Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 140

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 140
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ization (3)— (55,740,767)(55,740,767)Asset retirement obligation accretion— (983,432)(983,432)Operating lease expense— (363,908)(363,908)General and administrative expense— (27,095,323)(27,095,323)Interest income— 4 4 Interest (expense)— (23,167,729)(23,167,729)Gain (loss) on derivative contracts— (21,532,659)(21,532,659)Income (Loss) Before Benefit from (Provision for) Income Taxes$275,927,563 $(128,883,814)$147,043,749 Total Assets (3)$1,229,752,442 $39,247,355 $1,268,999,797 Capital expenditures$140,051,159 $— $140,051,159 

F-40

The following table discloses the purchasers from which 10% or more of revenues were derived in the years noted.For the years ended December 31,202420232022Purchasers with 10% or more percentage of total revenue (4)Phillips 66 Company ("Phillips")61 %66 %68 %Concord Energy LLC14 %LPC Crude III, LLC13 %NGL Crude Partners ("NGL Crude")10 %10 %13 %Enterprise Crude Oil LLC ("Enterprise")12 %5 %(4) All the Company's purchasers are within the Exploration and Production operating segment.

NOTE 16 — LEGAL MATTERSThe Company is a defendant in a lawsuit in Harris County District Court, Houston, Texas, styled EPUS Permian Assets, LLC, v. Ring Energy, Inc., that was filed in July 2021. The plaintiff, EPUS Permian Assets, LLC, claims breach of contract, money had and received by fraudulent inducement, unjust enrichment and constructive trust. The plaintiff is requesting its forfeited deposit of $5,500,000 in connection with a proposed property sale by the Company plus related damages, and attorneys’ fees and costs. The action relates to a proposed property sale by the Company to the plaintiff, which was extended by the Company on several occasions with the plaintiff ultimately failing to perform on the agreement and the Company keeping the deposit. The Company believes that the claims by the plaintiff are entirely without merit