Ring Energy, Inc. Annual report pursuant to Section 13 and 15(d)

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of revenues and direct operating costs associated with the acquired properties

The revenues and direct operating costs associated with the acquired properties included in our financial statements for the year ended December 31, 2019 are as follows:


Revenue	$	105,102,038

Oil and natural gas production costs		17,037,228
Oil and natural gas production taxes		4,646,660

Total direct costs ₍₁₎		21,683,888

Earnings from the Acquired properties	$	83,418,150

(1)

This includes only oil and natural gas production costs and oil and natural gas production taxes and does not give account to depreciation, depletion and amortization, accretion of asset retirement obligation, general and administrative expense, interest expense or any other cost that cannot be directly correlated to the Acquisition.

Schedule of business acquisition pro forma information


For the years ended December 31,	2019		2018
Oil and Natural Gas Revenues	$	202,368,245	$	196,385,905
Net Income	$	29,556,993	$	29,105,827

Basic Earnings per Share	$	0.44	$	0.49
Diluted Earnings per Share	$	0.44	$	0.48

Oil and Natural Gas Assets in Andrews County

ACQUISITIONS

Schedule of fair values of the assets acquired and the liabilities assumed


Assets acquired
Proved oil and natural gas properties	$	13,775,807
Liabilities assumed
Asset retirement obligations		(2,571,549)
Total Identifiable Net Assets	$	11,204,258

Wishbone Acquisition

ACQUISITIONS

Schedule of fair values of the assets acquired and the liabilities assumed


Assets acquired:
Proved oil and natural gas properties	$	305,004,775
Joint interest billing receivable		1,464,394
Prepaid assets		2,864,554
Liabilities assumed
Accounts and revenues payable		(1,234,861)
Asset retirement obligations		(3,705,941)
Total Identifiable Net Assets	$	304,392,921