Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 28

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 1
Chunk 28
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 and Repair program, or LDAR, to locate and repair leaking components including valves, pumps, and connectors, in order to minimize the emission of fugitive volatile organic compounds and hazardous air pollutants. Our produced saltwater is generally moved by pipeline connected to our operated saltwater disposal wells or by truck to commercial disposal facilities.

Major Customers

We principally sell our oil and natural gas production to end users, marketers and other purchasers that have access to nearby pipeline facilities. In areas where there is no practical access to pipelines, oil is trucked to storage facilities.

For the year ended December 31, 2024, sales to three customers represented 88% of our oil, natural gas, and natural gas liquids revenues. As of December 31, 2024, accounts receivable from these three customers represented 86% of our total accounts receivable. Refer to the table below for the details of these percentages, respectively. We believe that the 

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loss of any of these purchasers would not materially impact our business because we could readily find other purchasers for our oil and natural gas.

For the Year EndedAs ofDecember 31, 2024December 31, 2024Percentage of Oil, Natural Gas, and Natural Gas Liquids RevenuesPercentage of accounts receivables from the sale of our Oil, Natural Gas and NGL productionCustomer:Phillips 66 Company ("Phillips")61%64%Concord Energy LLC ("Concord")14%11%LPC Crude III, LLC ("LPC")13%11%Total of top three customers88%86%

Delivery Commitments

As of December 31, 2024, we were not committed to providing a fixed quantity of oil or natural gas under any existing contracts.

Commodity Hedging

We have an active commodity hedging program through which we seek to hedge a meaningful portion of our expected oil and gas production, thereby reducing our exposure to downside commodity prices and enabling us to protect cash flows to meet our debt obligations under our credit facility and secondarily to maintain liquidity to fund our capital expenditure needs. 

Governmental Regulations

Oil and natural gas operations such as ours are subject to various types of legislation, regulation and other legal requirements of governmental authorities. This legislation and regulation affecting the oil and natural gas industry is under constant review for amendment or expansion. Some of these requirements carry substantial penalties for failure to comply. The regulatory burden on the oil and natural gas industry increases our cost of doing business and, consequently, can affect our profitability.

Regulation