RING ENERGY, INC.

(REI)
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Delayed Nyse  -  04:00 2022-08-09 pm EDT
2.730 USD   -4.88%
05:23pRING ENERGY, INC. : Entry into a Material Definitive Agreement, Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
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08/05TRANSCRIPT : Ring Energy, Inc., Q2 2022 Earnings Call, Aug 05, 2022
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08/05RING ENERGY : Q2 2022 Earnings Corporate Presentation
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Ring Energy : Q2 2022 Earnings Corporate Presentation

08/05/2022 | 07:16am EDT

VALUE FOCUSED

PROVEN STRATEGY

www.ringenergy.com

NYSE American: REI

Forward-Looking Statements and

Cautionary Note Regarding Hydrocarbon Disclosures

Forward -Looking Statements

This Presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of strictly historical facts included in this Presentation constitute forward-looking statements and may often, but not always, be identified by the use of such words as "may," "will," "should," "could," "intends," "estimates," "expects," "anticipates," "plans," "project," "guidance," "target," "potential," "possible," "probably," and "believes" or the negative variations thereof or comparable terminology. These forward-looking statements include statements regarding the Company's financial position, future revenues, net income, potential evaluations, business strategy and plans and objectives for future operations. The forward-looking statements include statements about the expected benefits to the Company and to its stockholders from the proposed acquisition of certain assets (the "Stronghold Assets") from Stronghold Energy II Operating, LLC ("Stronghold OpCo") and Stronghold Energy II Royalties, LP ("Stronghold RoyaltyCo", together with Stronghold OpCo, collectively, "Stronghold"); Forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause actual results to be materially different than any future results expressed or implied in those statements. 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: the Company's ability to close the acquisition of the Stronghold Assets; the Company's ability to integrate the Stronghold Assets and achieve the anticipated benefits therefrom; risks relating to any unforeseen liability of the Company or the Stronghold Assets; declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and 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 or production history; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base under the Company's credit facility; the ability of the Company to obtain substantial additional debt financing to close the acquisition of the Stronghold Assets; the impacts of hedging on results of operations; the Company's ability to replace oil and natural gas reserves; any loss of senior management or technical personnel; and the direct and indirect impact on most or all of the foregoing due to the COVID-19 pandemic. Some of the factors that could cause actual results to differ materially from expected results are described under "Risk Factors" in our 2021 annual report on Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 16, 2022, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. Although the Company believes that the assumptions upon which such forward-looking statements are based are reasonable, it can give no assurance that such assumptions will prove to be correct. All forward-looking statements in this Presentation are expressly qualified by the cautionary statements and by reference to the underlying assumptions that may prove to be incorrect.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof, except as required by applicable law. The financial and operating estimates contained in this presentation represent our reasonable estimates as of the date of this Presentation. Neither our independent auditors nor any other third party has examined, reviewed or compiled the projections and, accordingly, none of the foregoing expresses an opinion or other form of assurance with respect thereto. The assumptions upon which the projections are based are described in more detail herein. Some of these assumptions inevitably will not materialize, and unanticipated events may occur that could affect our results. Therefore, our actual results achieved during the periods covered by the estimates will vary from the projected results. Prospective investors are cautioned not to place undue reliance on the estimates included herein.

Cautionary Note regarding Hydrocarbon Disclosures

The SEC has generally permitted oil and natural gas companies, in their filings with the SEC, to disclose proved reserves, which are reserve estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, and certain probable and possible reserves that meet the SEC's definitions for such terms. We use the terms "estimated ultimate recovery," or "EURs," "probable," "possible," and "non-proven" reserves, reserve "potential" or "upside" or other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guidelines prohibit us from including in filings with the SEC. Reference to EURs of natural gas and oil includes amounts that are not yet classified as proved reserves under SEC definitions, but that we believe should ultimately be produced and are based on previous operating experience in a given area and publicly available information relating to the operations of producers who are conducting operations in these areas. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by us. Factors affecting the ultimate recovery of reserves that may be recovered include the scope of our drilling programs, which will be directly affected by capital availability, drilling and production costs, commodity prices, availability of services and equipment, permit expirations, transportation constraints, regulatory approvals and other factors, and actual drilling results, including geological and mechanical factors affecting recovery rates. Accordingly, actual quantities that may be recovered from our interests will differ from our estimates and could be significantly less than our targeted recovery rate. In addition, our estimates may change significantly as we receive additional data.

Supplemental Non-GAAP Financial Measures

This Presentation includes financial measures that are not in accordance with accounting principles generally accepted in the United States ("GAAP"), such as "Adjusted Net Income," "Adjusted EBITDA," "PV-10," "Free Cash Flow," or "FCF," and "Cash Flow from Operations." While management believes that such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For definitions of such non-GAAP financial measures and their reconciliations to GAAP measures, please see the Appendix.

2

www.ringenergy.com

NYSE American: REI

Ring Energy - Independent Oil & Gas Company

Currently Focused on Conventional Permian Assets in Texas & New Mexico

Deliver competitive and sustainable returns by developing, acquiring, exploring for, and

commercializing oil and natural gas resources VITAL TO THE WORLD'S HEALTH AND WELFARE

Consistently Generating

Positive Cash Flow

for 11 Qtrs.

Q2 2022 Net Sales1

9,341 Boe/d

86% oil

2021 SEC Proved Reserves2,3

77.8 MMBoe/PV10 $1,332MM 85% Oil

Gross / Net Acres2

83,604 / 64,380

Market Cap

~$285 million4

Enterprise Value

~$555 million4,5

REI

Closing Price $2.674

52-week range $1.81 - $5.09

REI

Avg. Daily Share Volume

(90-Day) ~2.8 million4

"NWS" Northwest Shelf

"CBP" Central Basin Platform

"DB" Delaware Basin

NEW"SE II" Stronghold Energy II Acquisition

MEXICO

NWS

Core Areas

CBP

DB SEII

Non-Core

Area

  1. Based on Q2'22 financials
  2. As of December 31, 2021
  3. PV-10is a Non-GAAP financial measure. See appendix for reconciliation to GAAP measure
  4. As of August 4, 2022
  5. Enterprise Value (EV) is market cap plus outstanding debt based on number of shares outstanding at end of Q2 2022

3

www.ringenergy.com NYSE American: REI

  • Record quarterly sales revenue of $85.0 MM - highest in Company history
  • Sales volumes at the higher end of Ring's guidance range of
    9,000 to 9,400 Boe/d, increased full year production guidance
  • Adjusted EBITDA grew 33% over Q1 2022 to $47.4 MM - highest in Company history
  • Paid down debt by $10.0 million utilizing a portion of Free Cash Flow
  • Reduced LTM debt ratio to 2.1x compared to ~ 3.5x at YE 2021
  • Increased liquidity to $81.5 million, a 32% increase from YE 2021
  • Drilled 9 wells, completed 7 wells and began the completion process on 4 wells all in the NWS
  • Grew Cash Flow from Operations1 by 37% to $44.3 million
    1. Adjusted EBITDA, Free Cash Flow and Cash Flow from Operations are Non-GAAP financial measures and reconciled in Ring's earnings releases

4

Q2 2022 Highlights

Executing our Strategy

Q2 2022 Highlights

$41.9 MM

$2.51 MM

Net Income

Free Cash Flow

$47.41 MM

$10.0 MM

Adjusted EBITDA

Debt Repayment

9,341 Boe/d

$9.77

(86% oil)

LOE per Boe

Net Sales per day

www.ringenergy.com NYSE American: REI

Committed to ESG

Issued Inaugural ESG Report in Q4 2021

5

www.ringenergy.com NYSE American: REI

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Ring Energy Inc. published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 11:15:23 UTC.


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Financials (USD)
Sales 2022 352 M - -
Net income 2022 146 M - -
Net Debt 2022 - - -
P/E ratio 2022 4,33x
Yield 2022 -
Capitalization 293 M 293 M -
Capi. / Sales 2022 0,83x
Capi. / Sales 2023 0,64x
Nbr of Employees 53
Free-Float 74,3%
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Number of Analysts 3
Last Close Price 2,73 $
Average target price 5,25 $
Spread / Average Target 92,3%
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Managers and Directors
Paul D. McKinney Chairman & Chief Executive Officer
David A. Fowler President
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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