Ring Energy Increases Fourth Quarter 2021 Sales Guidance, Summarizes Successful 2021 Drilling Program and Discusses 2022 Drilling Plans
December 16 2021 - 4:45PM
Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”)
today announced an increase to its fourth quarter 2021 sales
guidance, summarized its successful 2021 drilling program and
provided an outlook on its 2022 drilling program.
Key Highlights
-
Increased fourth quarter 2021 sales guidance to 9,000 to 9,300
barrels of oil equivalent per day (“Boepd”), with 85% being oil
sales due to the strong production performance in October and
November from the four wells included in the Phase III program, as
well as recent positive initial results from the two wells included
in the Phase IV program;
-
Completion of Phase IV program marks the culmination of a
successful 2021 development campaign;
-
Drilled 11 wells, including eight in the Northwest Shelf (“NWS”)
and three in the Central Basin Platform (“CBP”);
-
Completed 13 wells, including 10 in the NWS and three in the
CBP;
-
Preparing to run a continuous one-rig drilling program throughout
2022 beginning late in the first quarter of 2022.
Paul D. McKinney, Chairman of the Board and
Chief Executive Officer, commented, “Responding to an improving oil
price environment late last year, we launched the first phase of
our 2021 drilling program. During 2021, we successfully drilled 11
wells and completed 13 wells that targeted our highest
rate-of-return inventory. Our execution of a methodical and phased
drilling program while maintaining a low cost structure and a
disciplined capital strategy allowed us to generate more than $11
million of free cash flow and pay down $18 million of debt during
the first nine months of the year, and we expect continued free
cash generation and debt reduction during the fourth quarter of
2021. The positive results from our Phase III and Phase IV drilling
programs is the primary reason for the increase to our fourth
quarter 2021 sales guidance of 9,000 to 9,300 Boepd, which includes
7,650 to 7,900 barrels of oil per day (“Bopd”).”
McKinney concluded, “The success of our Phase
III and Phase IV drilling programs further strengthens our position
to capitalize on continued strong oil pricing as we enter 2022. As
we have reminded our shareholders in the past, the majority of our
low-priced hedges roll off at the end of 2021 and we anticipate
substantially higher revenue and cash flow for 2022. Our primary
goal in 2021 was to maintain production and generate free cash flow
to reduce our long-term debt. For 2022, we will continue to focus
on improving our leverage metrics but will place additional
emphasis on increasing our total production by maintaining a
one-rig continuous development drilling program for a majority of
the year focused on the best opportunities of our high
rate-of-return drilling inventory. We will remain focused on
controlling costs and maximizing cash flows that can be used to
further strengthen the balance sheet and prudently grow the
business.”
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration,
development, and production company with current operations focused
on the conventional development of its Permian Basin assets in West
Texas and New Mexico. For additional information, please visit
www.ringenergy.com.
Safe Harbor Statement
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements involve a wide variety of risks and uncertainties, and
include, without limitations, statements with respect to the
Company’s strategy and prospects. Such statements are subject to
certain risks and uncertainties which are disclosed in the
Company’s reports filed with the SEC, including its Form 10-K for
the fiscal year ended December 31, 2020, and its other filings with
the SEC. Readers and investors are cautioned that the Company’s
actual results may differ materially from those described in the
forward-looking statements due to a number of factors, including,
but not limited to, the Company’s ability to acquire productive oil
and/or gas properties or to successfully drill and complete oil
and/or gas wells on such properties, general economic conditions
both domestically and abroad, and the conduct of business by the
Company, and other factors that may be more fully described in
additional documents set forth by the Company.
Contact Information
Al Petrie AdvisorsAl Petrie, Senior PartnerPhone:
281-975-2146 Email:
apetrie@ringenergy.com
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