Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 86

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 2024. This positive change in unrealized derivatives primarily was due to the changes in crude oil futures prices on derivative contracts in the Company's portfolio.

Gain (loss) on disposal of assets. The Company's gain on disposal of assets increased $86,255 from $38,355 to $124,610 with $93,229 of the increase from the sale of leased vehicles offset by a reduction of $6,974 from selling owned vehicles.

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Other income. Other income decreased $16,744 from $25,686 to $8,942 from the Company's charge card rebate program.

Benefit from (Provision for) Income Taxes for the Three Months Ended March 31, 2025 and 2024

For the Three Months EndedMarch 31, 2025March 31, 2024Change% ChangeBenefit from (Provision for) Income Taxes:Deferred federal income tax benefit (provision)$(2,816,078)$(1,551,759)$(1,264,319)(81)%Current state income tax benefit (provision)(136,393)(102,633)(33,760)(33)%Deferred state income tax benefit (provision)(88,706)(74,494)(14,212)(19)%Benefit from (Provision for) Income Taxes$(3,041,177)$(1,728,886)$(1,312,291)(76)%

Benefit from (Provision for) income taxes. The benefit from (provision for) income taxes changed from a provision of $1.7 million for the three months ended March 31, 2024 to a provision of $3.0 million for the three months ended March 31, 2025. The benefit from (provision for) income taxes was calculated using the annual effective tax rate method based on our estimated earnings and estimated state and federal income taxes due for 2025, taking into account all applicable tax rates and laws. 

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Liquidity and Capital Resources

As of March 31, 2025, we had cash on hand of $1.1 million, compared to $1.9 million as of December 31, 2024. We strive to keep our cash balance as low as possible to minimize our outstanding debt and associated interest. At certain times we reflect a zero book balance while utilizing the float on outstanding checks. We had net cash provided by operating activities for the three months ended March 31,