Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 118

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 118
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 amounts with the Company, in accordance with ASC 815-10-50-4B, the Company classifies the fair value of all its derivative positions on a gross basis in its Balance Sheets.The Company’s derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying Balance Sheets. The Company has not designated its derivative instruments as hedges for accounting purposes, and, as a result, any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of "Other Income (Expense)" under the heading "Gain (loss) on derivative contracts" in the accompanying Statements of Operations.The following presents the impact of the Company’s contracts on its Balance Sheets for the periods indicated.As of December 31,20242023Commodity derivative instruments, marked to market:Derivative assets, current5,497,057 7,768,697 Discounted deferred premiums— (1,553,323)Derivatives assets, current, net of premiums$5,497,057 $6,215,374 Derivative assets, noncurrent$5,473,375 $11,634,714 Derivative liabilities, current$6,410,547 $7,520,336 Derivative liabilities, noncurrent$2,912,745 $11,510,368 The components of “Gain (loss) on derivative contracts” from the Statements of Operations are as follows for the respective periods:

F-25

For the years ended December 31,202420232022Oil derivatives:Realized gain (loss) on oil derivatives$(10,264,202)$(11,364,484)$(61,875,870)Unrealized gain (loss) on oil derivatives6,859,929 9,462,374 40,546,123 Gain (loss) on oil derivatives$(3,404,273)$(1,902,110)$(21,329,747)Natural gas derivatives:Realized gain (loss) on natural gas derivatives5,070,529 2,279,564 (650,084)Unrealized gain (loss) on natural gas derivatives(4,032,173)2,389,708 447,172 Gain (loss) on natural gas derivatives$1,038,356 $4,669,272 $(202,912)Gain (loss) on derivative