Ring Energy Provides Operational Update with First Quarter Sales Above the High End of Guidance and Announces Timing of First Quarter Earnings Release and Conference Call
April 26 2022 - 6:45AM
Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”)
today provided an operational and financial update for the
Company’s first quarter 2022 sales, drilling program and further
debt repayment. Ring also announced the timing of its first quarter
2022 earnings release and conference call.
Highlights and Recent Key
Items
-
Reported first quarter 2022 sales volumes of approximately 8,870
barrels of oil equivalent per day (“Boe/d”) (~ 85% oil), which was
above the high end of first quarter guidance;
-
Improved sales were driven by several factors such as placing wells
on production sooner than anticipated and production optimization
with field compressor installs that led to an overall increase in
gas sales;
-
Generated free cash flow for the 10th consecutive quarter and paid
down an additional $10 million in debt in the first quarter 2022;
-
Increased liquidity at March 31, 2022 to approximately $71
million;
-
Decreased total outstanding debt balance to $280 million;
-
Benefitted from increased commodity prices with the majority of its
low-price legacy oil hedges expiring at year-end 2021 and no
natural gas price hedges in place in 2022;
-
Drilled six wells (four Central Basin Platform (“CBP”) and two
Northwest Shelf (“NWS”) during the first quarter as well as
completed and placed on production four CBP wells; and
-
Performed four conversions from electrical submersible pumps to rod
pumps (“CTR”) in the first quarter 2022, all in the NWS.
Mr. Paul D. McKinney, Chairman of the Board and
Chief Executive Officer, commented, “We are pleased with our first
quarter results. Our operations teams continue to perform
efficiently and effectively maintaining our base production and
bringing on new development wells ahead of schedule. The
combination of stronger than anticipated sales, improved commodity
prices, and our continued focus on driving cost efficiencies
enabled us to not only generate free cash flow for a 10th
consecutive quarter, but also allowed us to pay down $10 million in
debt during the quarter. In addition to drilling and completion
efficiencies, we continued our successful CTR program by performing
four conversions. Our performance this quarter establishes a solid
foundation for 2022 and encourages us to continue executing on our
value-focused, proven strategy.”
First Quarter 2022 Earnings Release and
Conference Call
Ring plans to issue its first quarter 2022 earnings
release after the close of trading on Tuesday, May 10, 2022. The
Company has scheduled a conference call on Wednesday, May 11, 2022
at 11:00 a.m. ET to discuss its first quarter 2022 operational and
financial results. To participate, interested parties should dial
833-953-2433 at least five minutes before the call is to begin.
Please reference the “Ring Energy First Quarter 2022 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 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, 2021, 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 InformationAl Petrie
AdvisorsAl Petrie, Senior PartnerPhone: 281-975-2146Email:
apetrie@ringenergy.com
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