Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 161

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 161
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903 $89,693 $190,210 212 %Other income$159,712 $25,686 $134,026 522 %

Interest income. Interest income decreased $63,761 from $223,477 to $159,716, from a reduction of $71,128 from depositing excess cash balances in bank sweep accounts, offset by an increase of $7,367 in severance tax interest payments.

Interest expense. Interest expense decreased by approximately  $1.2 million from $22.4 million to $21.3 million as a result of lower interest rates, with a weighted average annual interest rate of 8.4% during the six months ended June 30, 2025 compared to 9.3% during the six months ended June 30, 2024. Slightly offsetting this impact was higher amounts outstanding on our Credit Facility, with a weighted average daily debt of approximately $425.0 million during the six months ended June 30, 2025 compared to approximately $424.6 million during the six months ended June 30, 2024. Further offsetting was the increase in deferred financing costs recognized from the credit agreement modification.

Gain (loss) on derivative contracts. We recorded a gain on derivative contracts of $13.7 million for the six months ended June 30, 2025 and a loss on derivative contracts of $20.8 million for the six months ended June 30, 2024. For the derivative contract settlements, we recorded a realized gain of $0.1 million for the six months ended June 30, 2025 and a realized loss of $4.1 million for the six months ended June 30, 2024. The change of $4.2 million in the realized derivative gain (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 gain of $13.6 million for the six months ended June 30, 2025 and an unrealized loss of $16.8 million for the six months ended June 30, 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.

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Gain (loss) on disposal of assets. The Company's gain on disposal of assets increased by $190,210 from $89,693 to $279,903 with $182,