Company: REI
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001628280-25-017570
Chunk: 101

Company: RING ENERGY, INC.
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 101
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 PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. Moreover, GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves or for reserves calculated using prices other than SEC prices. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to represent the fair value of our oil and natural gas reserves.

The following table reconciles the PV-10 value of the Company’s estimated proved reserves as of December 31, 2024 to the Standardized Measure, in thousands:

| SEC PRICING PROVED RESERVES (in thousands):              
 Standardized Measure Reconciliation                      |     | Proved Developed |     |           | Proved Undeveloped |     |         | Total Proved |     |           |
|:---------------------------------------------------------|:----|:-----------------|:----|----------:|:-------------------|:----|--------:|:-------------|:----|----------:|
| Present Value of Estimated Future Net Revenues (PV-10)   |     | $                |     | 1,130,173 | $                  |     | 332,654 | $            |     | 1,462,827 |
| Future Income Taxes, Discounted at 10%                   |     |                  |     |   177,612 |                    |     |  52,278 |              |     |   229,891 |
| Standardized Measure of Discounted Future Net Cash Flows |     | $                |     |   952,561 | $                  |     | 280,376 | $            |     | 1,232,936 |

#### 98

#### 2025 PROXY STATEMENT
The Company defines All-In Cash Operating Costs, a non-G