Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 41

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 similar methods of product delivery, and is governed by the same regulations. After a thorough analysis of each of these factors with regards to the Company's operating segments, it has been determined that it is appropriate to aggregate its operating segments into a single reportable segment, Exploration and Production, which includes all of its revenues, lease operating expenses, gathering, transportation and processing costs, ad valorem taxes, and oil and natural gas production taxes. Refer to the table below.

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For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Exploration and ProductionOil, natural gas, and natural gas liquids revenues (1)$82,602,759 $99,139,349 $161,693,966 $193,642,485 Lease operating expenses (2)(20,245,981)(19,309,017)(39,923,533)(37,669,451)Gathering, transportation and processing costs(133,809)(107,629)(337,421)(273,683)Ad valorem taxes(1,648,647)(1,337,276)(3,180,755)(3,482,907)Oil and natural gas production taxes(3,832,607)(3,627,264)(7,417,062)(8,055,567)Exploration and Production segment profit$56,741,715 $74,758,163 $110,835,195 $144,160,877 (1) All of the Company's revenues are within the Permian Basin within the United States.(2) The CODM also reviews the following cost categories within lease operating expenses. Refer to the following table.For the Three Months Ended June 30,For the Six Months Ended June 30,2025202420252024Lease operating expenses:Workovers$3,173,838 $3,308,868 $5,990,047 $6,899,160 Other lease operating expenses$17,072,143 $16,000,149 $33,933,486 $30,770,291 Total lease operating expenses$20,245,981 $19,309,017 $39,923,533 $37,669,451 The following tables include a reconciliation of the total reportable segments' measures of profit or loss to the Company's consolidated income before income taxes. Additionally included is a reconciliation between the report