Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 114

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 114
---
46,500,000 Cash paid for inventory and fixed assets4,527,103 Cash paid for realized losses on August oil derivatives1,777,925   Cash received for post-close adjustments, net(5,535,839)Total cash consideration168,661,644 Fair value of deferred payment liability14,807,276 Post-close settlement paid to Stronghold3,511,170 Fair value of consideration paid to seller393,980,091 Direct transaction costs9,162,143 Total consideration$403,142,234 Fair value of assets acquired:Oil and natural gas properties$439,589,683 Inventory and fixed assets4,527,103 Amount attributable to assets acquired$444,116,786 Fair value of liabilities assumed:Suspense liability$1,651,596 Derivative liabilities, marked to market24,784,406 Asset retirement obligations14,538,550 Amount attributable to liabilities assumed$40,974,552 Net assets acquired$403,142,234 Approximately $40.4 million of revenues and $13.6 million of direct operating expenses attributed to the Stronghold Acquisition were included in the Company’s Statements of Operations for the period from September 1, 2022 through December 31, 2022.Delaware Basin DivestitureOn May 11, 2023, the Company completed the divestiture of its Delaware Basin assets to an unaffiliated party for $8.3 million. The sale had an effective date of March 1, 2023. The final cash consideration was approximately $7.6 million.  As part of the divestiture, the buyer assumed an asset retirement obligation balance of approximately $2.3 million.

F-22

Founders AcquisitionOn July 10, 2023, the Company, as buyer, and Founders Oil & Gas IV, LLC (“Founders”), as seller, entered into an Asset Purchase Agreement (the “Founders Purchase Agreement”). Pursuant to the closing of the Purchase Agreement, on August 15, 2023 the Company acquired (the “Founders Acquisition”) interests in oil and gas leases and related property of Founders located in the Central Basin Platform of the Texas Permian Basin in Ector County, Texas, for a purchase price (the “Purchase Price”) of (i) a cash deposit of $7.5 million paid on July 11, 2023 into a