Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 193

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 2
Chunk 193
---
e.

(2) PV-10 is a non-GAAP financial measure. See below for a reconciliation.

We present the pre-tax PV-10 value, which is a non-GAAP financial measure, because it is a widely used industry standard which we believe is useful to those who may review this Report when comparing our asset base and performance to other comparable oil and natural gas exploration and production companies. PV-10 is a non-GAAP measure that differs from a measure under accounting principles generally accepted in the United States ("GAAP") known as “standardized measure of discounted future net cash flows” in that PV-10 is calculated without including future income taxes. PV-10 does not necessarily represent the fair market value of oil and natural gas properties. PV-10 is not a measure of financial or operational performance under GAAP, nor should it be considered in isolation or as a substitute for the standardized measure of discounted future net cash flows as defined under GAAP.

The table below provides a reconciliation of PV-10 to the standardized measure of discounted future net cash flows:

Present value of estimated future net revenues (PV-10)$1,462,827,136 Future income taxes, discounted at 10%$229,890,793 Standardized measure of discounted future net cash flows$1,232,936,343 

Reserve Quantity Information

Our estimates of proved reserves and related valuations are based on reports independently determined and prepared by Cawley, Gillespie & Associates, Inc. ("CGA"), independent petroleum engineers. These reserves are 

35

attributable solely to properties within the United States. A summary of the changes in quantities of proved (developed and undeveloped) oil, natural gas, and natural gas liquid reserves is shown below.

Oil (Bbl)Gas (Mcf)(2)Natural Gas Liquids (Bbl)(2)Boe(1)Balance, December 31, 202288,704,743157,870,44923,105,658138,122,143Purchase of minerals in place6,543,6403,372,9651,089,3828,195,183Extensions, discoveries and improved recovery3,098,8454,113,4801,014,3434,798,768Sales of minerals in place(4,897,921)(2,674,955)(392,953)(5,736,700)Production(4,579,942)(6,339,158)(976,852)(6