Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 61

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 line of credit decreased slightly due to a meaningful reduction in interest rates, with a weighted average annual interest rate of 8.5% in the second quarter of 2025 compared to 9.3% in the second quarter of 2024.

Gain (loss) on derivative contracts. We recorded a gain on derivative contracts of $14.6 million for the three months ended June 30, 2025 compared to a loss on derivative contracts of $1.8 million for the three months ended June 30, 2024. For the derivative contract settlements, we recorded a realized gain of $0.7 million for the three months ended June 30, 2025 and a realized loss of $2.6 million for the three months ended June 30, 2024. The change of $3.3 million in the realized gain (loss) was a result of more favorable settlements of crude oil derivative contracts during the current year. For the marked-to-market contracts, we recorded an unrealized gain of $14.0 million for the three months ended June 30, 2025 and an 

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unrealized gain of $0.8 million for the three months ended June 30, 2024. The change in position was primarily due to the changes in crude oil futures prices.

Gain (loss) on disposal of assets. The Company's gain on disposal of assets increased by $103,955 from $51,338 during the three months ended June 30, 2024 to $155,293 during the three months ended June 30, 2025, with $89,716 of the increase from the sale of leased vehicles, and the remainder of $14,239 due to selling owned vehicles in the prior period. 

Other income. During the three months ended June 30, 2025, the Company recorded $150,770 of other income from a pipeline easement lease.

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Other Income (Expense) for the Six Months Ended June 30, 2025 and 2024

For the Six Months EndedJune 30, 2025June 30, 2024Change% ChangeInterest income$159,716 $223,477 $(63,761)(29)%Interest expense:     Interest on revolving line of credit$17,430,459 $19,287,826 $(1,857,367)(10)%     Fees associated with revolving line of credit487,848 484,925 2