Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 159

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 8
Chunk 159
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 pricing differentials;

◦We tested models used to estimate the future operating costs in the reserve report and compared amounts to historical operating costs;

◦We evaluated the method used to determine the estimated future development costs used in the reserve report and compared management’s estimates to amounts expended for recently drilled and completed wells;

◦We tested, on a sample basis, the working and net revenue interests used in the reserve report by inspecting land, legal and division order records;

◦We evaluated evidence supporting the amount of proved undeveloped properties reflected in the reserve report by examining historical conversion rates and support for the Company’s ability to fund and intent to develop the proved undeveloped properties; and 

◦We applied analytical procedures to production forecasts in the reserve report by comparing to historical actual results. 

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2021.

Houston, Texas

March 5, 2025

F-3

Table of ContentsRING ENERGY, INC.BALANCE SHEETS

As of December 31,20242023ASSETSCurrent AssetsCash and cash equivalents$1,866,395 $296,384 Accounts receivable36,172,316 38,965,002 Joint interest billing receivables, net1,083,164 2,422,274 Derivative assets5,497,057 6,215,374 Inventory4,047,819 6,136,935 Prepaid expenses and other assets1,781,341 1,874,850 Total Current Assets50,448,092 55,910,819 Properties and EquipmentOil and natural gas properties, full cost method1,809,309,848 1,663,548,249 Financing lease asset subject to depreciation4,634,556 3,896,316 Fixed assets subject to depreciation3,389,907 3,228,793 Total Properties and Equipment1,817,334,311 1,670,673,358 Accumulated depreciation, depletion and amortization(475,212,325)(377,252,572)Net Properties and Equipment1,342,121,986 1,293,420,786 Operating lease asset1,906,264 2,499,592 Derivative assets5,473,375 11,634,714 Deferred financing costs8,149,757 13,030,481 Total Assets