Ring Energy, Inc. press release

Ring Energy Releases Second Quarter 2026 Results, Advances Development Program and Provides Initial 2027 Outlook

2026-08-05

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

Strengthened Balance Sheet, Operational Progress and Encouraging Well Results Support Ring’s Transition to Its Next Phase of Value Creation

THE WOODLANDS, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the second quarter of 2026, announced an expanded development program for second half of 2026, updated guidance for the remainder of 2026 and provided guidance for 2027.

Second Quarter 2026 Highlights

Strengthened Financial Position

Reported net income of $64.8 million (included a $42.2 million unrealized mark-to-market gain on commodity derivative contracts), or $0.27 per diluted share, and Adjusted Net Income1of $24.0 million, or $0.10 per diluted share; Reduced borrowings under the Company’s revolving credit facility by $66 million during the quarter and increased liquidity to approximately $226.1 million at June 30, 2026; Increased Adjusted EBITDA142% to $54.5 million from $38.3 million in the first quarter; year-to-date Adjusted EBITDA totaled $92.8 million; and Generated net cash provided by operating activities of $40.8 million and remained cash flow positive for over 6 consecutive years.

Continued Operational and All-In Cash Cost1Improvements

Produced 12,683 barrels of oil per day and 19,990 barrels of oil equivalent (“Boe”) per day, both within guidance; Reported lease operating expense of $10.12 per Boe, near the low end of guidance and below first quarter levels; and Reduced Company all-in-cash costs by 5% in first half 2026 to $21.68 per Boe as compared to first half 2025.

Advanced Development and Infrastructure Initiatives

Invested approximately $43.2 million in capital expenditures during the quarter, including three ~2-mile horizontal wells drilled, one saltwater disposal well (“SWD”), a frac pond, and other infrastructure projects; and Continued execution of multiple technical and operational initiatives aimed at improving capital efficiency, expanding development opportunities and enhancing long-term stockholder value.

Positioned for Improved Returns and Sustainable Growth

Second half 2026 oil production guidance range of 13,000 to 13,950 Bopd, with the midpoint approximately 2% above prior guidance. Second half 2026 LOE per Boe guidance range of $10.00 to $10.60, with the midpoint approximately 2% below prior guidance. Initial 2027 guidance targets: Production growth approximately 10% over full-year 2026; LOE per Boe approximately 1% lower than full-year 2026; and Capital expenditures approximately 10% lower than full-year 2026.

Management Commentary

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “The second quarter marked another period of efficient and effective execution for Ring Energy. We delivered production within guidance, reduced per-Boe operating costs, significantly increased Adjusted EBITDA, and generated positive Adjusted Free Cash Flow1for the 27th straight quarter. Additionally, we continued strengthening our balance sheet while positioning the Company for the next phase of its development strategy. The equity offering completed during the quarter gave us the balance sheet capacity to fund the acceleration of our development transition without losing focus on decreasing our leverage ratio. Rather than choosing between strengthening the balance sheet and investing in the highest-return phase of our development plan, the timing of this raise allowed us to do both. We expect our expanded drilling program to be funded primarily through operating cash flow going forward, with leverage continuing to trend toward our 1.25x target as this investment cycle completes. When considering these results and the expansion of our undeveloped drilling inventory due to our 2026 capital program, the Company is meaningfully stronger in almost every regard than it was at the beginning of the year."

Mr. McKinney concluded, “Over the past eighteen months, we have strengthened our balance sheet, improved liquidity and advanced a number of initiatives designed to enhance long-term value of our asset base. Looking ahead and supported by improving commodity prices, greater exposure to those prices through an improved hedge position and encouraging early drilling results, we are increasing our capital investment program for the remainder of 2026 that will allow for our transition to a more capital efficient development program of longer lateral wells and co-horizontal-development of our stacked-pay drilling opportunities. We strongly believe this transition will enhance economic returns, improve capital efficiency and increase the long-term value of our inventory. As a result, we expect increased production, reserves and free cash flow generation over time. We expect to fund this expanded program primarily through operating cash flow while maintaining Ring's commitment to financial discipline, free cash flow generation, balance sheet strength and per share return metrics. Also, as a part of our ongoing portfolio management, we continue to evaluate select non-core assets that do not fit our long-term development plans and any proceeds from such divestitures would be directed toward further debt reduction, consistent with our capital allocation priorities.” _ 1 A non-GAAP financial measure; see the “Non-GAAP Financial Information” section in this release for more information including reconciliations to the most comparable GAAP measures.

Summary Results and Additional Key Items

| | Q2 2026 | Q1 2026 | Q2 2026 to Q1 2026 % Change | Q2 2025 | Q2 2026 to Q2 2025 % Change | YTD 2026 | YTD 2025 | YTD % Change | | Average Daily Sales Volumes (Boe/d) | 19,990 | 19,351 | 3% | 21,295 | (6)% | 19,672 | 19,851 | (1)% | | Crude Oil (Bo/d) | 12,683 | 12,276 | 3% | 14,511 | (13)% | 12,480 | 13,299 | (6)% | | Net Sales (MBoe) | 1,819.1 | 1,741.6 | 4% | 1,937.9 | (6)% | 3,560.7 | 3,593.1 | (1)% | | Realized Price - All Products ($/Boe) | $57.55 | $42.30 | 36% | $42.63 | 35% | $50.09 | $45.00 | 11% | | Realized Price - Crude Oil ($/Bo) | $95.45 | $68.97 | 38% | $62.69 | 52% | $82.50 | $66.17 | 25% | | Revenues ($MM) | $104.7 | $73.7 | 42% | $82.6 | 27% | $178.4 | $161.7 | 10% | | Net Income (Loss) ($MM) | $64.8 | $(220.6) | 129% | $20.6 | 215% | $(155.8) | $29.7 | (625)% | | Adjusted Net Income1 ($MM) | $24.0 | $7.4 | 224% | $11.0 | 118% | $31.4 | $21.7 | 45% | | Adjusted EBITDA1 ($MM) | $54.5 | $38.3 | 42% | $51.5 | 6% | $92.8 | $97.9 | (5)% | | Capital Expenditures ($MM) | $43.2 | $34.5 | 25% | $16.8 | 157% | $77.7 | $49.3 | 58% | | Adjusted Free Cash Flow1 ($MM) | $4.4 | $0.2 | NM(2) | $24.8 | (82)% | $4.6 | $30.6 | (85)% | | | | | | | | | | |

(1) Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.” In addition, see section titled “Condensed Operating Data” for additional details concerning costs and expenses presented below. (2) Not meaningful.

Select Expenses and Other Items

| | Q2 2026 | Q1 2026 | Q2 2026 to Q1 2026 % Change | Q2 2025 | Q2 2026 to Q2 2025 % Change | YTD 2026 | YTD 2025 | YTD % Change | | Lease operating expenses (“LOE”) ($MM) | $18.4 | $18.1 | 2% | $20.2 | (9)% | $36.5 | $39.9 | (9)% | | Lease operating expenses ($/BOE) | $10.12 | $10.41 | (3)% | $10.45 | (3)% | $10.26 | $11.11 | (8)% | | Depreciation, depletion and amortization ($MM) | $20.1 | $21.4 | (6)% | $25.6 | (21)% | $41.5 | $48.2 | (14)% | | Depreciation, depletion and amortization ($/BOE) | $11.06 | $12.29 | (10)% | $13.19 | (16)% | $11.66 | $13.41 | (13)% | | General and administrative expenses (“G&A”) ($MM) | $8.0 | $7.4 | 8% | $7.1 | 13% | $15.4 | $15.8 | (3)% | | General and administrative expenses ($/BOE) | $4.37 | $4.27 | 2% | $3.68 | 19% | $4.32 | $4.39 | (2)% | | G&A excluding share-based compensation ($MM) | $5.8 | $5.9 | (2)% | $5.8 | —% | $11.7 | $12.7 | (8)% | | G&A excluding share-based compensation ($/BOE) | $3.19 | $3.40 | (6)% | $2.99 | 7% | $3.29 | $3.54 | (7)% | | G&A excluding share-based compensation & transaction costs ($MM) | $5.8 | $5.9 | (2)% | $5.8 | —% | $11.7 | $12.7 | (8)% | | G&A excluding share-based compensation & transaction costs ($/BOE) | $3.19 | $3.40 | (6)% | $2.99 | 7% | $3.29 | $3.54 | (7)% | | Interest expense ($MM) | $8.4 | $8.6 | (2)% | $11.8 | (29)% | $17.0 | $21.3 | (20)% | | Interest expense ($/BOE) | $4.61 | $4.94 | (7)% | $6.07 | (24)% | $4.77 | $5.92 | (19)% | | Gain (loss) on derivative contracts ($MM) (1) | $23.7 | $(82.2) | 129% | $14.6 | 62% | $(58.5) | $13.7 | (527)% | | Realized gain (loss) on derivative contracts ($MM) | $(18.5) | $(5.2) | (256)% | $0.6 | NM(2) | $(23.7) | $0.1 | NM(2) | | Unrealized gain (loss) on derivative contracts ($MM) | $42.2 | $(77.0) | 155% | $14.0 | 201% | $(34.8) | $13.6 | (356)% | | | | | | | | | | |

(1) A summary listing of the Company’s outstanding derivative positions as of August 4, 2026 is included in the tables shown later in this release. As of August 4, 2026, for the remainder (July through December) of 2026, the Company has approximately 1.7 million barrels of oil (approximately 70% of oil sales guidance midpoint) hedged at an average upside protection price of $71.47 and approximately 2.4 billion cubic feet of natural gas (approximately 62% of natural gas sales guidance midpoint) hedged at an average downside protection price of $3.78. (2) Not meaningful.

Balance Sheet and Liquidity

Total liquidity (defined as cash and cash equivalents plus borrowing base availability under the Company’s credit facility) at June 30, 2026 was approximately $226.1 million, consisting of $225.0 million of availability under our revolving credit facility, which included a reduction of $35 thousand for letters of credit, and $1.1 million in cash and cash equivalents. On June 30, 2026, the Company had $360 million in borrowings outstanding on its credit facility that has a current borrowing base of $585 million. This reflects a reduction of $66 million from the balance of $426 million at March 31, 2026. The Company intends to resume debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.

Drilling and Completion Activity

In 2Q 2026 the Company continued execution of its development program across its core positions. In the Northwest Shelf the Company drilled and completed one 1.5-mile horizontal (98% working interest) and one 1-mile horizontal well (100% working interest) in Yoakum County. In the Central Basin Platform, the Company drilled and completed one 1.5-mile horizontal well (99% working interest) in Andrews County, and one 1.5-mile horizontal well (96% working interest) in Crane County. The latter of these two wells, while completed, was not put on pump until 3Q 2026 and did not contribute significant volumes in 2Q 2026. Also in Crane County, the Company drilled three 2-mile horizontal wells (each with working interest of 100%) and was in the process of drilling one SWD well. The three 2-mile horizontal wells represent the first laterals of this length drilled by the Company in an area that has been historically developed with vertical wells. All four of these wells are expected to be completed during the third quarter of 2026.

The table below sets forth Ring’s drilling and completion activities in the first half of 2026:

| Quarter | | Area | | Wells Drilled | | Wells Completed | | Drilled Uncompleted ("DUC") | | | | | | | | | | | | 1Q 2026 | | Northwest Shelf (Horizontal) | | 5 | | 5 | | — | | | | Central Basin Platform (Horizontal) (1) | | — | | 1 | | — | | | | Central Basin Platform (Vertical) | | 1 | | 1 | | — | | | | Total | | 6 | | 7 | | — | | | | | | | | | | | | 2Q 2026 | | Northwest Shelf (Horizontal) | | 2 | | 2 | | — | | | | Central Basin Platform (Horizontal) | | 5 | | 2 | | 3 | | | | Total | | 7 | | 4 | | 3 | | | | | | | | | | |

(1) The horizontal well completed in the Central Basin Platform in the first quarter of 2026 is the completion of a previously drilled but uncompleted (“DUC”) well.

RemainingQuarters of 2026and Full-Year 2027 Sales Volumes, Capital Investment and Operating Expense Guidance

Since providing its original 2026 development outlook, Ring has continued to refine its development plan towards horizontal drilling and allocate capital toward its highest-return opportunities. Under the revised plan, wells exceeding 1.5 miles in length are expected to represent approximately 70% of planned 2026 drilling activity, compared to approximately 42% contemplated in the original plan. This evolution reflects encouraging early well results, improved operational execution and the attractive economics associated with extended-reach laterals. Ring believes the increased concentration of longer lateral opportunities has the potential to enhance capital efficiency, improve project economics and support the Company's strategy of generating higher returns while responsibly growing production.

Based on the spending guidance, the Company expects the following estimated allocation of capital:

Approximately 57% for new drilling, completions, and related facilities; 23% for capital workovers, recompletions, and stimulation activities; 14% for infrastructure projects; and 6% for land, non-operated capital, compliance and other.

The guidance in the table below represents the Company's current good faith estimate of the range of likely future results. Guidance could be affected by the factors discussed below in the "Safe Harbor Statement" section.

| | | 2H 2026 | FY 2027 | | | | UPDATED | NEW | | Sales Volumes: | | | | | Total Oil (Bo/d) | | 13,000 - 13,950 | 13,550 - 14,650 | | Total (Boe/d) | | 20,600 - 21,800 | 21,500 - 23,500 | | Oil (%) | | 63% | 63% | | NGLs (%) | | 20% | 20% | | Gas (%) | | 17% | 17% | | | | | | | Capital Program: | | | | | Capital spending(1) (millions) | | $80 - $100 | $135 - $165 | | New >1.5 mile lateral wells drilled | | 10 to 14 | 20 to 30 | | DUC wells (complete in Q3) | | 3 | — | | | | | | | Operating Expenses: | | | | | LOE (per Boe) | | $10.00 - $10.60 | $9.80 - $10.60 | | | | | |

(1) In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, and well reactivations. Also included is anticipated spending for leasing acreage; and non-operated drilling, completion, capital workovers, and facility improvements.

Conference Call Information

Ring will hold a conference call on Thursday, August 6, 2026 at 11:00 a.m. ET (10 a.m. CT) to discuss its 2Q 2026 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is set to begin. Please reference the “Ring Energy 2Q 2026 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 development of its Permian Basin assets. 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, 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 the 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 also include assumptions and projections for remaining quarters of 2026 guidance for sales volumes, oil, NGL and natural gas mix as a percentage of total sales, capital expenditures, operating expenses and the projected impacts thereon. 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; the impact of worldwide political, military and armed conflict (including the impact of the ongoing conflict with Iran and the closure of the Strait of Hormuz); adverse weather conditions that may negatively impact development or production activities particularly in the winter; 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; changes in U.S. energy, environmental, monetary, tax and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; cost and availability of transportation and storage capacity as a result of oversupply, government regulation or other factors; 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 Securities and Exchange Commission (“SEC”), including its Form 10-K for the fiscal year ended December 31, 2025, and its other SEC filings. Ring undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.

Contact Information

Sonu Singh Johl Executive Vice President, Chief Financial Officer and Treasurer Phone: 281-397-3699 Email: IR@ringenergy.com

| RING ENERGY, INC. Condensed Statements of Operations (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | | | | | | | | | | | | | | | | June 30, | | March 31, | | June 30, | | June 30, | | June 30, | | | | | | | | | | | | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | Oil, Natural Gas, and Natural Gas Liquids Revenues | $ | 104,681,489 | | | $ | 73,671,664 | | | $ | 82,602,759 | | | $ | 178,353,153 | | | $ | 161,693,966 | | | | | | | | | | | | | | | | | | | | | | | | Costs and Operating Expenses | | | | | | | | | | | | | | | | | | | | | Lease operating expenses | | 18,409,462 | | | | 18,122,344 | | | | 20,245,981 | | | | 36,531,806 | | | | 39,923,533 | | | Gathering, transportation and processing costs | | 101,902 | | | | 117,049 | | | | 133,809 | | | | 218,951 | | | | 337,421 | | | Ad valorem taxes | | 2,202,160 | | | | 2,202,537 | | | | 1,648,647 | | | | 4,404,697 | | | | 3,180,755 | | | Oil and natural gas production taxes | | 5,047,619 | | | | 3,553,891 | | | | 3,832,607 | | | | 8,601,510 | | | | 7,417,062 | | | Depreciation, depletion and amortization | | 20,114,890 | | | | 21,405,948 | | | | 25,569,914 | | | | 41,520,838 | | | | 48,185,897 | | | Ceiling test impairment | | — | | | | 162,086,257 | | | | — | | | | 162,086,257 | | | | — | | | Asset retirement obligation accretion | | 401,944 | | | | 395,496 | | | | 382,251 | | | | 797,440 | | | | 708,800 | | | Operating lease expense | | 175,090 | | | | 175,091 | | | | 175,090 | | | | 350,181 | | | | 350,181 | | | General and administrative expense | | 7,954,230 | | | | 7,438,778 | | | | 7,138,519 | | | | 15,393,008 | | | | 15,758,495 | | | | | | | | | | | | | | | | | | | | | | | | Total Costs and Operating Expenses | | 54,407,297 | | | | 215,497,391 | | | | 59,126,818 | | | | 269,904,688 | | | | 115,862,144 | | | | | | | | | | | | | | | | | | | | | | | | Income (Loss) from Operations | | 50,274,192 | | | | (141,825,727 | ) | | | 23,475,941 | | | | (91,551,535 | ) | | | 45,831,822 | | | | | | | | | | | | | | | | | | | | | | | | Other Income (Expense) | | | | | | | | | | | | | | | | | | | | | Interest income | | 148,540 | | | | 70,529 | | | | 69,658 | | | | 219,069 | | | | 159,716 | | | Interest (expense) | | (8,379,552 | ) | | | (8,599,609 | ) | | | (11,757,404 | ) | | | (16,979,161 | ) | | | (21,256,190 | ) | | Gain (loss) on derivative contracts | | 23,724,426 | | | | (82,230,925 | ) | | | 14,648,054 | | | | (58,506,499 | ) | | | 13,719,264 | | | Gain (loss) on disposal of assets | | 104,150 | | | | — | | | | 155,293 | | | | 104,150 | | | | 279,903 | | | Other income | | 9,600 | | | | 5,837 | | | | 150,770 | | | | 15,437 | | | | 159,712 | | | Net Other Income (Expense) | | 15,607,164 | | | | (90,754,168 | ) | | | 3,266,371 | | | | (75,147,004 | ) | | | (6,937,595 | ) | | | | | | | | | | | | | | | | | | | | | | | Income (Loss) Before Benefit from (Provision for) Income Taxes | | 65,881,356 | | | | (232,579,895 | ) | | | 26,742,312 | | | | (166,698,539 | ) | | | 38,894,227 | | | | | | | | | | | | | | | | | | | | | | | | Benefit from (Provision for) Income Taxes | | (1,088,046 | ) | | | 11,988,413 | | | | (6,107,425 | ) | | | 10,900,367 | | | | (9,148,602 | ) | | | | | | | | | | | | | | | | | | | | | | | Net Income (Loss) | $ | 64,793,310 | | | $ | (220,591,482 | ) | | $ | 20,634,887 | | | $ | (155,798,172 | ) | | $ | 29,745,625 | | | | | | | | | | | | | | | | | | | | | | | | Basic Earnings (Loss) per Share | $ | 0.28 | | | $ | (1.06 | ) | | $ | 0.10 | | | $ | (0.70 | ) | | $ | 0.15 | | | Diluted Earnings (Loss) per Share | $ | 0.27 | | | $ | (1.06 | ) | | $ | 0.10 | | | $ | (0.70 | ) | | $ | 0.15 | | | | | | | | | | | | | | | | | | | | | | | | Basic Weighted-Average Shares Outstanding | | 233,951,765 | | | | 208,558,546 | | | | 206,522,356 | | | | 221,259,803 | | | | 202,964,856 | | | Diluted Weighted-Average Shares Outstanding | | 237,808,489 | | | | 208,558,546 | | | | 206,982,327 | | | | 221,259,803 | | | | 204,085,207 | | | | | | | | | | | | | | | | | | | | | | |