Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 170

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 170
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1 million for the same period in 2024, which was primarily due to lower year to date revenues, which resulted in less cash received from purchasers. We had net cash used in investing activities of $144.2 million for the nine months ended September 30, 2025, compared to net cash used in investing activities of $113.2 million for the same period in 2024, driven by the payments made for the Lime Rock Acquisition in 2025, with no comparable payments made in 2024. This increase in acquisition payments was offset by a reduction in payments to develop oil and natural gas properties. Net cash provided by financing activities was $36.5 million for the nine months ended September 30, 2025 and  net cash used in financing activities was $34.3 million for the nine months ended September 30, 2024, during which time $43.0 million was the net borrowing and $33.0 million was the net paydown of principal on our Credit Facility, respectively.

We will continue to focus on maximizing cash flow in 2025 through a combination of cost monitoring and prudent capital allocation, which will include prioritizing our capital to projects we believe will provide high rates of return in the current commodity price environment. We will continue our pursuit of acquisitions and business combinations, seeking opportunities that we believe will provide high margin properties with attractive returns at current commodity prices, ultimately pushing to reduce our debt level and maximize our liquidity.

Availability of Capital Resources under Credit Facility 

As of September 30, 2025, $428 million was outstanding on our Credit Facility and we were in compliance with all of the covenants under the Credit Facility. The Credit Facility matures in June 2029. The borrowing base under our Credit Facility is $585 million. The borrowing base is redetermined semi-annually each May and November. See "NOTE 8 — REVOLVING LINE OF CREDIT" in the Notes to the condensed financial statements for more information on our Credit Facility.

Derivative Financial Instruments

The following table reflects the contracts outstanding as of September 30, 2025 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):

Oil Hedges (WTI)Q4 2025Q1 2026Q2 2026Q3 2026Q4 2026Q1 2027Q2 2027Q3