Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 163

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 163
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 employee health insurance.

48

Other Costs and Operating Expenses for the Nine Months Ended September 30, 2025 and 2024

For the Nine Months EndedSeptember 30, 2025September 30, 2024Change% ChangeDepreciation, depletion and amortization (DD&A):     Depletion$72,381,413 $73,056,856 $(675,443)(1)%     Depreciation309,211 306,752 2,459 1 %     Amortization of financing lease assets720,618 790,386 (69,768)(9)%Total depreciation, depletion and amortization$73,411,242 $74,153,994 $(742,752)(1)%Depletion per Boe$13.15 $13.57 $(0.42)(3)%Depreciation, depletion and amortization per Boe$13.33 $13.78 $(0.45)(3)%Ceiling test impairment$72,912,330 $— $72,912,330 100 %Asset retirement obligation ("ARO") accretion$1,099,363 $1,057,213 $42,150 4 %Operating lease expense$525,272 $525,272 $— — %General and administrative expense ("G&A"):     General and administrative expense (excluding Share-based compensation)$19,236,869 $17,770,626 $1,466,243 8 %     Share-based compensation4,661,397 3,833,697 827,700 22 %Total general and administrative expense$23,898,266 $21,604,323 $2,293,943 11 %G&A per Boe$4.34 $4.01 $0.33 8 %G&A excluding Share-based compensation, per Boe$3.49 $3.30 $0.19 6 %

Depreciation, depletion and amortization. Our depreciation, depletion and amortization decreased approximately $0.7 million from $74.2 million to $73.4 million, with substantially all of the reduction from lower depletion. The decrease in depletion was primarily due to a a price variance of $(2.4) million, from a lower depletion expense per Boe, due to an increase in the