Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 27

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 7
Chunk 27
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ing excess cash balances in bank sweep accounts.

Interest expense. Interest expense decreased by $2.0 million from $11.5 million to $9.5 million due to the result of lower interest rates, with a weighted average annual interest rate of 8.3% during the three months ended March 31, 2025 compared to 9.3% during the three months ended March 31, 2024. Further, we had lower amounts outstanding on our Credit Facility, with a weighted average daily debt of approximately $393.3 million during the three months ended March 31, 2025 compared to approximately $428.8 million during the three months ended March 31, 2024.

Gain (loss) on derivative contracts. We recorded a loss on derivative contracts of $0.9 million for the three months ended March 31, 2025 and a loss on derivative contracts of $19.0 million for the three months ended March 31, 2024. For the derivative contract settlements, we recorded a realized loss of $0.6 million for the three months ended March 31, 2025 and a realized loss of $1.5 million for the three months ended March 31, 2024. The decrease of $0.9 million in the realized 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 loss of $0.4 million for the three months ended March 31, 2025 and an unrealized loss of $17.6 million for the three months ended March 31, 2024. This positive change in unrealized derivatives primarily was due to the changes in crude oil futures prices on derivative contracts in the Company's portfolio.

Gain (loss) on disposal of assets. The Company's gain on disposal of assets increased $86,255 from $38,355 to $124,610 with $93,229 of the increase from the sale of leased vehicles offset by a reduction of $6,974 from selling owned vehicles.

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Other income. Other income decreased $16,744 from $25,686 to $8,942 from the Company's charge card rebate program.

Benefit from (Provision for) Income Taxes for the Three Months Ended March 31, 2025 and 2024

For the Three Months EndedMarch 31, 2025March 31, 2024Change% ChangeBenefit from (Provision