Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 82

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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3,584,455 $4,428,303 $(843,848)(19)%Average Production taxes per Boe$2.17 $2.56 $(0.39)(15)%Production taxes as a percentage of total sales4.53 %4.69 %(0.16)%(3)%

Lease operating expenses. Our total LOE increased from $18.4 million to $19.7 million and LOE per Boe increased from $10.60 to $11.89. Total LOE increased despite a 4% decrease in production of 76,798 Boe primarily due to an increase in electricity costs of $1.2 million. Other cost increases included contract services of $0.6 million, environmental costs of $0.3 million, equipment rental of $0.2 million, and chemical costs of $0.2 million. This was offset by reductions in LOE costs from workovers of $0.8 million and salaries of $0.4 million.

Gathering, transportation and processing costs. Our total GTP increased $37,558 from $166,054 to $203,612 and increased on a per Boe basis from $0.10 to $0.12. 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 decreased from $2.1 million to $1.5 million and decreased on a per Boe basis from $1.24 to $0.93. Of the approximate $0.6 million decrease in ad valorem taxes, $0.5 million was from the reversal of the 2024 methane tax accrual for the waste emissions charge ("WEC"), which was repealed by Congress on March 14, 2025.

Oil and natural gas production taxes. Oil and natural gas production taxes as a percentage of oil and natural gas sales were 4.69% for the three months ended March 31, 2024 and decreased to 4.53% for the three months ended March 31, 2025.  Overall, the percentage was consistent period over period. 

37

Other Costs and Operating Expenses for the Three Months Ended March 31, 2025 and 2024

For the Three Months EndedMarch 31, 2025March 31, 2024Change% ChangeDepreciation,