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Midas Edge

RING ENERGY INC

For the period ended Mar 31, 2024. Filed May 6, 2024.

View on SEC.gov

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 6, 2024

REI$1.13-0.9%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. : Condensed Financial Statements

The following (a) condensed balance sheet as of December 31, 2023 which has been derived from our audited financial statements, and (b) the unaudited condensed financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, certain disclosures by accounting principles generally accepted in the United States ("GAAP") and normally included in Annual Reports on Form 10-K have been omitted. Although management believes that our disclosures are adequate to make the information presented not misleading, these unaudited interim condensed financial statements should be read in conjunction with the Company's audited financial statements and related notes included in its most recent Annual Report on Form 10-K.

CONDENSED BALANCE SHEETS

March 31, 2024December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents$1,376,075$296,384
Accounts receivable44,392,62138,965,002
Joint interest billing receivables, net1,857,2412,422,274
Derivative assets3,704,4466,215,374
Inventory5,965,5196,136,935
Prepaid expenses and other assets1,371,1461,874,850
Total Current Assets58,667,04855,910,819
Properties and Equipment
Oil and natural gas properties, full cost method1,700,133,5191,663,548,249
Financing lease asset subject to depreciation4,151,1713,896,316
Fixed assets subject to depreciation3,353,7303,228,793
Total Properties and Equipment1,707,638,4201,670,673,358
Accumulated depreciation, depletion and amortization(400,876,225)(377,252,572)
Net Properties and Equipment1,306,762,1951,293,420,786
Operating lease asset2,353,6472,499,592
Derivative assets5,092,17611,634,714
Deferred financing costs11,808,87413,030,481
Total Assets$1,384,683,940$1,376,496,392
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable$99,149,633$104,064,124
Income tax liability102,633—
Financing lease liability1,003,909956,254
Operating lease liability612,373568,176
Derivative liabilities17,517,6567,520,336
Notes payable—533,734
Asset retirement obligations36,318165,642
Total Current Liabilities118,422,522113,808,266
Non-current Liabilities
Deferred income taxes10,178,2988,552,045
Revolving line of credit422,000,000425,000,000
Financing lease liability, less current portion858,374906,330
Operating lease liability, less current portion1,896,1772,054,041
Derivative liabilities10,012,56111,510,368
Asset retirement obligations28,308,88428,082,442
Total Liabilities591,676,816589,913,492
Commitments and contingencies (See Note 12)
Stockholders' Equity
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding——
Common stock - $0.001 par value; 450,000,000 shares authorized; 197,934,202 shares and 196,837,001 shares issued and outstanding, respectively197,934196,837
Additional paid-in capital796,742,425795,834,675
Accumulated deficit(3,933,235)(9,448,612)
Total Stockholders’ Equity793,007,124786,582,900
Total Liabilities and Stockholders' Equity$1,384,683,940$1,376,496,392

CONDENSED STATEMENTS OF OPERATIONS

For the Three Months Ended
March 31, 2024March 31, 2023
Oil, Natural Gas, and Natural Gas Liquids Revenues$94,503,136$88,082,912
Costs and Operating Expenses
Lease operating expenses18,360,43417,472,691
Gathering, transportation and processing costs166,054(823)
Ad valorem taxes2,145,6311,670,613
Oil and natural gas production taxes4,428,3034,408,140
Depreciation, depletion and amortization23,792,45021,271,671
Asset retirement obligation accretion350,834365,847
Operating lease expense175,091113,138
General and administrative expense7,469,2227,130,139
Total Costs and Operating Expenses56,888,01952,431,416
Income from Operations37,615,11735,651,496
Other Income (Expense)
Interest income78,544—
Interest (expense)(11,498,944)(10,390,279)
Gain (loss) on derivative contracts(19,014,495)9,474,905
Gain on disposal of assets38,355—
Other income25,6869,600
Net Other Income (Expense)(30,370,854)(905,774)
Income Before Benefit from (Provision for) Income Taxes7,244,26334,745,722
Benefit from (Provision for) Income Taxes(1,728,886)(2,029,943)
Net Income$5,515,377$32,715,779
Basic Earnings per Share$0.03$0.18
Diluted Earnings per Share$0.03$0.17

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common Stock · AdditionalPaid-inCapital · Retained Earnings(Accumulated Deficit) · TotalStockholders'Equity
For the Three Months Ended March 31, 2024 · Shares · Amount
Balance, December 31, 2023196,837,001$196,837$795,834,675$(9,448,612)$786,582,900
Restricted stock vested1,342,1121,342(1,342)——
Shares to cover tax withholdings for restricted stock vested(244,911)(245)245——
Payments to cover tax withholdings for restricted stock vested, net——(814,985)—(814,985)
Share-based compensation——1,723,832—1,723,832
Net income———5,515,3775,515,377
Balance, March 31, 2024197,934,202$197,934$796,742,425$(3,933,235)$793,007,124
Balance, December 31, 2022175,530,212$175,530$775,241,114$(114,313,253)$661,103,391
Exercise of common warrants issued in offering4,517,4274,5173,609,424—3,613,941
Restricted stock vested659,479659(659)——
Shares to cover tax withholdings for restricted stock vested(79,634)(79)79——
Payments to cover tax withholdings for restricted stock vested, net——(134,381)—(134,381)
Share-based compensation——1,943,696—1,943,696
Net income———32,715,77932,715,779
Balance, March 31, 2023180,627,484$180,627$780,659,273$(81,597,474)$699,242,426

CONDENSED STATEMENTS OF CASH FLOWS

For the Three Months Ended
March 31, 2024March 31, 2023
Cash Flows From Operating Activities
Net income$5,515,377$32,715,779
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization23,792,45021,271,671
Asset retirement obligation accretion350,834365,847
Amortization of deferred financing costs1,221,6071,220,384
Share-based compensation1,723,8321,943,696
Bad debt expense163,8402,894
Deferred income tax expense (benefit)1,585,4451,972,653
Excess tax expense (benefit) related to share-based compensation40,808—
(Gain) loss on derivative contracts19,014,495(9,474,905)
Cash received (paid) for derivative settlements, net(1,461,515)(658,525)
Changes in operating assets and liabilities:
Accounts receivable(5,240,487)3,428,287
Inventory171,416442,598
Prepaid expenses and other assets503,704529,934
Accounts payable(1,601,276)(9,589,898)
Settlement of asset retirement obligation(591,361)(490,319)
Net Cash Provided by Operating Activities45,189,16943,680,096
Cash Flows From Investing Activities
Payments for the Stronghold Acquisition—(18,511,170)
Payments to purchase oil and natural gas properties(475,858)(59,099)
Payments to develop oil and natural gas properties(38,904,808)(36,939,307)
Payments to acquire or improve fixed assets subject to depreciation(124,937)(14,570)
Proceeds from divestiture of equipment for oil and natural gas properties—54,558
Net Cash (Used in) Investing Activities(39,505,603)(55,469,588)
Cash Flows From Financing Activities
Proceeds from revolving line of credit51,500,00056,000,000
Payments on revolving line of credit(54,500,000)(49,000,000)
Proceeds from issuance of common stock from warrant exercises—3,613,941
Payments for taxes withheld on vested restricted shares, net(814,985)(134,381)
Payments on notes payable(533,734)(499,880)
Reduction of financing lease liabilities(255,156)(177,014)
Net Cash Provided by (Used in) Financing Activities(4,603,875)9,802,666
Net Increase (Decrease) in Cash1,079,691(1,986,826)
Cash at Beginning of Period296,3843,712,526
Cash at End of Period$1,376,075$1,725,700

CONDENSED STATEMENTS OF CASH FLOWS (CONTINUED)

For the Three Months Ended
March 31, 2024March 31, 2023
Supplemental Cash Flow Information
Cash paid for interest$9,926,520$9,246,281
Cash paid for income taxes——
Noncash Investing and Financing Activities
Asset retirement obligation incurred during development$168,848$95,062
Financing lease assets obtained in exchange for new financing lease liability254,85583,811
Change in capitalized expenditures attributable to drilling projects financed through current liabilities(3,120,789)1,981,649
Supplemental Schedule for Stronghold Acquisition
Investing Activities - Cash Paid
Payment of deferred cash payment—15,000,000
Payment of post-close settlement—3,511,170
Payments for the Stronghold Acquisition$—$18,511,170
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.