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

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 Three Months EndedSeptember 30, 2025September 30, 2024Beginning balance of accounts receivable from purchasers of oil and gas$36,251,914 $38,478,082 Ending balance of accounts receivable from purchasers of oil and gas32,354,972 32,531,626 

For the Nine Months EndedSeptember 30, 2025September 30, 2024Beginning balance of accounts receivable from purchasers of oil and gas$33,774,968 $37,879,779 Ending balance of accounts receivable from purchasers of oil and gas32,354,972 32,531,626 

13

Production imbalances – The Company accounts for natural gas production imbalances using the sales method, which recognizes revenue on all natural gas sold even though the natural gas volumes sold may be more or less than the Company's ownership entitles it to sell. Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves. The Company recorded no imbalances as of September 30, 2025 or December 31, 2024.Joint interest billing receivables, net – The Company also has joint interest billing receivables. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Receivables from joint interest owners outstanding longer than the contractual payment terms are considered past due. The following table indicates the Company's provisions for credit loss expense associated with its joint interest billing receivables during the three and nine months ended September 30, 2025 and September 30, 2024.For the Three Months EndedFor the Nine Months EndedSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024Credit loss expense$907 $8,817 $19,029 $187,594 The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of September 30, 2025 and December 31, 2024. September 30, 2025December 31, 2024Joint interest billing receivables$1,118,337 $1,264,897 Allowance for credit losses(200,762)(181,733)Joint interest billing receivables, net$917,575 $1,083,164 The increase of $