Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 83

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 depletion and amortization (DD&A):     Depletion$22,254,576 $23,429,612 $(1,175,036)(5)%     Depreciation96,620 101,937 (5,317)(5)%     Amortization of financing lease assets264,787 260,901 3,886 1 %Total depreciation, depletion and amortization$22,615,983 $23,792,450 $(1,176,467)(5)%Depletion per Boe$13.44 $13.53 $(0.09)(1)%Depreciation, depletion and amortization per Boe$13.66 $13.74 $(0.08)(1)%Asset retirement obligation ("ARO") accretion$326,549 $350,834 $(24,285)(7)%Operating lease expense$175,091 $175,091 $— — %General and administrative expense ("G&A"):     General and administrative expense (excluding Share-based compensation)$6,929,018 $5,745,390 $1,183,628 21 %     Share-based compensation1,690,958 1,723,832 (32,874)(2)%Total general and administrative expense$8,619,976 $7,469,222 $1,150,754 15 %G&A per Boe$5.21 $4.31 $0.90 21 %G&A excluding Share-based compensation, per Boe$4.19 $3.32 $0.87 26 %

Depreciation, depletion and amortization. Our depreciation, depletion and amortization decreased approximately $1.2 million from $23.8 million to $22.6 million, with $1.2 million of the reduction from lower depletion. The decrease in depletion was primarily due to a volume variance of $(1.1) million from a decrease of 76,798 in Boe produced. Further, depletion had a price variance of $(0.1) million, from a lower depletion expense per Boe, due to an increase in the amortization base (Boe). Our average depreciation, depletion and amortization per Boe decreased from $13.74 per Boe to $13.66 per Boe. 

Asset retirement obligation accretion. Our ARO accretion