Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 166

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 166
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 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 of deferred financing costs3,768,292 3,670,096 98,196 3 %     Interest on financing lease liabilities80,709 89,963 (9,254)(10)%     Interest paid for notes payable42,876 40,481 2,395 6 %     Deferred cash payment accretion385,310 — 385