Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 195

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 2
Chunk 195
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 to changes in performance and other economic factors.

36

Our proved oil, natural gas, and natural gas liquid reserves are shown below.

For the years ended December 31,20242023Oil (Bbl)Developed56,106,71456,029,039Undeveloped24,797,35726,112,238Total80,904,07182,141,277Natural Gas (Mcf)Developed102,538,11199,896,022Undeveloped47,279,05146,500,300Total149,817,162146,396,322Natural Gas Liquids (Bbl)Developed19,426,38715,449,907Undeveloped8,876,6987,768,657Total28,303,08523,218,564Total (Boe) (1)Developed92,622,78788,128,284Undeveloped41,553,89741,630,945Total134,176,684129,759,229

(1)  Six Mcf is deemed the equivalent of one Boe.

Standardized Measure of Discounted Future Net Cash Flows

Our standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and changes in the standardized measure as described below were prepared in accordance with GAAP.

Future income tax expenses are calculated by applying appropriate year-end tax rates to future pre-tax net cash flows relating to proved oil and natural gas reserves, less the tax basis of properties involved. Future income tax expenses give effect to permanent differences, tax credits, and loss carryforwards relating to the proved oil and natural gas reserves. Future net cash flows are discounted at a rate of 10% annually to derive the standardized measure of discounted future net cash flows. This calculation procedure does not necessarily result in an estimate of the fair market value of our oil and natural gas properties.

Our estimates of reserves and future cash flow as of December 31, 2024 and 2023 were prepared using an average price equal to the unweighted arithmetic average of the first day of the month price for each month within the 12-month periods ended December 31, 2024 and 2023, respectively, in accordance with SEC guidelines. As of December 31, 2024, our reserves were based on an SEC average price of $71.96 per Bbl of WTI oil posted and $2.130 per MMBtu of Henry Hub natural gas. As of December