Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 23

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 7
Chunk 23
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2025 compared to $11.47 for the three months ended March 31, 2024, attributable to weaker market conditions. Specifically, the gross realized price per NGL barrel was $22.64 and the average fees per barrel was $(12.99), resulting in a net realized price of 

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$9.65 for the three months ended March 31, 2025, while the gross realized price per NGL barrel was $21.40 and the average fees per barrel was $(9.93), resulting in a net realized price of $11.47 for the same period in 2024. 

Production Costs for the Three Months Ended March 31, 2025 and 2024

For the Three Months EndedMarch 31, 2025March 31, 2024Change% ChangeLease operating expenses ("LOE")$19,677,552 $18,360,434 $1,317,118 7 %Average LOE per Boe$11.89 $10.60 $1.29 12 %Gathering, transportation and processing costs ("GTP")$203,612 $166,054 $37,558 23 %Average GTP per Boe$0.12 $0.10 $0.02 20 %Ad valorem taxes$1,532,108 $2,145,631 $(613,523)(29)%Average Ad valorem taxes per Boe$0.93 $1.24 $(0.31)(25)%Oil and natural gas production taxes$3,584,455 $4,428,303 $(843,848)(19)%Average Production taxes per Boe$2.17 $2.56 $(0.39)(15)%Production taxes as a percentage of total sales4.53 %4.69 %(0.16)%(3)%

Lease operating expenses. Our total LOE increased from $18.4 million to $19.7 million and LOE per Boe increased from $10.60 to $11.89. Total LOE increased despite a 4% decrease in production of 76,798 Boe primarily due to an increase in electricity costs of $1.2 million. Other cost increases included contract services of $0.6 million, environmental costs of $0.3 million, equipment rental of $0.2 million, and chemical costs