Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 156

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 156
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 increase of 137,280 in Boe produced, offset by a price variance of $(1.0) million.  driven by a lower depletion rate per Boe from higher reserves. Our average depreciation, depletion and amortization per Boe decreased from $13.72 per Boe to $13.19 per Boe.  

Asset retirement obligation accretion. Our asset retirement obligation (“ARO”) accretion increased slightly from $352,184 to $382,251 due to additional ARO accretion associated with properties acquired in the Lime Rock Acquisition as well as new drilled and completed wells, offset by wells plugged and abandoned and sold.

Operating lease expense. Our operating lease expense costs were the same period over period.

General and administrative expense. General and administrative ("G&A") expense decreased from $7.7 million to $7.1 million. The $0.6 million cost decrease was primarily due to a decrease of $0.7 million in share-based compensation costs. Other cost reductions included a decrease of $0.3 million in legal fees, $0.2 million in additional costs capitalized for geological and geophysical ("G&G"), $0.1 million in reduced costs for environmental sustainablity, and a $0.1 million reduction in insurance costs. These cost reductions were offset by an increase of  $0.8 million in salaries and bonuses.

48

Other Costs and Operating Expenses for the Six Months Ended June 30, 2025 and 2024

For the Six Months EndedJune 30, 2025June 30, 2024Change% ChangeDepreciation, depletion and amortization (DD&A):     Depletion$47,479,214 $47,754,798 $(275,584)(1)%     Depreciation203,278 204,709 (1,431)(1)%     Amortization of financing lease assets503,405 532,364 (28,959)(5)%Total depreciation, depletion and amortization$48,185,897 $48,491,871 $(305,974)(1)%Depletion per Boe$13.21 $13.52 $(0.31)(2)%Depreciation, depletion and amortization per Boe$13.41 $13.73 $(0.32)(2)%Asset retirement obligation ("ARO") accretion$708,800 $703,018 $5,782