Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 129

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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 4 %     Amortization of financing lease assets238,618 271,463 (32,845)(12)%Total depreciation, depletion and amortization$25,569,914 $24,699,421 $870,493 4 %Depletion per Boe$13.02 $13.51 $(0.49)(4)%Depreciation, depletion and amortization per Boe$13.19 $13.72 $(0.53)(4)%Asset retirement obligation ("ARO") accretion$382,251 $352,184 $30,067 9 %Operating lease expense$175,090 $175,090 $— — %General and administrative expense ("G&A"):     General and administrative expense (excluding Share-based compensation)$5,786,680 $5,635,756 $150,924 3 %     Share-based compensation1,351,839 2,077,778 (725,939)(35)%Total general and administrative expense$7,138,519 $7,713,534 $(575,015)(7)%G&A per Boe$3.68 $4.28 $(0.60)(14)%G&A excluding Share-based compensation, per Boe$2.99 $3.13 $(0.14)(4)%

Depreciation, depletion and amortization. Our depreciation, depletion and amortization increased from $24.7 million to $25.6 million, with $0.9 million of the increase from higher depletion. The increase in depletion was the result of a volume variance of $1.9 million due to  an 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