 5,767,566 $ 8,622,235
     Accounts receivable 4,020,660 3,616,676
     Joint interest billing receivable 2,627,771 2,683,787
     Prepaid expenses and retainers 1,175,483 160,600
     Total Current Assets 13,591,480 15,083,298
Property and Equipment, Using Full cost Accounting    
     Oil and Gas properties subject to amortization 257,757,735 166,036,400
     Office equipment and automobiles 1,525,848 1,209,809
        Total Property and Equipment 259,283,583 167,246,209
     Accumulated depreciation, depletion and amortization (21,547,378) (14,688,047)
     Net Property and Equipment 237,736,205 152,558,162
Total Assets $ 251,327,685 $167,641,460
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current Liabilities    
     Accounts payable $ 6,999,288 $16,241,022
     Other accrued liabilities 22,029
     Total Current Liabilities 6,999,288 16,263,051
     
     Deferred income taxes 4,772,921 4,939,390
     Long term debt 40,900,000
     Asset retirement obligation 6,264,985 3,896,489
     Total Liabilites 58,937,194 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
   
     30,276,342 shares and 25,734,467 shares
     outstanding, respectively
30,276 25,734
     Additional paid-in capital 190,817,199 140,532,323
     Retained Earnings 1,543,016 1,984,473
     Total Stockholders' Equity 192,390,491 142,542,530
Total Liabilities and Stockholders' Equity $ 251,327,685 $167,641,460
     

RING ENERGY, INC.
STATEMENTS OF CASH FLOW
  Six Months Ended
  June 30, June 30,
 
2015
2014
Cash Flows From Operating Activities
   
     Net Income ($441,457) $ 3,985,427
     Adjustments to reconcile net income (loss) to net cash
     provided by (used in) operating activities:
   
       Depreciation, depletion and amortization 6,859,331 5,008,012
       Accretion expense 146,379 61,694
       Shared-based compensation 1,311,174 1,299,569
       (Benefit from) Provision for income taxes (166,469) 2,340,647
       Changes in assets and liabilities:    
       Accounts receivable (347,968) (892,225)
       Prepaid expenses (1,014,883) (193,045)
       Accounts payable (9,263,783) 1,422,697
Net Cash Provided by (Used in) Operating Activities (2,917,656) 13,032,776
Cash Flows from Investing Activities    
     Payments to purchase oil and natural gas properties (76,683,890) (10,974,396)
     Payments to develop oil and natural gas properties (12,815,328) (37,324,033)
     Purchase of office equipment (316,039) (239,210)
     Net Cash Used in Investing Activities (89,815,257) (48,537,639)
Cash Flows from Financing Activities    
     Proceeds from option exercise 62,500 22,500
     Proceeds from issuance of common stock 48,915,744 28,667,132
     Proceeds from issuance of notes payable 40,900,000
Net Cash Provided by Financing Activities 89,878,244 28,689,632
Net Increase (Decrease) in Cash (2,854,669) (6,815,231)
Cash at Beginning of Period 8,622,235 52,350,583
Cash at End of Period $ 5,767,566 $ 45,535,352
     
Non-Cash Investing and Financing Activities    
     Asset retirement obligation acquired $2,177,110 $ 294,772
     Asset retirement obligation incurred during development 45,007 737,969
     
RECONCILIATION OF CASH FLOW FROM OPERATIONS
Net cash provided by operating activities ($2,917,656) $ 13,032,776
Change in operating assets and liabilities 10,626,614 (337,427)
     
Cash flow from operations $ 7,708,958 $ 12,695,349
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
 
 
Six Months Ended
 
June 30,
2015
June 30,
2014
NET INCOME (LOSS)
($441,457) $ 3,985,427
     
     Interest expense (Income) 78,223 (62,349)
     Deferred Income taxes (166,469) 2,340,647
     Depreciation, depletion and amortization 6,859,331 5,008,012
     Accretion expense 146,379 61,694
     Share-based compensation 1,311,174 1,299,569
     
ADJUSTED EBITDA $ 7,787,181 $ 12,633,000
     


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, its Form 10-Q for the quarter ended March 31, 2015 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


 
  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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