Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 64

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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.5 million during the third quarter of 2024, the interest on the revolving line of credit decreased due to a meaningful reduction in interest rates, with a weighted average annual interest rate of 8.2% in the third quarter of 2025 compared to 9.3% in the third quarter of 2024. Offsetting the reduction in interest expense was the deferred cash payment accretion related to the Lime Rock Acquisition which closed in March 2025.

Gain (loss) on derivative contracts. We recorded a gain on derivative contracts of $0.4 million for the three months ended September 30, 2025 compared to a gain on derivative contracts of $24.7 million for the three months ended September 30, 2024. For the derivative contract settlements, we recorded a realized gain of $2.6 million for the three months ended September 30, 2025 and a realized loss of $1.9 million for the three months ended September 30, 2024. The change of $4.5 million in the realized gain (loss) was primarily a result of more favorable settlements of crude oil derivative contracts during the current year. For the marked-to-market contracts, we recorded an unrealized loss of $2.1 million for the three 

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months ended September 30, 2025 and an unrealized gain of $26.6 million for the three months ended September 30, 2024. The change in position was primarily due to the changes in crude oil futures prices.

Gain (loss) on disposal of assets. The Company's gain on disposal of assets increased by $105,642 from $— during the three months ended September 30, 2024 to $105,642 during the three months ended September 30, 2025, with all of the increase from the sale of leased vehicles. 

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Other Income (Expense) for the Nine Months Ended September 30, 2025 and 2024

For the Nine Months EndedSeptember 30, 2025September 30, 2024Change% ChangeInterest income$233,969 $367,181 $(133,212)(36)%Interest expense:     Interest on revolving line of credit$26,364,419 $28,497,006 $(2,132,587)(7)%     Fees associated with revolving line of credit666,904 751,216 (84,312)(11)%     Amortization