Company: REI
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038401
Chunk: 181

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 7
Chunk 181
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 gas sales were 4.16% for the six months ended June 30, 2024 and increased to 4.59% for the six months ended June 30, 2025.  Overall, the percentage was consistent period over period. 

47

Other Costs and Operating Expenses for the Three Months Ended June 30, 2025 and 2024

For the Three Months EndedJune 30, 2025June 30, 2024Change% ChangeDepreciation, depletion and amortization (DD&A):     Depletion$25,224,638 $24,325,186 $899,452 4 %     Depreciation106,658 102,772 3,886 4 %     Amortization of financing lease assets238,618 271,463 (32,845)(12)%Total depreciation, depletion and amortization$25,569,914 $24,699,421 $870,493 4 %Depletion per Boe$13.02 $13.51 $(0.49)(4)%Depreciation, depletion and amortization per Boe$13.19 $13.72 $(0.53)(4)%Asset retirement obligation ("ARO") accretion$382,251 $352,184 $30,067 9 %Operating lease expense$175,090 $175,090 $— — %General and administrative expense ("G&A"):     General and administrative expense (excluding Share-based compensation)$5,786,680 $5,635,756 $150,924 3 %     Share-based compensation1,351,839 2,077,778 (725,939)(35)%Total general and administrative expense$7,138,519 $7,713,534 $(575,015)(7)%G&A per Boe$3.68 $4.28 $(0.60)(14)%G&A excluding Share-based compensation, per Boe$2.99 $3.13 $(0.14)(4)%

Depreciation, depletion and amortization. Our depreciation, depletion and amortization increased from $24.7 million to $25.6 million, with $0.9 million of the increase from higher depletion. The increase in depletion was the result of a volume variance of $1.9 million due to  an