Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 204

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 2
Chunk 204
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Production Prices and Production Costs

The following tables provides historical pricing and costs statistics for the years ended December 31, 2024, 2023, and 2022.

Years ended December 31,202420232022Average sales price:Oil (per Bbl)$74.87 $76.21 $92.80 Natural gas (per Mcf) (1)$(1.44)$0.05 $4.57 NGL (per Bbl) (1)$9.23 $11.95 $20.18 Total (per Boe)$50.94 $54.60 $76.95 

(1) Due to our acquisition of Stronghold's assets, which reported its volumes and revenues on a three-stream basis, beginning July 1, 2022, we began reporting volumes and revenues on a three-stream basis, separately reporting crude oil, natural gas, and NGL sales. For periods prior to July 1, 2022, sales and reserve volumes, prices, and revenues for NGLs were presented with natural gas.

Years ended December 31,202420232022Average production costs (per Boe):Lease operating expenses$10.89 $10.61 $10.57 Gathering, transportation and processing costs$0.07 $0.07 $0.41 Ad valorem taxes (including methane tax)$1.12 $1.02 $1.04 Methane tax (2)$0.07 $— $— Ad valorem taxes (excluding methane tax)$1.05 $1.02 $1.04 Production taxes$2.24 $2.74 $3.80 

(2) In accordance with the IRA, the EPA implemented a waste emission charge ("WEC") on methane emitted from applicable oil and gas facilities that exceed certain thresholds. The methane charge became effective in 2024 at $900 per metric ton of methane, and is set to increase to $1,200 per metric ton of methane for 2025, and $1,500 per metric ton of methane by 2026 and thereafter. For the year ended December 31, 2024, we accrued for $527,687 in methane taxes within Ad valorem taxes in our Statements of Operations.

The average oil sales price amounts above are calculated by dividing revenue from oil sales by the volume of oil sold