Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 124

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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 64,490 11 %Total production (Boe)(1)3,593,109 3,532,627 60,482 2 %Average sales price:Oil (per Bbl)$66.17 $77.93 $(11.76)(15)%Natural gas (per Mcf)(0.77)(1.25)0.48 38 %Natural gas liquids (Bbl)7.83 10.29 (2.46)(24)%Total per Boe$45.00 $54.82 $(9.82)(18)%

(1) Boe is calculated using six Mcf of natural gas as the equivalent of one barrel of oil.

Oil sales. Oil sales decreased approximately $32.3 million from $191.6 million to $159.3 million, with a price variance of $(28.3) million from a decrease in the average realized price per barrel from $77.93 to $66.17 as well as a volume variance of $(4.0) million due to a decrease in sales volume from 2,458,568 barrels of oil to 2,407,202 barrels of oil. The decrease in volume of 51,366 barrels consisted of two components. An increase in volumes of 153,877 was due to the Lime Rock Acquisition, and a decrease of 205,243 was attributed to natural production declines in the legacy assets. The Company's drilling and completion spend was 39% lower in the months that affected production for the first half of 2025 compared to the same months that affected production in the first half of 2024. This resulted in less offsets to declining production. The decreased average realized price per barrel was primarily the result of weaker market conditions.

Natural gas sales. Natural gas sales increased approximately $1.2 million from a negative $3.8 million to a negative $2.5 million, with a price variance of $1.6 million with a volume variance making up the remaining variance. The natural gas sales volume increased from 3,034,854 Mcf to 3,319,004 Mcf, and the average realized price per Mcf increased from $(1.25) to $(0.77). Of the increase in volume of 284,150 Mcf, an increase of 98,282 was due to the Lime Rock Acquisition, with the remaining increase of 185,868 from the legacy assets. The price increase was driven by more