Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 123

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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curring basis to its non-financial assets and liabilities. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary.

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The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis (further detail in "NOTE 6 — DERIVATIVE FINANCIAL INSTRUMENTS").Fair Value Measurement ClassificationQuoted prices inActive Marketsfor Identical Assetsor (Liabilities)(Level 1)Significant OtherObservable Inputs(Level 2)SignificantUnobservableInputs(Level 3)TotalAs of December 31, 2024Commodity Derivatives - Assets$— $10,970,432 $— $10,970,432 Commodity Derivatives - Liabilities$— $(9,323,292)$— $(9,323,292)Total$— $1,647,140 $— $1,647,140 As of March 31, 2025Commodity Derivatives - Assets$— $10,330,272 $— $10,330,272 Commodity Derivatives - Liabilities$— $(9,058,328)$— $(9,058,328)Total$— $1,271,944 $— $1,271,944 The carrying amounts reported for the revolving line of credit approximates fair value because the underlying instruments are at interest rates which approximate current market rates. The carrying amounts of receivables and accounts payable and other current assets and liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities.

NOTE 8 — REVOLVING LINE OF CREDITOn August 31, 2022, the Company entered into that certain Second Amended and Restated Credit Agreement (the "Credit Agreement"), with a maximum borrowing base of $1 billion secured by substantially all of the assets of the Company and a maturity date of August 2026. On February 12, 2024, the Company, Truist Bank as the Administrative Agent (the "Administrative Agent") and Issuing Bank, and the lenders party thereto (the "Lenders") entered into an amendment (the "Amendment") to the Credit Agreement. Among other things, the Amendment amends the definition of Free Cash Flow so amounts