Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 195

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 7
Chunk 195
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 cash payment accretion from the Lime Rock Acquisition.

Gain (loss) on derivative contracts. We recorded a gain on derivative contracts of $14.2 million for the nine months ended September 30, 2025 and a gain on derivative contracts of $3.9 million for the nine months ended September 30, 2024. For the derivative contract settlements, we recorded a realized gain of $2.7 million for the nine months ended September 30, 2025 compared with a realized loss of $5.9 million for the nine months ended September 30, 2024. The change of $8.6 million in the realized derivative gain (loss) was primarily a result of more favorable settlements of crude oil derivative contracts during the current year. For the marked-to-market contracts, we recorded an unrealized gain of $11.5 million for the nine months ended September 30, 2025 and an unrealized gain of $9.8 million for the nine months ended September 30, 2024. This positive change in unrealized derivatives primarily was due to the changes in natural gas futures prices on derivative contracts in the Company's portfolio.

53

Gain (loss) on disposal of assets. The Company's gain on disposal of assets increased by $295,852 from $89,693 to $385,545 with $288,587 of the increase from the sale of leased vehicles as well as $7,265 from more favorable sales of Company owned vehicles.

Other income. Other income increased $134,026 from $25,686 to $159,712 due to an increase in income of $150,770 from a pipeline easement lease, offset by a reduction of $16,744 in income from the Company's charge card rebate program.

Benefit from (Provision for) Income Taxes: for the Three Months Ended September 30, 2025 and 2024

For the Three Months EndedSeptember 30, 2025September 30, 2024Change% ChangeBenefit from (Provision for) Income Taxes:Deferred federal income tax benefit (provision)$12,558,220 $(9,637,849)$22,196,069 230 %Current state income tax provision(39,816)(74,899)35,083 47 %Deferred state income tax benefit (provision)282,543 (375,206)657,749 175 %Benefit from (Provision for) Income Taxes$12,