Ring Energy, Inc. press release

Ring Energy Releases First Quarter 2026 Results

2026-05-06

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

THE WOODLANDS, Texas, May 06, 2026 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the first quarter of 2026.

First Quarter 2026 Highlights

Sold 12,276 barrels of oil per day (“Bo/d”) and 19,351 barrels of oil equivalent per day (“Boe/d”) both of which were essentially at the mid-point of guidance; Reported a net loss of $220.6 million, or $(1.06) per diluted share, driven primarily by a $162.1 million non-cash ceiling test impairment and a $77.0 million unrealized mark-to-market derivative loss related to changes in forward commodity prices; Generated Adjusted Net Income1of $7.4 million, or $0.04 per diluted share; Closed the sale of ~ 200 Boe/d of non-operated NWS assets for $4.5 million, valued at approximately 4.5 times estimated next twelve months cash flow2; Incurred Lease Operating Expense (“LOE”) of $10.41 per Boe, 3% below the low end of guidance due to ongoing efforts to reduce costs; Invested $34.5 million in capital expenditures, accelerating targeted infrastructure investments to expand flexibility and unlock more capital efficient longer lateral inventory; Improved NWS spud‑to‑TD drilling time by ~15% versus the 2025 average; Generated net cash flow from operating activities of $25.9 million and remained cash flow positive for the 26thconsecutive quarter; and Increased borrowings by $6 million to accelerate the capture of attractively priced opportunities while maintaining liquidity of $160.0 million as of March 31, 2026.

Management Commentary

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We successfully delivered on our sales guidance, handsomely beat on LOE, while investing ahead of our drilling campaign and extending our track record to 26 consecutive quarters of positive cash flow. Looking to the future, we believe the market has yet to recognize the potential impact of supply disruptions stemming from the Iranian Conflict and what that could mean for long term oil prices. Because we expect oil prices to remain elevated longer than the market currently implies, we made targeted adjustments late in the quarter to capture attractively priced opportunities that provide optionality and the potential to meaningfully expand our drilling inventory, improve capital efficiency and build long term stockholder value.”

Mr. McKinney concluded, “While we remained focused on operating within Adjusted Free Cash Flow1during the first quarter of 2026, we temporarily paused debt reduction to invest in select opportunities which are compelling on a risk-adjusted basis. We are acting early to capture upside potential before sustained higher oil prices translate into higher costs and increased competition. We believe these actions should improve our production later in the year and into 2027; however, it is too early to reflect any increases in our production guidance at this time. Looking ahead, we expect to resume our focus on debt reduction during the remainder of 2026, as we balance growth with strengthening our balance sheet and increasing the Company’s size and scale.”

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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.

2The cash flow for the next twelve months (“NTM”) represents field level cash flow based on a strip price as of January 12, 2026.

Summary Results and Additional Key Items

| | Q1 2026 | Q4 2025 | Q1 2026 to Q4 2025 % Change | Q1 2025 | Q1 2026 to Q1 2025 % Change | | | | | | | | | Average Daily Sales Volumes (Boe/d) | | 19,351 | | | 20,508 | | (6 | )% | | 18,392 | 5 | % | | Crude Oil (Bo/d) | | 12,276 | | | 13,124 | | (6 | )% | | 12,074 | 2 | % | | Net Sales (MBoe) | | 1,741.6 | | | 1,886.8 | | (8 | )% | | 1,655.3 | 5 | % | | Realized Price - All Products ($/Boe) | $ | 42.30 | | $ | 35.45 | | 19 | % | $ | 47.78 | (11 | )% | | Realized Price - Crude Oil ($/Bo) | $ | 68.97 | | $ | 57.47 | | 20 | % | $ | 70.40 | (2 | )% | | Revenues ($MM) | $ | 73.7 | | $ | 66.9 | | 10 | % | $ | 79.1 | (7 | )% | | Net Income (Loss) ($MM) | $ | (220.6 | ) | $ | (12.8 | ) | 1623 | % | $ | 9.1 | (2524 | )% | | Adjusted Net Income1($MM) | $ | 7.4 | | $ | 3.6 | | 106 | % | $ | 10.7 | (31 | )% | | Adjusted EBITDA1($MM) | $ | 38.3 | | $ | 38.4 | | — | % | $ | 46.4 | (17 | )% | | Capital Expenditures ($MM) | $ | 34.5 | | $ | 24.3 | | 42 | % | $ | 32.5 | 6 | % | | Adjusted Free Cash Flow1($MM) | $ | 0.2 | | $ | 5.7 | | (96 | )% | $ | 5.8 | (97 | )% |

(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.

Select Expenses and Other Items

| | Q1 2026 | Q4 2025 | Q1 2026 to Q4 2025 % Change | Q1 2025 | Q1 2026 to Q1 2025 % Change | | | | | | | | | Lease operating expenses (“LOE”) ($MM) | $ | 18.1 | | $ | 18.9 | (4 | )% | $ | 19.7 | | (8 | )% | | Lease operating expenses ($/BOE) | $ | 10.41 | | $ | 10.02 | 4 | % | $ | 11.89 | | (12 | )% | | Depreciation, depletion and amortization ($MM) | $ | 21.4 | | $ | 23.0 | (7 | )% | $ | 22.6 | | (5 | )% | | Depreciation, depletion and amortization ($/BOE) | $ | 12.29 | | $ | 12.19 | 1 | % | $ | 13.66 | | (10 | )% | | General and administrative expenses (“G&A”) ($MM) | $ | 7.4 | | $ | 8.0 | (8 | )% | $ | 8.6 | | (14 | )% | | General and administrative expenses ($/BOE) | $ | 4.27 | | $ | 4.26 | — | % | $ | 5.21 | | (18 | )% | | G&A excluding share-based compensation ($MM) | $ | 5.9 | | $ | 6.6 | (11 | )% | $ | 6.9 | | (14 | )% | | G&A excluding share-based compensation ($/BOE) | $ | 3.40 | | $ | 3.47 | (2 | )% | $ | 4.19 | | (19 | )% | | G&A excluding share-based compensation & transaction costs ($MM) | $ | 5.9 | | $ | 6.5 | (9 | )% | $ | 6.9 | | (14 | )% | | G&A excluding share-based compensation & transaction costs ($/BOE) | $ | 3.40 | | $ | 3.46 | (2 | )% | $ | 4.18 | | (19 | )% | | Interest expense ($MM) | $ | 8.6 | | $ | 9.1 | (5 | )% | $ | 9.5 | | (9 | )% | | Interest expense ($/BOE) | $ | 4.94 | | $ | 4.83 | 2 | % | $ | 5.74 | | (14 | )% | | Gain (loss) on derivative contracts ($MM)(1) | $ | (82.2 | ) | $ | 17.5 | (570 | )% | $ | (0.9 | ) | (9033 | )% | | Realized gain (loss) on derivative contracts ($MM) | $ | (5.2 | ) | $ | 2.7 | (293 | )% | $ | (0.5 | ) | (940 | )% | | Unrealized gain (loss) on derivative contracts ($MM) | $ | (77.0 | ) | $ | 14.8 | (620 | )% | $ | (0.4 | ) | (19150 | )% |

(1) A summary listing of the Company’s outstanding derivative positions as of May 5, 2026 is included in the tables shown later in this release. As of May 5, 2026, for the remainder (April through December) of 2026, the Company has approximately 2.6 million barrels of oil (approximately 72% of oil sales guidance midpoint) hedged at an average upside protection price of $73.27 and approximately 3.8 billion cubic feet of natural gas (approximately 73% of natural gas sales guidance midpoint) hedged at an average downside protection price of $3.78.

Balance Sheet and Liquidity

Total liquidity (defined as cash and cash equivalents plus borrowing base availability under the Company’s credit facility) at March 31, 2026 was approximately $160.0 million, consisting of $159.0 million of availability under our revolving credit facility, which included a reduction of $35 thousand for letters of credit, and $1.0 million in cash and cash equivalents. On March 31, 2026, the Company had $426 million in borrowings outstanding on its credit facility that has a current borrowing base of $585 million. This reflects an increase of $6 million from the balance of $420 million at December 31, 2025. The Company intends to resume debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.

Ceiling Test Impairment

The Company accounts for its assets under the full cost method of accounting, which requires calculation of the limitation on capitalized costs (the full cost ceiling) each quarter. Due to a decrease in the twelve month average SEC commodity pricing over the past quarter, the Company recorded a non-cash impairment charge of $162.1 million in the first quarter of 2026. This non-cash charge had no net impact on cash flows.

Drilling and Completion Activity

In 1Q 2026 the Company continued execution of its development program across its core operated positions. In the Northwest Shelf (Yoakum County), Ring drilled and completed five one-mile horizontal wells, each with a working interest of approximately 91%. In addition, the Company in the Central Basin Platform (Crane County), completed one previously drilled one-mile horizontal DUC well, and drilled and completed one vertical well, with a 100% working interest.

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

| Quarter | | Area | | Wells Drilled | | Wells Completed | | | | | | | | | | 1Q 2026 | | Northwest Shelf (Horizontal) | | 5 | | 5 | | | | Central Basin Platform (Horizontal)(1) | | — | | 1 | | | | Central Basin Platform (Vertical) | | 1 | | 1 | | | | Total | | 6 | | 7 |

(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 2026Sales Volumes, Capital Investment and Operating Expense Guidance

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.

| | | Q2 | Q3 | Q4 | | | | | | | | | | | 2026 | | | 2026 | | | 2026 | | | Sales Volumes: | | | | | | | | | | | | Total Oil (Bo/d) | | 12,450 – 13,450 | 12,750 – 13,750 | 12,800 – 13,800 | | | | | | | | Midpoint (Bo/d) | | | 12,950 | | | 13,250 | | | 13,300 | | | Total (Boe/d) | | 19,400 – 21,000 | 19,700 – 21,300 | 19,800 – 21,400 | | | | | | | | Midpoint (Boe/d) | | | 20,200 | | | 20,500 | | | 20,600 | | | Oil (%) | | | 64 | % | | 65 | % | | 65 | % | | NGLs (%) | | | 20 | % | | 20 | % | | 20 | % | | Gas (%) | | | 16 | % | | 15 | % | | 15 | % | | | | | | | | | | | | | | Capital Program: | | | | | | | | | | | | Capital spending(1)(millions) | | $28 - $36 | $27 - $35 | $17 - $25 | | | | | | | | Midpoint (millions) | | $ | 32 | | $ | 31 | | $ | 21 | | | New Hz wells drilled | | 5 - 7 | 5 - 7 | 3 - 5 | | | | | | | | New Vertical wells drilled | | 1 - 2 | 1 - 2 | | 1 | | | | | | | Wells completed and online | | 6 - 9 | 6 - 9 | 4 - 6 | | | | | | | | | | | | | | | | | | | | Operating Expenses: | | | | | | | | | | | | LOE (per Boe) | | $10.05 - $11.05 | $10.00 - $11.00 | $10.00 - $11.00 | | | | | | | | Midpoint (per Boe) | | $ | 10.55 | | $ | 10.50 | | $ | 10.50 | |

(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, May 7, 2026 at 11:00 a.m. ET (10 a.m. CT) to discuss its 1Q 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 to begin. Please reference the “Ring Energy 1Q 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

Al Petrie Advisors Al Petrie, Senior Partner Phone: 281-975-2146 Email: apetrie@ringenergy.com

| RING ENERGY, INC. | | | | | | | | | | | | | Condensed Statements of Operations | | | | | | | | | | | | | (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | | | March 31, | | December 31, | | March 31, | | | | | | | | | | 2026 | | | | 2025 | | | | 2025 | | | | | | | | | | | | | | | | Oil, Natural Gas, and Natural Gas Liquids Revenues | $ | 73,671,664 | | | $ | 66,882,770 | | | $ | 79,091,207 | | | | | | | | | | | | | | | | Costs and Operating Expenses | | | | | | | | | | | | | Lease operating expenses | | 18,122,344 | | | | 18,911,801 | | | | 19,677,552 | | | Gathering, transportation and processing costs | | 117,049 | | | | 121,097 | | | | 203,612 | | | Ad valorem taxes | | 2,202,537 | | | | 2,279,266 | | | | 1,532,108 | | | Oil and natural gas production taxes | | 3,553,891 | | | | 3,224,183 | | | | 3,584,455 | | | Depreciation, depletion and amortization | | 21,405,948 | | | | 23,002,908 | | | | 22,615,983 | | | Ceiling test impairment | | 162,086,257 | | | | 35,913,116 | | | | — | | | Asset retirement obligation accretion | | 395,496 | | | | 390,892 | | | | 326,549 | | | Operating lease expense | | 175,091 | | | | 175,090 | | | | 175,091 | | | General and administrative expense | | 7,438,778 | | | | 8,030,310 | | | | 8,619,976 | | | | | | | | | | | | | | | | Total Costs and Operating Expenses | | 215,497,391 | | | | 92,048,663 | | | | 56,735,326 | | | | | | | | | | | | | | | | Income (Loss) from Operations | | (141,825,727 | ) | | | (25,165,893 | ) | | | 22,355,881 | | | | | | | | | | | | | | | | Other Income (Expense) | | | | | | | | | | | | | Interest income | | 70,529 | | | | 56,910 | | | | 90,058 | | | Interest (expense) | | (8,599,609 | ) | | | (9,122,419 | ) | | | (9,498,786 | ) | | Gain (loss) on derivative contracts | | (82,230,925 | ) | | | 17,495,270 | | | | (928,790 | ) | | Gain (loss) on disposal of assets | | — | | | | 60,855 | | | | 124,610 | | | Other income | | 5,837 | | | | 29,582 | | | | 8,942 | | | Net Other Income (Expense) | | (90,754,168 | ) | | | 8,520,198 | | | | (10,203,966 | ) | | | | | | | | | | | | | | | Income (Loss) Before Benefit from (Provision for) Income Taxes | | (232,579,895 | ) | | | (16,645,695 | ) | | | 12,151,915 | | | | | | | | | | | | | | | | Benefit from (Provision for) Income Taxes | | 11,988,413 | | | | 3,800,401 | | | | (3,041,177 | ) | | | | | | | | | | | | | | | Net Income (Loss) | $ | (220,591,482 | ) | | $ | (12,845,294 | ) | | $ | 9,110,738 | | | | | | | | | | | | | | | | Basic Earnings (Loss) per Share | $ | (1.06 | ) | | $ | (0.06 | ) | | $ | 0.05 | | | Diluted Earnings (Loss) per Share | $ | (1.06 | ) | | $ | (0.06 | ) | | $ | 0.05 | | | | | | | | | | | | | | | | Basic Weighted-Average Shares Outstanding | | 208,558,546 | | | | 207,233,067 | | | | 199,314,182 | | | Diluted Weighted-Average Shares Outstanding | | 208,558,546 | | | | 207,233,067 | | | | 201,072,594 | |

| RING ENERGY, INC. | | | | | | | | | | | | | Condensed Operating Data | | | | | | | | | | | | | (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | | | March 31, | | December 31, | | March 31, | | | | | | | | | | 2026 | | | | 2025 | | | | 2025 | | | | | | | | | | | | | | | | Net sales volumes: | | | | | | | | | | | | | Oil (Bbls) | | 1,104,823 | | | | 1,207,425 | | | | 1,086,694 | | | Natural gas (Mcf) | | 1,689,512 | | | | 1,808,355 | | | | 1,615,196 | | | Natural gas liquids (Bbls) | | 355,173 | | | | 377,937 | | | | 299,366 | | | Total oil, natural gas and natural gas liquids (Boe)(1) | | 1,741,581 | | | | 1,886,755 | | | | 1,655,259 | | | | | | | | | | | | | | | | % Oil | | 64 | % | | | 64 | % | | | 66 | % | | % Natural Gas | | 16 | % | | | 16 | % | | | 16 | % | | % Natural Gas Liquids | | 20 | % | | | 20 | % | | | 18 | % | | | | | | | | | | | | | | | Average daily sales volumes: | | | | | | | | | | | | | Oil (Bbls/d) | | 12,276 | | | | 13,124 | | | | 12,074 | | | Natural gas (Mcf/d) | | 18,772 | | | | 19,656 | | | | 17,947 | | | Natural gas liquids (Bbls/d) | | 3,946 | | | | 4,108 | | | | 3,326 | | | Average daily equivalent sales (Boe/d) | | 19,351 | | | | 20,508 | | | | 18,392 | | | | | | | | | | | | | | | | Average realized sales prices: | | | | | | | | | | | | | Oil ($/Bbl) | $ | 68.97 | | | $ | 57.47 | | | $ | 70.40 | | | Natural gas ($/Mcf) | | (2.54 | ) | | | (2.49 | ) | | | (0.19 | ) | | Natural gas liquids ($/Bbls) | | 4.96 | | | | 5.29 | | | | 9.65 | | | Barrel of oil equivalent ($/Boe) | $ | 42.30 | | | $ | 35.45 | | | $ | 47.78 | | | | | | | | | | | | | | | | Average costs and expenses per Boe ($/Boe): | | | | | | | | | | | | | Lease operating expenses | $ | 10.41 | | | $ | 10.02 | | | $ | 11.89 | | | Gathering, transportation and processing costs | | 0.07 | | | | 0.06 | | | | 0.12 | | | Ad valorem taxes | | 1.26 | | | | 1.21 | | | | 0.93 | | | Oil and natural gas production taxes | | 2.04 | | | | 1.71 | | | | 2.17 | | | Depreciation, depletion and amortization | | 12.29 | | | | 12.19 | | | | 13.66 | | | Ceiling test impairment | | 93.07 | | | | 19.03 | | | | — | | | Asset retirement obligation accretion | | 0.23 | | | | 0.21 | | | | 0.20 | | | Operating lease expense | | 0.10 | | | | 0.09 | | | | 0.11 | | | G&A (including share-based compensation) | | 4.27 | | | | 4.26 | | | | 5.21 | | | G&A (excluding share-based compensation) | | 3.40 | | | | 3.47 | | | | 4.19 | | | G&A (excluding share-based compensation and transaction costs) | | 3.40 | | | | 3.46 | | | | 4.18 | |