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

Company: RING ENERGY, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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ivable. The following table reflects the Company's beginning and ending balances of our account receivables from purchasers of our oil and gas for the three and six months ended June 30, 2025 and June 30, 2024.

For the Three Months EndedJune 30, 2025June 30, 2024Beginning balance of accounts receivable from purchasers of oil and gas$35,111,264 $34,415,464 Ending balance of accounts receivable from purchasers of oil and gas36,251,914 38,478,082 

For the Six Months EndedJune 30, 2025June 30, 2024Beginning balance of accounts receivable from purchasers of oil and gas$33,774,968 $37,879,779 Ending balance of accounts receivable from purchasers of oil and gas36,251,914 38,478,082 

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Production imbalances – The Company accounts for natural gas production imbalances using the sales method, which recognizes revenue on all natural gas sold even though the natural gas volumes sold may be more or less than the Company's ownership entitles it to sell. Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves. The Company recorded no imbalances as of June 30, 2025 or December 31, 2024.Joint interest billing receivables, net – The Company also has joint interest billing receivables. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Receivables from joint interest owners outstanding longer than the contractual payment terms are considered past due. The following table indicates the Company's provisions for credit loss expense associated with its joint interest billing receivables during the three and six months ended June 30, 2025 and June 30, 2024.For the Three Months EndedFor the Six Months EndedJune 30, 2025June 30, 2024June 30, 2025June 30, 2024Credit loss expense$205 $14,937 $18,122 $178,777 The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of June 30, 2025 and December 31, 2024. June 30, 2025December 31, 2024Joint interest billing receivables$