Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”)
today reported record operational and financial results for the
fourth quarter and full year 2023, year-end 2023 proved reserves
and provided additional 2024 operational and financial guidance.
2023 Q4 and Full Year
Highlights and Recent Key Items
-
Grew fourth quarter total sales volumes 11% to a record 19,397
barrels of oil equivalent per day (“Boe/d”) from the third quarter;
-
Increased fourth quarter oil sales volumes 13% to a record 13,637
barrels of oil per day (“Bo/d”) from the third quarter;
-
Increased year-over-year total sales volumes by 47% to a record
18,119 Boe/d;
-
Grew full year oil sales volumes by 32% to a record 12,548 Bo/d
from 2022;
-
Reported net income of $50.9 million, or $0.26 per diluted share,
in the fourth quarter;
-
Net income for the full year was $104.9 million, or $0.54 per
diluted share;
-
Generated fourth quarter Adjusted Net Income1 of $21.2 million, or
$0.11 per diluted share;
-
Full year Adjusted Net Income was $100.5 million, or $0.51 per
diluted share;
- Reduced all-in
fourth quarter cash operating costs1 on a Boe basis by 4% from the
third quarter, and a 6% decrease for the full year;
-
Achieved record fourth quarter Adjusted EBITDA1 of $65.4 million —
12% higher than the third quarter;
-
Grew year-over-year Adjusted EBITDA by 21% to a record $236.0
million;
-
Delivered record Adjusted Free Cash Flow1 of $16.3 million and
Adjusted Cash Flow from Operations1 of $55.1 million in the fourth
quarter;
-
Cash flow positive for the 17th consecutive quarter;
-
Full year Adjusted Free Cash Flow grew 30% to $45.3 million while
generating Adjusted Cash Flow from Operations of $197.0 million — a
14% increase;
-
Generated a Cash Return on Capital Employed (“CROCE”)1 of 17.2% in
2023;
-
Paid down $3.0 million of debt during the fourth quarter and
$30.0 million since closing the Founders Acquisition in August
2023;
-
Entered 2024 with liquidity of approximately
$175 million;
-
Exited 2023 with $425 million of borrowings and a Leverage Ratio2
of 1.62x;
-
Ended 2023 with proved reserves of 129.8 million barrels of oil
equivalent (“MMBoe”) and a present value discounted at 10%
(“PV-10”)1 of $1.6 billion, using Securities and Exchange
Commission (“SEC”) pricing;
-
Proved developed reserves were 88.1 MMBoe with a PV-10 of
$1.3 billion ; and
-
Successfully completed the Company’s 2023 full year capital
spending program, including drilling and placing online 20
horizontal (“Hz”) and 11 vertical wells.
Mr. Paul D. McKinney, Chairman of the Board and
Chief Executive Officer, commented, “We ended 2023 with record
fourth quarter and full year operational and financial results on
multiple fronts. Year-over-year, we achieved a 47% increase in
sales volumes, a 21% increase in Adjusted EBITDA, and a 30%
increase in Adjusted Free Cash Flow. Driving our results was the
successful execution and integration of the two acquisitions made
over the past 18 months, the success of our high rate-of-return
drilling and recompletion programs, and our continuing focus on
reducing costs. The hard work, dedication, and commitment of our
workforce to our value focused, proven strategy delivered these
outstanding results and we continue to believe staying the course
will build near and long-term value for our stockholders. On behalf
of our Board of Directors and management team, I would like to
thank our employees for their efforts in making 2023 a very good
year.’’
Mr. McKinney continued, “Our focus for 2024 will
be very similar to the past. We will continue a disciplined capital
spending program designed to organically maintain or slightly grow
our oil production with the flexibility to respond as necessary to
changing oil and natural gas prices. We intend to allocate our
excess cash from operations to reducing debt and improving our
balance sheet. We plan to continue seeking to grow through our
pursuit of accretive, balance sheet enhancing acquisitions. These
efforts should lead us to our ultimate goal, which is to further
position our balance sheet and achieve the size and scale necessary
to sustainably return meaningful capital to our stockholders. We
believe our efforts in 2024 will make important strides towards
achieving these goals. We also want to thank our stockholders for
their trust and support as we pursue the opportunities and navigate
the challenges the future may present.”
Summary Results
| |
Q4 2023 |
Q3 2023 |
Q4 to Q3 2023 % Change |
Q4 2022 |
Q4 YOY % Change |
FY 2023 |
FY 2022 |
FY % Change |
|
Net Sales (Boe/d) |
|
19,397 |
|
17,509 |
|
11 |
% |
|
17,856 |
9 |
% |
|
18,119 |
|
12,364 |
47 |
% |
|
Crude Oil (Bo/d) |
|
13,637 |
|
12,028 |
|
13 |
% |
|
12,189 |
12 |
% |
|
12,548 |
|
9,479 |
32 |
% |
| Net Sales (MBoe) |
|
1,784.5 |
|
1,610.9 |
|
11 |
% |
|
1,642.7 |
9 |
% |
|
6,613.3 |
|
4,512.6 |
47 |
% |
| Realized Price - All Products
($/Boe) |
$ |
56.01 |
$ |
58.16 |
|
(4 |
)% |
$ |
60.69 |
(8 |
)% |
$ |
54.60 |
$ |
76.95 |
(29 |
)% |
| Revenues ($MM) |
$ |
99.9 |
$ |
93.7 |
|
7 |
% |
$ |
99.7 |
— |
% |
$ |
361.1 |
$ |
347.2 |
4 |
% |
| Net Income/Loss ($MM) |
$ |
50.9 |
$ |
(7.5 |
) |
NM |
$ |
14.5 |
251 |
% |
$ |
104.9 |
$ |
138.6 |
(24 |
)% |
| Adjusted Net Income ($MM) |
$ |
21.2 |
$ |
26.3 |
|
(19 |
)% |
$ |
21.8 |
(3 |
)% |
$ |
100.5 |
$ |
107.5 |
(7 |
)% |
| Adjusted EBITDA ($MM) |
$ |
65.4 |
$ |
58.6 |
|
12 |
% |
$ |
56.3 |
16 |
% |
$ |
236.0 |
$ |
195.2 |
21 |
% |
| Capital Expenditures
($MM) |
$ |
38.8 |
$ |
42.4 |
|
(8 |
)% |
$ |
42.6 |
(9 |
)% |
$ |
152.0 |
$ |
140.1 |
9 |
% |
| Adjusted Free Cash Flow
($MM) |
$ |
16.3 |
$ |
6.1 |
|
165 |
% |
$ |
5.5 |
197 |
% |
$ |
45.3 |
$ |
34.8 |
30 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Overview: For the
fourth quarter of 2023, the Company reported net income of $50.9
million, or $0.26 per diluted share, which included a $32.5 million
before tax non-cash unrealized commodity derivative gain, $2.5
million in before tax share-based compensation and $0.4 million in
before tax transaction related costs for executed acquisitions and
divestitures (“Transaction Costs”). Excluding the estimated
after-tax impact of the adjustments, the Company’s Adjusted Net
Income was $21.2 million, or $0.11 per diluted share.
In the third quarter of 2023, the Company
reported a net loss of $(7.5) million, or $(0.04) per diluted
share, which included a $33.9 million before tax non-cash
unrealized commodity derivative loss, $2.2 million for before tax
share-based compensation, and $(0.2) million in before tax
Transaction Costs. Excluding the estimated after-tax impact of
these adjustments, the Company’s Adjusted Net Income was $26.3
million, or $0.13 per diluted share.
In the fourth quarter of 2022, Ring reported net
income of $14.5 million, or $0.08 per diluted share, which included
a $5.4 million before tax non-cash unrealized commodity derivative
loss, $2.2 million in before tax share-based compensation, and $1.0
million in before tax Transaction Costs. Excluding the estimated
after-tax impact of these adjustments, Adjusted Net Income in the
fourth quarter of 2022 was $21.8 million, or $0.12 per diluted
share.
Adjusted EBITDA was a record $65.4 million for
the fourth quarter of 2023, a 12% increase from $58.6 million for
the third quarter of 2023, and a 16% increase from fourth quarter
of 2022 Adjusted EBITDA of $56.3 million.
Adjusted Free Cash Flow for the fourth quarter
of 2023 was a record $16.3 million compared to $6.1 million in the
third quarter of 2023 with the 165% increase primarily due to
increased revenues and lower capital spending in the fourth
quarter. Fourth quarter 2023 Adjusted Free Cash Flow increased 197%
from $5.5 million for the fourth quarter of 2022.
Adjusted Cash Flow from Operations was a record
$55.1 million for the fourth quarter of 2023 compared to $48.5
million for the third quarter of 2023 and $47.4 million for the
fourth quarter of 2022.
Adjusted Net Income, Adjusted EBITDA, Adjusted
Free Cash Flow, Adjusted Cash Flow from Operations, Cash Return on
Capital Employed and PV-10 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 fourth quarter of 2023
were 19,397 Boe/d (70% oil, 15% natural gas and 15% natural gas
liquids (”NGLs”)), or 1,784,490 Boe, compared to 17,509 Boe/d (69%
oil, 16% natural gas and 15% NGLs), or 1,610,857 Boe, for the third
quarter of 2023, and 17,856 Boe/d (68% oil, 17% natural gas and 15%
NGLs), or 1,642,715 Boe, in the fourth quarter of 2022. Fourth
quarter 2023 sales volumes were near the high end of the Company’s
guidance of 18,900 to 19,500 Boe/d. Fourth quarter 2023 sales
volumes were comprised of 1,254,619 barrels (“Bbls”) of oil,
1,613,102 thousand cubic feet (“Mcf”) of natural gas and 261,020
Bbls of NGLs.
For the fourth quarter of 2023, the Company
realized an average sales price of $77.33 per barrel of crude oil,
$(0.12) per Mcf for natural gas and $11.92 per barrel of NGLs. The
realized natural gas and NGL prices are impacted by a fee reduction
to the value received. For the fourth quarter of 2023, the weighted
average natural gas price per Mcf was $1.49 offset by a weighted
average fee value per Mcf of ($1.61), and the weighted average NGL
price per barrel was $19.99 offset by a weighted average fee of
($8.07) per barrel. The combined average realized sales price for
the period was $56.01 per Boe, down 4% versus $58.16 per Boe for
the third quarter of 2023, and down 8% from $60.69 per Boe in the
fourth quarter of 2022. The average oil price differential the
Company experienced from WTI NYMEX futures pricing in the fourth
quarter of 2023 was a negative $0.92 per barrel of crude oil, while
the average natural gas price differential from NYMEX futures
pricing was a negative $3.12 per Mcf.
Revenues were $99.9 million for the fourth
quarter of 2023 compared to $93.7 million for the third quarter of
2023 and $99.7 million for the fourth quarter of 2022. The 7%
increase in fourth quarter 2023 revenues from the third quarter was
driven by higher sales volumes partially offset by lower overall
realized pricing.
Lease Operating Expense
(“LOE”): LOE, which includes expensed workovers and
facilities maintenance, was $18.7 million, or $10.50 per Boe, in
the fourth quarter of 2023 versus $18.0 million, or $11.18 per Boe,
in the third quarter of 2023 and $17.4 million, or $10.60 per Boe,
for the fourth quarter of 2022. Fourth quarter 2023 LOE came in at
the low end of the Company’s guidance range of $10.50 to $11.00 per
Boe and Ring remains focused on driving continued efficiencies
throughout its operations.
Gathering, Transportation and Processing
(“GTP”) Costs: As previously disclosed, due to a
contractual change effective May 1, 2022, the Company no longer
maintains ownership and control of the majority of of its natural
gas through processing. As a result, GTP costs are now reflected as
a reduction to the natural gas sales price and not as an expense
item. There remains only one contract in place with a natural gas
processing entity where the point of control of gas dictates
requiring the fees to be recorded as an expense.
Ad Valorem Taxes: Ad valorem
taxes were $0.92 per Boe for the fourth quarter of 2023 compared to
$1.10 per Boe in the third quarter of 2023 and $0.96 per Boe for
the fourth quarter of 2022.
Production Taxes: Production
taxes were $2.78 per Boe in the fourth quarter of 2023 compared to
$2.95 per Boe in the third quarter of 2023 and $3.16 per Boe in
fourth quarter of 2022. Production taxes ranged between 5.0% to
5.2% of revenue for all three periods.
Depreciation, Depletion and Amortization
(“DD&A”) and Asset Retirement Obligation Accretion:
DD&A was $13.76 per Boe in the fourth quarter of 2023 versus
$13.65 per Boe for the third quarter of 2023 and $12.71 per Boe in
the fourth quarter of 2022. Asset retirement obligation accretion
was $0.20 per Boe in the fourth quarter of 2023 compared to $0.22
per Boe for the third quarter of 2023 and fourth quarter of
2022.
General and Administrative Expenses
(“G&A”): G&A was $8.2 million ($4.58 per Boe)
for the fourth quarter of 2023 versus $7.1 million ($4.40 per
Boe) for the third quarter of 2023 and $8.3 million ($5.08 per
Boe) in the fourth quarter of 2022. G&A, excluding share-based
compensation1, was $5.7 million for the fourth quarter of 2023
($3.20 per Boe) versus $4.9 million for the third quarter of 2023
($3.05 per Boe) and $6.1 million in the fourth quarter of 2022
($3.74 per Boe). The fourth quarter and third quarter of 2023
included Transaction Costs of $0.4 million and $(0.2) million,
respectively. Adjusting for Transaction Costs, fourth quarter 2023
G&A, excluding share-based compensation, was $3.00 per Boe
compared to $3.15 per Boe for the third quarter of 2023 — a 5%
decrease.
Interest Expense: Interest
expense was $11.6 million in the fourth quarter of 2023 versus
$11.4 million for the third quarter of 2023 and $9.5 million for
the fourth quarter of 2022.
Derivative (Loss) Gain: In the
fourth quarter of 2023, Ring recorded a net gain of $29.3 million
on its commodity derivative contracts, including a realized $3.3
million cash commodity derivative loss and an unrealized $32.5
million non-cash commodity derivative gain. This compared to a net
loss of $39.2 million in the third quarter of 2023, including a
realized $5.4 million cash commodity derivative loss and an
unrealized $33.9 million non-cash commodity derivative loss, and a
net loss of $19.3 million in the fourth quarter of 2022, including
a realized $13.9 million cash commodity derivative loss and an
unrealized $5.4 million non-cash commodity derivative loss.
A summary listing of the Company’s outstanding
derivative positions at December 31, 2023 is included in the
tables shown later in this release. A quarterly breakout is
provided in the Company’s investor presentation.
For full year 2024, the Company currently has
approximately 2.1 million barrels of oil (45% of oil sales guidance
midpoint) hedged and 2.6 billion cubic feet of natural gas (43% of
natural gas sales guidance midpoint) hedged.
Income Tax: The Company
recorded a non-cash income tax provision of $7.9 million in the
fourth quarter of 2023 versus a non-cash income tax benefit of $3.4
million in the third quarter of 2023 and a non-cash income tax
provision of $2.5 million for the fourth quarter of 2022.
Balance Sheet and Liquidity:
Total liquidity at the end of the fourth quarter of 2023 was $174.5
million, a 2% increase from September 30, 2023 and a 7% decrease
from December 31, 2022. Liquidity at December 31, 2023
consisted of cash and cash equivalents of $0.3 million and $174.2
million of availability under Ring’s revolving credit facility,
which includes a reduction of $0.8 million for letters of credit.
On December 31, 2023, the Company had $425.0 million in borrowings
outstanding on its revolving credit facility that has a current
borrowing base of $600.0 million. Ring paid down $3 million of
debt during the fourth quarter of 2023 and $30.0 million since
the closing of the Founders Transaction. The Company is targeting
further debt pay down during 2024 dependent on market conditions,
the timing of capital spending and other considerations.
During the fourth quarter of 2023, Ring
successfully reaffirmed the Company’s borrowing base of $600
million under its revolving credit facility. The next regularly
scheduled bank redetermination is scheduled to occur during May
2024. Ring is currently in compliance with all applicable covenants
under its revolving credit facility.
Capital Expenditures: During
the fourth quarter of 2023, capital expenditures on an accrual
basis were $38.8 million as compared to Ring’s previous guidance of
$35 million to $40 million. The Company drilled four Hz wells
(three in the CBP and one in NWS) and three vertical wells in the
CBP and completed ten wells (six in the CBP and four in the NWS).
Also included in fourth quarter 2023 capital spending were costs
for capital workovers, infrastructure upgrades, and leasing
costs.
For the year ended December 31, 2023, capital
expenditures on an accrual basis were $152.0 million, which
included costs to drill, complete and place on production 20 Hz
wells (14 in the NWS and six in the CBP) and 11 vertical wells in
the CBP. Included in full year 2023 capital spending were costs for
capital workovers, infrastructure upgrades, recompletions, and
leasing costs. Ring also participated in the drilling and
completion of five non-operated wells in the NWS and CBP.
The table below sets forth Ring’s drilling and
completions activities by quarter for 2023:
|
Quarter |
|
Area |
|
Wells Drilled |
|
Wells Completed |
|
Recompletions |
|
|
|
|
|
|
|
|
|
|
| 1Q 2023 |
|
Northwest Shelf
(Horizontal) |
|
4 |
|
4 |
|
— |
| |
|
Central Basin Platform
(Horizontal) |
|
— |
|
— |
|
— |
| |
|
Central
Basin Platform (Vertical) |
|
3 |
|
3 |
|
6 |
| |
|
Total |
|
7 |
|
7 |
|
6 |
| |
|
|
|
|
|
|
|
|
| 2Q 2023 |
|
Northwest Shelf
(Horizontal) |
|
4 |
|
4 |
|
— |
| |
|
Central Basin Platform
(Horizontal) |
|
— |
|
— |
|
— |
| |
|
Central
Basin Platform (Vertical) |
|
2 |
|
2 |
|
3 |
| |
|
Total |
|
6 |
|
6 |
|
3 |
| |
|
|
|
|
|
|
|
|
| 3Q 2023 |
|
Northwest Shelf
(Horizontal) |
|
5 |
|
2 |
|
— |
| |
|
Central Basin Platform
(Horizontal) |
|
3 |
|
3 |
|
— |
| |
|
Central
Basin Platform (Vertical) |
|
3 |
|
3 |
|
— |
| |
|
Total |
|
11 |
|
8 |
|
— |
| |
|
|
|
|
|
|
|
|
| 4Q 2023 |
|
Northwest Shelf
(Horizontal) |
|
1 |
|
4 |
|
— |
| |
|
Central Basin Platform
(Horizontal) |
|
3 |
|
3 |
|
— |
| |
|
Central
Basin Platform (Vertical) |
|
3 |
|
3 |
|
— |
| |
|
Total (1) |
|
7 |
|
10 |
|
— |
| |
|
|
|
|
|
|
|
|
| FY 2023 |
|
Northwest Shelf
(Horizontal) |
|
14 |
|
14 |
|
— |
| |
|
Central Basin Platform
(Horizontal) |
|
6 |
|
6 |
|
— |
| |
|
Central
Basin Platform (Vertical) |
|
11 |
|
11 |
|
9 |
| |
|
Total (1) |
|
31 |
|
31 |
|
9 |
(1) Fourth quarter total and full year total do
not include one SWD well completed in the Northwest Shelf.
Full Year 2023
Summary Financial Review
The Company reported net income for full year
2023 of $104.9 million, or $0.54 per diluted share, and Adjusted
Net Income of $100.5 million, or $0.51 per diluted share. For full
year 2022, Ring reported net income of $138.6 million, or $0.98 per
diluted share, and Adjusted Net Income of $107.5 million, or $0.76
per diluted share.
In full year 2023, the Company grew Adjusted
EBITDA by 21% to a record $236.0 million from $195.2 million in
2022. Ring generated record Adjusted Free Cash Flow for full year
2023 of $45.3 million versus $34.8 million in 2022 — a 30%
increase. For full year 2023, the Company grew Adjusted Cash Flow
from Operations by 14% to $197.0 million from $172.9 million in
2022.
Revenues totaled $361.1 million for 2023
compared to $347.2 million in 2022, with the 4% increase driven by
higher sales volumes partially offset by lower overall realized
commodity prices.
Net sales for full year 2023 were a record
18,119 Boe/d, or 6,613,321 Boe, comprised of 4,579,942 Bbls of oil,
6,339,158 Mcf of natural gas, and 976,852 Bbls of NGLs. Full year
2022 net sales averaged 12,364 Boe/d, or 4,512,610 Boe, which
included 3,459,840 Bbls of oil, 4,088,642 Mcf of natural gas, and
371,329 Bbls of NGLs. The increase in sales volumes was a direct
result of a full year of production from the Stronghold Acquisition
that closed in August 2022 and partial year impact from the
Founders Acquisition that closed in August 2023, as well as strong
organic growth from the Company’s targeted capital spending
program.
For the full year 2023, the Company’s realized
crude oil sales price was $76.21 per barrel, the natural gas sales
price was $0.05 per Mcf, and the NGLs sales price was $11.95 per
barrel. The combined average sales price for full year 2023 was
$54.60 per Boe compared to $76.95 per Boe for full year 2022.
For the full year 2023, LOE was $70.2 million,
or $10.61 per Boe, versus $47.7 million, or $10.57 per Boe, for
full year 2022. The increase in LOE on an absolute basis was
primarily associated with a 47% increase in production, as well as
increased costs for goods and services due to higher activity
levels.
For the full year 2023, G&A was
$29.2 million, or $4.41 per Boe, compared to
$27.1 million, or $6.00 per Boe for full year 2022. G&A,
excluding share-based compensation, was $20.4 million, or $3.08 per
Boe, compared to $19.9 million, or $4.42 per Boe for full year
2022. Excluding Transaction Costs, full year 2023 G&A, net of
share-based compensation, was $3.01 per Boe — a 24% decrease from
full year 2022.
2024 Capital Investment, Sales Volumes,
and Operating Expense Guidance
In January, the Company commenced its 2024
development program that includes two rigs (one horizontal and one
vertical) and is focused on slightly growing oil volumes while
maintaining year-over-year overall production levels. The Company
is utilizing a phased (versus continuous) capital drilling program
in order to maximize free cash flow.
For full year 2024, Ring expects total capital
spending of $135 million to $175 million that includes a
balanced and capital efficient combination of drilling, completing
and placing on production 18 to 24 Hz and 20 to 30 vertical wells
across the Company’s asset portfolio. Additionally, the full year
capital spending program includes funds for targeted well
recompletions, capital workovers, infrastructure upgrades,
reactivations, and leasing costs, as well as non-operated drilling,
completion, and capital workovers.
All projects and estimates are based on assumed
WTI oil prices of $70 to $90 per barrel and Henry Hub prices of
$2.00 to $3.00 per Mcf. As in the past, Ring has designed its
spending program with flexibility to respond to changes in
commodity prices and other market conditions as appropriate.
Based on the $155 million mid-point of spending
guidance, the Company expects the following estimated allocation of
capital investment, including:
-
73% for drilling, completion, and related infrastructure;
-
24% for recompletions and capital workovers; and
-
3% for land, environmental and emission reducing upgrades, and
non-operated capital.
The Company remains focused on continuing to
generate Adjusted Free Cash Flow. All 2024 planned capital
expenditures will be fully funded by cash on hand and cash from
operations, and excess Adjusted Free Cash Flow is currently
targeted for further debt reduction.
The Company currently forecasts full year 2024
oil sales volumes of 12,600 to 13,300 Bo/d compared with full year
2023 oil sales volumes of 12,548 Bo/d, with the mid-point of
guidance reflecting a 3% increase.
The guidance in the table below represents the
Company's current good faith estimate of the range of likely future
results for the first quarter and full year of 2024. Guidance could
be affected by the factors discussed below in the "Safe Harbor
Statement" section.
|
|
|
Q1 |
|
FY |
| |
|
2024 |
|
2024 |
| |
|
|
|
|
| Sales
Volumes: |
|
|
|
|
|
Total Oil (Bo/d) |
|
12,420-12,765 |
|
12,600-13,300 |
|
Mid Point for Oil (Bo/d) |
|
12,593 |
|
12,950 |
|
Total (Boe/d) |
|
18,000-18,500 |
|
18,000-19,000 |
|
Oil (%) |
|
69% |
|
70% |
|
NGLs (%) |
|
15% |
|
15% |
|
Gas (%) |
|
16% |
|
15% |
| |
|
|
|
|
| Capital
Program: |
|
|
|
|
|
Capital spending(1) (millions) |
|
$37-$42 |
|
$135-$175 |
|
Mid Point (millions) |
|
$39.5 |
|
$155 |
|
Hz wells drilled |
|
4-5 |
|
18-24 |
|
Vertical wells drilled |
|
4-6 |
|
20-30 |
|
Wells completed and online |
|
8-11 |
|
38-54 |
| |
|
|
|
|
| Operating
Expenses: |
|
|
|
|
|
LOE (per Boe) |
|
$10.75-$11.25 |
|
$10.50-$11.50 |
|
|
|
|
|
|
(1) In addition to Company-directed drilling and
completion activities, the capital spending outlook includes funds
for targeted well recompletions, capital workovers, infrastructure
upgrades and well reactivations. Also included is anticipated
spending for leasing costs, and non-operated drilling, completion,
and capital workovers.
Year-End 2023
Proved Reserves
The Company's year-end 2023 SEC proved reserves
were 129.8 MMBoe compared to 138.1 MMBoe at year-end 2022. During
2023, Ring recorded reserve additions of 8.2 MMBoe for acquisitions
and 4.8 MMBoe for extensions, discoveries and improved recovery.
Offsetting these additions were 5.7 MMBoe related to the sale of
non-core assets, 6.6 MMBoe of production, 5.3 MMBoe for reductions
in year-over-year pricing, and 3.7 MMBoe related to changes in
performance and other economic factors.
The SEC twelve-month first day of the month
average prices used for year-end 2023 were $74.70 per barrel of
crude oil and $2.637 per MMBtu of natural gas, both before
adjustment for quality, transportation, fees, energy content, and
regional price differentials, while for year-end 2022 they were
$90.15 per barrel of crude oil and $6.358 per MMBtu of natural
gas.
Year-end 2023 SEC proved reserves were comprised
of approximately 63% crude oil, 19% natural gas, and 18% natural
gas liquids. At year end, approximately 68% of 2023 proved reserves
were classified as proved developed and 32% as proved undeveloped.
This is compared to year-end 2022 when approximately 65% of proved
reserves were classified as proved developed and 35% were
classified as proved undeveloped.
The PV-10 value at year-end 2023 was $1,647.0
million versus $2,773.7 million at the end of 2022.
| |
|
Oil (Bbl) |
|
Gas (Mcf) |
|
Natural Gas Liquids (Bbl) |
|
Net(Boe) |
|
PV-10(1) |
| |
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2022 |
|
88,704,743 |
|
|
157,870,449 |
|
|
23,105,658 |
|
|
138,122,143 |
|
|
$ |
2,773,656,500 |
| |
|
|
|
|
|
|
|
|
|
|
|
Purchase of minerals in place |
|
6,543,640 |
|
|
3,372,965 |
|
|
1,089,382 |
|
|
8,195,183 |
|
|
|
|
Extensions, discoveries and improved recovery |
|
3,098,845 |
|
|
4,113,480 |
|
|
1,014,343 |
|
|
4,798,768 |
|
|
|
|
Sales of minerals in place |
|
(4,897,921 |
) |
|
(2,674,955 |
) |
|
(392,953 |
) |
|
(5,736,700 |
) |
|
|
|
Production |
|
(4,579,942 |
) |
|
(6,339,158 |
) |
|
(976,852 |
) |
|
(6,613,320 |
) |
|
|
|
Revisions of previous quantity estimates |
|
(6,728,088 |
) |
|
(9,946,459 |
) |
|
(621,014 |
) |
|
(9,006,845 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Balance, December 31,
2023 |
|
82,141,277 |
|
|
146,396,322 |
|
|
23,218,564 |
|
|
129,759,229 |
|
|
$ |
1,647,031,127 |
(1) PV-10 includes provision for plug and
abandonment (“P&A”) less salvage, and excludes the full
provision for asset retirement obligations or any provision for
income taxes. This is a non-GAAP financial measure as defined by
the SEC and is derived from the Standardized Measure of Discounted
Futures Net Cash Flows, which is the most directly comparable
generally accepted accounting principles (“GAAP”) measure.
In accordance with guidelines established by the
SEC, estimated proved reserves as of December 31, 2023 were
determined to be economically producible under existing economic
conditions, which requires the use of the 12-month average
commodity price for each product, calculated as the unweighted
arithmetic average of the first-day-of-the-month price for the year
ended December 31, 2023. The SEC average prices used for
year-end 2023 were $74.70 per barrel of crude oil (WTI) and $2.637
per MMBtu of natural gas (Henry Hub), both before adjustment for
quality, transportation, fees, energy content, and regional price
differentials. Such prices were held constant throughout the
estimated lives of the reserves. Future production and development
costs are based on year-end costs with no escalations.
Standardized Measure of Discounted
Future Net Cash Flows
Ring’s standardized measure of discounted future
net cash flows relating to proved oil and natural gas reserves and
changes in the standardized measure as described below were
prepared in accordance with GAAP.
|
As of December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
| Future cash inflows |
|
$ |
6,622,410,752 |
|
|
$ |
9,871,961,000 |
|
| Future production costs |
|
|
(2,413,303,488 |
) |
|
|
(2,751,896,250 |
) |
| Future development costs
(1) |
|
|
(562,063,424 |
) |
|
|
(647,196,750 |
) |
| Future income taxes |
|
|
(548,664,988 |
) |
|
|
(1,142,147,641 |
) |
| Future net cash flows |
|
|
3,098,378,852 |
|
|
|
5,330,720,359 |
|
| 10% annual discount for
estimated timing of cash flows |
|
|
(1,699,193,661 |
) |
|
|
(3,058,606,841 |
) |
| |
|
|
|
|
| Standardized Measure
of Discounted Future Net Cash Flows |
|
$ |
1,399,185,191 |
|
|
$ |
2,272,113,518 |
|
(1) Future development costs include not only
development costs but also future asset retirement costs.
Reconciliation of PV-10 to Standardized
Measure
PV-10 is derived from the Standardized Measure
of Discounted Future Net Cash Flows (“Standardized Measure”), which
is the most directly comparable GAAP financial measure for proved
reserves calculated using SEC pricing. PV-10 is a computation of
the Standardized Measure on a pre-tax basis. PV-10 is equal to the
Standardized Measure at the applicable date, before deducting
future income taxes, discounted at 10 percent. We believe that the
presentation of PV-10 is relevant and useful to investors because
it presents the discounted future net cash flows attributable to
our estimated net proved reserves prior to taking into account
future corporate income taxes, and it is a useful measure for
evaluating the relative monetary significance of our oil and
natural gas properties. Further, investors may utilize the measure
as a basis for comparison of the relative size and value of our
reserves to other companies without regard to the specific tax
characteristics of such entities. Moreover, GAAP does not provide a
measure of estimated future net cash flows for reserves other than
proved reserves or for reserves calculated using prices other than
SEC prices. We use this measure when assessing the potential return
on investment related to our oil and natural gas properties. PV-10,
however, is not a substitute for the Standardized Measure. Our
PV-10 measure and the Standardized Measure do not purport to
represent the fair value of our oil and natural gas reserves.
The following table reconciles the PV-10 value of the Company’s
estimated proved reserves as of December 31, 2023 to the
Standardized Measure:
|
SEC Pricing Proved Reserves |
| Standardized Measure
Reconciliation |
|
|
|
Present Value of Estimated Future Net Revenues (PV-10) |
|
$ |
1,647,031,127 |
| Future Income Taxes, Discounted
at 10% |
|
|
247,845,936 |
| Standardized Measure of
Discounted Future Net Cash Flows |
|
$ |
1,399,185,191 |
| |
|
|
|
Conference Call Information
Ring will hold a conference call on Friday,
March 8, 2024 at 11:00 a.m. ET to discuss its fourth quarter
and full year 2023 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
Fourth Quarter and Full Year 2023 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 development of its Permian Basin assets. 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. All statements,
other than statements of historical fact included in this release,
regarding our strategy, future operations, financial position,
estimated revenues and losses, projected costs, prospects, plans
and objectives of management are forward-looking statements. When
used in this release, the words “could,” “may,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “guidance,”
“project,” “goal,” “plan,” “target” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on management’s current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events. However, whether actual results and developments
will conform to expectations is subject to a number of material
risks and uncertainties, including but not limited to: declines in
oil, natural gas liquids or natural gas prices; the level of
success in exploration, development and production activities;
adverse weather conditions that may negatively impact development
or production activities; the timing of exploration and development
expenditures; inaccuracies of reserve estimates or assumptions
underlying them; revisions to reserve estimates as a result of
changes in commodity prices; impacts to financial statements as a
result of impairment write-downs; risks related to level of
indebtedness and periodic redeterminations of the borrowing base
and interest rates under the Company’s credit facility; Ring’s
ability to generate sufficient cash flows from operations to meet
the internally funded portion of its capital expenditures budget;
the impacts of hedging on results of operations; and Ring’s ability
to replace oil and natural gas reserves. 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, 2023, 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. Should
one or more of the risks or uncertainties described in this release
occur, or should underlying assumptions prove incorrect, our actual
results and plans could differ materially from those expressed in
any forward-looking statements. All forward-looking statements,
expressed or implied, included in this release are expressly
qualified in their entirety by this safe harbor statement. This
safe harbor statement should also be considered in connection with
any subsequent written or oral forward-looking statements that we
or persons acting on our behalf may issue. Ring undertakes no
obligation to revise or update publicly any forward-looking
statements except as required by law.
Contact Information
Al Petrie AdvisorsAl Petrie, Senior PartnerPhone:
281-975-2146Email: apetrie@ringenergy.com
|
RING ENERGY, INC. |
|
Condensed Statements of Operations |
|
|
| |
(Unaudited) |
|
|
|
|
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
| Oil, Natural Gas, and
Natural Gas Liquids Revenues |
$ |
99,942,718 |
|
|
$ |
93,681,798 |
|
|
$ |
99,697,682 |
|
|
$ |
361,056,001 |
|
|
$ |
347,249,537 |
|
| |
|
|
|
|
|
|
|
|
|
| Costs and Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
|
18,732,082 |
|
|
|
18,015,348 |
|
|
|
17,411,645 |
|
|
|
70,158,227 |
|
|
|
47,695,351 |
|
|
Gathering, transportation and processing costs |
|
464,558 |
|
|
|
(4,530 |
) |
|
|
(16,223 |
) |
|
|
457,573 |
|
|
|
1,830,024 |
|
|
Ad valorem taxes |
|
1,637,722 |
|
|
|
1,779,163 |
|
|
|
1,570,039 |
|
|
|
6,757,841 |
|
|
|
4,670,617 |
|
|
Oil and natural gas production taxes |
|
4,961,768 |
|
|
|
4,753,289 |
|
|
|
5,186,644 |
|
|
|
18,135,336 |
|
|
|
17,125,982 |
|
|
Depreciation, depletion and amortization |
|
24,556,654 |
|
|
|
21,989,034 |
|
|
|
20,885,774 |
|
|
|
88,610,291 |
|
|
|
55,740,767 |
|
|
Asset retirement obligation accretion |
|
351,786 |
|
|
|
354,175 |
|
|
|
365,747 |
|
|
|
1,425,686 |
|
|
|
983,432 |
|
|
Operating lease expense |
|
175,090 |
|
|
|
138,220 |
|
|
|
113,138 |
|
|
|
541,801 |
|
|
|
363,908 |
|
|
General and administrative expense (including share-based
compensation) |
|
8,164,799 |
|
|
|
7,083,574 |
|
|
|
8,346,896 |
|
|
|
29,188,755 |
|
|
|
27,095,323 |
|
| |
|
|
|
|
|
|
|
|
|
|
Total Costs and Operating Expenses |
|
59,044,459 |
|
|
|
54,108,273 |
|
|
|
53,863,660 |
|
|
|
215,275,510 |
|
|
|
155,505,404 |
|
| |
|
|
|
|
|
|
|
|
|
| Income (Loss) from
Operations |
|
40,898,259 |
|
|
|
39,573,525 |
|
|
|
45,834,022 |
|
|
|
145,780,491 |
|
|
|
191,744,133 |
|
| |
|
|
|
|
|
|
|
|
|
| Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
96,984 |
|
|
|
80,426 |
|
|
|
— |
|
|
|
257,155 |
|
|
|
4 |
|
|
Interest (expense) |
|
(11,603,892 |
) |
|
|
(11,381,754 |
) |
|
|
(9,468,684 |
) |
|
|
(43,926,732 |
) |
|
|
(23,167,729 |
) |
|
Gain (loss) on derivative contracts |
|
29,250,352 |
|
|
|
(39,222,755 |
) |
|
|
(19,330,689 |
) |
|
|
2,767,162 |
|
|
|
(21,532,659 |
) |
|
Gain (loss) on disposal of assets |
|
44,981 |
|
|
|
— |
|
|
|
— |
|
|
|
(87,128 |
) |
|
|
— |
|
|
Other income |
|
72,725 |
|
|
|
— |
|
|
|
— |
|
|
|
198,935 |
|
|
|
— |
|
|
Net Other Income (Expense) |
|
17,861,150 |
|
|
|
(50,524,083 |
) |
|
|
(28,799,373 |
) |
|
|
(40,790,608 |
) |
|
|
(44,700,384 |
) |
| |
|
|
|
|
|
|
|
|
|
| Income (Loss) Before
Provision for Income Taxes |
|
58,759,409 |
|
|
|
(10,950,558 |
) |
|
|
17,034,649 |
|
|
|
104,989,883 |
|
|
|
147,043,749 |
|
| |
|
|
|
|
|
|
|
|
|
| Benefit from
(Provision for) Income Taxes |
|
(7,862,930 |
) |
|
|
3,411,336 |
|
|
|
(2,541,980 |
) |
|
|
(125,242 |
) |
|
|
(8,408,724 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net Income
(Loss) |
$ |
50,896,479 |
|
|
$ |
(7,539,222 |
) |
|
$ |
14,492,669 |
|
|
$ |
104,864,641 |
|
|
$ |
138,635,025 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic Earnings (Loss)
per share |
$ |
0.26 |
|
|
$ |
(0.04 |
) |
|
$ |
0.09 |
|
|
$ |
0.55 |
|
|
$ |
1.14 |
|
| Diluted Earnings
(Loss) per share |
$ |
0.26 |
|
|
$ |
(0.04 |
) |
|
$ |
0.08 |
|
|
$ |
0.54 |
|
|
$ |
0.98 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic Weighted-Average Shares
Outstanding |
|
195,687,725 |
|
|
|
195,361,476 |
|
|
|
162,743,445 |
|
|
|
190,589,143 |
|
|
|
121,264,175 |
|
| Diluted Weighted-Average
Shares Outstanding |
|
197,848,812 |
|
|
|
195,361,476 |
|
|
|
178,736,799 |
|
|
|
195,364,850 |
|
|
|
141,754,668 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RING ENERGY, INC. |
|
Condensed Operating Data |
|
(Unaudited) |
| |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| |
|
|
|
|
|
|
|
|
|
| Net sales
volumes: |
|
|
|
|
|
|
|
|
|
|
Oil (Bbls) |
1,254,619 |
|
|
1,106,531 |
|
|
1,121,371 |
|
|
4,579,942 |
|
|
3,459,840 |
|
|
Natural gas (Mcf)(1) |
1,613,102 |
|
|
1,567,104 |
|
|
1,680,401 |
|
|
6,339,158 |
|
|
4,088,642 |
|
|
Natural gas liquids (Bbls)(1) |
261,020 |
|
|
243,142 |
|
|
241,277 |
|
|
976,852 |
|
|
371,329 |
|
|
Total oil, natural gas and natural gas liquids (Boe)(2) |
1,784,490 |
|
|
1,610,857 |
|
|
1,642,715 |
|
|
6,613,321 |
|
|
4,512,610 |
|
| |
|
|
|
|
|
|
|
|
|
|
% Oil |
70 |
% |
|
69 |
% |
|
68 |
% |
|
69 |
% |
|
77 |
% |
|
% Natural gas |
15 |
% |
|
16 |
% |
|
17 |
% |
|
16 |
% |
|
15 |
% |
|
% Natural gas liquids |
15 |
% |
|
15 |
% |
|
15 |
% |
|
15 |
% |
|
8 |
% |
| |
|
|
|
|
|
|
|
|
|
| Average daily sales
volumes: |
|
|
|
|
|
|
|
|
|
|
Oil (Bbls/d) |
13,637 |
|
|
12,028 |
|
|
12,189 |
|
|
12,548 |
|
|
9,479 |
|
|
Natural gas (Mcf/d)(1) |
17,534 |
|
|
17,034 |
|
|
18,265 |
|
|
17,368 |
|
|
11,202 |
|
|
Natural gas liquids (Bbls/d)(1) |
2,837 |
|
|
2,643 |
|
|
2,623 |
|
|
2,676 |
|
|
1,017 |
|
|
Average daily equivalent sales (Boe/d) |
19,397 |
|
|
17,509 |
|
|
17,856 |
|
|
18,119 |
|
|
12,364 |
|
| |
|
|
|
|
|
|
|
|
|
| Average realized sales
prices: |
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl) |
77.33 |
|
|
81.69 |
|
|
81.62 |
|
|
76.21 |
|
|
92.80 |
|
|
Natural gas ($/Mcf)(1) |
-0.12 |
|
|
0.36 |
|
|
2.39 |
|
|
0.05 |
|
|
4.57 |
|
|
Natural gas liquids ($/Bbls)(1) |
11.92 |
|
|
11.22 |
|
|
17.21 |
|
|
11.95 |
|
|
20.18 |
|
|
Barrel of oil equivalent ($/Boe) |
56.01 |
|
|
58.16 |
|
|
60.69 |
|
|
54.60 |
|
|
76.95 |
|
| |
|
|
|
|
|
|
|
|
|
| Average costs and
expenses per Boe ($/Boe): |
|
|
|
|
|
|
|
|
|
|
Lease operating expenses |
10.50 |
|
|
11.18 |
|
|
10.60 |
|
|
10.61 |
|
|
10.57 |
|
|
Gathering, transportation and processing costs |
0.26 |
|
|
0.00 |
|
|
-0.01 |
|
|
0.07 |
|
|
0.41 |
|
|
Ad valorem taxes |
0.92 |
|
|
1.10 |
|
|
0.96 |
|
|
1.02 |
|
|
1.04 |
|
|
Oil and natural gas production taxes |
2.78 |
|
|
2.95 |
|
|
3.16 |
|
|
2.74 |
|
|
3.80 |
|
|
Depreciation, depletion and amortization |
13.76 |
|
|
13.65 |
|
|
12.71 |
|
|
13.40 |
|
|
12.35 |
|
|
Asset retirement obligation accretion |
0.20 |
|
|
0.22 |
|
|
0.22 |
|
|
0.22 |
|
|
0.22 |
|
|
Operating lease expense |
0.10 |
|
|
0.09 |
|
|
0.07 |
|
|
0.08 |
|
|
0.08 |
|
|
G&A (including share-based compensation) |
4.58 |
|
|
4.40 |
|
|
5.08 |
|
|
4.41 |
|
|
6.00 |
|
|
G&A (excluding share-based compensation) |
3.20 |
|
|
3.05 |
|
|
3.74 |
|
|
3.08 |
|
|
4.42 |
|
|
G&A (excluding share-based compensation and transaction
costs) |
3.00 |
|
|
3.15 |
|
|
3.14 |
|
|
3.01 |
|
|
3.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning July 1, 2022, revenues were
reported on a three-stream basis, separately reporting crude oil,
natural gas, and natural gas liquids volumes and sales. For periods
prior to July 1, 2022, volumes and sales for natural gas liquids
were presented with natural gas.
(2) 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, natural gas, and
natural gas liquids may differ significantly.
|
RING ENERGY, INC. |
|
Condensed Balance Sheets |
| |
|
As of December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
ASSETS |
|
|
|
|
| Current
Assets |
|
|
|
|
| Cash and cash equivalents |
|
$ |
296,384 |
|
|
$ |
3,712,526 |
|
| Accounts receivable |
|
|
38,965,002 |
|
|
|
42,448,719 |
|
| Joint interest billing
receivables, net |
|
|
2,422,274 |
|
|
|
983,802 |
|
| Derivative assets |
|
|
6,215,374 |
|
|
|
4,669,162 |
|
| Inventory |
|
|
6,136,935 |
|
|
|
9,250,717 |
|
| Prepaid expenses and other
assets |
|
|
1,874,850 |
|
|
|
2,101,538 |
|
| Total Current
Assets |
|
|
55,910,819 |
|
|
|
63,166,464 |
|
| Properties and
Equipment |
|
|
|
|
| Oil and natural gas
properties, full cost method |
|
|
1,663,548,249 |
|
|
|
1,463,838,595 |
|
| Financing lease asset subject
to depreciation |
|
|
3,896,316 |
|
|
|
3,019,476 |
|
| Fixed assets subject to
depreciation |
|
|
3,228,793 |
|
|
|
3,147,125 |
|
| Total Properties and
Equipment |
|
|
1,670,673,358 |
|
|
|
1,470,005,196 |
|
| Accumulated depreciation,
depletion and amortization |
|
|
(377,252,572 |
) |
|
|
(289,935,259 |
) |
| Net Properties and
Equipment |
|
|
1,293,420,786 |
|
|
|
1,180,069,937 |
|
| Operating lease
asset |
|
|
2,499,592 |
|
|
|
1,735,013 |
|
| Derivative
assets |
|
|
11,634,714 |
|
|
|
6,129,410 |
|
| Deferred financing
costs |
|
|
13,030,481 |
|
|
|
17,898,973 |
|
| Total
Assets |
|
$ |
1,376,496,392 |
|
|
$ |
1,268,999,797 |
|
| |
|
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
| Current
Liabilities |
|
|
|
|
| Accounts payable |
|
$ |
104,064,124 |
|
|
$ |
111,398,268 |
|
| Financing lease liability |
|
|
956,254 |
|
|
|
709,653 |
|
| Operating lease liability |
|
|
568,176 |
|
|
|
398,362 |
|
| Derivative liabilities |
|
|
7,520,336 |
|
|
|
13,345,619 |
|
| Notes payable |
|
|
533,734 |
|
|
|
499,880 |
|
| Deferred cash payment |
|
|
— |
|
|
|
14,807,276 |
|
| Asset retirement
obligations |
|
|
165,642 |
|
|
|
635,843 |
|
| Total Current
Liabilities |
|
|
113,808,266 |
|
|
|
141,794,901 |
|
| |
|
|
|
|
| Non-current
Liabilities |
|
|
|
|
| Deferred income taxes |
|
|
8,552,045 |
|
|
|
8,499,016 |
|
| Revolving line of credit |
|
|
425,000,000 |
|
|
|
415,000,000 |
|
| Financing lease liability,
less current portion |
|
|
906,330 |
|
|
|
1,052,479 |
|
| Operating lease liability,
less current portion |
|
|
2,054,041 |
|
|
|
1,473,897 |
|
| Derivative liabilities |
|
|
11,510,368 |
|
|
|
10,485,650 |
|
| Asset retirement
obligations |
|
|
28,082,442 |
|
|
|
29,590,463 |
|
| Total
Liabilities |
|
|
589,913,492 |
|
|
|
607,896,406 |
|
| Commitments and
contingencies |
|
|
|
|
| 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; 196,837,001 shares and
175,530,212 shares issued and outstanding, respectively |
|
|
196,837 |
|
|
|
175,530 |
|
| Additional paid-in
capital |
|
|
795,834,675 |
|
|
|
775,241,114 |
|
| Accumulated deficit |
|
|
(9,448,612 |
) |
|
|
(114,313,253 |
) |
| Total Stockholders’
Equity |
|
|
786,582,900 |
|
|
|
661,103,391 |
|
| Total Liabilities and
Stockholders' Equity |
|
$ |
1,376,496,392 |
|
|
$ |
1,268,999,797 |
|
|
RING ENERGY, INC. |
|
Condensed Statements of Cash Flows |
| |
| |
|
(Unaudited) |
|
|
|
|
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Cash Flows From
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
50,896,479 |
|
|
$ |
(7,539,222 |
) |
|
$ |
14,492,669 |
|
|
$ |
104,864,641 |
|
|
$ |
138,635,025 |
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
24,556,654 |
|
|
|
21,989,034 |
|
|
|
20,885,774 |
|
|
|
88,610,291 |
|
|
|
55,740,767 |
|
|
Asset retirement obligation accretion |
|
|
351,786 |
|
|
|
354,175 |
|
|
|
365,747 |
|
|
|
1,425,686 |
|
|
|
983,432 |
|
|
Amortization of deferred financing costs |
|
|
1,221,479 |
|
|
|
1,258,466 |
|
|
|
1,222,400 |
|
|
|
4,920,714 |
|
|
|
2,706,021 |
|
|
Share-based compensation |
|
|
2,458,682 |
|
|
|
2,170,735 |
|
|
|
2,198,043 |
|
|
|
8,833,425 |
|
|
|
7,162,231 |
|
|
Bad debt expense |
|
|
92,142 |
|
|
|
19,656 |
|
|
|
242,247 |
|
|
|
134,007 |
|
|
|
242,247 |
|
|
Deferred income tax expense (benefit) |
|
|
7,735,437 |
|
|
|
(3,585,002 |
) |
|
|
2,890,984 |
|
|
|
(425,275 |
) |
|
|
8,720,992 |
|
|
Excess tax expense (benefit) related to share-based
compensation |
|
|
319,541 |
|
|
|
7,886 |
|
|
|
(312,268 |
) |
|
|
478,304 |
|
|
|
(312,268 |
) |
|
(Gain) loss on derivative contracts |
|
|
(29,250,352 |
) |
|
|
39,222,755 |
|
|
|
19,330,689 |
|
|
|
(2,767,162 |
) |
|
|
21,532,659 |
|
|
Cash received (paid) for derivative settlements, net |
|
|
(3,255,192 |
) |
|
|
(5,350,798 |
) |
|
|
(13,932,072 |
) |
|
|
(9,084,920 |
) |
|
|
(62,525,954 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
6,825,601 |
|
|
|
(14,419,854 |
) |
|
|
4,086,757 |
|
|
|
1,154,085 |
|
|
|
(17,214,150 |
) |
|
Inventory |
|
|
(588,100 |
) |
|
|
1,778,460 |
|
|
|
(5,597,845 |
) |
|
|
3,113,782 |
|
|
|
(5,597,845 |
) |
|
Prepaid expenses and other assets |
|
|
158,163 |
|
|
|
1,028,203 |
|
|
|
1,145,031 |
|
|
|
226,688 |
|
|
|
(1,163,509 |
) |
|
Accounts payable |
|
|
(4,952,335 |
) |
|
|
18,562,202 |
|
|
|
16,816,386 |
|
|
|
(1,451,422 |
) |
|
|
50,808,461 |
|
|
Settlement of asset retirement obligation |
|
|
(836,778 |
) |
|
|
(105,721 |
) |
|
|
(193,036 |
) |
|
|
(1,862,385 |
) |
|
|
(2,741,380 |
) |
|
Net Cash Provided by Operating Activities |
|
|
55,733,207 |
|
|
|
55,390,975 |
|
|
|
63,641,506 |
|
|
|
198,170,459 |
|
|
|
196,976,729 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Cash Flows From
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
Payments for the Stronghold Acquisition |
|
|
— |
|
|
|
— |
|
|
|
5,535,839 |
|
|
|
(18,511,170 |
) |
|
|
(177,823,787 |
) |
|
Payments for the Founders Acquisition |
|
|
(12,324,388 |
) |
|
|
(49,902,757 |
) |
|
|
— |
|
|
|
(62,227,145 |
) |
|
|
— |
|
|
Payments to purchase oil and natural gas properties |
|
|
(557,323 |
) |
|
|
(726,519 |
) |
|
|
(352,012 |
) |
|
|
(2,162,585 |
) |
|
|
(1,563,703 |
) |
|
Payments to develop oil and natural gas properties |
|
|
(39,563,282 |
) |
|
|
(40,444,810 |
) |
|
|
(45,556,105 |
) |
|
|
(152,559,314 |
) |
|
|
(129,332,155 |
) |
|
Payments to acquire or improve fixed assets subject to
depreciation |
|
|
(282,519 |
) |
|
|
(183,904 |
) |
|
|
(161,347 |
) |
|
|
(492,317 |
) |
|
|
(319,945 |
) |
|
Sale of fixed assets subject to depreciation |
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
332,229 |
|
|
|
134,600 |
|
|
Proceeds from divestiture of oil and natural gas properties |
|
|
1,500,000 |
|
|
|
— |
|
|
|
(1,366 |
) |
|
|
1,554,558 |
|
|
|
23,700 |
|
|
Proceeds from sale of Delaware properties |
|
|
(7,993 |
) |
|
|
(384,225 |
) |
|
|
— |
|
|
|
7,600,699 |
|
|
|
— |
|
|
Proceeds from sale of New Mexico properties |
|
|
(420,745 |
) |
|
|
4,312,502 |
|
|
|
— |
|
|
|
3,891,757 |
|
|
|
— |
|
|
Net Cash Used in Investing Activities |
|
|
(51,656,251 |
) |
|
|
(87,329,713 |
) |
|
|
(40,534,991 |
) |
|
|
(222,573,288 |
) |
|
|
(308,881,290 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Cash Flows From
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
Proceeds from revolving line of credit |
|
|
46,000,000 |
|
|
|
94,500,000 |
|
|
|
44,000,000 |
|
|
|
225,000,000 |
|
|
|
636,000,000 |
|
|
Payments on revolving line of credit |
|
|
(49,000,000 |
) |
|
|
(63,500,000 |
) |
|
|
(64,000,000 |
) |
|
|
(215,000,000 |
) |
|
|
(511,000,000 |
) |
|
Proceeds from issuance of common stock from warrant exercises |
|
|
— |
|
|
|
— |
|
|
|
640,000 |
|
|
|
12,301,596 |
|
|
|
8,203,126 |
|
|
Payments for taxes withheld on vested restricted shares, net |
|
|
(225,788 |
) |
|
|
(18,302 |
) |
|
|
(256,715 |
) |
|
|
(520,153 |
) |
|
|
(521,199 |
) |
|
Proceeds from notes payable |
|
|
72,442 |
|
|
|
— |
|
|
|
78,051 |
|
|
|
1,637,513 |
|
|
|
1,323,354 |
|
|
Payments on notes payable |
|
|
(488,776 |
) |
|
|
(462,606 |
) |
|
|
(455,802 |
) |
|
|
(1,603,659 |
) |
|
|
(1,409,884 |
) |
|
Payment of deferred financing costs |
|
|
(52,222 |
) |
|
|
— |
|
|
|
(129,026 |
) |
|
|
(52,222 |
) |
|
|
(18,891,528 |
) |
|
Reduction of financing lease liabilities |
|
|
(224,809 |
) |
|
|
(191,748 |
) |
|
|
(161,064 |
) |
|
|
(776,388 |
) |
|
|
(495,098 |
) |
|
Net Cash Provided by (Used in) Financing
Activities |
|
|
(3,919,153 |
) |
|
|
30,327,344 |
|
|
|
(20,284,556 |
) |
|
|
20,986,687 |
|
|
|
113,208,771 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net Increase
(Decrease) in Cash |
|
|
157,803 |
|
|
|
(1,611,394 |
) |
|
|
2,821,959 |
|
|
|
(3,416,142 |
) |
|
|
1,304,210 |
|
| Cash at Beginning of
Period |
|
|
138,581 |
|
|
|
1,749,975 |
|
|
|
890,567 |
|
|
|
3,712,526 |
|
|
|
2,408,316 |
|
| Cash at End of
Period |
|
$ |
296,384 |
|
|
$ |
138,581 |
|
|
$ |
3,712,526 |
|
|
$ |
296,384 |
|
|
$ |
3,712,526 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RING ENERGY,
INC.Financial Commodity Derivative
PositionsAs of December 31, 2023
The following table reflects the prices of
contracts outstanding as of December 31, 2023 (Quantities are
in barrels of the oil derivative contracts and in million British
thermal units (MMBtu) for the natural gas derivative
contracts):
| |
Oil Hedges (WTI) |
| |
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Q3 2025 |
|
Q4 2025 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Swaps: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged volume (Bbl) |
|
170,625 |
|
|
156,975 |
|
|
282,900 |
|
|
368,000 |
|
|
— |
|
|
— |
|
|
184,000 |
|
|
— |
| Weighted average swap
price |
$ |
67.40 |
|
$ |
66.40 |
|
$ |
65.49 |
|
$ |
68.43 |
|
$ |
— |
|
$ |
— |
|
$ |
73.35 |
|
$ |
— |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred premium
puts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hedged volume (Bbl) |
|
45,500 |
|
|
45,500 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
| Weighted average strike
price |
$ |
84.70 |
|
$ |
82.80 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| Weighted average deferred
premium price |
$ |
17.15 |
|
$ |
17.49 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Two-way
collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hedged volume (Bbl) |
|
371,453 |
|
|
334,947 |
|
|
230,000 |
|
|
128,800 |
|
|
474,750 |
|
|
464,100 |
|
|
225,400 |
|
|
404,800 |
| Weighted average put
price |
$ |
64.27 |
|
$ |
64.32 |
|
$ |
64.00 |
|
$ |
60.00 |
|
$ |
57.06 |
|
$ |
60.00 |
|
$ |
65.00 |
|
$ |
60.00 |
| Weighted average call
price |
$ |
79.92 |
|
$ |
79.16 |
|
$ |
76.50 |
|
$ |
73.24 |
|
$ |
75.82 |
|
$ |
69.85 |
|
$ |
78.91 |
|
$ |
75.68 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gas Hedges (Henry Hub) |
| |
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Q3 2025 |
|
Q4 2025 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NYMEX
Swaps: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged volume (MMBtu) |
|
101,615 |
|
|
138,053 |
|
|
121,587 |
|
|
644,946 |
|
|
616,199 |
|
|
591,725 |
|
|
285,200 |
|
|
— |
| Weighted average swap
price |
$ |
3.62 |
|
$ |
3.61 |
|
$ |
3.59 |
|
$ |
4.45 |
|
$ |
3.78 |
|
$ |
3.43 |
|
$ |
3.73 |
|
$ |
— |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Two-way
collars: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hedged volume (MMBtu) |
|
417,000 |
|
|
605,150 |
|
|
584,200 |
|
|
27,600 |
|
|
27,000 |
|
|
27,300 |
|
|
308,200 |
|
|
598,000 |
| Weighted average put
price |
$ |
3.94 |
|
$ |
3.94 |
|
$ |
3.94 |
|
$ |
3.00 |
|
$ |
3.00 |
|
$ |
3.00 |
|
$ |
3.00 |
|
$ |
3.00 |
| Weighted average call
price |
$ |
6.15 |
|
$ |
6.16 |
|
$ |
6.17 |
|
$ |
4.15 |
|
$ |
4.15 |
|
$ |
4.15 |
|
$ |
4.75 |
|
$ |
4.15 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Oil Hedges (basis differential) |
| |
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
Q1 2025 |
|
Q2 2025 |
|
Q3 2025 |
|
Q4 2025 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Argus basis
swaps: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedged volume (Bbl) |
|
240,000 |
|
|
364,000 |
|
|
368,000 |
|
|
368,000 |
|
|
270,000 |
|
|
273,000 |
|
|
276,000 |
|
|
276,000 |
| Weighted average spread price
(1) |
$ |
1.15 |
|
$ |
1.15 |
|
$ |
1.15 |
|
$ |
1.15 |
|
$ |
1.00 |
|
$ |
1.00 |
|
$ |
1.00 |
|
$ |
1.00 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The oil basis swap hedges are calculated as
the fixed price (weighted average spread price above) less the
difference between WTI Midland and WTI Cushing, in the issue of
Argus Americas Crude.
RING ENERGY, INC.
Non-GAAP Information
Certain financial information included in this
release are not measures of financial performance recognized by
accounting principles generally accepted in the United States
(“GAAP”). These non-GAAP financial measures are “Adjusted Net
Income”, “Adjusted EBITDA”, “Adjusted Free Cash Flow” or “AFCF,”
“Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding
Share-Based Compensation,” “G&A Excluding Share-Based
Compensation and Transaction Costs,” “Leverage Ratio,” “Current
Ratio,” “Cash Return on Capital Employed” or “CROCE,”
and “All-In Cash Operating Costs.” Management uses these
non-GAAP financial measures in its analysis of performance. In
addition, Adjusted EBITDA is a key metric used to determine certain
of 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 Income (Loss) to
Adjusted Net Income
“Adjusted Net Income” is calculated as net
income (loss) minus the estimated after-tax impact of share-based
compensation, ceiling test impairment, unrealized gains and losses
on changes in the fair value of derivatives, and related
transaction costs. 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 period to prior periods. The Company believes
that the presentation of Adjusted Net Income provides useful
information to investors as it is one of the metrics management
uses to assess the Company’s ongoing operating and financial
performance, and also is a useful metric for investors to compare
our results with our peers.
| |
(Unaudited for All Periods) |
|
|
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
Total |
|
Per share - diluted |
|
Total |
|
Per share - diluted |
|
Total |
|
Per share - diluted |
|
Total |
|
Per share - diluted |
|
Total |
|
Per share - diluted |
|
Net Income (Loss) |
$ |
50,896,479 |
|
|
$ |
0.26 |
|
|
$ |
(7,539,222 |
) |
|
$ |
(0.04 |
) |
|
$ |
14,492,669 |
|
|
$ |
0.08 |
|
|
$ |
104,864,641 |
|
|
$ |
0.54 |
|
|
$ |
138,635,025 |
|
|
$ |
0.98 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share-based compensation |
|
2,458,682 |
|
|
|
0.01 |
|
|
|
2,170,735 |
|
|
|
0.01 |
|
|
|
2,198,043 |
|
|
|
0.01 |
|
|
|
8,833,425 |
|
|
|
0.05 |
|
|
|
7,162,231 |
|
|
|
0.05 |
|
| Unrealized loss (gain) on
change in fair value of derivatives |
|
(32,505,544 |
) |
|
|
(0.16 |
) |
|
|
33,871,957 |
|
|
|
0.17 |
|
|
|
5,398,617 |
|
|
|
0.03 |
|
|
|
(11,852,082 |
) |
|
|
(0.07 |
) |
|
|
(40,993,295 |
) |
|
|
(0.29 |
) |
| Transaction costs - executed
A&D |
|
354,616 |
|
|
|
— |
|
|
|
(157,641 |
) |
|
|
— |
|
|
|
993,027 |
|
|
|
0.01 |
|
|
|
417,166 |
|
|
|
— |
|
|
|
2,135,990 |
|
|
|
0.02 |
|
| Tax impact on adjusted
items |
|
(35,631 |
) |
|
|
— |
|
|
|
(2,059,802 |
) |
|
|
(0.01 |
) |
|
|
(1,281,788 |
) |
|
|
(0.01 |
) |
|
|
(1,788,248 |
) |
|
|
(0.01 |
) |
|
|
536,088 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net
Income |
$ |
21,168,602 |
|
|
$ |
0.11 |
|
|
$ |
26,286,027 |
|
|
$ |
0.13 |
|
|
$ |
21,800,568 |
|
|
$ |
0.12 |
|
|
$ |
100,474,902 |
|
|
$ |
0.51 |
|
|
$ |
107,476,039 |
|
|
$ |
0.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted Weighted-Average
Shares Outstanding |
|
197,848,812 |
|
|
|
|
|
195,361,476 |
|
|
|
|
|
178,736,799 |
|
|
|
|
|
195,364,850 |
|
|
|
|
|
141,754,668 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income
per Diluted Share |
$ |
0.11 |
|
|
|
|
$ |
0.13 |
|
|
|
|
$ |
0.12 |
|
|
|
|
$ |
0.51 |
|
|
|
|
$ |
0.76 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) to
Adjusted EBITDA
The Company defines “Adjusted EBITDA” as net
income (loss) plus net interest expense, unrealized loss (gain) on
change in fair value of derivatives, ceiling test impairment,
income tax (benefit) expense, depreciation, depletion and
amortization, asset retirement obligation accretion, transaction
costs for executed acquisitions and divestitures (A&D),
share-based compensation, loss (gain) on disposal of assets, and
backing out the effect of other income. Company management believes
Adjusted EBITDA 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.
| |
(Unaudited for All Periods) |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income
(Loss) |
$ |
50,896,479 |
|
|
$ |
(7,539,222 |
) |
|
$ |
14,492,669 |
|
|
$ |
104,864,641 |
|
|
$ |
138,635,025 |
|
| |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
11,506,908 |
|
|
|
11,301,328 |
|
|
|
9,468,684 |
|
|
|
43,669,577 |
|
|
|
23,167,729 |
|
|
Unrealized loss (gain) on change in fair value of derivatives |
|
(32,505,544 |
) |
|
|
33,871,957 |
|
|
|
5,398,617 |
|
|
|
(11,852,082 |
) |
|
|
(40,993,295 |
) |
|
Income tax (benefit) expense |
|
7,862,930 |
|
|
|
(3,411,336 |
) |
|
|
2,541,980 |
|
|
|
125,242 |
|
|
|
8,408,724 |
|
|
Depreciation, depletion and amortization |
|
24,556,654 |
|
|
|
21,989,034 |
|
|
|
20,885,774 |
|
|
|
88,610,291 |
|
|
|
55,740,767 |
|
|
Asset retirement obligation accretion |
|
351,786 |
|
|
|
354,175 |
|
|
|
365,747 |
|
|
|
1,425,686 |
|
|
|
983,432 |
|
|
Transaction costs - executed A&D |
|
354,616 |
|
|
|
(157,641 |
) |
|
|
993,027 |
|
|
|
417,166 |
|
|
|
2,135,990 |
|
|
Share-based compensation |
|
2,458,682 |
|
|
|
2,170,735 |
|
|
|
2,198,043 |
|
|
|
8,833,425 |
|
|
|
7,162,231 |
|
|
Loss (gain) on disposal of assets |
|
(44,981 |
) |
|
|
— |
|
|
|
— |
|
|
|
87,128 |
|
|
|
— |
|
|
Other income |
|
(72,725 |
) |
|
|
— |
|
|
|
— |
|
|
|
(198,935 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
$ |
65,364,805 |
|
|
$ |
58,579,030 |
|
|
$ |
56,344,541 |
|
|
$ |
235,982,139 |
|
|
$ |
195,240,603 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA
Margin |
|
65 |
% |
|
|
63 |
% |
|
|
57 |
% |
|
|
65 |
% |
|
|
56 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Net Cash Provided by
Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA
to Adjusted Free Cash Flow
The Company defines “Adjusted Free Cash Flow” or
“AFCF” as Net Cash Provided by Operating Activities less changes in
operating assets and liabilities (as reflected on our statements of
cash flows); plus transaction costs for executed acquisitions and
divestitures; current tax expense (benefit); proceeds from
divestitures of equipment for oil and natural gas properties; loss
(gain) on disposal of assets; and less capital expenditures; bad
debt expense; and other income. For this purpose, our definition of
capital expenditures includes costs incurred related to oil and
natural gas properties (such as drilling and infrastructure costs
and lease maintenance costs) but excludes acquisition costs of oil
and gas properties from third parties that are not included in our
capital expenditures guidance provided to investors. Our management
believes that Adjusted Free Cash Flow is an important financial
performance measure for use in evaluating the performance and
efficiency of our 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.
Other companies may use different definitions of Adjusted Free Cash
Flow.
| |
(Unaudited for All Periods) |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Cash Provided by
Operating Activities |
$ |
55,733,207 |
|
|
$ |
55,390,975 |
|
|
$ |
63,641,506 |
|
|
$ |
198,170,459 |
|
|
$ |
196,976,729 |
|
| Adjustments - Condensed
Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
|
(606,551 |
) |
|
|
(6,843,290 |
) |
|
|
(16,257,293 |
) |
|
|
(1,180,748 |
) |
|
|
(24,091,577 |
) |
|
Transaction costs - executed A&D |
|
354,616 |
|
|
|
(157,641 |
) |
|
|
993,027 |
|
|
|
417,166 |
|
|
|
2,135,990 |
|
|
Income tax expense (benefit) - current |
|
(192,048 |
) |
|
|
165,780 |
|
|
|
(36,736 |
) |
|
|
72,213 |
|
|
|
— |
|
|
Capital expenditures |
|
(38,817,080 |
) |
|
|
(42,398,484 |
) |
|
|
(42,618,754 |
) |
|
|
(151,969,735 |
) |
|
|
(140,051,159 |
) |
|
Proceeds from divestiture of equipment for oil and natural gas
properties |
|
— |
|
|
|
— |
|
|
|
(1,366 |
) |
|
|
54,558 |
|
|
|
23,700 |
|
|
Bad debt expense |
|
(92,142 |
) |
|
|
(19,656 |
) |
|
|
(242,247 |
) |
|
|
(134,007 |
) |
|
|
(242,247 |
) |
|
Loss (gain) on disposal of assets |
|
(44,981 |
) |
|
|
— |
|
|
|
— |
|
|
|
87,128 |
|
|
|
— |
|
|
Other income |
|
(72,725 |
) |
|
|
— |
|
|
|
— |
|
|
|
(198,935 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Free Cash
Flow |
$ |
16,262,296 |
|
|
$ |
6,137,684 |
|
|
$ |
5,478,137 |
|
|
$ |
45,318,099 |
|
|
$ |
34,751,436 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Unaudited for All Periods) |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted
EBITDA |
$ |
65,364,805 |
|
|
$ |
58,579,030 |
|
|
$ |
56,344,541 |
|
|
$ |
235,982,139 |
|
|
$ |
195,240,603 |
|
| |
|
|
|
|
|
|
|
|
|
|
Net interest expense (excluding amortization of deferred financing
costs) |
|
(10,285,429 |
) |
|
|
(10,042,862 |
) |
|
|
(8,246,284 |
) |
|
|
(38,748,863 |
) |
|
|
(20,461,708 |
) |
|
Capital expenditures |
|
(38,817,080 |
) |
|
|
(42,398,484 |
) |
|
|
(42,618,754 |
) |
|
|
(151,969,735 |
) |
|
|
(140,051,159 |
) |
|
Proceeds from divestiture of oil and natural gas properties |
|
— |
|
|
|
— |
|
|
|
(1,366 |
) |
|
|
54,558 |
|
|
|
23,700 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Free Cash
Flow |
$ |
16,262,296 |
|
|
$ |
6,137,684 |
|
|
$ |
5,478,137 |
|
|
$ |
45,318,099 |
|
|
$ |
34,751,436 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Cash Provided by
Operating Activities to Adjusted Cash Flow from
Operations
The Company defines “Adjusted Cash Flow from
Operations” or “ACFFO” as Net Cash Provided by Operating
Activities, per the Condensed Statements of Cash Flows, less the
changes in operating assets and liabilities, including accounts
receivable, inventory, prepaid expenses and other assets, accounts
payable, and settlement of asset retirement obligation, which are
subject to variation due to the nature of the Company’s operations.
Accordingly, the Company believes this non-GAAP measure is useful
to investors because it is used often in its industry and allows
investors to compare this metric to other companies in its peer
group as well as the E&P sector.
| |
(Unaudited for All Periods) |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Cash Provided by
Operating Activities |
$ |
55,733,207 |
|
|
$ |
55,390,975 |
|
|
$ |
63,641,506 |
|
|
$ |
198,170,459 |
|
|
$ |
196,976,729 |
|
| |
|
|
|
|
|
|
|
|
|
| Changes in operating assets
and liabilities |
|
(606,551 |
) |
|
|
(6,843,290 |
) |
|
|
(16,257,293 |
) |
|
|
(1,180,748 |
) |
|
|
(24,091,577 |
) |
| |
|
|
|
|
|
|
|
|
|
| Adjusted Cash Flow
from Operations |
$ |
55,126,656 |
|
|
$ |
48,547,685 |
|
|
$ |
47,384,213 |
|
|
$ |
196,989,711 |
|
|
$ |
172,885,152 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of General and
Administrative Expense (G&A) to G&A Excluding Share-Based
Compensation and Transaction Costs
The following table presents a reconciliation of
General and Administrative Expense (G&A), a GAAP measure, to
G&A excluding share-based compensation, and G&A excluding
share-based compensation and transaction costs.
| |
(Unaudited for All Periods) |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
2023 |
|
|
2023 |
|
|
2022 |
|
2023 |
|
2022 |
| |
|
|
|
|
|
|
|
|
|
|
General and administrative expense (G&A) |
$ |
8,164,799 |
|
$ |
7,083,574 |
|
|
$ |
8,346,896 |
|
$ |
29,188,755 |
|
$ |
27,095,323 |
| Shared-based compensation |
|
2,458,682 |
|
|
2,170,735 |
|
|
|
2,198,043 |
|
|
8,833,425 |
|
|
7,162,231 |
| G&A excluding
share-based compensation |
|
5,706,117 |
|
|
4,912,839 |
|
|
|
6,148,853 |
|
|
20,355,330 |
|
|
19,933,092 |
| Transaction costs - executed
A&D |
|
354,616 |
|
|
(157,641 |
) |
|
|
993,027 |
|
|
417,166 |
|
|
2,135,990 |
| G&A excluding
share-based compensation and transaction costs |
$ |
5,351,501 |
|
$ |
5,070,480 |
|
|
$ |
5,155,826 |
|
$ |
19,938,164 |
|
$ |
17,797,102 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Leverage
Ratio
“Leverage” or the “Leverage Ratio” is calculated
under our existing senior revolving credit facility and means as of
any date, the ratio of (i) our consolidated total debt as of such
date to (ii) our Consolidated EBITDAX for the four consecutive
fiscal quarters ending on or immediately prior to such date for
which financial statements are required to have been delivered
under our existing senior revolving credit facility; provided that
for the purposes of the definition of ‘Leverage Ratio’, (a) for the
fiscal quarter ended September 30, 2022, Consolidated EBITDAX is
calculated by multiplying Consolidated EBITDAX for such fiscal
quarter by four, (b) for the fiscal quarter ended December 31,
2022, Consolidated EBITDAX is calculated by multiplying
Consolidated EBITDAX for the two fiscal quarter periods ended on
December 31, 2022 by two, (c) for the fiscal quarter ended March
31, 2023, Consolidated EBITDAX is calculated by multiplying
Consolidated EBITDAX for the three fiscal quarter period ended on
March 31, 2023 by four-thirds, and (d) for each fiscal quarter
thereafter, Consolidated EBITDAX will be calculated by adding
Consolidated EBITDAX for the four consecutive fiscal quarters
ending on such date.
The Company defines “Consolidated EBITDAX” in
accordance with our existing senior revolving credit facility and
it means for any period an amount equal to the sum of (i)
consolidated net income (loss) for such period plus (ii) to the
extent deducted in determining consolidated net income for such
period, and without duplication, (A) consolidated interest expense,
(B) income tax expense determined on a consolidated basis in
accordance with GAAP, (C) depreciation, depletion and amortization
determined on a consolidated basis in accordance with GAAP, (D)
exploration expenses determined on a consolidated basis in
accordance with GAAP, and (E) all other non-cash charges acceptable
to our senior revolving credit facility administrative agent
determined on a consolidated basis in accordance with GAAP, in each
case for such period minus (iii) all noncash income added to
consolidated net income (loss) for such period; provided that, for
purposes of calculating compliance with the financial covenants set
forth in our senior revolving credit facility, to the extent that
during such period we shall have consummated an acquisition
permitted by the senior revolving credit facility or any sale,
transfer or other disposition of any person, business, property or
assets permitted by the senior revolving credit facility,
Consolidated EBITDAX will be calculated on a pro forma basis with
respect to such person, business, property or assets so acquired or
disposed of.
Also set forth in our existing senior revolving
credit facility is the maximum permitted Leverage Ratio of 3.00.
The following table shows the leverage ratio calculation for the
Company’s most recent fiscal quarter.
| |
(Unaudited) |
| |
Three Months Ended |
|
|
| |
March 31, |
|
June 30, |
|
September 30, |
|
December 31, |
|
Last Four Quarters |
| |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
| Consolidated EBITDAX
Calculation: |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
$ |
32,715,779 |
|
|
$ |
28,791,605 |
|
|
$ |
(7,539,222 |
) |
|
$ |
50,896,479 |
|
|
$ |
104,864,641 |
|
| Plus: Interest expense |
|
10,390,279 |
|
|
|
10,471,062 |
|
|
|
11,301,328 |
|
|
|
11,506,908 |
|
|
|
43,669,577 |
|
| Plus: Income tax provision
(benefit) |
|
2,029,943 |
|
|
|
(6,356,295 |
) |
|
|
(3,411,336 |
) |
|
|
7,862,930 |
|
|
|
125,242 |
|
| Plus: Depreciation, depletion
and amortization |
|
21,271,671 |
|
|
|
20,792,932 |
|
|
|
21,989,034 |
|
|
|
24,556,654 |
|
|
|
88,610,291 |
|
| Plus: non-cash charges
acceptable to Administrative Agent |
|
(7,823,887 |
) |
|
|
(470,875 |
) |
|
|
36,396,867 |
|
|
|
(29,695,076 |
) |
|
|
(1,592,971 |
) |
| Consolidated
EBITDAX |
$ |
58,583,785 |
|
|
$ |
53,228,429 |
|
|
$ |
58,736,671 |
|
|
$ |
65,127,895 |
|
|
$ |
235,676,780 |
|
| Plus: Pro Forma Acquired
Consolidated EBITDAX |
$ |
15,385,792 |
|
|
$ |
9,542,529 |
|
|
$ |
4,810,123 |
|
|
$ |
— |
|
|
$ |
29,738,444 |
|
| Less: Pro Forma Divested
Consolidated EBITDAX |
|
(1,346,877 |
) |
|
|
(357,122 |
) |
|
|
(672,113 |
) |
|
|
(67,092 |
) |
|
|
(2,443,204 |
) |
| Pro Forma Consolidated
EBITDAX |
$ |
72,622,700 |
|
|
$ |
62,413,836 |
|
|
$ |
62,874,681 |
|
|
$ |
65,060,803 |
|
|
$ |
262,972,020 |
|
| |
|
|
|
|
|
|
|
|
|
| Non-cash charges acceptable to
Administrative Agent: |
|
|
|
|
|
|
|
|
|
| Asset retirement obligation
accretion |
$ |
365,847 |
|
|
$ |
353,878 |
|
|
$ |
354,175 |
|
|
$ |
351,786 |
|
|
|
| Unrealized loss (gain) on
derivative assets |
|
(10,133,430 |
) |
|
|
(3,085,065 |
) |
|
|
33,871,957 |
|
|
|
(32,505,544 |
) |
|
|
| Share-based compensation |
|
1,943,696 |
|
|
|
2,260,312 |
|
|
|
2,170,735 |
|
|
|
2,458,682 |
|
|
|
| Total non-cash charges
acceptable to Administrative Agent |
$ |
(7,823,887 |
) |
|
$ |
(470,875 |
) |
|
$ |
36,396,867 |
|
|
$ |
(29,695,076 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
As of |
|
|
|
|
|
|
|
|
| |
December 31, |
|
|
|
|
|
|
|
|
| |
|
2023 |
|
|
|
|
|
|
|
|
|
| Leverage Ratio Covenant: |
|
|
|
|
|
|
|
|
|
| Revolving line of credit |
$ |
425,000,000 |
|
|
|
|
|
|
|
|
|
| Pro Forma Consolidated
EBITDAX |
|
262,972,020 |
|
|
|
|
|
|
|
|
|
| Leverage
Ratio |
|
1.62 |
|
|
|
|
|
|
|
|
|
| Maximum Allowed |
|
≤ 3.00 |
x |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Calculation of Current Ratio
The “Current Ratio” is calculated under our
existing senior revolving credit facility and means as of any date,
the ratio of (i) our Current Assets as of such date to (ii) our
Current Liabilities as of such date. Based on its credit agreement,
the Company defines Current Assets as all current assets, excluding
non-cash assets under Accounting Standards Codification (“ASC”)
815, plus the unused line of credit. The Company’s non-cash current
assets include the derivative asset marked to market value. Based
on its credit agreement, the Company defines Current Liabilities as
all liabilities, in accordance with GAAP, which are classified as
current liabilities, including all indebtedness payable on demand
or within one year, all accruals for federal or other taxes payable
within such year, but excluding current portion of long-term debt
required to be paid within one year, the aggregate outstanding
principal balance and non-cash obligations under ASC 815.
Also set forth in our existing senior revolving
credit facility is the minimum permitted Current Ratio of 1.00. The
following table shows the current ratio calculation for the
Company’s most recent fiscal quarter.
| |
|
As of |
| |
|
December 31, |
| |
|
2023 |
| Current Assets |
|
55,910,819 |
| Less: Current derivative
assets |
|
6,215,374 |
| Current Assets per
Covenant |
|
49,695,445 |
| Revolver Availability
(Facility less debt less LCs) |
|
174,239,562 |
| Current Assets per
Covenant |
|
223,935,007 |
| |
|
|
| Current Liabilities |
|
113,808,266 |
| Less: Current financing lease
liability |
|
956,254 |
| Less: Current operating lease
liability |
|
568,176 |
| Less: Current derivative
liabilities |
|
7,520,336 |
| Current Liabilities
per Covenant |
|
104,763,500 |
| |
|
|
| Current
Ratio |
|
2.14 |
| Minimum Allowed |
|
> or = 1.00x |
| |
|
|
Calculation of Cash Return on Capital
Employed
The Company defines “Return on Capital Employed”
or “CROCE” as Adjusted Cash Flow from Operations divided by average
debt and shareholder equity for the period. Management believes
that CROCE is useful to investors as a performance measure when
comparing our profitability and the efficiency with which
management has employed capital over time relative to other
companies. CROCE is not considered to be an alternative to net
income reported in accordance with GAAP.
| CROCE (Cash Return on
Capital Employed): |
As of and for the |
| |
twelve months ended |
| |
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
| |
|
|
|
|
|
| Total long term debt (i.e.
revolving line of credit) |
$ |
425,000,000 |
|
|
$ |
415,000,000 |
|
|
$ |
290,000,000 |
|
| Total stockholders'
equity |
$ |
786,582,900 |
|
|
$ |
661,103,391 |
|
|
$ |
300,624,207 |
|
| |
|
|
|
|
|
| Average debt |
$ |
420,000,000 |
|
|
$ |
352,500,000 |
|
|
$ |
301,500,000 |
|
| Average stockholders'
equity |
|
723,843,146 |
|
|
|
480,863,799 |
|
|
|
297,695,010 |
|
| Average debt and stockholders'
equity |
|
1,143,843,146 |
|
|
|
833,363,799 |
|
|
|
599,195,010 |
|
| |
|
|
|
|
|
| Net Cash Provided by Operating
Activities |
$ |
198,170,459 |
|
|
$ |
196,976,729 |
|
|
$ |
72,731,212 |
|
| Less change in WC (Working
Capital) |
|
1,180,748 |
|
|
|
24,091,577 |
|
|
|
3,236,824 |
|
| Adjusted Cash Flows From
Operations (ACFFO) |
$ |
196,989,711 |
|
|
$ |
172,885,152 |
|
|
$ |
69,494,388 |
|
| |
|
|
|
|
|
| CROCE (ACFFO)/(Average
D+E) |
|
17.2 |
% |
|
|
20.7 |
% |
|
|
11.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
All-In Cash Operating Costs
The Company defines All-In Cash Operating Costs,
a non-GAAP financial measure, as “all in cash” costs including
lease operating expenses, G&A costs excluding share-based
compensation (“cash G&A”), interest expense, workovers and
other operating expenses, production taxes, ad valorem taxes, and
gathering/transportation costs. Management believes that this
metric provides useful additional information to investors to
assess the Company’s operating costs in comparison to its peers,
which may vary from company to company.
| |
(Unaudited for All Periods) |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
| All-In Cash Operating
Costs: |
|
|
|
|
|
|
|
|
|
|
Lease operating expenses (including workovers) |
|
18,732,082 |
|
|
18,015,348 |
|
|
|
17,411,645 |
|
|
|
70,158,227 |
|
|
47,695,351 |
|
G&A excluding share-based compensation |
|
5,706,117 |
|
|
4,912,839 |
|
|
|
6,148,853 |
|
|
|
20,355,330 |
|
|
19,933,092 |
|
Net interest expense (excluding amortization of deferred financing
costs) |
|
10,285,429 |
|
|
10,042,862 |
|
|
|
8,246,284 |
|
|
|
38,748,863 |
|
|
20,461,704 |
|
Operating lease expense |
|
175,090 |
|
|
138,220 |
|
|
|
113,138 |
|
|
|
541,801 |
|
|
363,908 |
|
Oil and natural gas production taxes |
|
4,961,768 |
|
|
4,753,289 |
|
|
|
5,186,644 |
|
|
|
18,135,336 |
|
|
17,125,982 |
|
Ad valorem taxes |
|
1,637,722 |
|
|
1,779,163 |
|
|
|
1,570,039 |
|
|
|
6,757,841 |
|
|
4,670,617 |
|
Gathering, transportation and processing costs |
|
464,558 |
|
|
(4,530 |
) |
|
|
(16,223 |
) |
|
|
457,573 |
|
|
1,830,024 |
| All-in cash operating
costs |
|
41,962,766 |
|
|
39,637,191 |
|
|
|
38,660,380 |
|
|
|
155,154,971 |
|
|
112,080,678 |
| |
|
|
|
|
|
|
|
|
|
| Boe |
|
1,784,490 |
|
|
1,610,857 |
|
|
|
1,642,715 |
|
|
|
6,613,321 |
|
|
4,512,610 |
| |
|
|
|
|
|
|
|
|
|
| All-in cash operating
costs per Boe |
$ |
23.52 |
|
$ |
24.61 |
|
|
$ |
23.53 |
|
|
$ |
23.46 |
|
$ |
24.84 |
1A non-GAAP financial measure; see “Non-GAAP Information”
section in this release for more information including
reconciliations to the most comparable GAAP measures.2 Refer to the
“Non-GAAP Information” section in this release for calculation of
the Leverage Ratio based on our Credit Agreement.
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