Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 146

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 146
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 pretax net cash flows less tax basis of the properties and available credits, and assuming continuation of existing economic conditions. The estimated future net cash flows are then discounted using a rate of 10 percent per year to reflect the estimated timing of the future cash flows.

F-44

Standardized Measure of Discounted Future Net Cash Flows

As of December 31,202420232022Future cash inflows$6,165,487,616 $6,622,410,752 $9,871,961,000 Future production costs(2,432,555,200)(2,413,303,488)(2,751,896,250)Future development costs (1)(536,825,664)(562,063,424)(647,196,750)Future income taxes(465,768,645)(548,664,988)(1,142,147,641)Future net cash flows2,730,338,107 3,098,378,852 5,330,720,359 10% annual discount for estimated timing of cash flows(1,497,401,764)(1,699,193,661)(3,058,606,841)Standardized Measure of Discounted Future Net Cash Flows$1,232,936,343 $1,399,185,191 $2,272,113,518 

(1) Future development costs include not only development costs but also future asset retirement costs.  

The following is a summary of the changes in the Standardized Measure for the Company’s proved oil and natural gas reserves during each of the years in the three-year period ended December 31, 2024:

Changes in Standardized Measure of Discounted Future Net Cash Flows

202420232022Beginning of the year$1,399,185,191 $2,272,113,518 $1,137,364,848 Purchase of minerals in place— 141,738,066 996,313,882 Extensions, discoveries and improved recovery226,741,618 57,607,609 20,447,842 Development costs incurred during the year71,665,321 70,697,664 67,454,522 Sales of oil and gas produced, net of production costs(263,830,836)(266,004,598)(283,588,498)Sales of minerals in place(10,230,951)(59,600,128)—