Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 184

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 7
Chunk 184
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 Rock Acquisition, and a decrease of 339,387 was attributed to natural production declines in the legacy assets. The Company's drilling and completion spend was 43% lower in the months that affected production for the first nine months of 2025 compared to the same months that affected production in the first nine months of 2024. This resulted in less offsets to declining production. The decreased average realized price per barrel was primarily the result of lower oil prices.

Natural gas sales. Natural gas sales increased approximately $2.9 million from a negative $7.7 million to a negative $4.8 million. The natural gas sales volume increased from 4,739,881 Mcf to 5,172,603 Mcf, and the average realized price per Mcf increased from $(1.61) to $(0.93). Of the increase in volume of 432,722 Mcf, an increase of 267,104 was due to the Lime Rock Acquisition, with the remaining increase of 165,618 from our legacy assets. The price increase was driven by more favorable market conditions. The realized revenue pricing includes the impact of gas plant processing fees that were netted from revenue. For the nine months ended September 30, 2025, gross revenues were $1.17 per Mcf and fees were $(2.10) per Mcf, compared to gross revenues of $0.09 per Mcf and fees of $(1.70) per Mcf for the nine months ended September 30, 2024. This resulted in a net realized price of $(0.93) for the nine months ended September 30, 2025 compared to $(1.61) per Mcf for the nine months ended September 30, 2024.

Natural gas liquids sales. NGL sales slightly decreased by approximately $1.6 million from $8.5 million to $6.9 million. NGL sales volumes for the nine months ended September 30, 2025 were 1,009,881 barrels compared to 919,225 barrels for the comparable period in 2024. Of the increase in volume of 90,656 barrels, 61,303 was due to the Lime Rock Acquisition while the remaining 29,353 was  from legacy assets. The average realized price per barrel decreased by $2.44 to $6.85 for the nine months ended September 30, 2025 compared to $9.29 for the nine months ended September 30, 202