~ Record Q4 2023 Sales Volumes Near High End of Guidance ~
~ Further Reduced Debt in Addition to Making Final Payment for the Founders Acquisition ~
Key Highlights
- Fourth quarter 2023 sales volumes were approximately 19,400 barrels of oil equivalent per day (“Boe/d”) (70% oil), near the high end of the Company’s guidance, which was 18,900 to 19,500 Boe/d;
- Positively impacting fourth quarter sales was three full months of production from the recently completed acquisition of the
Founders Oil & Gas IV, LLC (“Founders” and the “Founders Acquisition”) assets that closed onAugust 15, 2023 , as well as the success of the Company’s 2023 development program that concluded in late November; - Further reduced debt by
$3.0 million in the fourth quarter of 2023, while also funding the$11.9 million final payment in December for the Founders Acquisition;- Ended 2023 with
$425 million of borrowings against the Company’s credit facility;
- Ended 2023 with
- Guiding first quarter 2024 average sales to be 18,000 to 18,500 Boe/d (~69% oil);
- Impacting the Company’s sales to date was deferred production of approximately 1,900 Boe/d for 10 days, which was associated with recent severe cold winter weather. Production has since been restored;
- Ring completed its 2023 drilling program in late November and initiated its 2024 program in early January, with the first well expected to be online in February; and
- Anticipate first quarter capital spending of
$37 million to$42 million , primarily associated with a phased, two-rig drilling program (one horizontal and one vertical);- Plan to drill four to five horizontal wells and four to six vertical wells.
- Plan to drill four to five horizontal wells and four to six vertical wells.
Mr.
About
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company’s strategy and prospects. The forward-looking statements include statements about expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company, and plans and objectives of management for future operations. Forward-looking statements are based on current expectations and assumptions and analyses made by Ring and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. 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
Contact Information
Al
Phone: 281-975-2146
Email: apetrie@ringenergy.com
Source:
2024 GlobeNewswire, Inc., source