Company: REI
Filing Date: 2025-04-11
Form Type: DEF 14A
Source: 0001628280-25-017570
Chunk: 1

Company: RING ENERGY, INC.
Filing Date: 2025-04-11
Form: DEF 14A
Chunk 1
---
 equivalent per day ("Boe/d"), and daily oil sales grew 6% to a record of 13,283 barrels of oil per day ("Bo/d");

■ We reduced year-over-year all-in cash operating costs 1 on a Boe basis by 2%;

■ Outstanding operations by the Ring Team including continued focus on cost control assisted in generating Adjusted EBITDA 1 of $233.3 million despite a 7% reduction in realized prices;

■ We drilled 13 more wells in 2024 than the prior year for slightly less capital — representing a substantial increase in capital efficiency for both our horizontal and vertical wells;

■ Supported by our continued capital discipline, we delivered Adjusted Free Cash Flow 1 of $43.6 million, remaining cash flow positive for over 5 years;

■ This led to the pay down of debt during 2024 of $40 million (and $70 million since closing the Founders acquisition in August 2023), and a 2024 year-end debt balance of $385 million and $217 million of liquidity.

■ On the reserve front, we grew Proved Reserves in 2024 by 3% to 134.2 MMBoe with a PV-10 1 value of approximately $1.5 billion at year-end 2024, including approximately $1.1 billion, or 92.6 MMBoe, of proved developed reserves. A key point to note was that we organically added 16 MMBoe of reserves that more than offset 7.2 MMBoe of production, 1.2 MMBoe from sales of non-core assets, and 3.2 MMBoe in price reductions versus December 31, 2023.

Our success in 2024 was directly related to the benefits of our Stronghold 2 and Founders 3 acquisitions in 2022 and 2023. These transactions have exceeded our original expectations on multiple fronts and further established our strategic foothold in the Central Basin Platform. These two accretive asset acquisitions substantially increased our size and scale, lowered our overall cost structure, materially increased the inventory and capital efficiency of our undeveloped investment opportunities, and increased our adjusted free cash flow generation.

We continue to look for similar acquisitions that can help us replicate the success of these two transactions. We believe our recently closed Lime Rock transaction does that. The purchase price is comprised of approximately $78.6 million in cash with $5 million deposited in February 2025, $