Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 176

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 7
Chunk 176
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,584,083 $(32,300,557)(17)%Natural gas(2,541,664)(3,791,042)1,249,378 33 %Natural gas liquids4,952,104 5,849,444 (897,340)(15)%Total sales$161,693,966 $193,642,485 $(31,948,519)(16)%Net production:Oil (Bbls)2,407,202 2,458,568 (51,366)(2)%Natural gas (Mcf)3,319,004 3,034,854 284,150 9 %Natural gas liquids (Bbls)632,740 568,250 64,490 11 %Total production (Boe)(1)3,593,109 3,532,627 60,482 2 %Average sales price:Oil (per Bbl)$66.17 $77.93 $(11.76)(15)%Natural gas (per Mcf)(0.77)(1.25)0.48 38 %Natural gas liquids (Bbl)7.83 10.29 (2.46)(24)%Total per Boe$45.00 $54.82 $(9.82)(18)%

(1) Boe is calculated using six Mcf of natural gas as the equivalent of one barrel of oil.

Oil sales. Oil sales decreased approximately $32.3 million from $191.6 million to $159.3 million, with a price variance of $(28.3) million from a decrease in the average realized price per barrel from $77.93 to $66.17 as well as a volume variance of $(4.0) million due to a decrease in sales volume from 2,458,568 barrels of oil to 2,407,202 barrels of oil. The decrease in volume of 51,366 barrels consisted of two components. An increase in volumes of 153,877 was due to the Lime Rock Acquisition, and a decrease of 205,243 was attributed to natural production declines in the legacy assets. The Company's drilling and completion spend was 39% lower in the months that affected production for the first half of 2025 compared to the same months that affected production in the first half of 2024. This resulted in less offsets to declining production. The decreased average realized price per barrel was primarily