Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 59

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 59
---
f and NGL barrels processed as well as a prior period adjustment for fee exempt owners. 

Ad valorem taxes. Our total ad valorem taxes remained flat at $5.6 million and decreased on a per Boe basis from $1.05 to $1.02. A decrease in ad valorem taxes of $0.5 million was from the reversal of the 2024 methane tax accrual for the waste emissions charge ("WEC"), which was repealed by Congress on March 14, 2025. There was also a decrease in the Yoakum County estimates of approximately $0.9 million. These decreases were offset by increases of $1.3 million in Andrews County due primarily to the Lime Rock Acquisition and increases in the Ector County estimates of $0.1 million.

Oil and natural gas production taxes. Oil and natural gas production taxes as a percentage of oil and natural gas sales were 4.33% for the nine months ended September 30, 2024 and increased to 4.61% for the nine months ended September 30, 2025.  For the nine months ended September 30, 2024, the overall average percentage of production taxes to oil and gas sales was 4.7%, which is in line with historical rates. However, in May 2024, an accrual of $(0.9) million was made for estimated severance tax refunds expected, which lowered the average for the nine months ended September 30, 2024.

46

Other Costs and Operating Expenses for the Three Months Ended September 30, 2025 and 2024

For the Three Months EndedSeptember 30, 2025September 30, 2024Change% ChangeDepreciation, depletion and amortization (DD&A):     Depletion$24,902,199 $25,302,058 $(399,859)(2)%     Depreciation105,933 102,043 3,890 4 %     Amortization of financing lease assets217,213 258,022 (40,809)(16)%Total depreciation, depletion and amortization$25,225,345 $25,662,123 $(436,778)(2)%Depletion per Boe$13.02 $13.68 $(0.66)(5)%Depreciation, depletion and amortization per Boe$13.19 $13.87 $(0.68)(