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RING ENERGY, INC.

(REI)
  Report
Delayed Nyse  -  04:00 2022-09-23 pm EDT
2.310 USD   -7.23%
09/12RING ENERGY, INC. Financial Statements and Exhibits (form 8-K/A)
AQ
09/06RING ENERGY, INC. : Entry into a Material Definitive Agreement, Completion of Acquisition or Disposition of Assets, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Unregistered Sale of Equity Securities, Change in Directors or Principal..
AQ
09/06Ring Energy, Inc. Announces Board Appointments
CI
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

5 Permian Plays With Big Potential (AGYP, REI, CDEV, APA, OXY)

04/06/2022 | 04:50am EDT

Oil prices remain firmly above $100 per barrel as the Ukraine conflict continues to affect supply globally. In the United States, this has led to increased production at the nation's most active oil field, the Permian Basin, located in southeast New Mexico and West Texas.

Tightened supply has coincided with increased demand as COVID-19 subsides, creating a cocktail of opportunity for all involved in the extraction of 'Texas tea.'

The rising prices of oil have created increased fundamental valuation for securities in the sector. Permian-based stocks could be the biggest beneficiaries of this boost in value.

-Allied Energy Corp. (OTCMKTS: AGYP), for instance, is an oil-producing Permian play, the company holds several leases in the region but has production interest at 3 primary locations:1. Green Lease2. Gilmer Lease3. Prometheus Lease

Both the Green Lease and Gilmer Lease had assessments completed last summer, the recent market conditions have made a major change in the value of AGYP's reserves:

GREEN LEASE:

July 2021 Assessment ($46.26 per barrel): $20,563,100

Post Ukraine Conflict Value ($110 per barrel): $48,896,260

GILMER LEASE:

July 2021 Assessment ($46.26 per barrel): $12,194,800

Post Ukraine Conflict Value ($110 per barrel): $28,997,578

The current market conditions have increased the value of these two leases by 140%. Around the time of the report, AGYP's share price was at 47 cents. Currently, the stock trades at roughly half that price.

Considering the company's reserves are much more valuable now, and AGYP is currently producing, this represents value potential for investors. Before, the assessment represented 'potential', now the company is selling its oil, with oil prices near highs, this could mean a major bump in the company's bottom line.As more investors seek Permian plays with profit potential, AGYP will certainly draw interest.

-Ring Energy, Inc. (NYSE:REI), is another Permian penny stock worth pursuing. The company released its 2021 FY financials and 2022 guidance last month. Highlights from the report include:

-Reported net income of $24.1 million, or $0.20 per diluted share, in the fourth quarter of 2021, up 70% compared with net income of $14.2 million, or $0.12 per share in the third quarter of 2021;

-Net income for full year 2021 was $3.3 million, or $0.03 per diluted share, compared with a loss of $253.4 million or $3.48 per share, in full year 2020;

-Posted Adjusted Net Income1 of $9.9 million, or $0.10 per share, for the fourth quarter of 2021, up 46% compared with $6.8 million, or $0.07 per share, in the third quarter of 2021;

-Adjusted Net Income for the full year 2021 was $30.6 million, or $0.31 per share, up 48% from $20.7 million, or $0.28 per share, in full year 2020;

REI projects it will sell between 7,200 and 7,400 barrels of oil daily in Q1. Considering it has been a record quarter for oil prices, investors may be anxious to see if these numbers come to fruition.

-Centennial Resource Development, Inc. (Nasdaq: CDEV) is another Permian play reporting 2021 FY and 2022 guidance. Its announcement came in February, highlights from the report include:-Announced $350 million stock repurchase program

-For the full year 2021, CDEV generated net cash from operating activities of $525.6 million and free cash flow of $206.7 million.

-CDEV reported full-year net income of $138.2 million, or $0.46 per diluted share, compared to a net loss of $682.8 million, or $(2.46) loss per diluted share, in 2020. -Repaid $180 million in borrowings during the fourth quarter

-Entered into a new $750 million, five-year revolving credit facility

CDEV plans to double its free cash flow in 2022 to $400 million.

Other Permian plays with profit potential include APA Corporation (Nasdaq: APA) and Occidental Petroleum (NYSE: OXY) although they are not pure Permian plays like CDEV, REI and AGYP.

Disclaimers: The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. Capital Gains Report 'CGR' is responsible for the production and distribution of this content. CGR is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. CGR authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. CGR has been compensated five thousand dollars via wire transfer by Crossroads, Inc. to produce and syndicate content related to Allied Energy Corporation. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website.

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(C) 2022 M2 COMMUNICATIONS, source M2 PressWIRE

Stocks mentioned in the article
ChangeLast1st jan.
ALLIED ENERGY CORPORATION 0.00% 0.118 Delayed Quote.-59.31%
APA CORPORATION -11.43% 32.87 Delayed Quote.22.24%
OCCIDENTAL PETROLEUM CORPORATION -5.09% 58.73 Delayed Quote.113.45%
PERMIAN RESOURCES CORPORATION -7.69% 6.36 Delayed Quote.6.35%
RING ENERGY, INC. -7.23% 2.31 Delayed Quote.1.32%
All news about RING ENERGY, INC.
09/12RING ENERGY, INC. Financial Statements and Exhibits (form 8-K/A)
AQ
09/06RING ENERGY, INC. : Entry into a Material Definitive Agreement, Completion of Acquisition ..
AQ
09/06Ring Energy, Inc. Announces Board Appointments
CI
09/01SECTOR UPDATE : Energy Stocks Decline Pre-Bell Thursday
MT
09/01SECTOR UPDATE : Energy
MT
09/01Ring Energy Completes Acquisition of Stronghold's Permian Basin Assets
MT
09/01Ring Energy Announces the Closing of the Stronghold Permian Basin Assets Acquisition
AQ
08/31Ring Energy, Inc. acquired Assets of Stronghold Energy II Operating, LLC and Stronghold..
CI
08/09RING ENERGY : Announces Results For Second Quarter of 2022 - Form 8-K
PU
08/09RING ENERGY, INC. : Entry into a Material Definitive Agreement, Results of Operations and ..
AQ
More news
Analyst Recommendations on RING ENERGY, INC.
More recommendations
Financials (USD)
Sales 2022 352 M - -
Net income 2022 146 M - -
Net Debt 2022 - - -
P/E ratio 2022 3,67x
Yield 2022 -
Capitalization 302 M 302 M -
Capi. / Sales 2022 0,86x
Capi. / Sales 2023 0,65x
Nbr of Employees 53
Free-Float 74,2%
Chart RING ENERGY, INC.
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Technical analysis trends RING ENERGY, INC.
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Income Statement Evolution
Consensus
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Mean consensus OUTPERFORM
Number of Analysts 3
Last Close Price 2,31 $
Average target price 5,25 $
Spread / Average Target 127%
EPS Revisions
Managers and Directors
Paul D. McKinney Chairman & Chief Executive Officer
David A. Fowler Investor Relations Contact
Travis T. Thomas CFO, Secretary, Treasurer & Executive VP
Alexander Dyes Executive VP-Engineering & Corporate Strategy
Marinos Baghdati Executive Vice President-Operations
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