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Ring Energy Announces Financial and Operational Results for the Three and Nine-Month Periods Ending September 30, 2020

November, 09, 2020

MIDLAND, Texas--(BUSINESS WIRE)-- Ring Energy, Inc. (NYSEAM: REI) (“Ring”) (“Company”) announced today financial and operational results for the third quarter ended September 30, 2020.

Q3 2020 Highlights

  • Increased net oil & gas sales by 74.0% to 9,549 Boe/d (89% oil), compared to 5,487 Boe/d (86% oil) for Q2 2020
  • Decreased LOE1 by 38.5% to $8.88 million or $10.11/Boe, compared to $14.43 million or $14.03/Boe for Q3 2019
  • Decreased cash G&A2 by 34.6% to $1.93 million or $2.20/Boe, compared to $2.95 million or $2.87/Boe for Q3 2019
  • Reported net loss of $1.96 million, or $0.03 per diluted share. Excluding the unrealized loss on derivatives and a non-cash charge for stock-based compensation, adjusted net income3 per diluted share is $0.05/share
  • Adjusted EBITDA3 increased 44.6% to $19.9 million, compared to $13.7 million for Q2 2020
  • Free cash flow (“FCF”) 3 increased 45.8% to $11.3 million, compared to $7.7 million for Q2 2020
  • Reduced bank debt by $15.0 million, outstanding balance is $360 million
  • Increased liquidity3 to $32.2 million
  • Reduced capital spending by 79.9% to $4.3 million, compared to $21.4 million for Q3 2019
  • Net realized gain on derivates of approximately $1.7 million

Q1-Q3 2020 Highlights and Subsequent Events

  • Decreased LOE1 by 25.8% to $24.72 million or $10.47/Boe during first nine months of 2020, compared to $33.3 million or $11.51/Boe for the same nine months of the prior year
  • Decreased cash G&A2 by 44.3% to $7.15 million or $3.03/Boe during first nine months of 2020, compared to $12.85 million or $4.44/Boe for the same nine months of the prior year
  • Reported net loss of $93.2 million, or $1.37 per diluted share through September 30, 2020. Excluding the unrealized loss on derivatives, ceiling test write down and a non-cash charge for stock-based compensation, adjusted net income3 per diluted share is $0.21/share
  • Generated adjusted EBITDA3 of $61.6 million through September 30, 2020
  • Remained FCF3 positive for four consecutive quarters and generated over $27.0 million FCF3 through Q3 2020
  • Reduced capital spending by 77.8% to $22.2 million during the first nine months of 2020, compared to $99.8 million for the same nine months of the prior year (excludes Wishbone acquisition in 2019)
  • Net realized gain on derivates of approximately $18.8 million through September 30, 2020
  • Announced appointment of Paul D. McKinney as Chief Executive Officer & Chairman of the Board
  • Reorganized the Board of Directors by replacing three insiders with three independent Directors
  • Raised ~$19.1 million in net proceeds further improving liquidity from public and registered direct offerings
  • Posted a positive average operating margin4 of $20.60/Boe through September 30, 2020

(1) Lease operating expenses “LOE” excludes ad valorem taxes

(2) Cash G&A excludes stock-based compensation & operating lease expense

(3) The Company defines and reconciles adjusted EBITDA, adjusted net income and other non-GAAP financial measures to the most directly comparable GAAP measure in supporting tables at the conclusion of this press release. Management believes that the non-GAAP measures are useful information for investors because they are used internally and are accepted by the investment community. They are used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.

(4) Operating margin – Net received price per BOE less cash-based expenses per BOE. Calculation of this value is included in supporting tables at the conclusion of this press release.

Management Comments

Paul D. McKinney, Chief Executive Officer and Chairman of the Board, commented, “As commodity prices improved during the third quarter, Ring returned the majority of its previously shut-in wells to production and made excellent progress on our cost reduction initiatives begun earlier in the year. This, along with our hedges, significantly improved our financial results over the second quarter. Because we believe these pandemic-induced economic conditions are likely to continue for an extended period of time, we are putting our growth plans on hold, prioritizing our capital to high-return projects that improve liquidity, and aggressively managing our cost structure so that we can continue to generate free cash flow and pay down debt. We are fortunate that our production portfolio is characterized by the long-life and shallow declines of predominately the San Andres formation and the majority of our drilling inventory is economic in the current price environment giving us the sustainability and flexibility to meet the challenges that we are currently facing.”

Mr. McKinney continued, “During my short tenure here, I have seen firsthand the outstanding job our operations and field personnel have performed in an incredibly challenging environment. They have reduced our lease operating expenses on $/Boe basis by 20% over the prior quarter and 28% over the same three months of the prior year. Not only do I commend them for these achievements, but together, we are exploring additional cost saving and production enhancing ideas that we expect to be evident in future quarters.”

Other Financial Updates

Important to note - the third quarter of 2020 included a pre-tax unrealized loss on derivatives of $6,228,453 and a non-cash charge for stock-based compensation of $565,819. Excluding these items, the net income per diluted share would have been $0.05/share, versus the net loss of $(0.03)/share.

During the nine months ended September 30, 2020, the net income included a pre-tax unrealized gain on derivatives of $14,086,699, a pre-tax ceiling test impairment of $147,937,943 and a non-cash charge for stock-based compensation of $2,557,156. Excluding these items, the net income per diluted share would have been $0.19. 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.

Third quarter of 2020 the outstanding balance on the Company’s $1 billion senior credit facility was $360 million with a weighted average interest rate on borrowings under the senior credit facility of 4.5%. The next bank redetermination, originally scheduled for November 2020, was extended by the bank group to December 2020 to allow the Company to properly reflect recent cost reductions and operational efficiencies in the reserve information provided to the bank group.

In May 2020, the Company unwound the costless collars for June 2020 and July 2020. Concurrently, the Company entered Swap contracts at $33.24 for 5,500 barrels per day for June and July 2020, equal to the barrels for which the costless collars were unwound. Like costless collars, there is no cost to enter the Swap contracts. On Swap contracts, there is no spread and payments will be made or received based on the difference between WTI and the Swap contract price. The costless collar and Swap pricing do not take into consideration any pricing differentials between NYMEX WTI pricing and the price received by the Company.

2020 costless collars, in place for August through December 2020

BOPD

Put Price

Call Price

1,000

$50.00

$65.83

1,000

$50.00

$65.40

1,000

$50.00

$58.40

1,000

$50.00

$58.25

1,500

$50.00

$58.65

2020 Swap, in place for July 2020

BOPD

Swap Price

5,500

$33.24

Third quarter of 2020, the Company entered derivative contracts for 2021 in the form of costless collars of NYMEX WTI Crude oil. The contracts are for a total of 4,500 barrels of oil per day for the period of January 2021 through December 2021. Again, the costless collar pricing does not take into consideration any pricing differentials between NYMEX WTI pricing and the price received by the Company.

2021 costless collars, in place for January through December 2021

BOPD

Put Price

Call Price

1,000

$45.00

$54.75

1,000

$45.00

$52.71

1,000

$40.00

$55.08

1,500

$40.00

$55.35

Subsequent to September 30, 2020, the Company entered into Swap derivative contracts for 6,000 MMBTU/day for calendar year 2021 at a price of $2.991 per MMBTU and 5,000 MMBTU/day for calendar year 2022 at a price of $2.7255 per MMBTU.

Additional Operations Update

Third quarter of 2020 oil sales were 781,626 barrels (8,496 Bop/d), and gas sales volume were 581,123 MCF (6,317 mcf/d) (thousand cubic feet). On a barrel of oil equivalent (“BOE”) basis for the third quarter of 2020 production sales were 878,480 BOEs (9,549 Boe/d), compared to 499,333 BOEs (5,487 Boe/d) for the second quarter of 2020, a 75.9% increase.

The average price differential the Company experienced from WTI pricing in Q3’2020 was approximately $2.00.

Third quarter of 2020 Lease operating expenses (“LOE”) were $10.11 per BOE, production taxes $ 1.62 per BOE and ad valorem taxes $0.91 per BOE for total of $12.64 per BOE field level all in lifting cost. Depreciation, depletion and amortization costs, including accretion, were $12.59 per BOE, and general and administrative costs, which included a $565,819 charge for stock-based compensation were $2.84 per BOE. Operating lease expense (equipment/office leases) was $0.34 per BOE.

During the nine months ended September 30, 2020, lease operating expenses were $10.47 per BOE, production taxes $1.58 per BOE and ad valorem taxes $1.02 per BOE for total of $13.07 per BOE field level all in lifting cost. Depreciation, depletion, and amortization costs, including accretion, were $13.78 per BOE, and general and administrative costs, which included a $2,557,156 charge for stock-based compensation, were $4.11 per BOE. Operating lease expense (equipment/office leases) was $0.37 per BOE.

Subsequent Events Update

Changes occurred to executive management and to the Board of Directors. Mr. Lloyd T. Rochford resigned from his employment position of Executive Chairman and from the Board of Directors but will remain in an advisory capacity to Mr. Paul McKinney. Mr. Kelly Hoffman resigned as Chief Executive Officer and from the Board of Directors. Mr. Stanley McCabe resigned from the Board of Directors. Mr. David Fowler resigned from the Board of Directors but remains as President of the Company. Mr. Paul D. McKinney was appointed as Chairman of the Board and as Chief Executive Officer. Additionally, Mr. Thomas L. Mitchell, John A. Crum and Richard E. Harris were appointed to the Board as independent Directors.

The Company completed a public offering and concurrently completed a registered direct offering of common shares, pre-funded warrants, and common warrants. In total, the company issued 13,075,800 shares, 16,728,500 pre-funded warrants and 29,804,300 common warrants. Gross proceeds received at closing were approximately $20.8 million and net proceeds are anticipated to be approximately $19.1MM.

The previously announced plan to divest of Delaware Basin assets failed to close. The Company continues to attempt to work with the buyer, but the termination process has been initiated and unless an agreement can be reached, the contracts will terminate on November 12, 2020.

About Ring Energy, Inc.

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

www.ringenergy.com

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, 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, 2019, its Form 10Q for the quarter ended September 30, 2020 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.

RING ENERGY, INC.

CONDENSED STATEMENTS OF OPERATIONS

 

For The Three Months

 

For The Nine Months

Ended September 30,

 

Ended September 30,

 

 

 

2019

 

 

 

 

 

2019

 

 

 

2020

 

 

(restated)

 

 

2020

 

 

(restated)

 

Oil and Gas Revenues

$

31,466,544

 

$

50,339,105

 

$

81,673,465

 

$

143,471,645

 

 

Costs and Operating Expenses

Oil and gas production costs (including ad valorem taxes)

 

9,678,011

 

 

15,478,052

 

 

27,128,768

 

 

36,455,925

 

Oil and gas production taxes

 

1,427,041

 

 

2,307,226

 

 

3,731,046

 

 

6,802,996

 

Depreciation, depletion and amortization

 

10,826,989

 

 

14,115,170

 

 

31,848,093

 

 

41,659,494

 

Ceiling test impairment

 

-

 

 

-

 

 

147,937,943

 

 

-

 

Asset retirement obligation accretion

 

230,784

 

 

236,207

 

 

694,113

 

 

681,386

 

Operating lease expense

 

295,631

 

 

114,112

 

 

876,889

 

 

370,462

 

General and administrative expense (including stock-based compensation)

 

2,496,927

 

 

3,745,928

 

 

9,709,431

 

 

15,287,072

 

 

Total Costs and Operating Expenses

 

24,955,383

 

 

35,996,695

 

 

221,926,283

 

 

101,257,335

 

 

Income (Loss) from Operations

 

6,511,161

 

 

14,342,410

 

 

(140,252,818

)

 

42,214,310

 

 

Other Income (Expense)

Interest income

 

1

 

 

9

 

 

7

 

 

13,505

 

Interest expense

 

(4,457,250

)

 

(4,556,509

)

 

(12,958,788

)

 

(9,589,434

)

Realized gain on derivatives

 

1,726,373

 

 

-

 

 

18,814,068

 

 

-

 

Unrealized gain (loss) on change in fair value of derivatives

 

(6,228,453

)

 

1,877,368

 

 

14,086,699

 

 

3,066,913

 

 

Net Other Income (Expense)

 

(8,959,329

)

 

(2,679,132

)

 

19,941,986

 

 

(6,509,016

)

 

Income (Loss) before Tax Provision

 

(2,448,168

)

 

11,663,278

 

 

(120,310,832

)

 

35,705,294

 

 

(Provision for) Benefit from Income Taxes

 

486,565

 

 

(2,805,278

)

 

27,153,281

 

 

(11,235,437

)

 

Net Income (Loss)

$

(1,961,603

)

$

8,858,000

 

$

(93,157,551

)

$

24,469,857

 

 

Basic Earnings (Loss) per Share

$

(0.03

)

$

0.13

 

$

(1.37

)

$

0.37

 

Diluted Earnings (Loss) per Share

$

(0.03

)

$

0.13

 

$

(1.37

)

$

0.37

 

 

Basic Weighted-Average Shares Outstanding

 

67,980,961

 

 

67,811,127

 

 

67,985,168

 

 

66,149,469

 

Diluted Weighted-Average Shares Outstanding

 

67,980,961

 

 

67,836,968

 

 

67,985,168

 

 

66,401,422

 

 

COMPARATIVE OPERATING STATISTICS

Three Months Ended September 30,

2020

2019

Change

 

Net Sales - BOE per day

9,549

11,183

-14.6%

Per BOE:

Average Sales Price

$35.82

$48.93

-26.8%

Lease Operating Expenses (excluding ad valorem taxes)

10.11

14.03

-28.0%

Ad valorem Taxes

0.91

1.01

-10.1%

Production Taxes

1.62

2.24

-27.7%

DD&A

12.32

13.72

-10.2%

Accretion

0.26

0.23

13.0%

General & Administrative Expenses (excluding stock-based compensation)

2.20

2.87

-23.4%

Operating Lease Expense

0.34

0.11

209.0%

Realized (gain) loss on derivatives

(1.97)

0.00

N/A

Interest Expense

5.07

4.43

14.6%

 

Operating Margin(4)

$17.54

$24.24

-27.6%

 

Nine Months Ended September 30,

2020

2019

Change

 

Net Sales - BOE per day

8,617

10,607

-18.8%

Per BOE:

Average Sales Price

$34.59

$49.55

-30.2%

Lease Operating Expenses (excluding ad valorem taxes)

10.47

11.51

-9.0%

Ad valorem Taxes

1.02

1.08

-5.8%

Production Taxes

1.58

2.35

-32.8%

DD&A

13.49

14.39

-6.2%

Accretion

0.29

0.24

20.8%

General & Administrative Expenses (excluding stock-based compensation)

3.03

4.44

-31.7%

Operating Lease Expense

0.37

0.13

184.6%

Realized (gain) loss on derivatives

(7.97)

0.00

N/A

Interest Expense

5.49

3.31

65.7%

 

Operating Margin(4)

$20.60

$26.73

-22.9%

(4) Operating margin – Net received price per BOE less cash-based expenses per BOE.

RING ENERGY, INC.

BALANCE SHEET

 

September 30,

December 31,

 

 

2020

 

 

2019

 

ASSETS

Current Assets

Cash

$

17,920,817

 

$

10,004,622

 

Accounts receivable

 

12,489,321

 

 

22,909,195

 

Joint interest billing receivable

 

653,607

 

 

1,812,469

 

Derivative receivable

 

1,711,710

 

 

-

 

Derivative asset

 

9,518,564

 

 

-

 

Prepaid expenses and retainers

 

498,610

 

 

3,982,255

 

Total Current Assets

 

42,792,629

 

 

38,708,541

 

Properties and Equipment

Oil and natural gas properties subject to amortization

 

953,696,964

 

 

1,083,966,135

 

Financing lease asset subject to depreciation

 

858,513

 

 

858,513

 

Fixed assets subject to depreciation

 

1,465,551

 

 

1,465,551

 

Total Properties and Equipment

 

956,021,028

 

 

1,086,290,199

 

Accumulated depreciation, depletion and amortization

 

(188,922,137

)

 

(157,074,044

)

Net Properties and Equipment

 

767,098,891

 

 

929,216,155

 

Operating lease asset

 

990,155

 

 

1,867,044

 

Derivative asset

 

1,568,057

 

 

-

 

Deferred Income Taxes

 

21,152,105

 

 

-

 

Deferred Financing Costs

 

2,647,160

 

 

3,214,408

 

Total Assets

$

836,248,997

 

$

973,006,148

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable

$

24,839,820

 

$

54,635,602

 

Financing lease liability

 

292,227

 

 

280,970

 

Operating lease liability

 

814,400

 

 

1,175,904

 

Derivative liabilities

 

-

 

 

3,000,078

 

Total Current Liabilities

 

25,946,447

 

 

59,092,554

 

 

Deferred income taxes

 

-

 

 

6,001,176

 

Revolving line of credit

 

360,000,000

 

 

366,500,000

 

Financing lease liability, less current portion

 

201,528

 

 

424,126

 

Operating lease liability, less current portion

 

175,755

 

 

691,140

 

Asset retirement obligations

 

17,119,114

 

 

16,787,219

 

Total Liabilities

 

403,442,844

 

 

449,496,215

 

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; 67,983,075 shares and 67,993,797 shares issued and outstanding, respectively

 

67,983

 

 

67,994

 

Additional paid-in capital

 

528,755,063

 

 

526,301,281

 

Accumulated deficit

 

(96,016,893

)

 

(2,859,342

)

Total Stockholders' Equity

 

432,806,153

 

 

523,509,933

 

Total Liabilities and Stockholders' Equity

$

836,248,997

 

$

973,006,148

 

 

RING ENERGY, INC.

STATEMENTS OF CASH FLOWS

 

 

 

 

2019

 

For the Nine Months Ended September 30,

 

2020

 

 

(restated)

Cash Flows From Operating Activities

Net income (loss)

$

(93,157,551

)

$

24,469,857

 

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization

 

31,848,093

 

 

41,659,494

 

Ceiling test impairment

 

147,937,943

 

 

-

 

Accretion expense

 

694,113

 

 

681,386

 

Amortization of deferred financing costs

 

567,248

 

 

-

 

Share-based compensation

 

2,557,156

 

 

2,436,035

 

Deferred income tax provision

 

(25,573,920

)

 

7,498,112

 

Excess tax deficiency related to share-based compensation

 

(1,579,361

)

 

3,737,325

 

Change in fair value of derivative instruments

 

(14,086,699

)

 

(3,066,913

)

Changes in assets and liabilities:
Accounts receivable

 

9,867,026

 

 

(7,095,256

)

Prepaid expenses and retainers

 

3,483,645

 

 

(6,060,699

)

Accounts payable

 

(17,225,782

)

 

(1,055,397

)

Settlement of asset retirement obligation

 

(428,605

)

 

(615,732

)

Net Cash Provided by Operating Activities

 

44,903,306

 

 

62,588,212

 

Cash Flows From Investing Activities

Payments to purchase oil and natural gas properties

 

(1,189,433

)

 

(263,262,046

)

Proceeds from oil and gas property divestiture

 

4,500,000

 

 

-

 

Payments to develop oil and natural gas properties

 

(33,586,337

)

 

(122,004,117

)

Net Cash Used in Investing Activities

 

(30,275,770

)

 

(385,266,163

)

Cash Flows From Financing Activities

Proceeds from revolving line of credit

 

21,500,000

 

 

327,000,000

 

Payments on revolving line of credit

 

(28,000,000

)

 

-

 

Reduction of financing lease liability

 

(211,341

)

 

(86,686

)

Net Cash (Used in) Provided by Financing Activities

 

(6,711,341

)

 

326,913,314

 

Net Change in Cash

 

7,916,195

 

 

4,235,363

 

Cash at Beginning of Period

 

10,004,622

 

 

3,363,726

 

Cash at End of Period

$

17,920,817

 

$

7,599,089

 

Supplemental Cash Flow Information

Cash paid for interest

$

12,387,670

 

$

5,821,545

 

Noncash Investing and Financing Activities

Asset retirement obligation incurred during development

$

66,387

 

$

602,090

 

Operating lease assets obtained in exchange for new operating lease liability

 

-

 

 

539,577

 

Financing lease assets obtained in exchange for new financing lease liability

 

-

 

 

947,435

 

Capitalized expenditures attributable to drilling projects financed through current liabilities

 

2,600,000

 

 

26,958,655

 

Acquisition of oil and gas properties
Assumption of joint interest billing receivable

 

-

 

 

1,464,394

 

Assumption of prepaid assets

 

-

 

 

2,864,554

 

Assumption of accounts and revenue payables

 

-

 

 

(1,234,862

)

Asset retirement obligation incurred through acquisition

 

-

 

 

(2,979,645

)

Common stock issued as partial consideration in asset acquisition

 

-

 

 

(28,356,396

)

Oil and gas properties subject to amortization

 

-

 

 

296,910,774

 

Non-GAAP reconciliations

Adjusted net income per share

 

For The Three Months

 

For The Nine Months

Ended September 30,

 

Ended September 30,

 

 

 

2019

 

 

 

 

 

2019

 

 

2020

 

 

(restated)

 

 

2020

 

 

(restated)

Adjusted net income per share

Net income (loss) per income statement

$

(1,961,603

)

$

8,858,000

 

$

(93,157,551

)

$

24,469,857

 

Stock-based compensation

 

565,819

 

 

792,836

 

 

2,557,156

 

 

2,436,035

 

Ceiling test write down

 

-

 

 

-

 

 

147,937,943

 

 

-

 

Unrealized (gain) loss on derivatives

 

6,228,453

 

 

(1,877,368

)

 

(14,086,699

)

 

(3,066,913

)

Tax adjustment for adjusting items

 

(1,446,501

)

 

230,897

 

 

(29,041,348

)

 

134,314

 

 

Adjusted net income

$

3,386,168

 

$

8,004,365

 

$

14,209,501

 

$

23,973,293

 

 

Weighted average shares outstanding

 

67,980,961

 

 

67,836,552

 

 

67,985,168

 

 

66,401,422

 

 

Adjusted net income per share

$

0.05

 

$

0.12

 

$

0.21

 

$

0.36

 

 

Adjusted EBITDA per share

 

For The Three Months

 

For The Nine Months

Ended September 30,

 

Ended September 30,

 

 

 

2019

 

 

 

 

 

2019

 

Adjusted EBITDA

 

2020

 

 

(restated)

 

 

2020

 

 

(restated)

Net income (loss) per income statement

$

(1,961,603

)

$

8,858,000

 

$

(93,157,551

)

$

24,469,857

 

 

Net interest expense

 

4,457,249

 

 

4,556,500

 

 

12,958,781

 

 

9,575,929

 

Unrealized (gain) loss on derivatives

 

6,228,453

 

 

(1,877,368

)

 

(14,086,699

)

 

(3,066,913

)

Ceiling test impairment

 

-

 

 

-

 

 

147,937,943

 

 

-

 

Income tax expense (benefit)

 

(486,565

)

 

2,805,278

 

 

(27,153,281

)

 

11,235,437

 

Depreciation, depletion and amortization

 

10,826,989

 

 

14,115,170

 

 

31,848,093

 

 

41,659,494

 

Accretion of discounted liabilities

 

230,784

 

 

236,207

 

 

694,113

 

 

681,386

 

Stock- based compensation

 

565,819

 

 

792,836

 

 

2,557,156

 

 

2,436,035

 

 

Adjusted EBITDA

$

19,861,126

 

$

29,486,623

 

$

61,598,555

 

$

86,991,225

 

 

Weighted average shares outstanding

 

67,980,961

 

 

67,836,552

 

 

67,985,168

 

 

66,401,422

 

 

Adjusted net income per share

$

0.29

 

$

0.43

 

$

0.91

 

$

1.31

 

Free cash flow

 

For The Three Months

 

For The Nine Months

Ended September 30,

 

Ended September 30,

 

 

 

2019

 

 

 

 

 

2019

 

 

2020

 

 

(restated)

 

 

2020

 

 

(restated)

Adjusted EBITDA

$

19,861,126

 

$

29,486,623

 

$

61,598,555

 

$

86,991,225

 

 

Net interest expense (excluding amortization of deferred financing costs)

 

(4,268,126

)

 

(4,556,500

)

 

(12,391,534

)

 

(9,575,929

)

Capital expenditures (excluding Northwest Shelf acquisition)

 

(4,305,557

)

 

(21,413,253

)

 

(22,205,770

)

 

(99,838,922

)

 

Free cash flow

$

11,287,443

 

$

3,516,870

 

$

27,001,251

 

$

(22,423,626

)

 
 

Liquidity, as of September 30, 2020

 

Cash

$

17,920,817

Available under Credit Facility

15,000,000

 

Outstanding Letters of Credit

(760,438

)

Net available under Credit Facility

 

14,239,562

 

Liquidity

$

32,160,379

 

Reconciliation of cash flow from operations

 

 

 

 

2019

 

For the Nine Months Ended September 30,

 

2020

 

(restated)

 

Net cash provided by operating activities

$

44,903,306

$

62,588,212

 

Change in operating assets and liabilities

 

4,303,716

 

14,827,084

 

 

Cash flow from operations

$

49,207,022

$

77,415,296

 

 

 

David Fowler, President
Ring Energy, Inc.
(432) 682-7464

Bill Parsons
K M Financial, Inc.
(702) 489-4447

Source: Ring Energy, Inc.

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