Debt | Capital Markets

Ring Energy Details Preliminary 1Q22 Results; Production Beats Expectations

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Ring Energy, Inc. provided an operational and financial update for the Company's first quarter 2022 sales, drilling program and further debt repayment.

Highlights and Recent Key Items:

• Reported first quarter 2022 sales volumes of approximately 8,870 BOEPD (~ 85% oil), which was above the high end of first quarter guidance;
  • Improved sales were driven by several factors such as placing wells on production sooner than anticipated and production optimization with field compressor installs that led to an overall increase in gas sales;
• Generated free cash flow for the 10^thconsecutive quarter and paid down an additional $10 million in debt in the first quarter 2022;
  • Increased liquidity at March 31, 2022 to approximately $71 million;
  • Decreased total outstanding debt balance to $280 million;
• Benefitted from increased commodity prices with the majority of its low-price legacy oil hedges expiring at year-end 2021 and no natural gas price hedges in place in 2022;
• Drilled six wells (four Central Basin Platform ("CBP") and two Northwest Shelf ("NWS") during the first quarter as well as completed and placed on production four CBP wells; and
• Performed four conversions from electrical submersible pumps to rod pumps ("CTR") in the first quarter 2022, all in the NWS.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, "We are pleased with our first quarter results. Our operations teams continue to perform efficiently and effectively maintaining our base production and bringing on new development wells ahead of schedule. The combination of stronger than anticipated sales, improved commodity prices, and our continued focus on driving cost efficiencies enabled us to not only generate free cash flow for a 10^th consecutive quarter, but also allowed us to pay down $10 million in debt during the quarter. In addition to drilling and completion efficiencies, we continued our successful CTR program by performing four conversions. Our performance this quarter establishes a solid foundation for 2022 and encourages us to continue executing on our value-focused, proven strategy."