Ring Energy, Inc. press release

Ring Energy Reports Third Quarter 2026 Results, Updates Guidance and Advances Disciplined Portfolio Strategy

2026-11-05

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

Monetized Non-Core Assets, Added Core Acreage While Advancing Higher-Return Development Program and Reducing Debt

THE WOODLANDS, Texas, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the third quarter of 2026 and provided an update on its guidance, development program, portfolio optimization initiatives and balance sheet.

During the third quarter, Ring continued to execute its strategy of improving its capital efficiency and the quality of its asset portfolio while strengthening its balance sheet. The Company completed approximately $30.5 million of non-core asset sales, acquired approximately $18.8 million of leasehold interests in the Central Basin Platform (“CBP”) and reduced borrowings under its revolving credit facility by $10.0 million. The acquired leasehold is positioned within Ring's existing CBP operating footprint, supporting the Company's strategy of expanding higher-return development inventory while increasing financial flexibility. Subsequent to the quarter, on October 30th, Ring closed another divestiture of non-core assets in Gaines and Andrews Counties for ~ $13.4 million.

Third Quarter 2026 Highlights

(Comparisons are to the second quarter of 2026 unless otherwise noted.)

Delivered Higher Adjusted Earnings Despite Lower Realized Oil Prices

Generated $102.3 million of revenue, down ~ 2% from $104.7 million, primarily reflecting lower realized oil prices; Realized oil price of $83.72 per barrel, down ~ 12%; Reported net loss of $16.6 million, or $0.06 per diluted share, including a $41.0 million unrealized loss on commodity derivative contracts; Adjusted Net Income1of $27.3 million, or $0.10 per diluted share, up ~ 14% from $24.0 million; Adjusted EBITDA1of $57.1 million, up ~ 5% from $54.5 million despite lower realized oil prices; and Net cash provided by operating activities of $63.1 million.

High-Graded Portfolio and Strengthened Balance Sheet

Completed non-core asset divestitures of ~ 130 barrels of oil equivalent per day ("Boe/d") (63% oil) and ~ 9.8k net acres for ~ $30.5 million; Acquired ~ 16.5k net acres for $18.8 million of leasehold interests in the CBP, expanding Ring's core development footprint by over 25% in Crane and Ector Counties; and Reduced borrowings under the Company’s revolving credit facility by $10.0 million to $350.0 million at September 30, 2026, while improving LQA leverage ratio to 1.5x from 1.7x.

Advanced Higher-Return Development Program

Sales volumes of ~ 20,635 Boe/d, including ~ 12,818 barrels of oil per day ("Bo/d"), up approximately 3% and 1%, respectively; Brought online first 2-mile horizontal wells and drilled nine YTD; Reduced drilling and completion costs2to ~ $475 per foot YTD; and Invested ~ $64.0 million, reflecting the deliberate acceleration of drilling and infrastructure investments to transition to a more capital-efficient program.

Continued Cost Discipline

Reported lease operating expense ("LOE") of $10.20 per Boe, below the mid-point of guidance; Interest expense of $7.7 million, down ~ 23% year-over-year, reflecting lower debt balances; and Reduced all-in-cash costs by 3% to $21.03 per Boe.

Subsequent Events and Updating Guidance

On October 30th, closed a divestiture of non-core assets in Gaines and Andrews Counties for ~ $13.4 million representing ~470 Boe/d (77% oil) of production; Q4 2026 oil production guidance range of 12,900 to 13,500 Bopd and total sales range of 20,400 to 21,200 Boepd; Q4 2026 LOE per Boe guidance range of $9.80 to $10.30; and Updating 2027 guidance pro forma for divestitures.

Management Commentary

Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented:

“This was an exciting and highly productive quarter for Ring. We delivered strong operational results, advanced our longer-lateral development program and took decisive steps to improve the depth and quality of our portfolio. In a single quarter, we monetized approximately $30.5 million of non-core assets, added strategic acreage in the heart of our Central Basin Platform position and reduced debt by $10.0 million.

With strong commodity prices, encouraging well performance and the cash surplus from asset dispositions, we deliberately chose to outspend adjusted free cash flow this quarter to accelerate our program. Having said that, we have not lost our focus on capital discipline – we intend to be cash flow positive during the fourth quarter and for the full year. We are proud of what our team accomplished so far this year and remain focused on debt reduction and improving our leverage ratio metrics.

Operationally, we grew production 3% from the second quarter and kept lease operating expense below the mid-point of our guidance range while drilling eight horizontal wells and completing seven, including our first five, 2-mile co-developed laterals in Crane County. These results reinforce our confidence in the development program and demonstrate the execution capability of our team.

The acreage we acquired is particularly compelling because it expands our inventory within an area we know well, where we already operate and where we see attractive opportunities to generate strong returns. By selling assets that were not expected to compete for near-term capital, we effectively recycled capital from lower-priority assets into higher-quality inventory while also strengthening the balance sheet. We believe this is a compelling example of how disciplined capital allocation can strengthen Ring and create stockholder value. We intend for this to be an integral part of our strategy going forward.

We entered 2026 focused on moving Ring into its next phase with greater capital efficiency, and the progress we made this quarter represents an important step forward. We have a stronger portfolio with a deeper inventory of low break-even development opportunities and greater financial flexibility. We are energized by the momentum across the business and believe Ring is increasingly well positioned to deliver durable and competitive, per-share value for our stockholders.” _ 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. 2D&C Cost is drilling, completion, equipment and connect to facility costs per lateral foot. 2026 excludes shorter lateral test wells.

Summary Results and Additional Key Items

| | Q3 2026 | Q2 2026 | Q3 2026 to Q2 2026 % Change | Q3 2025 | Q3 2026 to Q3 2025 % Change | YTD 2026 | YTD 2025 | YTD % Change | | Average Daily Sales Volumes (Boe/d) | 20,635 | 19,990 | 3% | 20,789 | (1)% | 19,997 | 20,167 | (1)% | | Crude Oil (Bo/d) | 12,818 | 12,683 | 1% | 13,332 | (4)% | 12,594 | 13,310 | (5)% | | Net Sales (MBoe) | 1,898.4 | 1,819.1 | 4% | 1,912.6 | (1)% | 5,459.1 | 5,505.7 | (1)% | | Realized Price - All Products ($/Boe) | $53.91 | $57.55 | (6)% | $41.10 | 31% | $51.42 | $43.64 | 18% | | Realized Price - Crude Oil ($/Bo) | $83.72 | $95.45 | (12)% | $64.32 | 30% | $82.92 | $65.54 | 27% | | Revenues ($MM) | $102.3 | $104.7 | (2)% | $78.6 | 30% | $280.7 | $240.3 | 17% | | Net Income (Loss) ($MM) | $(16.6) | $64.8 | (126)% | $(51.6) | 68% | $(172.4) | $(21.9) | (687)% | | Adjusted Net Income1($MM) | $27.3 | $24.0 | 14% | $13.1 | 108% | $58.7 | $34.8 | 69% | | Adjusted EBITDA1($MM) | $57.1 | $54.5 | 5% | $47.7 | 20% | $149.9 | $145.6 | 3% | | Capital Expenditures ($MM) | $64.0 | $43.2 | 48% | $24.6 | 160% | $141.7 | $73.9 | 92% | | Adjusted Free Cash Flow1($MM) | $(13.8) | $4.4 | (414)% | $13.9 | (199)% | $(9.2) | $44.5 | (121)% | | | | | | | | | | |

(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

| | Q3 2026 | Q2 2026 | Q3 2026 to Q2 2026 % Change | Q3 2025 | Q3 2026 to Q3 2025 % Change | YTD 2026 | YTD 2025 | YTD % Change | | Lease operating expenses (“LOE”) ($MM) | $19.4 | $18.4 | 5% | $20.5 | (5)% | $55.9 | $60.4 | (7)% | | Lease operating expenses ($/BOE) | $10.20 | $10.12 | 1% | $10.73 | (5)% | $10.24 | $10.98 | (7)% | | Depreciation, depletion and amortization ($MM) | $20.9 | $20.1 | 4% | $25.2 | (17)% | $62.4 | $73.4 | (15)% | | Depreciation, depletion and amortization ($/BOE) | $11.01 | $11.06 | —% | $13.19 | (17)% | $11.43 | $13.33 | (14)% | | General and administrative expenses (“G&A”) ($MM) | $9.0 | $8.0 | 13% | $8.1 | 11% | $24.4 | $23.9 | 2% | | General and administrative expenses ($/BOE) | $4.77 | $4.37 | 9% | $4.26 | 12% | $4.48 | $4.34 | 3% | | G&A excluding share-based compensation ($MM) | $6.5 | $5.8 | 12% | $6.5 | —% | $18.3 | $19.2 | (5)% | | G&A excluding share-based compensation ($/BOE) | $3.45 | $3.19 | 8% | $3.41 | 1% | $3.35 | $3.49 | (4)% | | G&A excluding share-based compensation & transaction costs ($MM) | $6.5 | $5.8 | 12% | $6.5 | —% | $18.3 | $19.2 | (5)% | | G&A excluding share-based compensation & transaction costs ($/BOE) | $3.45 | $3.19 | 8% | $3.41 | 1% | $3.35 | $3.49 | (4)% | | Interest expense ($MM) | $7.7 | $8.4 | (8)% | $10.1 | (24)% | $24.7 | $31.3 | (21)% | | Interest expense ($/BOE) | $4.05 | $4.61 | (12)% | $5.26 | (23)% | $4.52 | $5.69 | (21)% | | Gain (loss) on derivative contracts ($MM) (1) | $(53.2) | $23.7 | (324)% | $0.4 | NM (2) | $(111.7) | $14.2 | (887)% | | Realized gain (loss) on derivative contracts ($MM) | $(12.2) | $(18.5) | 34% | $2.5 | (588)% | $(35.9) | $2.7 | NM (2) | | Unrealized gain (loss) on derivative contracts ($MM) | $(41.0) | $42.2 | (197)% | $(2.1) | NM (2) | $(75.8) | $11.5 | (759)% | | | | | | | | | | |

(1) A summary listing of the Company’s outstanding derivative positions as of November 5, 2026 is included in the tables shown later in this release. As of November 5, 2026, for the remainder (October through December) of 2026, the Company has approximately 1.0 million barrels of oil (approximately 81% of oil sales guidance midpoint) hedged at an average upside protection price of $74.10 and approximately 1.2 billion cubic feet of natural gas (approximately 61% of natural gas sales guidance midpoint) hedged at an average downside protection price of $3.93.

(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 September 30, 2026 was approximately $236.4 million, consisting of $235.0 million of availability under our revolving credit facility, which included a reduction of $35 thousand for letters of credit, and approximately $1.5 million in cash and cash equivalents. On September 30, 2026, the Company had $350 million in borrowings outstanding on its credit facility that has a current borrowing base of $585 million. This reflects a reduction of $10 million from the balance of $360 million at June 30, 2026. The Company intends to continue debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.

Drilling and Completion Activity

In 3Q 2026, the Company drilled a total of eight and completed a total of seven horizontal producing wells. Additionally, the Company completed the SWD well that was in the process of being drilled at the end of the second quarter. In the Central Basin Platform in Andrews County, the Company drilled and completed two 1.5-mile horizontal wells, both with a working interest of approximately 99%. In the Central Basin Platform in Crane County, the Company drilled six and completed five 2-mile horizontal wells, each with a working interest of 100%.

The table below sets forth Ring’s drilling and completion activities in the first nine months 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 | | | | | | | | | | | | 3Q 2026 | | Central Basin Platform (Horizontal) | | 8 | | 7 | | 4 | | | | Total (2) | | 8 | | 7 | | 4 | | | | | | | | | | |

(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.

(2) The total does not include the SWD well that was completed in the third quarter of 2026.

Remaining Quarter 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. 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.

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.

| | | Q4 2026 | FY 2027 | | | | UPDATED | UPDATED | | Sales Volumes: | | | | | Total Oil (Bo/d) | | 12,900 - 13,500 | 13,200 - 14,300 | | Total (Boe/d) | | 20,400 - 21,200 | 21,000 - 23,000 | | Oil (%) | | 63% | 63% | | NGLs (%) | | 20% | 20% | | Gas (%) | | 17% | 17% | | | | | | | Capital Program: | | | | | Capital spending(1)(millions) | | $43 - $48 | $135 - $165 | | New >1.5 mile lateral wells drilled | | 5 | 20 - 30 | | Wells completed and online | | 5 | 20 - 30 | | DUC wells | | 4 | 0 | | | | | | | Operating Expenses: | | | | | LOE (per Boe) | | $9.80 - $10.30 | $9.70 - $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 Friday, November 6, 2026 at 11:00 a.m. ET (10 a.m. CT) to discuss its 3Q 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 3Q 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 remainder of 2026 and 2027 guidance for sales volumes, oil, NGL and natural gas mix as a percentage of total sales, capital expenditures, wells drilled, 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 | | Nine Months Ended | | | | | | | | | | | | | | | | | | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | | | | | | | | | | | | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | Oil, Natural Gas, and Natural Gas Liquids Revenues | $ | 102,343,662 | | | $ | 104,681,489 | | | $ | 78,601,336 | | | $ | 280,696,815 | | | $ | 240,295,302 | | | | | | | | | | | | | | | | | | | | | | | | Costs and Operating Expenses | | | | | | | | | | | | | | | | | | | | | Lease operating expenses | | 19,367,227 | | | | 18,409,462 | | | | 20,518,472 | | | | 55,899,033 | | | | 60,442,005 | | | Gathering, transportation and processing costs | | 180,787 | | | | 101,902 | | | | 126,569 | | | | 399,738 | | | | 463,990 | | | Ad valorem taxes | | 2,210,911 | | | | 2,202,160 | | | | 2,446,565 | | | | 6,615,608 | | | | 5,627,320 | | | Oil and natural gas production taxes | | 4,584,698 | | | | 5,047,619 | | | | 3,670,987 | | | | 13,186,208 | | | | 11,088,049 | | | Depreciation, depletion and amortization | | 20,900,733 | | | | 20,114,890 | | | | 25,225,345 | | | | 62,421,571 | | | | 73,411,242 | | | Ceiling test impairment | | — | | | | — | | | | 72,912,330 | | | | 162,086,257 | | | | 72,912,330 | | | Asset retirement obligation accretion | | 405,729 | | | | 401,944 | | | | 390,563 | | | | 1,203,169 | | | | 1,099,363 | | | Operating lease expense | | 124,187 | | | | 175,090 | | | | 175,091 | | | | 474,368 | | | | 525,272 | | | General and administrative expense | | 9,046,598 | | | | 7,954,230 | | | | 8,139,771 | | | | 24,439,606 | | | | 23,898,266 | | | | | | | | | | | | | | | | | | | | | | | | Total Costs and Operating Expenses | | 56,820,870 | | | | 54,407,297 | | | | 133,605,693 | | | | 326,725,558 | | | | 249,467,837 | | | | | | | | | | | | | | | | | | | | | | | | Income (Loss) from Operations | | 45,522,792 | | | | 50,274,192 | | | | (55,004,357 | ) | | | (46,028,743 | ) | | | (9,172,535 | ) | | | | | | | | | | | | | | | | | | | | | | | Other Income (Expense) | | | | | | | | | | | | | | | | | | | | | Interest income | | 108,728 | | | | 148,540 | | | | 74,253 | | | | 327,797 | | | | 233,969 | | | Interest (expense) | | (7,695,843 | ) | | | (8,379,552 | ) | | | (10,052,320 | ) | | | (24,675,004 | ) | | | (31,308,510 | ) | | Gain (loss) on derivative contracts | | (53,200,280 | ) | | | 23,724,426 | | | | 444,305 | | | | (111,706,779 | ) | | | 14,163,569 | | | Gain (loss) on disposal of assets | | 52,331 | | | | 104,150 | | | | 105,642 | | | | 156,481 | | | | 385,545 | | | Other income | | — | | | | 9,600 | | | | — | | | | 15,437 | | | | 159,712 | | | Net Other Income (Expense) | | (60,735,064 | ) | | | 15,607,164 | | | | (9,428,120 | ) | | | (135,882,068 | ) | | | (16,365,715 | ) | | | | | | | | | | | | | | | | | | | | | | | Income (Loss) Before Benefit from (Provision for) Income Taxes | | (15,212,272 | ) | | | 65,881,356 | | | | (64,432,477 | ) | | | (181,910,811 | ) | | | (25,538,250 | ) | | | | | | | | | | | | | | | | | | | | | | | Benefit from (Provision for) Income Taxes | | (1,387,957 | ) | | | (1,088,046 | ) | | | 12,800,947 | | | | 9,512,410 | | | | 3,652,345 | | | | | | | | | | | | | | | | | | | | | | | | Net Income (Loss) | $ | (16,600,229 | ) | | $ | 64,793,310 | | | $ | (51,631,530 | ) | | $ | (172,398,401 | ) | | $ | (21,885,905 | ) | | | | | | | | | | | | | | | | | | | | | | | Basic Earnings (Loss) per Share | $ | (0.06 | ) | | $ | 0.28 | | | $ | (0.25 | ) | | $ | (0.74 | ) | | $ | (0.11 | ) | | Diluted Earnings (Loss) per Share | $ | (0.06 | ) | | $ | 0.27 | | | $ | (0.25 | ) | | $ | (0.74 | ) | | $ | (0.11 | ) | | | | | | | | | | | | | | | | | | | | | | | Basic Weighted-Average Shares Outstanding | | 260,533,239 | | | | 233,951,765 | | | | 206,688,003 | | | | 234,543,417 | | | | 204,223,621 | | | Diluted Weighted-Average Shares Outstanding | | 260,533,239 | | | | 237,808,489 | | | | 206,688,003 | | | | 234,543,417 | | | | 204,223,621 | | | | | | | | | | | | | | | | | | | | | | |