Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”)
today reported operational and financial results for the third
quarter 2021.
Highlights and Recent Key
Items
-
Sold 8,243 barrels of oil equivalent per day (“Boe/d”), or 758,387
barrels of oil equivalent (“Boe”) (87% oil), in the third quarter
of 2021;
-
Reported net income of $14.2 million, or $0.12 per diluted share,
and Adjusted Net Income1 of $6.8 million, or $0.07 per share, in
the third quarter of 2021;
-
Generated Adjusted EBITDA1 of $19.7 million for the third quarter
of 2021;
-
Adjusted EBITDA for the nine months ended September 30, 2021 was
$59.3 million;
-
Delivered Net Cash Provided by Operating Activities of $17.5
million and Free Cash Flow1 of $2.6 million in the third quarter of
2021;
-
Net Cash Provided by Operating Activities and Free Cash Flow for
year-to-date September 30, 2021 totaled $49.5 million and $11.2
million, respectively;
-
Paid down $5.5 million of debt on the Company’s revolving credit
facility during the third quarter 2021;
-
Reduced long-term debt by $18.0 million for the first nine months
of 2021;
-
Reduced interest expense by $2.0 million for the nine months ended
September 30, 2021 when compared to the similar period in
2020;
-
Reduced costly workovers and future operating costs by converting
10 wells from downhole electrical submersible pumps (”ESPs”) to rod
pumps (“CTRs”) in the third quarter, including seven in the
Northwest Shelf (“NWS”) and three in the Central Basin Platform
(“CBP”);
-
Performed 24 CTRs year-to-date September 30, 2021, including 18 in
the NWS and six in the CBP;
-
Successfully completed Ring’s Phase III drilling program of four
wells (two in NWS and two in CBP) within budget in the third
quarter;
-
Contributed less than 1% of total net Boe sales volumes because the
wells were brought online during the last three weeks of the
quarter;
-
However, to date the wells are realizing strong production results
and exceeding expectations with all wells at 100% working interest;
and
-
Commenced Phase IV drilling program with one well in the NWS, which
was brought online at the end of October, and one well in the CBP,
which is expected to be online by the end of this year.
Mr. Paul D. McKinney, Chairman of the Board and
Chief Executive Officer, commented, “We were pleased to once again
generate free cash flow and strengthen our balance sheet through
further debt reduction during the third quarter of 2021. While our
production levels for the period were lower than anticipated due to
certain events that we discuss later in this release, we were able
to generate strong Adjusted EBITDA and operational cash flow
through cost reduction initiatives primarily linked to our CTR
program. Our strategic initiatives designed to drive increased
operational excellence, complemented by our focus on investing in
our highest rate-of-return opportunities, solidly positioned Ring
for ongoing success as we close out the year and move into
2022.”
“We continue to benefit from our targeted 2021
drilling programs designed to not only mitigate the decline in our
baseline production but also maximize long-term cash flow as we
capitalize on the current higher commodity price environment,”
continued Mr. McKinney. “We are very pleased with the results of
our drilling programs and look forward to the additional production
as we enter the new year when our 2021 lower-priced hedges roll
off. As you know, our Phase III drilling program included two wells
on our NWS acreage, as well as two CBP wells. These two CBP wells
were the first to be drilled in over two years in that area and we
are excited about the upside we continue to have on our legacy
acreage. In October, our estimated Company net production averaged
over 9,000 Boe/d. Our collective strategic efforts remain squarely
focused on generating strong cash flows to further pay down debt
while we continue to capitalize on the organic opportunities within
our portfolio, divest non-strategic assets, and pursue potential
accretive acquisitions that can strengthen our balance sheet.”
Financial Overview: For the
third quarter of 2021, the Company reported net income of $14.2
million, or $0.12 per diluted share, which included adjustments of
$8.2 million before tax for a non-cash unrealized commodity
derivative gain and $0.8 million before tax for share-based
compensation. Excluding the estimated after-tax impact of the
adjustments, the Company’s Adjusted Net Income was $6.8 million, or
$0.07 per share. In the second quarter of 2021, the Company
reported a net loss of $15.9 million, or $0.16 per share, which
included adjustments of $22.8 million before tax for a non-cash
unrealized commodity derivative loss and $0.4 million before tax
for share-based compensation. Excluding the estimated after-tax
impact of these adjustments, the Company’s Adjusted Net Income was
$7.0 million, or $0.07 per share. In the third quarter of 2020,
Ring reported a net loss of $2.0 million, or $0.03 per share, which
included adjustments of $6.2 million before tax for a non-cash
unrealized commodity derivative loss and $0.6 million before tax
for share-based compensation. Excluding the estimated after-tax
impact of these adjustments, Adjusted Net Income in the third
quarter of 2020 was $3.4 million, or $0.05 per share.
Adjusted EBITDA was $19.7 million for the third
quarter of 2021 versus $20.6 million in the second quarter of 2021
and $19.9 million in the third quarter of 2020. The slight decrease
in Adjusted EBITDA compared to both prior periods was primarily due
to lower oil sales volumes that were substantially offset by higher
oil prices.
Free Cash Flow for the third quarter of 2021 was
$2.6 million versus $5.6 million in the second quarter of 2021
primarily due to higher capital expenditures and lower sales
volumes. Third quarter 2021 Free Cash Flow decreased $8.7 million
from $11.3 million for the third quarter of 2020 primarily due to
an increase in capital expenditures in 2021.
Adjusted Net Income, Adjusted EBITDA and Free
Cash Flow are non-GAAP financial measures, which are described in
more detail and reconciled to the most comparable GAAP measures, in
the tables shown later in this release under “Non-GAAP
Information.”
Sales Volumes, Prices and
Revenues: Sales volumes for the third quarter of 2021 were
8,243 Boe/d (87% oil), or 758,387 Boe, compared to 8,709 Boe/d (89%
oil), or 792,551 Boe, for the second quarter of 2021, and 9,549
Boe/d (89% oil), or 878,480 Boe, in the third quarter of 2020.
Third quarter 2021 sales volumes were comprised of 659,247 barrels
(“Bbls”) of oil and 594,841 thousand cubic feet (“Mcf”) of natural
gas.
Sales volumes for the third quarter of 2021 were
partially impacted by new well completion activities of the Company
and an offset operator that temporarily reduced the production from
a number of Ring’s higher producing wells. The production levels of
these wells have recovered in the fourth quarter to normal levels.
Additionally, the Company continued to experience lower natural gas
sales due to certain third-party facility processing capacity
constraints in both the CBP and the NWS areas. In the NWS, the
plant restrictions also reduced oil sales due to higher pressures.
Finally, the CTRs completed during the third quarter resulted in
longer-than-anticipated downtime due to wells being cleaned
out.
For the third quarter of 2021, the Company
realized an average sales price of $69.61 per barrel of crude oil
and $5.86 per Mcf for natural gas. The combined average realized
sales price for the period was $65.11 per Boe, up 8% versus $60.26
per Boe for the second quarter of 2021, and up 82% from $35.82 per
Boe in the third quarter of 2020. The average oil price
differential the Company experienced from WTI NYMEX pricing in the
third quarter of 2021 was a negative $1.05 per barrel of crude oil,
while the average natural gas price differential from Henry Hub
pricing was a positive $1.43 per Mcf.
Revenues were $49.4 million for the third
quarter of 2021 compared to $47.8 million for the second quarter of
2021 and $31.5 million for the third quarter of 2020. The 3%
increase in third quarter 2021 revenues from this year’s second
quarter and the 57% improvement from the third quarter of 2020 were
both driven by higher oil and natural gas prices and increased
natural gas sales volumes that were partially offset by lower oil
sales volumes.
Lease Operating Expense
(“LOE”): LOE, which includes expense workovers and
facilities maintenance, was $7.0 million, or $9.21 per Boe, in the
third quarter of 2021 versus $7.4 million, or $9.37 per Boe, in the
second quarter of 2021 and $7.8 million, or $8.90 per Boe, for the
third quarter of 2020. Purchasing leased ESPs throughout the year
has resulted in lower operating costs.
Gathering, Transportation and Processing
(“GTP”) Costs: GTP costs, which are associated with
natural gas sales, were $1.39 per Boe in the third quarter of 2021
versus $1.13 per Boe in the second quarter of 2021 and $1.20 per
Boe in the third quarter of 2020. The increase in GTP costs was due
to higher natural gas sales volumes.
Ad Valorem Taxes: Ad valorem
taxes were $0.93 per Boe for the third quarter of 2021 compared to
$0.89 per Boe in the second quarter of 2021 and $0.91 per Boe for
the third quarter of 2020.
Production Taxes: Production
taxes were $2.95 per Boe in the third quarter of 2021 compared to
$2.77 per Boe in the second quarter of 2021 and $1.62 per Boe in
third quarter of 2020. Production taxes remained steady at 4-5% of
revenue for all three periods.
Depreciation, Depletion and Amortization
(“DD&A”) and Asset Retirement Obligation Accretion:
DD&A was $12.28 per Boe in the third quarter of 2021 versus
$11.70 per Boe for the second quarter of 2021 and $12.32 per Boe in
the third quarter of 2020. Asset retirement obligation accretion
was $0.24 per Boe in the third quarter of 2021 compared to $0.23
per Boe for the second quarter of 2021 and $0.26 per Boe in the
third quarter of 2020.
Operating Lease
Expense: Operating lease expense was $83,589
for the third quarter of 2021 versus $84,790 for the second quarter
of 2021 and $295,631 in the third quarter of 2020. These expenses
are primarily associated with the Company’s office leases.
General and Administrative Expenses
(“G&A”): G&A, excluding share-based compensation,
was $3.7 million, or $4.82 per Boe, for the third quarter 2021
versus $3.4 million, or $4.30 per Boe, for the second quarter of
2021 and $1.9 million, or $2.20 per Boe, in the third quarter of
2020. Contributing to the year-over-year increase in third quarter
G&A were higher insurance and legal costs, the hiring of
additional accounting, engineering, land, and operations personnel,
and relocation expenses.
Interest Expense: Interest
expense was $3.6 million in the third quarter of 2021 versus $3.7
million for the second quarter 2021 and $4.5 million for the third
quarter of 2020. Interest expense declined year-over-year due to a
lower average daily balance of long-term debt and a lower margin
rate for the three months ended September 30, 2021. The lower
margin rate was associated with a reduced percentage utilization of
the borrowing base.
Derivative (Loss) Gain: In the
third quarter of 2021, Ring recorded a loss of $6.7 million on its
commodity derivative contracts, including a realized $14.9 million
cash commodity derivative loss and an unrealized $8.2 million
non-cash commodity derivative gain. This compared to a net loss of
$35.3 million in the second quarter of 2021, of which $22.8 million
was unrealized, and a net loss of $4.5 million in the third quarter
of 2020, of which $6.2 million was unrealized.
Ring did not add any derivative positions during
the three months ended September 30, 2021. A full listing of the
Company’s current outstanding derivative positions is included in
the tables shown later in this release.
Income Tax: The Company
recorded a non-cash income tax benefit of $48,701 in the third
quarter 2021 versus an expense of $190,644 in the second quarter of
2021 and a benefit of $486,565 for the third quarter of 2020.
Balance Sheet and Liquidity:
Total liquidity at the end of the third quarter of 2021 was $56.2
million, an increase of 9% from June 30, 2021. Liquidity consisted
of cash and cash equivalents of $2.0 million and $54.2 million of
availability under Ring’s revolving bank credit facility, which
includes a reduction of $0.8 million for letters of credit. On
September 30, 2021, the Company had $295.0 million in borrowings on
its revolving credit facility that has a current borrowing base of
$350.0 million. Ring paid down $5.5 million of debt during the
third quarter of 2021, and $18.0 million for the nine months ended
September 30, 2021. The Company is targeting further debt reduction
during the fourth quarter of 2021 and full year 2022.
The next regularly scheduled bank
redetermination is underway and expected to be completed during the
fourth quarter. Ring is currently in compliance with all applicable
covenants of its revolving credit facility agreement.
Capital Expenditures and Asset
Transfers: During the third quarter of 2021, capital
expenditures were $13.7 million as the Company drilled, completed
and placed on production the four wells of its Phase III program
(two wells in NWS and two wells in CBP, with all wells at 100%
working interest) and also performed 10 CTR projects.
The Phase III program utilized two rigs and all
wells were drilled and completed within budget. The wells in the
NWS were 1.0-mile laterals and the wells in the CBP were 1.5-mile
laterals. Upon successful completion of activities, the Company
released the two rigs used for the Phase III program. To date,
these wells are exceeding production expectations with all wells at
100% working interest.
In the second quarter of 2021, capital
expenditures were $11.5 million, which included costs to drill,
complete and place on production the three wells of the Company’s
NWS Phase II program (with all wells at 74% working interest) and
perform five CTR projects.
For the nine months ended September 30, 2021,
capital expenditures were $39.7 million, which included costs to
drill nine horizontal wells (seven in NWS and two in CBP), and
complete and place on production 11 horizontal wells (nine in NWS
and two in CBP). Two of the NWS wells completed in 2021 were
drilled in 2020. Also included in year-to-date capital spending for
2021 were costs for 24 CTRs, as well as costs for capital
workovers, infrastructure upgrades, land and other capital
expenditures.
Commences Phase IV Drilling
Program
In response to a continued improvement in crude
oil prices, Ring has commenced its previously announced Phase IV
program to drill two wells, including one in the NWS (1.0-mile
lateral at approximately 75% working interest) and one in the CBP
(1.5-mile lateral at 100% working interest). The NWS 1.0-mile
lateral was placed on production at the end of October and is
meeting expectations. The CBP 1.5-mile lateral well was
successfully drilled in October, is awaiting completion, and is
expected to be placed on production by the end of 2021.
Update on Sales Process for Delaware
Basin Assets
As previously announced, Ring launched a sales
process during the second quarter of 2021 to divest of its Delaware
Basin assets. The Company continues to be in discussions with
several interested parties and will provide further updates as
definitive information is known. Ring anticipates using the net
proceeds from the potential sale of its Delaware Basin assets to
further reduce its debt.
Fourth Quarter 2021 Sales Volumes,
Operating Expense and Capital Spending Guidance
The guidance in the table below represents the
Company's current estimate of the range of fourth quarter of 2021
results. Guidance could be affected by the factors discussed below
in the "Safe Harbor Statement" section.
|
|
|
Q4 |
|
|
|
|
2021 |
|
|
|
|
|
|
Sales Volumes: |
|
|
|
|
Total
(Boe/d) |
|
8,800 -
9,200 |
|
|
Oil
(Bo/d) |
|
7,500 -
7,900 |
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
Lifting
cost(1) (per Boe) |
|
$10.50 -
$11.50 |
|
|
|
|
|
|
Capital Program: |
|
|
|
|
Number of
new wells drilled |
|
2 |
|
|
Number of new wells completed |
2 |
|
|
|
|
|
|
|
Capital
spending(2) (millions) |
|
$11 -
$15 |
|
|
|
|
|
|
(1) Lifting cost equals lease operating expenses and gathering,
transportation and processing costs divided by the total barrels of
oil equivalent (6 Mcf = 1 Boe) sold during the same period. |
|
|
|
|
|
(2) In addition to Company-directed drilling and completion
activities, the capital spending outlook includes funds for
targeted well reactivations, workovers, infrastructure upgrades,
and continuing the Company's successful CTR program in its
Northwest Shelf and Central Basin Platform areas. Also included is
anticipated spending for lease costs, contractural drilling
obligations and non-operated drilling, completion and capital
workovers. |
Conference Call Information
Ring will hold a conference call on Wednesday,
November 10, 2021 at 11:00 a.m. ET to discuss its third quarter
2021 operational and financial results. An updated investor
presentation will be posted to the Company’s website prior to the
conference call.
To participate in the conference call,
interested parties should dial 833-953-2433 at least five minutes
before the call is to begin. Please reference the “Ring Energy
Third Quarter 2021 Earnings Conference Call”. International callers
may participate by dialing 412-317-5762. The call will also be
webcast and available on Ring’s website at www.ringenergy.com under
“Investors” on the “News & Events” page. An audio replay will
also be available on the Company’s website following the call.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration,
development, and production company with current operations focused
on the conventional development of its Permian Basin assets in West
Texas and New Mexico. For additional information, please visit
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, 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.
Contact Information
Al Petrie Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com
1 A non-GAAP financial measure; see “Non-GAAP Information”
section in this release for more information including
reconciliations to the most comparable GAAP measures.
RING ENERGY,
INC. |
|
Condensed
Statements of Operations |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and Natural Gas Revenues |
|
$ |
49,376,176 |
|
|
$ |
47,760,102 |
|
|
$ |
31,466,544 |
|
|
$ |
136,638,810 |
|
|
$ |
81,673,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating expenses |
|
|
6,983,196 |
|
|
|
7,424,488 |
|
|
|
7,819,639 |
|
|
|
22,634,259 |
|
|
|
21,887,356 |
|
|
Gathering,
transportation and processing costs |
|
|
1,051,163 |
|
|
|
897,166 |
|
|
|
1,058,372 |
|
|
|
2,883,348 |
|
|
|
2,833,957 |
|
|
Ad valorem
taxes |
|
|
703,774 |
|
|
|
703,775 |
|
|
|
800,000 |
|
|
|
2,144,800 |
|
|
|
2,407,455 |
|
|
Oil and
natural gas production taxes |
|
|
2,240,759 |
|
|
|
2,198,339 |
|
|
|
1,427,041 |
|
|
|
6,291,860 |
|
|
|
3,731,046 |
|
|
Depreciation, depletion and amortization |
|
|
9,310,524 |
|
|
|
9,275,126 |
|
|
|
10,826,989 |
|
|
|
26,693,808 |
|
|
|
31,848,093 |
|
|
Ceiling test
impairment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
147,937,943 |
|
|
Asset
retirement obligation accretion |
|
|
182,905 |
|
|
|
184,013 |
|
|
|
230,784 |
|
|
|
560,662 |
|
|
|
694,113 |
|
|
Operating
lease expense |
|
|
83,589 |
|
|
|
84,790 |
|
|
|
295,631 |
|
|
|
439,896 |
|
|
|
876,889 |
|
|
General and
administrative expense (including share-based compensation) |
|
|
4,433,251 |
|
|
|
3,757,152 |
|
|
|
2,496,927 |
|
|
|
11,103,394 |
|
|
|
9,709,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Costs and Operating Expenses |
|
|
24,989,161 |
|
|
|
24,524,849 |
|
|
|
24,955,383 |
|
|
|
72,752,027 |
|
|
|
221,926,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Income from Operations |
|
|
24,387,015 |
|
|
|
23,235,253 |
|
|
|
6,511,161 |
|
|
|
63,886,783 |
|
|
|
(140,252,818 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
7 |
|
|
Interest
(expense) |
|
|
(3,551,462 |
) |
|
|
(3,654,529 |
) |
|
|
(4,457,250 |
) |
|
|
(10,947,960 |
) |
|
|
(12,958,788 |
) |
|
(Loss) gain
on derivative contracts |
|
|
(6,720,320 |
) |
|
|
(35,277,240 |
) |
|
|
(4,502,080 |
) |
|
|
(73,586,199 |
) |
|
|
32,900,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Other Income (Expense) |
|
|
(10,271,782 |
) |
|
|
(38,931,768 |
) |
|
|
(8,959,329 |
) |
|
|
(84,534,158 |
) |
|
|
19,941,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income Before Tax Provision |
|
|
14,115,233 |
|
|
|
(15,696,515 |
) |
|
|
(2,448,168 |
) |
|
|
(20,647,375 |
) |
|
|
(120,310,832 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from (Provision for) Income Taxes |
|
|
48,701 |
|
|
|
(190,644 |
) |
|
|
486,565 |
|
|
|
(141,943 |
) |
|
|
27,153,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(Loss) Income |
|
$ |
14,163,934 |
|
|
$ |
(15,887,159 |
) |
|
$ |
(1,961,603 |
) |
|
$ |
(20,789,318 |
) |
|
$ |
(93,157,551 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings per Share |
|
$ |
0.14 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.37 |
) |
|
Diluted (Loss) Earnings per Share |
|
$ |
0.12 |
|
|
$ |
(0.16 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Weighted-Average Shares Outstanding |
|
|
99,358,504 |
|
|
|
99,300,458 |
|
|
|
67,980,961 |
|
|
|
99,251,532 |
|
|
|
67,985,168 |
|
|
Diluted
Weighted-Average Shares Outstanding |
|
|
121,220,748 |
|
|
|
99,300,458 |
|
|
|
67,980,961 |
|
|
|
99,251,532 |
|
|
|
67,985,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RING ENERGY,
INC. |
Condensed
Operating Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
(Bbls) |
|
|
659,247 |
|
|
|
702,408 |
|
|
|
781,626 |
|
|
|
1,971,776 |
|
|
|
2,066,980 |
|
Natural gas
(Mcf) |
|
|
594,841 |
|
|
|
540,857 |
|
|
|
581,123 |
|
|
|
1,773,506 |
|
|
|
1,764,165 |
|
Total oil
and natural gas (Boe) (1) |
|
|
758,387 |
|
|
|
792,551 |
|
|
|
878,480 |
|
|
|
2,267,360 |
|
|
|
2,361,008 |
|
% Oil |
|
|
87 |
% |
|
|
89 |
% |
|
|
89 |
% |
|
|
87 |
% |
|
|
88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
daily equivalent sales (Boe/d) |
|
|
8,243 |
|
|
|
8,709 |
|
|
|
9,549 |
|
|
|
8,305 |
|
|
|
8,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized sales prices: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
($/Bbl) |
|
$ |
69.61 |
|
|
$ |
65.00 |
|
|
$ |
38.80 |
|
|
$ |
64.37 |
|
|
$ |
38.40 |
|
Natural gas
($/Mcf) |
|
|
5.86 |
|
|
|
3.90 |
|
|
|
1.96 |
|
|
|
5.48 |
|
|
|
1.30 |
|
Barrel of
oil equivalent ($/Boe) |
|
$ |
65.11 |
|
|
$ |
60.26 |
|
|
$ |
35.82 |
|
|
$ |
60.26 |
|
|
$ |
34.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average costs and expenses per Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating expenses |
|
$ |
9.21 |
|
|
$ |
9.37 |
|
|
$ |
8.90 |
|
|
$ |
9.98 |
|
|
$ |
9.27 |
|
Gathering,
transportation and processing costs |
|
|
1.39 |
|
|
|
1.13 |
|
|
|
1.20 |
|
|
|
1.27 |
|
|
|
1.20 |
|
Ad valorem
taxes |
|
|
0.93 |
|
|
|
0.89 |
|
|
|
0.91 |
|
|
|
0.95 |
|
|
|
1.02 |
|
Oil and
natural gas production taxes |
|
|
2.95 |
|
|
|
2.77 |
|
|
|
1.62 |
|
|
|
2.77 |
|
|
|
1.58 |
|
Depreciation, depletion and amortization |
|
|
12.28 |
|
|
|
11.70 |
|
|
|
12.32 |
|
|
|
11.77 |
|
|
|
13.49 |
|
Asset
retirement obligation accretion |
|
|
0.24 |
|
|
|
0.23 |
|
|
|
0.26 |
|
|
|
0.25 |
|
|
|
0.29 |
|
Operating
lease expense |
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.34 |
|
|
|
0.19 |
|
|
|
0.37 |
|
General and
administrative expense (including share-based compensation) |
|
|
5.85 |
|
|
|
4.74 |
|
|
|
2.84 |
|
|
|
4.90 |
|
|
|
4.11 |
|
General and
administrative expense (excluding share-based compensation) |
|
|
4.82 |
|
|
|
4.30 |
|
|
|
2.20 |
|
|
|
4.24 |
|
|
|
3.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Boe is determined
using the ratio of six Mcf of natural gas to one Bbl of oil (totals
may not compute due to rounding). The conversion ratio does
not assume price equivalency and the price on an equivalent basis
for oil and natural gas may differ significantly. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RING ENERGY,
INC. |
Condensed
Balance Sheets |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
September
30, |
|
December
31, |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,046,946 |
|
|
$ |
3,578,634 |
|
Accounts
receivable |
|
|
20,306,264 |
|
|
|
14,997,979 |
|
Joint
interest billing receivable |
|
|
1,672,334 |
|
|
|
1,327,262 |
|
Derivative
receivable |
|
|
- |
|
|
|
499,906 |
|
Prepaid
expenses and retainers |
|
|
1,298,801 |
|
|
|
396,109 |
|
Total Current Assets |
|
|
25,324,345 |
|
|
|
20,799,890 |
|
|
|
|
|
|
|
|
Properties and Equipment |
|
|
|
|
|
|
Oil and
natural gas properties, full cost method |
|
|
872,258,987 |
|
|
|
836,514,815 |
|
Financing
lease asset subject to depreciation |
|
|
1,422,487 |
|
|
|
858,513 |
|
Fixed assets
subject to depreciation |
|
|
2,130,523 |
|
|
|
1,520,890 |
|
Total Properties and Equipment |
|
|
875,811,997 |
|
|
|
838,894,218 |
|
Accumulated
depreciation, depletion and amortization |
|
|
(225,744,692 |
) |
|
|
(200,111,658 |
) |
Net
Properties and Equipment |
|
|
650,067,305 |
|
|
|
638,782,560 |
|
|
|
|
|
|
|
|
Operating lease asset |
|
|
1,344,378 |
|
|
|
1,494,399 |
|
Deferred financing costs |
|
|
1,882,815 |
|
|
|
2,379,348 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
678,618,843 |
|
|
$ |
663,456,197 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Accounts
payable |
|
$ |
45,259,500 |
|
|
$ |
32,500,081 |
|
Financing
lease liability |
|
|
385,866 |
|
|
|
295,311 |
|
Operating
lease liability |
|
|
268,512 |
|
|
|
859,017 |
|
Derivative
liabilities |
|
|
38,402,944 |
|
|
|
3,287,328 |
|
Notes
payable |
|
|
857,151 |
|
|
|
- |
|
Total Current Liabilities |
|
|
85,173,973 |
|
|
|
36,941,737 |
|
|
|
|
|
|
|
|
Deferred
income taxes |
|
|
141,943 |
|
|
|
- |
|
Revolving
line of credit |
|
|
295,000,000 |
|
|
|
313,000,000 |
|
Financing
lease liability, less current portion |
|
|
393,340 |
|
|
|
126,857 |
|
Operating
lease liability, less current portion |
|
|
1,212,239 |
|
|
|
635,382 |
|
Derivative
liabilities |
|
|
6,061,724 |
|
|
|
869,273 |
|
Asset
retirement obligations |
|
|
14,998,130 |
|
|
|
17,117,135 |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
402,981,349 |
|
|
|
368,690,384 |
|
|
|
|
|
|
|
|
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; 99,359,938
shares and 85,568,287 shares issued and outstanding,
respectively |
|
|
99,360 |
|
|
|
85,568 |
|
Additional
paid-in capital |
|
|
552,598,622 |
|
|
|
550,951,415 |
|
Accumulated
deficit |
|
|
(277,060,488 |
) |
|
|
(256,271,170 |
) |
|
|
|
|
|
|
|
Total Stockholders' Equity |
|
|
275,637,494 |
|
|
|
294,765,813 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
678,618,843 |
|
|
$ |
663,456,197 |
|
|
|
|
|
|
|
|
RING ENERGY,
INC. |
|
Condensed
Statements of Cash Flows |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
14,163,934 |
|
|
$ |
(15,887,159 |
) |
|
$ |
(1,961,603 |
) |
|
$ |
(20,789,318 |
) |
|
$ |
(93,157,551 |
) |
|
|
Adjustments
to reconcile net (loss) income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
9,310,524 |
|
|
|
9,275,126 |
|
|
|
10,826,989 |
|
|
|
26,693,808 |
|
|
|
31,848,093 |
|
|
|
Ceiling test impairment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
147,937,943 |
|
|
|
Accretion expense |
|
|
182,905 |
|
|
|
184,013 |
|
|
|
230,784 |
|
|
|
560,662 |
|
|
|
694,113 |
|
|
|
Amortization of deferred financing costs |
|
|
166,282 |
|
|
|
147,224 |
|
|
|
189,083 |
|
|
|
496,533 |
|
|
|
567,248 |
|
|
|
Share-based compensation |
|
|
777,461 |
|
|
|
351,775 |
|
|
|
565,819 |
|
|
|
1,484,730 |
|
|
|
2,557,156 |
|
|
|
Deferred income tax (benefit) expense |
|
|
1,886,118 |
|
|
|
47,967 |
|
|
|
(525,218 |
) |
|
|
141,943 |
|
|
|
(25,573,920 |
) |
|
|
Excess tax expense (benefit) related to share-based
compensation |
|
|
(1,934,819 |
) |
|
|
142,677 |
|
|
|
38,653 |
|
|
|
- |
|
|
|
(1,579,361 |
) |
|
|
(Gain) loss on derivative contracts |
|
|
6,720,320 |
|
|
|
35,277,240 |
|
|
|
4,502,080 |
|
|
|
73,586,199 |
|
|
|
(32,900,767 |
) |
|
|
Cash (paid) received for derivative settlements, net |
(14,921,008 |
) |
|
|
(12,436,333 |
) |
|
|
1,726,373 |
|
|
|
(33,278,132 |
) |
|
|
18,814,068 |
|
|
|
Changes in
assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
1,656,229 |
|
|
|
(704,568 |
) |
|
|
(5,678,392 |
) |
|
|
(5,017,078 |
) |
|
|
9,867,026 |
|
|
|
Prepaid expenses and retainers |
|
|
278,870 |
|
|
|
(1,346,762 |
) |
|
|
85,785 |
|
|
|
(902,692 |
) |
|
|
3,483,645 |
|
|
|
Accounts payable |
|
|
(329,555 |
) |
|
|
2,365,612 |
|
|
|
4,824,895 |
|
|
|
8,329,563 |
|
|
|
(17,225,782 |
) |
|
|
Settlement of asset retirement obligation |
|
|
(444,502 |
) |
|
|
(1,093,816 |
) |
|
|
(108,025 |
) |
|
|
(1,782,779 |
) |
|
|
(428,605 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Cash Provided by Operating Activities |
|
|
17,512,759 |
|
|
|
16,322,996 |
|
|
|
14,717,223 |
|
|
|
49,523,439 |
|
|
|
44,903,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to
purchase oil and natural gas properties |
|
|
(141,468 |
) |
|
|
(178,718 |
) |
|
|
(171,999 |
) |
|
|
(579,156 |
) |
|
|
(1,189,433 |
) |
|
|
Payments to
develop oil and natural gas properties |
|
|
(11,957,917 |
) |
|
|
(10,824,079 |
) |
|
|
(3,283,558 |
) |
|
|
(34,680,935 |
) |
|
|
(33,586,337 |
) |
|
|
Payments to
acquire or improve fixed assets |
|
|
(548,730 |
) |
|
|
(41,442 |
) |
|
|
- |
|
|
|
(609,633 |
) |
|
|
- |
|
|
|
Proceeds
from divestiture of oil and natural gas properties |
|
|
- |
|
|
|
- |
|
|
|
4,500,000 |
|
|
|
2,000,000 |
|
|
|
4,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Cash Used in Investing Activities |
|
|
(12,648,115 |
) |
|
|
(11,044,239 |
) |
|
|
1,044,443 |
|
|
|
(33,869,724 |
) |
|
|
(30,275,770 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from revolving line of credit |
|
|
14,500,000 |
|
|
|
6,900,000 |
|
|
|
- |
|
|
|
34,400,000 |
|
|
|
21,500,000 |
|
|
|
Payments on
revolving line of credit |
|
|
(20,000,000 |
) |
|
|
(11,900,000 |
) |
|
|
(15,000,000 |
) |
|
|
(52,400,000 |
) |
|
|
(28,000,000 |
) |
|
|
Proceeds
from issuance of common stock and warrants |
|
|
- |
|
|
|
80,000 |
|
|
|
- |
|
|
|
241,269 |
|
|
|
- |
|
|
|
Proceeds
from notes payable |
|
|
323,671 |
|
|
|
909,467 |
|
|
|
- |
|
|
|
1,233,138 |
|
|
|
- |
|
|
|
Payments on
notes payable |
|
|
(224,670 |
) |
|
|
(151,317 |
) |
|
|
- |
|
|
|
(375,987 |
) |
|
|
- |
|
|
|
Payment of
deferred financing costs |
|
|
- |
|
|
|
(76,887 |
) |
|
|
- |
|
|
|
(76,887 |
) |
|
|
- |
|
|
|
Reduction of
financing lease liabilities |
|
|
(86,941 |
) |
|
|
(70,288 |
) |
|
|
(70,629 |
) |
|
|
(206,936 |
) |
|
|
(211,341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Cash Used in (Provided by) Investing Activities |
|
|
(5,487,940 |
) |
|
|
(4,309,025 |
) |
|
|
(15,070,629 |
) |
|
|
(17,185,403 |
) |
|
|
(6,711,341 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Cash |
|
|
(623,296 |
) |
|
|
969,732 |
|
|
|
691,037 |
|
|
|
(1,531,688 |
) |
|
|
7,916,195 |
|
|
Cash at Beginning of Period |
|
|
2,670,242 |
|
|
|
1,700,510 |
|
|
|
17,229,780 |
|
|
|
3,578,634 |
|
|
|
10,004,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at End of Period |
|
$ |
2,046,946 |
|
|
$ |
2,670,242 |
|
|
$ |
17,920,817 |
|
|
$ |
2,046,946 |
|
|
$ |
17,920,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RING ENERGY, INC.
Non-GAAP Information
Certain financial information included in Ring’s
financial results are not measures of financial performance
recognized by accounting principles generally accepted in the
United States, or GAAP. These non-GAAP financial measures are
“Adjusted Net Income”, “Adjusted EBITDA”, “Free Cash Flow” and
“Cash Flow from Operations”. Management uses these non-GAAP
financial measures in its analysis of performance. In addition,
Adjusted EBITDA is a key metric used to determine the Company’s
incentive compensation awards. These disclosures may not be viewed
as a substitute for results determined in accordance with GAAP and
are not necessarily comparable to non-GAAP performance measures
which may be reported by other companies.
Reconciliation of Net (Loss) Income to
Adjusted Net Income
Adjusted Net Income does not include the
estimated after-tax impact of share-based compensation, ceiling
test impairment, and unrealized loss (gain) on change in fair value
of derivatives. Adjusted Net Income is presented because the timing
and amount of these items cannot be reasonably estimated and affect
the comparability of operating results from period to period, and
current periods to prior periods.
` |
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
(Unaudited
for All Periods) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
$ |
14,163,934 |
|
|
$ |
(15,887,159 |
) |
|
$ |
(1,961,603 |
) |
|
$ |
(20,789,318 |
) |
|
$ |
(93,157,551 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
777,461 |
|
|
|
351,775 |
|
|
|
565,819 |
|
|
|
1,484,730 |
|
|
|
2,557,156 |
|
|
|
Ceiling test
write impairment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
147,937,943 |
|
|
|
Unrealized
loss (gain) on change in fair value of derivatives |
|
(8,200,688 |
) |
|
|
22,840,907 |
|
|
|
6,228,453 |
|
|
|
40,308,067 |
|
|
|
(14,086,699 |
) |
|
|
Tax impact
of adjusted items |
|
25,612 |
|
|
|
(281,690 |
) |
|
|
(1,446,501 |
) |
|
|
(256,078 |
) |
|
|
(29,041,348 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income |
$ |
6,766,319 |
|
|
$ |
7,023,833 |
|
|
$ |
3,386,168 |
|
|
$ |
20,747,401 |
|
|
$ |
14,209,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Shares Outstanding |
|
99,358,504 |
|
|
|
99,300,458 |
|
|
|
67,980,961 |
|
|
|
99,251,532 |
|
|
|
67,985,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income per Share |
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Adjusted EBITDA, Free
Cash Flow and Cash Flow from Operations
The Company also presents the non-GAAP financial
measures Adjusted EBITDA and Free Cash Flow. The Company defines
Adjusted EBITDA as net (loss) income plus net interest expense,
unrealized loss on change in fair value of derivatives, ceiling
test impairment, income tax (benefit) expense, depreciation,
depletion and amortization and accretion, asset retirement
obligation accretion and share-based compensation. Company
management believes this presentation is relevant and useful
because it helps investors understand Ring’s operating performance
and makes it easier to compare its results with those of other
companies that have different financing, capital and tax
structures. Adjusted EBITDA should not be considered in isolation
from or as a substitute for net income, as an indication of
operating performance or cash flows from operating activities or as
a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may
not be comparable to Adjusted EBITDA measures reported by other
companies. In addition, Adjusted EBITDA does not represent funds
available for discretionary use.
The Company defines Free Cash Flow as Adjusted
EBITDA (defined above) less net interest expense (excluding
amortization of deferred financing cost) and capital expenditures.
For this purpose, the Company’s definition of capital expenditures
includes costs incurred related to oil and natural gas properties
(such as drilling and infrastructure costs and the lease
maintenance costs) and equipment, furniture and fixtures, but
excludes acquisition costs of oil and gas properties from third
parties that are not included in the Company’s capital expenditures
guidance provided to investors. Company management believes that
Free Cash Flow is an important financial performance measure for
use in evaluating the performance and efficiency of its current
operating activities after the impact of accrued capital
expenditures and net interest expense and without being impacted by
items such as changes associated with working capital, which can
vary substantially from one period to another. There is no commonly
accepted definition Free Cash Flow within the industry.
Accordingly, Free Cash Flow, as defined and calculated by the
Company, may not be comparable to Free Cash Flow or other similarly
named non-GAAP measures reported by other companies. While the
Company includes net interest expense in the calculation of Free
Cash Flow, other mandatory debt service requirements of future
payments of principal at maturity (if such debt is not refinanced)
are excluded from the calculation of Free Cash Flow. These and
other non-discretionary expenditures that are not deducted from
Free Cash Flow would reduce cash available for other uses.
The following tables present (i) a
reconciliation of the Company’s net (loss) income, a GAAP measure,
to Adjusted EBITDA and (ii) a reconciliation of Adjusted EBITDA, a
non-GAAP measure, to Free Cash Flow, as both Adjusted EBITDA and
Free Cash Flow are defined by the Company. In addition, a
reconciliation of cash flow from operations is presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
(Unaudited
for All Periods) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income |
$ |
14,163,934 |
|
|
$ |
(15,887,159 |
) |
|
$ |
(1,961,603 |
) |
|
$ |
(20,789,318 |
) |
|
$ |
(93,157,551 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
3,551,462 |
|
|
|
3,654,528 |
|
|
|
4,457,249 |
|
|
|
10,947,959 |
|
|
|
12,958,781 |
|
|
|
Unrealized
loss (gain) on change in fair value of derivatives |
|
(8,200,688 |
) |
|
|
22,840,907 |
|
|
|
6,228,453 |
|
|
|
40,308,067 |
|
|
|
(14,086,699 |
) |
|
|
Ceiling test
impairment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
147,937,943 |
|
|
|
Income tax
(benefit) expense |
|
(48,701 |
) |
|
|
190,644 |
|
|
|
(486,565 |
) |
|
|
141,943 |
|
|
|
(27,153,281 |
) |
|
|
Depreciation, depletion and amortization |
|
9,310,524 |
|
|
|
9,275,126 |
|
|
|
10,826,989 |
|
|
|
26,693,808 |
|
|
|
31,848,093 |
|
|
|
Asset
retirement obligation accretion |
|
182,905 |
|
|
|
184,013 |
|
|
|
230,784 |
|
|
|
560,662 |
|
|
|
694,113 |
|
|
|
Share-based
compensation |
|
777,461 |
|
|
|
351,775 |
|
|
|
565,819 |
|
|
|
1,484,730 |
|
|
|
2,557,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
19,736,897 |
|
|
$ |
20,609,834 |
|
|
$ |
19,861,126 |
|
|
$ |
59,347,851 |
|
|
$ |
61,598,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin |
|
40 |
% |
|
|
43 |
% |
|
|
63 |
% |
|
|
43 |
% |
|
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average Shares Outstanding |
|
99,358,504 |
|
|
|
99,300,458 |
|
|
|
67,980,961 |
|
|
|
99,251,532 |
|
|
|
67,985,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per Share |
$ |
0.20 |
|
|
$ |
0.21 |
|
|
$ |
0.29 |
|
|
$ |
0.60 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
(Unaudited
for All Periods) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
19,736,897 |
|
|
$ |
20,609,834 |
|
|
$ |
19,861,126 |
|
|
$ |
59,347,851 |
|
|
$ |
61,598,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
expense (excluding amortization of deferred financing costs) |
|
(3,385,180 |
) |
|
|
(3,507,304 |
) |
|
|
(4,268,166 |
) |
|
|
(10,451,426 |
) |
|
|
(12,391,533 |
) |
|
|
Capital
expenditures |
|
(13,720,336 |
) |
|
|
(11,456,062 |
) |
|
|
(4,305,557 |
) |
|
|
(39,701,834 |
) |
|
|
(22,102,385 |
) |
|
|
Proceeds
from divestiture of oil and natural gas properties |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,000,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
$ |
2,631,381 |
|
|
$ |
5,646,468 |
|
|
$ |
11,287,403 |
|
|
$ |
11,194,591 |
|
|
$ |
27,104,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
(Unaudited
for All Periods) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities |
$ |
17,512,759 |
|
|
$ |
16,322,996 |
|
|
$ |
14,717,223 |
|
|
$ |
49,523,439 |
|
|
$ |
44,903,306 |
|
|
Changes in operating assets and liabilities |
|
(1,161,042 |
) |
|
|
779,534 |
|
|
|
875,737 |
|
|
|
(627,014 |
) |
|
|
4,303,716 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from Operations |
$ |
16,351,717 |
|
|
$ |
17,102,530 |
|
|
$ |
15,592,960 |
|
|
$ |
48,896,425 |
|
|
$ |
49,207,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ring Energy (AMEX:REI)
Historical Stock Chart
From Apr 2024 to May 2024
Ring Energy (AMEX:REI)
Historical Stock Chart
From May 2023 to May 2024