Ring Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

LEASES (Tables)

LEASES (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Future Lease Payments of Operating Lease and Finance Lease

Future lease payments associated with these operating and financing leases as of September 30, 2024 are as follows:


	2024		2025		2026		2027		2028		Other Future Years
Operating lease payments (1)	$	177,466	$	727,460	$	636,649	$	460,497	$	250,606	$	149,628
Financing lease payments (2)	255,854		821,792		367,872		23,914		—		—

(1)The weighted average annual discount rate as of September 30, 2024 for operating leases was 4.50%. Based on this rate, the future lease payments above include imputed interest of $195,057. The weighted average remaining term of operating leases was 3.66 years.

(2)The weighted average annual discount rate as of September 30, 2024 for financing leases was 7.15%. Based on this rate, the future lease payments above include imputed interest of $92,880. The weighted average remaining term of financing leases was 1.75 years.

Schedule Of Reconciliation Between The Undiscounted Future Cash Flows And The Operating And Financing Lease Liabilities

The following table represents a reconciliation between the undiscounted future cash flows in the table above and the operating and financing lease liabilities disclosed in the Condensed Balance Sheets:


	As of
	September 30, 2024		December 31, 2023
Operating lease liability, current portion	$	633,132	$	568,176
Operating lease liability, non-current portion	1,574,117		2,054,041
Operating lease liability, total	$	2,207,249	$	2,622,217
Total undiscounted future cash flows (sum of future operating lease payments)	2,402,306		2,900,050
Imputed interest	195,057		277,833
Undiscounted future cash flows less imputed interest	$	2,207,249	$	2,622,217

Financing lease liability, current portion	$	879,598	$	956,254
Financing lease liability, non-current portion	496,954		906,330
Financing lease liability, total	$	1,376,552	$	1,862,584
Total undiscounted future cash flows (sum of future financing lease payments)	1,469,432		2,006,453
Imputed interest	92,880		143,869
Undiscounted future cash flows less imputed interest	$	1,376,552	$	1,862,584

Schedule of Lease Cost

The following table provides supplemental information regarding lease costs in the Condensed Statements of Operations:


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Operating lease costs	$	175,091	$	138,220	$	525,272	$	366,711
Short-term lease costs (1)	1,225,729		1,012,525		3,311,077		4,042,160
Financing lease costs:
Amortization of financing lease assets (2)	258,022		197,221		790,386		572,744
Interest on financing lease liabilities (3)	27,224		23,416		89,963		73,115

(1)Amount included in Lease operating expenses

(2)Amount included in Depreciation, depletion and amortization

(3)Amount included in Interest (expense)