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Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li>Ring is sharpening its debt reduction focus to maintain flexibility to execute management’s growth strategy, which relies on producing property acquisitions and low risk asset exploitation/development.</li><li>Management’s 3Q25 debt reduction target is $18 million., which will bring long-term debt down to ~$430 million.</li><li>As of June 30, 2025, Ring had $448 million outstanding on its RBL credit facility, which had a borrowing base of $585 million. </li></ul></div>

Ring is sharpening its debt reduction focus to maintain flexibility to execute management’s growth strategy, which relies on producing property acquisitions and low risk asset exploitation/development.Management’s 3Q25 debt reduction target is $18 million., which will bring long-term debt down to ~$430 million.As of June 30, 2025, Ring had $448 million outstanding on its RBL credit facility, which had a borrowing base of $585 million. 

REI: Oil Price Environment Sharpens Management's Debt Reduction Focus

<ul><li>We are updating our estimates to reflect actual 2Q25 benchmark oil and natural gas prices.</li><li>Our NYMEX reference prices averaged $63.68/bbl for oil and $3.51/MMBtu for natural gas.</li><li>Our 2Q25 total production estimate is 21.5 Mboe/d, including 14.2 MBo/d of oil. </li></ul>

We are updating our estimates to reflect actual 2Q25 benchmark oil and natural gas prices.Our NYMEX reference prices averaged $63.68/bbl for oil and $3.51/MMBtu for natural gas.Our 2Q25 total production estimate is 21.5 Mboe/d, including 14.2 MBo/d of oil. 

<ul><li>After adding ~2,300 Boe/d of shallow-decline production in the Lime Rock acquisition, management altered its FY25 capital program to favor allocating free cash flow to debt reduction.</li><li>2Q25 capital spending guidance was lowered by more than 50% from prior expectations, yet production guidance was maintained at 20,500-22,500 Boe/d (13,700-14,700 Bo/d).</li><li>Updated full-year guidance reflects a 36% capital spending reduction from management’s initial outlook and a 5% production reduction. </li></ul>

After adding ~2,300 Boe/d of shallow-decline production in the Lime Rock acquisition, management altered its FY25 capital program to favor allocating free cash flow to debt reduction.2Q25 capital spending guidance was lowered by more than 50% from prior expectations, yet production guidance was maintained at 20,500-22,500 Boe/d (13,700-14,700 Bo/d).Updated full-year guidance reflects a 36% capital spending reduction from management’s initial outlook and a 5% production reduction. 

Ring Energy, Inc: Estimate Update; Focusing on Debt Reduction

<ul><li>On April 17, 2025, Ring announced that 1Q25 oil production exceeded the high end of guidance and that total production exceeded the midpoint of guidance.</li><li>For 1Q25, the oil production guidance range was 11,700-12,000 Bo/d and the midpoint total production guidance was 18,250.</li><li>Since oil represents more than 95% of total revenue, the oil outperformance has an outsized revenue impact.</li></ul>

On April 17, 2025, Ring announced that 1Q25 oil production exceeded the high end of guidance and that total production exceeded the midpoint of guidance.For 1Q25, the oil production guidance range was 11,700-12,000 Bo/d and the midpoint total production guidance was 18,250.Since oil represents more than 95% of total revenue, the oil outperformance has an outsized revenue impact.

Ring Energy, Inc: 1Q25 Production Exceeded High End of Guidance

<ul><li>Ring is adding production and proved reserves in its core Central Basin Platform (CBP) through the $100-million asset acquisition of acreage offsetting its Shafter Lake operations in Andrews County, Texas from Lime Rock Resources IV, LP.</li><li>The assets consist of ~17,700 net acres (100% HBP) that are contiguous to Ring’s existing acreage. 3Q24 production averaged 2,300 BOE/d (&gt;80% oil) from ~101 gross wells.</li><li>Management estimates that the acreage could support more than 40 gross drilling locations that are expected to compete for capital in the 2025 plan.</li></ul>

Ring is adding production and proved reserves in its core Central Basin Platform (CBP) through the $100-million asset acquisition of acreage offsetting its Shafter Lake operations in Andrews County, Texas from Lime Rock Resources IV, LP.The assets consist of ~17,700 net acres (100% HBP) that are contiguous to Ring’s existing acreage. 3Q24 production averaged 2,300 BOE/d (&gt;80% oil) from ~101 gross wells.Management estimates that the acreage could support more than 40 gross drilling locations that are expected to compete for capital in the 2025 plan.

Ring Energy, Inc. - Core Area Acquisition Adds to CBP Scale

United States

Ring Energy Inc is an independent oil and gas exploration company with headquarters in Midland, Texas. The Company's business strategy is focused on the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the United States.

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Ring Energy Inc (REI US)

REI: Oil Price Environment Sharpens Management's Debt Reduction Focus

Ring is sharpening its debt reduction focus to maintain flexibility to execute management’s growth strategy, which relies on producing property...

Water Tower Research

Ring Energy, Inc: Estimate Update

We are updating our estimates to reflect actual 2Q25 benchmark oil and natural gas prices. Our NYMEX reference prices averaged $63.68/bbl for oil...

Water Tower Research

Ring Energy, Inc: Estimate Update; Focusing on Debt Reduction

After adding ~2,300 Boe/d of shallow-decline production in the Lime Rock acquisition, management altered its FY25 capital program to favor...

Water Tower Research

Ring Energy, Inc: 1Q25 Production Exceeded High End of Guidance

On April 17, 2025, Ring announced that 1Q25 oil production exceeded the high end of guidance and that total production exceeded the midpoint of...

Water Tower Research

Ring Energy, Inc. - Core Area Acquisition Adds to CBP Scale

Management estimates that the acreage could support more than 40 gross drilling locations that are expected to compete for capital in the 2025 plan.

Water Tower Research

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