Latest news with #RingEnergy
Globe and Mail
5 days ago
- Business
- Globe and Mail
Ring Energy (REI) Q2 Cash Flow Jumps 16%
Key Points outpacing the $0.03 GAAP estimate despite lower oil and gas prices. Revenue (GAAP) of $82.6 million was slightly below consensus. Adjusted free cash flow (non-GAAP) rose 16% to $24.8 million compared to Q2 2024, reaching a record high for the company. These 10 stocks could mint the next wave of millionaires › Ring Energy (NYSEMKT:REI), an oil and gas producer focused on conventional assets in the Permian Basin, released its second quarter 2025 earnings on August 7, 2025. a record in adjusted free cash flow, even as oil and gas prices remained under pressure. Revenue (GAAP) landed at $82.6 million, a slight miss versus the GAAP revenue estimate of $82.87 million, and down from $99.1 million (GAAP) in revenue in Q2 2024. Overall, Ring Energy delivered operational and cost discipline, but revenue and profit remained affected by weaker commodity prices and shifts in product mix. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS – Diluted (Non-GAAP) $0.05 N/A $0.12 (58.3%) Revenue $82.6 million $82.87 million $99.1 million (16.6%) Revenue vs. Guidance Midpoint (Non-GAAP) N/A N/A Adjusted EBITDA $51.5 million $66.4 million (22.4%) Adjusted Free Cash Flow $24.8 million $21.4 million 15.9% Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding Ring Energy's Business and Focus Ring Energy explores and produces oil and natural gas in the Permian Basin, a region in Texas known for its energy resources. The company holds nearly 98,000 acres and operates hundreds of producing wells, concentrating on long-lived, shallow-decline oil assets. Its business model seeks to maintain consistent output, keep costs low, and generate predictable free cash flow by managing mature wells and selective development. Cost control, strategic drilling, and integrating newly-acquired assets like Lime Rock remain central to its ability to navigate price swings. The business also puts a strong emphasis on compliance with environmental regulations and risk management through hedging, reflecting industry standards in a volatile market. Operational Highlights and Financial Developments in the Quarter The quarter marked several new highs for the company, despite tough market conditions. Oil sales averaged 14,511 barrels per day, surpassing prior guidance and setting a company record. Total production reached 21,295 barrels of oil equivalent per day (boe/d), also a record, as Lime Rock assets were fully integrated and contributed additional volumes. Production growth rose 8% compared to Q2 2024, though the oil mix dipped slightly from 69% to 68%. Drilling activity was deliberately reduced, with two new wells completed versus seven in the previous quarter. This shift allowed Ring Energy to cut capital expenditures nearly in half quarter-over-quarter, with capital expenditures 48% lower than the previous quarter, dropping to $16.8 million in capital expenditures, down 53% from the same period last year. Management deliberately focused capital on the highest-return, oil-weighted projects with shallow production declines. Operational efficiency gains were also achieved. Lease operating expense, a key measure of the cost to run producing wells, fell to $10.45 per barrel of oil equivalent—9% below the low end of company's guidance. This low operating cost helped support the company's positive cash flow, even as realized prices for oil and gas declined sharply. The company responded by reducing lease operating expense (LOE) guidance for the second half of 2025 by $0.50 per barrel of oil equivalent, reflecting continued cost savings. Adjusted free cash flow (non-GAAP) reached $24.8 million. Adjusted EBITDA was $51.5 million (non-GAAP), down 22% year over year due to lower commodity prices. Revenue (GAAP) was $82.6 million, just below consensus estimates for revenue (GAAP), as commodity price declines (realized oil prices down 22% year over year) offset gains from higher production volumes. On the balance sheet, the company paid down $12 million in debt, yet leverage ticked up to 2.05 times EBITDA, and total liquidity stood at $137.0 million at June 30, 2025. On the strategic front, integration of the Lime Rock acquisition proved accretive, as described by management following the March 31, 2025 closing, with management highlighting increased output, lower per-unit costs, and expanded drilling inventory. Management maintains a strong focus on disciplined capital allocation and continues to evaluate additional asset opportunities, but remains clear it will not overpay for acquisitions in a competitive Permian market. Only a small portion of spending was directed at environmental upgrades and compliance projects. Hedging activity, used to lock in prices and limit revenue swings from market volatility, continued. For the remainder of 2025, 1.3 million barrels of oil are hedged at an average downside protection price of $64.87 per barrel, covering about 55% of projected oil sales guidance midpoint for July through December 2025, with gas hedges covering approximately 42% of anticipated natural gas sales volumes for the remainder of 2025. Despite these measures, the average realized price across all products fell to $42.63 per barrel (GAAP), down 23% year over year, reflecting ongoing pressure from both oil and natural gas markets. Gas pricing remained negative due to persistent transportation constraints in the region, highlighting a challenge that continues for all Permian producers. Looking Ahead: Guidance and Watch List for Investors Management offered updated production and cost targets for the coming quarters. Oil production is forecast between 12,850 and 13,850 barrels per day for Q3 2025, with total output in the 19,200 to 21,200 boe/d range for Q3 2025. Production guidance for the back half of 2025 is at a midpoint of 20,000 Boe/d and an oil mix of 66% for Q2 2025 and 2H 2025 (guidance). Capital spending is expected to be $38 million to $58 million for the second half of 2025, with [no change needed, statement is valid]. Operating cost guidance for lease operating expense (LOE) was reduced by $0.50 per Boe for 2H 2025 due to efficiencies, now expected at $11.50 to $12.50 per barrel of oil equivalent for 2H 2025. Management stressed that, in the current environment, preserving capital and paying down debt remains the overriding priority. Only the highest-return projects will move forward, and any additional cost savings will be used to reduce leverage, as stated by management. The company remains exposed to commodity price swings—while hedges provide partial protection, further price declines could impact earnings and financial flexibility. Leverage stands above internal targets, so continued vigilance on debt reduction and spending will be important for investors to track in future quarters. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
6 days ago
- Business
- Yahoo
Here's What Key Metrics Tell Us About Ring Energy (REI) Q2 Earnings
For the quarter ended June 2025, Ring Energy (REI) reported revenue of $82.6 million, down 16.7% over the same period last year. EPS came in at $0.10, compared to $0.12 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $81.11 million, representing a surprise of +1.85%. The company delivered an EPS surprise of +900%, with the consensus EPS estimate being $0.01. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Ring Energy performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average realized sales prices - Natural gas: $-1.31 per thousand cubic feet versus $0.46 per thousand cubic feet estimated by two analysts on average. Net sales volumes - Oil: 1,320.51 MBBL versus 1,296.00 MBBL estimated by two analysts on average. Net sales volumes - Natural gas: 1,703.81 MMcf compared to the 1,867.50 MMcf average estimate based on two analysts. Net sales volumes - Natural gas liquids: 333.37 MBBL compared to the 348.00 MBBL average estimate based on two analysts. Average realized sales prices - Natural gas liquids: $/6.19 compared to the $/4.49 average estimate based on two analysts. Average realized sales prices - Oil: $/62.69 versus $/59.74 estimated by two analysts on average. Average daily equivalent sales: 21,295.00 BOE/D versus the two-analyst average estimate of 21,366.00 BOE/D. Revenues- Oil: $82.78 million compared to the $78.67 million average estimate based on two analysts. The reported number represents a change of -16.6% year over year. Revenues- Natural gas liquids: $2.06 million versus $1.55 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -26.9% change. Revenues- Natural gas: $-2.24 million compared to the $0.84 million average estimate based on two analysts. The reported number represents a change of -24.7% year over year. View all Key Company Metrics for Ring Energy here>>> Shares of Ring Energy have returned -4.7% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ring Energy, Inc. (REI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
18-07-2025
- Business
- Yahoo
Alliance Global Partners Resumes Coverage of Ring Energy (REI) Stock with a Buy
Ring Energy, Inc. (NYSE:REI) is one of the Alliance Global Partners resumed coverage of the company's stock with a 'Buy' rating and a price objective of $2.50. The firm believes that Ring Energy, Inc. (NYSE:REI)'s stock trades at an attractive valuation based on its cash flow. Furthermore, the shares are attractive considering the Permian focus and straightforward operating strategy, added the firm's analyst. An oil rig under construction in the middle of a lake, its lights reflecting on the surrounding water. Ring Energy, Inc. (NYSE:REI) started 2025 with a robust first quarter, reflecting the flexibility, resilience, and strength of its proven, value-focused strategy amidst fluctuating oil prices. In Q1 2025, the company sold 12,074 barrels of oil per day and 18,392 barrels of oil equivalent per day. Furthermore, Ring Energy, Inc. (NYSE:REI) announced the closing of its acquisition of Lime Rock's CBP assets in the Permian Basin. The majority of the assets remain similar to the conventional-focused CBP assets in the company's core Shafter Lake operations, enabling it to integrate the assets into the operations quickly. Ring Energy, Inc. (NYSE:REI) remains focused on generating FCF via cost reductions, divestitures of non-core assets, and acquisition of high-margin, low-break-even assets, utilising the excess cash to reduce debt as well as create value for stockholders throughout commodity price cycles. While we acknowledge the potential of REI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
16-07-2025
- Business
- Globe and Mail
Ring Energy Announces Timing of Second Quarter 2025 Earnings Release and Conference Call
THE WOODLANDS, Texas, July 16, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) ('Ring' or the 'Company') today announced the timing of its second quarter 2025 earnings release and conference call. Ring plans to issue its second quarter 2025 earnings release after the close of trading on Wednesday, August 6, 2025. The Company has scheduled a conference call on Thursday, August 7, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its second quarter operational and financial results. To participate, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the 'Ring Energy 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 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 Contact Information
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Ring Energy to Participate in Water Tower Research Fireside Chat on July 15, 2025
THE WOODLANDS, Texas, July 14, 2025 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) ('Ring' or the 'Company') today announced its participation in a fireside chat with Water Tower Research ('WTR') on Tuesday, July 15, 2025 at 10:00 AM Central Time. As part of WTR's ongoing Fireside Chat Series, Jeff Robertson, Managing Director at WTR, will lead an in-depth conversation with Paul McKinney, Ring's Chairman and Chief Executive Officer. Included in the discussion will be a variety of important topics including the integration of Central Basin Platform assets acquired at the end of the first quarter of 2025 from Lime Rock Resources IV, LP and strategies to maximize synergies. Topics will include: Strategic fit with Ring's existing Central Basin Platform assets; Opportunities to maximize cost synergies; Adapting the capital program during market turbulence; and Pathway to achieving deleveraging goal. Investors and other interested parties can access the event by registering in advance at The presentation will also be available through Ring's web site, on the 'Overview' page under the 'Investors' tab. 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 SAFE HARBOR STATEMENT This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company's strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company's reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company's actual results may differ materially from those described in the forward-looking statements. Contact Information
