Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 137

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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47 (1.82)(16)%Total per Boe$47.78 $54.56 $(6.78)(12)%

(1) Boe is calculated using six Mcf of natural gas as the equivalent of one barrel of oil.

Oil sales. Oil sales decreased approximately $15.8 million from $92.3 million to $76.5 million, with a volume variance of $(10.0) million due to an decrease in sales volume from 1,218,837 barrels of oil to 1,086,694 barrels of oil, as well as a price variance of $(5.8) million from a decrease in the average realized price per barrel from $75.72 to $70.40. Of the decrease in volume of (132,143) barrels, 62% was related to a reduction in production in the Northwest Shelf and 38% was related to a reduction in production in the Central Basin Platform. The Company's drilling and completion activities in the months preceding the first quarter of 2024 were higher than in the months preceding the first quarter of 2025, which resulted in less offsets to declining production. The decreased average realized price per barrel was primarily the result of weaker market conditions.

Natural gas sales. Natural gas sales increased approximately $0.5 million from a negative  $0.8 million to a negative $0.3 million, with a price variance of $0.6 million with a volume variance making up the remaining variance. The natural gas sales volume increased from 1,496,507 Mcf to 1,615,196 Mcf, and the average realized price per Mcf increased from $(0.55) to $(0.19). Of the increase in volume of 118,689 Mcf, 129% was from increased production in the Northwest Shelf, with a reduction of 29% from lower production in the Central Basin Platform. The price increase was driven by higher market conditions. The realized revenue pricing includes the impact of gas plant processing fees that were netted from revenue. For the three months ended March 31, 2025, gross revenues were $1.86 per Mcf and fees were $(2.05) per Mcf, compared to gross revenues of $1.19 per Mcf and fees of $(1.74) per Mcf for the three months ended March 31, 2024. This resulted in a net realized price of $(0.19) for the three months ended March