Ring Energy Reports Q1 2025 Financial Results with Revenue Decline and Increased Net Income

Ring Energy, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $79.1 million, a decrease of 16% from $94.5 million in the same period of 2024. The decline in revenue was primarily attributed to a significant drop in oil sales, which fell from $92.3 million to $76.5 million, reflecting a decrease in production volumes and average realized prices. The company produced 1,086,694 barrels of oil during the quarter, down 11% from the previous year, while natural gas production increased by 8% to 1,615,196 Mcf. The average realized price for oil decreased to $70.40 per barrel from $75.72, contributing to the overall revenue decline.

In terms of profitability, Ring Energy reported a net income of $9.1 million, or $0.05 per share, compared to a net income of $5.5 million, or $0.03 per share, in the prior year. This increase in net income was supported by a reduction in interest expenses, which fell by 17% to $9.5 million, and a significant improvement in unrealized gains on derivative contracts, which totaled $2.3 million compared to a loss of $17 million in the previous year. The company’s total costs and operating expenses remained relatively stable at $56.7 million, slightly down from $56.9 million in the prior year.

Strategically, Ring Energy completed the acquisition of oil and gas properties from Lime Rock Resources on March 31, 2025, for a total consideration of approximately $68.6 million. This acquisition included cash payments, shares of common stock, and a deferred cash payment due by the end of 2025. The company also drilled and completed seven wells during the quarter, enhancing its operational footprint in the Permian Basin, particularly in the Northwest Shelf and Central Basin Platform areas.

Operationally, Ring Energy's total assets increased to $1.51 billion as of March 31, 2025, up from $1.41 billion at the end of 2024. The company’s cash and cash equivalents decreased to $1.1 million, while accounts receivable remained stable at approximately $35.7 million. The company reported a total of 206.5 million shares outstanding, reflecting an increase due to the stock issued in connection with the Lime Rock acquisition. The company’s revolving credit facility had an outstanding balance of $460 million, with a borrowing base of $600 million, indicating a strong liquidity position.

Looking ahead, Ring Energy aims to focus on reducing long-term debt while continuing to develop its oil and gas properties. The company plans to allocate cash flow generated from operations to fund its capital expenditures and pursue strategic acquisitions that align with its growth objectives. However, the company acknowledges the ongoing volatility in oil and natural gas prices, which could impact its financial performance and operational strategies in the near term.