Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 160

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 160
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 %Average GTP per Boe$0.08 $0.07 $0.01 14 %Ad valorem taxes$5,627,320 $5,647,469 $(20,149)— %Average Ad valorem taxes per Boe$1.02 $1.05 $(0.03)(3)%Oil and natural gas production taxes$11,088,049 $12,259,418 $(1,171,369)(10)%Average Production taxes per Boe$2.01 $2.28 $(0.27)(12)%Production taxes as a percentage of total sales4.61 %4.33 %0.28 %6 %

Lease operating expenses. Our total LOE increased from $58.0 million to $60.4 million and LOE per Boe increased from $10.77 to $10.98. Total LOE increased in accordance with a 2% increase in production of 123,160 Boe, as a result of the additional production and well count from the Lime Rock Acquisition as well as new wells drilled and completed in our development program. The primary cost driver for the period was an increase in electricity of $3.8 million. Other cost increases included environmental sustainability and cleanup of $1.0 million, communications of $0.6 million, contract and lease services of $0.5 million, and salt water disposal of $0.1 million. This was offset by reductions in LOE costs from workovers of $2.1 million, salaries of $0.6 million, hot oil paraffin control of $0.4 million, non-operated costs of $0.3 million and $0.2 million of pumping unit repairs.

Gathering, transportation and processing costs. Our total GTP increased $87,887 from $376,103 to $463,990 and increased slightly on a per Boe basis from $0.07 to $0.08. The increase in GTP costs was due to the higher natural gas Mcf and NGL barrels processed as well as a prior period adjustment for fee exempt owners. 

Ad valorem taxes. Our total ad valorem taxes remained flat at $5.6 million and decreased on a per Boe basis from $1.05 to $1.02. A decrease in ad valorem taxes of $0.5 million was from the reversal of the 2024 methane tax accr