Company: REI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001384195-25-000018
Chunk: 137

Company: RING ENERGY, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 137
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Depreciation, depletion and amortization. Our depreciation, depletion and amortization decreased approximately $0.7 million from $74.2 million to $73.4 million, with substantially all of the reduction from lower depletion. The decrease in depletion was primarily due to a a price variance of $(2.4) million, from a lower depletion expense per Boe, due to an increase in the amortization base. Offsetting this, depletion had a volume variance of $1.7 million from a increase of 123,160 in Boe produced. Our average depreciation, depletion and amortization per Boe decreased from $13.78 per Boe to $13.33 per Boe. 

Ceiling test impairment. As a result of the lower oil prices impacting the present value of estimated future net revenues, the Company incurred a ceiling test impairment on its oil and natural gas properties of $72.9 million.

Asset retirement obligation accretion. Our ARO accretion increased by $42,150 from $1,057,213 to $1,099,363 primarily as a result of newly acquired and drilled wells, offset by those plugged and abandoned and sold.

Operating lease expense. Our operating lease expense costs were the same period over period.

General and administrative expense. G&A expense increased approximately $2.3 million from $21.6 million to $23.9 million, with the $2.3 million cost increase primarily due to an increase of $3.0 million in salaries and bonuses (including impacts from severance paid to a former executive), $0.8 million in stock based compensation, $0.1 million in rent 

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expense, offset by reductions of $0.5 million in legal fees, $0.4 million in environmental sustainability, $0.3 million in additional costs capitalized, $0.2 million in other professional fees, and $0.2 million in credit loss expense.

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Other Income (Expense) for the Three Months Ended September 30, 2025 and 2024

For the Three Months EndedSeptember 30, 2025September 30, 2024Change% ChangeInterest income$74,253 $143,704 $(69,451)(48)%Interest expense:     Interest on revolving line of credit$8,933,960 $9,209,180 $(275,220)(3)%     Fees associated with revolving line of credit179,056 266,291 (