Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 180

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 7
Chunk 180
---
TP per Boe$0.09 $0.08 $0.01 13 %Ad valorem taxes$3,180,755 $3,482,907 $(302,152)(9)%Average Ad valorem taxes per Boe$0.89 $0.99 $(0.10)(10)%Oil and natural gas production taxes$7,417,062 $8,055,567 $(638,505)(8)%Average Production taxes per Boe$2.06 $2.28 $(0.22)(10)%Production taxes as a percentage of total sales4.59 %4.16 %0.43 %10 %

Lease operating expenses. Our total LOE increased from $37.7 million to $39.9 million and LOE per Boe increased from $10.66 to $11.11. Total LOE increased in accordance with a 2% increase in production of 60,482 Boe, as a result of the additional production and well count from the Lime Rock Acquisition. The primary cost driver for the period was an increase in electricity costs of $2.9 million. Other cost increases included environmental sustainability of $0.4 million, and contract and lease services of $0.3 million. This was offset by reductions in LOE costs from workovers of $0.9 million, supplies, tools, and materials of $0.3 million, and hot oil costs of $0.2 million.

Gathering, transportation and processing costs. Our total GTP increased $63,738 from $273,683 to $337,421 and increased on a per Boe basis from $0.08 to $0.09. The increase in GTP costs was due to the higher natural gas Mcf and NGL barrels processed as well as a prior period adjustment for fee exempt owners. 

Ad valorem taxes. Our total ad valorem taxes decreased from $3.5 million to $3.2 million and decreased on a per Boe basis from $0.99 to $0.89. Of the approximate $0.3 million decrease in ad valorem taxes, $0.5 million was from the reversal of the 2024 methane tax accrual for the waste emissions charge ("WEC"), which was repealed by Congress on March 14, 2025.

Oil and natural gas production taxes. Oil and natural gas production taxes as a percentage of oil and natural