RING ENERGY INC

For the period ended Jun 30, 2024. Filed Aug 6, 2024.

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.

Jun 30, 2024 · Filed Aug 6, 2024

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

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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

	June 30, 2024	December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	$1,178,812	$296,384
Accounts receivable	41,578,158	38,965,002
Joint interest billing receivables, net	1,698,453	2,422,274
Derivative assets	3,369,762	6,215,374
Inventory	5,776,398	6,136,935
Prepaid expenses and other assets	2,622,425	1,874,850
Total Current Assets	56,224,008	55,910,819
Properties and Equipment
Oil and natural gas properties, full cost method	1,735,534,624	1,663,548,249
Financing lease asset subject to depreciation	4,192,099	3,896,316
Fixed assets subject to depreciation	3,355,968	3,228,793
Total Properties and Equipment	1,743,082,691	1,670,673,358
Accumulated depreciation, depletion and amortization	(425,424,564)	(377,252,572)
Net Properties and Equipment	1,317,658,127	1,293,420,786
Operating lease asset	2,206,218	2,499,592
Derivative assets	3,032,562	11,634,714
Deferred financing costs	10,632,970	13,030,481
Total Assets	$1,389,753,885	$1,376,496,392
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$90,014,041	$104,064,124
Income tax liability	182,805	—
Financing lease liability	948,283	956,254
Operating lease liability	622,694	568,176
Derivative liabilities	18,114,594	7,520,336
Notes payable	1,355,795	533,734
Asset retirement obligations	165,720	165,642
Total Current Liabilities	111,403,932	113,808,266
Non-current Liabilities
Deferred income taxes	16,846,398	8,552,045
Revolving line of credit	407,000,000	425,000,000
Financing lease liability, less current portion	685,471	906,330
Operating lease liability, less current portion	1,736,051	2,054,041
Derivative liabilities	6,255,428	11,510,368
Asset retirement obligations	28,409,700	28,082,442
Total Liabilities	572,336,980	589,913,492
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; 198,166,297 shares and 196,837,001 shares issued and outstanding, respectively	198,166	196,837
Additional paid-in capital	798,732,980	795,834,675
Retained earnings (Accumulated deficit)	18,485,759	(9,448,612)
Total Stockholders’ Equity	817,416,905	786,582,900
Total Liabilities and Stockholders' Equity	$1,389,753,885	$1,376,496,392

CONDENSED STATEMENTS OF OPERATIONS

	For the Three Months Ended		For the Six Months Ended
	June 30, 2024	June 30, 2023	June 30, 2024	June 30, 2023
Oil, Natural Gas, and Natural Gas Liquids Revenues	$99,139,349	$79,348,573	$193,642,485	$167,431,485
Costs and Operating Expenses
Lease operating expenses	19,309,017	15,938,106	37,669,451	33,410,797
Gathering, transportation and processing costs	107,629	(1,632)	273,683	(2,455)
Ad valorem taxes	1,337,276	1,670,343	3,482,907	3,340,956
Oil and natural gas production taxes	3,627,264	4,012,139	8,055,567	8,420,279
Depreciation, depletion and amortization	24,699,421	20,792,932	48,491,871	42,064,603
Asset retirement obligation accretion	352,184	353,878	703,018	719,725
Operating lease expense	175,090	115,353	350,181	228,491
General and administrative expense	7,713,534	6,810,243	15,182,756	13,940,382
Total Costs and Operating Expenses	57,321,415	49,691,362	114,209,434	102,122,778
Income from Operations	41,817,934	29,657,211	79,433,051	65,308,707
Other Income (Expense)
Interest income	144,933	79,745	223,477	79,745
Interest (expense)	(10,946,127)	(10,550,807)	(22,445,071)	(20,941,086)
Gain (loss) on derivative contracts	(1,828,599)	3,264,660	(20,843,094)	12,739,565
Gain (loss) on disposal of assets	51,338	(132,109)	89,693	(132,109)
Other income	—	116,610	25,686	126,210
Net Other Income (Expense)	(12,578,455)	(7,221,901)	(42,949,309)	(8,127,675)
Income Before Benefit from (Provision for) Income Taxes	29,239,479	22,435,310	36,483,742	57,181,032
Benefit from (Provision for) Income Taxes	(6,820,485)	6,356,295	(8,549,371)	4,326,352
Net Income	$22,418,994	$28,791,605	$27,934,371	$61,507,384
Basic Earnings per Share	$0.11	$0.15	$0.14	$0.33
Diluted Earnings per Share	$0.11	$0.15	$0.14	$0.32

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

Common Stock · AdditionalPaid-inCapital · Retained Earnings(Accumulated Deficit) · TotalStockholders'Equity
For the Six Months Ended June 30, 2024 · Shares · Amount
Balance, December 31, 2023	196,837,001	$196,837			$795,834,675			$(9,448,612)			$786,582,900
Restricted stock vested	1,342,112	1,342			(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	—	—			—			5,515,377			5,515,377
Balance, March 31, 2024	197,934,202		$197,934			$796,742,425			$(3,933,235)			$793,007,124
Restricted stock vested	303,797	304			(304)			—			—
Shares to cover tax withholdings for restricted stock vested	(71,702)		(72)			72			—			—
Payments to cover tax withholdings for restricted stock vested, net	—	—			(86,991)			—			(86,991)
Share-based compensation	—	—			2,077,778			—			2,077,778
Net income	—	—			—			22,418,994			22,418,994
Balance, June 30, 2024	198,166,297		$198,166			$798,732,980			$18,485,759			$817,416,905
Balance, December 31, 2022	175,530,212	$175,530			$775,241,114			$(114,313,253)			$661,103,391
Exercise of common warrants issued in offering	4,517,427	4,517		3,609,424			—			3,613,941
Restricted stock vested	659,479	659			(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	—	—			—			32,715,779			32,715,779
Balance, March 31, 2023	180,627,484	$180,627			$780,659,273			$(81,597,474)			$699,242,426
Induced exercise of common warrants issued in offering	14,512,166		14,512			8,673,143			—			8,687,655
Restricted stock vested	288,709		289			(289)			—			—
Shares to cover tax withholdings for restricted stock vested	(77,687)		(78)			78			—			—
Payments to cover tax withholdings for restricted stock vested, net	—		—			(141,682)			—			(141,682)
Share-based compensation	—		—			2,260,312			—			2,260,312
Net income	—		—			—			28,791,605			28,791,605
Balance, June 30, 2023	195,350,672		$195,350			$791,450,835			$(52,805,869)			$738,840,316

CONDENSED STATEMENTS OF CASH FLOWS

	For the Six Months Ended
	June 30, 2024	June 30, 2023
Cash Flows From Operating Activities
Net income	$27,934,371	$61,507,384
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	48,491,871	42,064,603
Asset retirement obligation accretion	703,018	719,725
Amortization of deferred financing costs	2,443,215	2,440,769
Share-based compensation	3,801,610	4,204,008
Bad debt expense	178,777	22,209
(Gain) loss on disposal of assets	(89,693)	—
Deferred income tax expense (benefit)	8,206,573	(4,575,710)
Excess tax expense (benefit) related to share-based compensation	87,780	150,877
(Gain) loss on derivative contracts	20,843,094	(12,739,565)
Cash received (paid) for derivative settlements, net	(4,056,012)	(478,930)
Changes in operating assets and liabilities:
Accounts receivable	(2,284,512)	8,748,338
Inventory	360,537	1,923,422
Prepaid expenses and other assets	(747,575)	(959,678)
Accounts payable	(9,313,631)	(15,061,289)
Settlement of asset retirement obligation	(752,324)	(919,886)
Net Cash Provided by Operating Activities	95,807,099	87,046,277
Cash Flows From Investing Activities
Payments for the Stronghold Acquisition	—	(18,511,170)
Payments to purchase oil and natural gas properties	(622,862)	(878,743)
Payments to develop oil and natural gas properties	(75,459,527)	(72,551,222)
Payments to acquire or improve fixed assets subject to depreciation	(151,586)	(25,894)
Proceeds from sale of fixed assets subject to depreciation	10,605	332,230
Proceeds from divestiture of equipment for oil and natural gas properties	—	54,558
Proceeds from sale of Delaware properties	—	7,992,917
Proceeds from sale of New Mexico properties	(144,398)	—
Net Cash Used in Investing Activities	(76,367,768)	(83,587,324)
Cash Flows From Financing Activities
Proceeds from revolving line of credit	81,000,000	84,500,000
Payments on revolving line of credit	(99,000,000)	(102,500,000)
Proceeds from issuance of common stock from warrant exercises	—	12,301,596
Payments for taxes withheld on vested restricted shares, net	(901,976)	(276,063)
Proceeds from notes payable	1,501,507	1,565,071
Payments on notes payable	(679,446)	(652,277)
Payment of deferred financing costs	(45,704)	—
Reduction of financing lease liabilities	(431,284)	(359,831)
Net Cash Used in Financing Activities	(18,556,903)	(5,421,504)
Net Increase (Decrease) in Cash	882,428	(1,962,551)
Cash at Beginning of Period	296,384	3,712,526
Cash at End of Period	$1,178,812	$1,749,975

CONDENSED STATEMENTS OF CASH FLOWS (CONTINUED)

	For the Six Months Ended
	June 30, 2024	June 30, 2023
Supplemental Cash Flow Information
Cash paid for interest	$20,229,215	$18,622,944
Cash paid for income taxes	72,213	—
Noncash Investing and Financing Activities
Asset retirement obligation incurred during development	$323,673	$173,516
Asset retirement obligation sold	(256,740)	(2,262,478)
Operating lease assets obtained in exchange for new operating lease liability	—	1,148,400
Financing lease assets obtained in exchange for new financing lease liability	341,218	142,719
Change in capitalized expenditures attributable to drilling projects financed through current liabilities	(4,461,783)	(2,621,236)
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

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