Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 196

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 2
Chunk 196
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 31, 2023, our reserves were based on an SEC average price of $74.70 per Bbl of WTI oil posted and $2.637 per MMBtu Henry Hub natural gas. Prices are adjusted by local field and lease level differentials and are held constant for life of reserves in accordance with SEC guidelines.

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The standardized measure of discounted future net cash flows relating to the proved oil, natural gas, and NGLs reserves are shown below.

Standardized Measure of Discounted Future Net Cash Flows

As of December 31,202420232022Future cash inflows$6,165,487,616 $6,622,410,752 $9,871,961,000 Future production costs(2,432,555,200)(2,413,303,488)(2,751,896,250)Future development costs (1)(536,825,664)(562,063,424)(647,196,750)Future income taxes(465,768,645)(548,664,988)(1,142,147,641)Future net cash flows2,730,338,107 3,098,378,852 5,330,720,359 10% annual discount for estimated timing of cash flows(1,497,401,764)(1,699,193,661)(3,058,606,841)Standardized Measure of Discounted Future Net Cash Flows$1,232,936,343 $1,399,185,191 $2,272,113,518 

(1) Future development costs include not only development costs but also future asset retirement costs. 

The changes in the standardized measure of discounted future net cash flows relating to the proved oil, natural gas and natural gas liquid reserves are shown below.

Changes in Standardized Measure of Discounted Future Net Cash Flows

202420232022Beginning of the year$1,399,185,191 $2,272,113,518 $1,137,364,848 Purchase of minerals in place— 141,738,066 996,313,882 Extensions, discoveries and improved recovery226,741,618 57,607,609 20,447,842 Development costs incurred during the year71,665,321 70,697,664 67,454,522 Sales of oil and gas produced, net of production costs(263,830,836)(266,