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

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 7
Chunk 25
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834 $(24,285)(7)%Operating lease expense$175,091 $175,091 $— — %General and administrative expense ("G&A"):     General and administrative expense (excluding Share-based compensation)$6,929,018 $5,745,390 $1,183,628 21 %     Share-based compensation1,690,958 1,723,832 (32,874)(2)%Total general and administrative expense$8,619,976 $7,469,222 $1,150,754 15 %G&A per Boe$5.21 $4.31 $0.90 21 %G&A excluding Share-based compensation, per Boe$4.19 $3.32 $0.87 26 %

Depreciation, depletion and amortization. Our depreciation, depletion and amortization decreased approximately $1.2 million from $23.8 million to $22.6 million, with $1.2 million of the reduction from lower depletion. The decrease in depletion was primarily due to a volume variance of $(1.1) million from a decrease of 76,798 in Boe produced. Further, depletion had a price variance of $(0.1) million, from a lower depletion expense per Boe, due to an increase in the amortization base (Boe). Our average depreciation, depletion and amortization per Boe decreased from $13.74 per Boe to $13.66 per Boe. 

Asset retirement obligation accretion. Our ARO accretion decreased by $24,285 from $350,834 to $326,549 primarily as a result of wells plugged and abandoned and sold, offset by the additional ARO accretion associated with newly drilled wells.

Operating lease expense. Our operating lease expense costs were the same period over period.

General and administrative expense. G&A expense increased approximately $1.2 million from $7.5 million to $8.6 million, with the $1.2 million cost increase primarily due to an increase of $0.8 million in bonus compensation and $0.7 million in salaries and wages (including impacts from severance paid), offset by reductions of $0.1 million in credit loss expense, $0.1 million in legal fees, and $0.1 million in other professional fees.

38

Other Income (Expense) for the Three Months Ended March 31