Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 136

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 that is connected to markets that are purchasing the natural gas produced. This has resulted in negative natural gas prices at times, whereby the seller is actually paying the purchaser to take the gas. We have experienced negative realized gas prices at times and conditions are continuing. If these depressed or inverted natural gas prices continue in the region, our natural gas revenues will continue to be negatively impacted.

34

Inflation

Inflation has increased costs associated with our capital program and production operations. We have experienced increases in the costs of many of the materials, supplies, equipment and services used in our operations and we expect inflation to continue based on current economic circumstances, including tariffs, trade wars, and supply chain disruptions. In addition, the attempts to reduce inflation by the U.S. Federal Reserve have resulted in increased interest rates on debt. We continue to closely monitor costs and take all reasonable steps to mitigate the inflationary effect on our cost structure and also work to enhance our efficiency to minimize additional cost increases where possible.

35

Results of Operations

Oil, Natural Gas, and Natural Gas Liquids Revenues for the Three Months Ended March 31, 2025 and 2024

For the Three Months EndedMarch 31, 2025March 31, 2024Change% ChangeNet sales:Oil$76,505,050 $92,294,585 $(15,789,535)(17)%Natural gas(302,727)(818,235)515,508 63 %Natural gas liquids2,888,884 3,026,786 (137,902)(5)%Total sales$79,091,207 $94,503,136 $(15,411,929)(16)%Net production:Oil (Bbls)1,086,694 1,218,837 (132,143)(11)%Natural gas (Mcf)1,615,196 1,496,507 118,689 8 %Natural gas liquids (Bbls)299,366 263,802 35,564 13 %Total production (Boe)(1)1,655,259 1,732,057 (76,798)(4)%Average sales price:Oil (per Bbl)$70.40 $75.72 $(5.32)(7)%Natural gas (per Mcf)(0.19)(0.55)0.36 65 %Natural gas liquids (Bbl)9.65 11.