Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 59

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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54 $3.22 $0.32 10 %

Depreciation, depletion and amortization. Our depreciation, depletion and amortization decreased approximately $0.3 million from $48.5 million to $48.2 million, with substantially all of the reduction from lower depletion. The decrease in depletion was primarily due to a a price variance of $(1.1) million, from a lower depletion expense per Boe, due to an increase in the amortization base (Boe). Further, depletion had a volume variance of $0.8 million from a increase of 60,482 in Boe produced. Our average depreciation, depletion and amortization per Boe decreased from $13.73 per Boe to $13.41 per Boe. 

Asset retirement obligation accretion. Our ARO accretion increased by $5,782 from $703,018 to $708,800 primarily as a result of newly acquired and drilled wells, offset by those plugged and abandoned and sold.

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

General and administrative expense. G&A expense increased approximately $0.6 million from $15.2 million to $15.8 million, with the $0.6 million cost increase primarily due to an increase of $2.3 million in salaries and bonuses (including impacts from severance paid), offset by reductions of $0.8 million in stock based compensation, $0.4 million in legal fees, $0.2 million in environmental sustainability, $0.2 million in credit loss expense, $0.1 million in additional costs capitalized for G&G, and a reduction of $0.1 million in other professional fees.

49

Other Income (Expense) for the Three Months Ended June 30, 2025 and 2024

For the Three Months EndedJune 30, 2025June 30, 2024Change% ChangeInterest income$69,658 $144,933 $(75,275)(52)%Interest expense:     Interest on revolving line of credit$9,482,817 $9,521,775 $(38,958)— %     Fees associated with revolving line of credit210,459 245,297 (34,838)(14)%     Amortization of deferred financing costs1,836,174 1,221,608 614,566 50 %     Interest on financing lease liabilities27