Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 28

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 7
Chunk 28
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 for) Income Taxes:Deferred federal income tax benefit (provision)$(2,816,078)$(1,551,759)$(1,264,319)(81)%Current state income tax benefit (provision)(136,393)(102,633)(33,760)(33)%Deferred state income tax benefit (provision)(88,706)(74,494)(14,212)(19)%Benefit from (Provision for) Income Taxes$(3,041,177)$(1,728,886)$(1,312,291)(76)%

Benefit from (Provision for) income taxes. The benefit from (provision for) income taxes changed from a provision of $1.7 million for the three months ended March 31, 2024 to a provision of $3.0 million for the three months ended March 31, 2025. The benefit from (provision for) income taxes was calculated using the annual effective tax rate method based on our estimated earnings and estimated state and federal income taxes due for 2025, taking into account all applicable tax rates and laws. 

40

Liquidity and Capital Resources

As of March 31, 2025, we had cash on hand of $1.1 million, compared to $1.9 million as of December 31, 2024. We strive to keep our cash balance as low as possible to minimize our outstanding debt and associated interest. At certain times we reflect a zero book balance while utilizing the float on outstanding checks. We had net cash provided by operating activities for the three months ended March 31, 2025 of $28.4 million, compared to net cash provided by operating activities of $45.2 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 $102.6 million for the three months ended March 31, 2025, compared to net cash used in investing activities of $39.5 million for the same period in 2024, driven by the payments made for the Lime Rock Acquisition in the first quarter of 2025, with no comparable payments made in the first quarter of 2024. Net cash provided by financing activities was $73.5 million for the three months ended March 31, 2025 and  net cash used in financing activities was $4.6 million for