Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 99

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 only one contract with a natural gas processing entity in place where point of control of gas dictates requiring the fees be recorded as an expense.Disaggregation of revenue – The following table presents revenues disaggregated by product:For the Three Months EndedFor the Nine Months EndedSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024Oil, Natural Gas, and Natural Gas Liquids RevenuesOil$78,884,753 $90,416,363 $238,168,279 $282,000,446 Natural gas (1)(2,253,323)(3,859,603)(4,794,987)(7,650,645)Natural gas liquids1,969,906 2,687,623 6,922,010 8,537,067 Total oil, natural gas, and natural gas liquids revenues$78,601,336 $89,244,383 $240,295,302 $282,886,868 (1) In the three and nine months ended September 30, 2025 and 2024, the Company experienced a net negative total gas revenue, due to a lower gross realized sales prices per Mcf compared with the plant fees per Mcf.

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NOTE 3 — LEASESThe Company has operating leases for its offices in Midland, Texas and The Woodlands, Texas. The Midland office was originally under a five-year lease which began January 1, 2021. The Midland office lease was amended effective October 1, 2022, with the revised five-year lease ending September 30, 2027. Beginning January 15, 2021, the Company entered into a five-and-a-half-year sub-lease for office space in The Woodlands, Texas; however, effective as of May 31, 2023, The Woodlands office sub-lease was terminated. On May 9, 2023, the Company entered into a 71-month (five years and 11-month) new lease for a larger amount of office space in The Woodlands, Texas. The future payments for these office spaces are reflected in the future lease payments schedule below.The Company has month to month leases for office equipment and compressors used in its operations on which the Company has elected to apply ASU 2016-02 (i.e. to not capitalize). The office equipment and compressors are not subject to AS