Ring Energy, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Ring Energy, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

RING ENERGY, INC. (REI) filed a Annual Report (10-K) with the SEC on March 7, 2024. Ring Energy, Inc. filed its 2023 Form 10-K on March 7, 2024. The filing covers the fiscal year ending December 31, 2023. The company is engaged in the crude petroleum and natural gas industry. Ring Energy, Inc. is incorporated in Nevada. The company's business address is in The Woodlands, Texas.

Why It Matters

For investors and stakeholders tracking RING ENERGY, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Ring Energy's financial health, operational activities, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's performance and future prospects. The detailed financial statements and risk factors within the report offer insights into the company's position within the volatile oil and gas market, including any impacts from acquisitions or operational changes.

Risk Assessment

Risk Level: medium — RING ENERGY, INC. shows moderate risk based on this filing. The company operates in the crude petroleum and natural gas industry, which is subject to significant price volatility and regulatory changes, posing inherent risks to financial performance and operational stability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Ring Energy's performance and outlook in the energy sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-07 — Filing Date (Date the 10-K was filed)
• 1311 — SIC Code (Industry classification)
• NV — State of Incorporation (Legal domicile)

Key Players & Entities

• RING ENERGY, INC. (company) — Filer name
• 20231231 (date) — Fiscal year end
• 20240307 (date) — Filing date
• NV (jurisdiction) — State of incorporation
• The Woodlands, TX (location) — Business address city and state
• 1311 (sic_code) — Standard Industrial Classification code for Crude Petroleum & Natural Gas
• Transglobal Mining Corp. (company) — Former company name
• Blanca Corp. (company) — Former company name

FAQ

Industry Context

Ring Energy, Inc. operates in the crude petroleum and natural gas sector, a key component of the energy industry. This sector is characterized by commodity price fluctuations and significant capital investment.

Regulatory Implications

As a publicly traded company in the oil and gas sector, Ring Energy is subject to regulations from the Securities and Exchange Commission (SEC) and environmental regulations related to energy production.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and debt levels.
2. Review the risk factors section for potential operational and market challenges.
3. Assess the company's strategic initiatives and their potential impact on future performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-07: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.001 — ich Registered Common Stock, par value $0.001 REI NYSE American Securities register
• $1.71 — ice on that day on the NYSE American of $1.71 per share, was $ 227,493,793 . As of M
• $600 million — lving credit facility borrowing base of $600 million Total Proved Reserves were 129.8 MMBoe
• $0.80 — common warrants at an exercise price of $0.80 per share and the exercise of 14,512,16
• $0.62 — common warrants at an exercise price of $0.62 per share, through amendments to certai
• $12,301,596 — agreements. These exercises resulted in $12,301,596 of net proceeds to the Company after pa
• $309,888 — roceeds to the Company after payment of $309,888 in advisory fees. Primary Business Ope

Filing Documents

• rei-20231231.htm (10-K) — 2738KB
• exhibit42-descriptionofcap.htm (EX-4.2) — 8KB
• exhibit1025-changeincontro.htm (EX-10.25) — 223KB
• exhibit231-cgaconsent.htm (EX-23.1) — 9KB
• exhibit232-consentofgrantt.htm (EX-23.2) — 3KB
• exhibit311-rule13ax14acert.htm (EX-31.1) — 8KB
• exhibit312-rule13ax14acert.htm (EX-31.2) — 8KB
• exhibit321-section1350cert.htm (EX-32.1) — 4KB
• exhibit322-section1350cert.htm (EX-32.2) — 4KB
• exhibit971-clawbackpolicy.htm (EX-97.1) — 45KB
• exhibit991-cgaletter.htm (EX-99.1) — 77KB
• image_0.jpg (GRAPHIC) — 2KB
• image_1a.jpg (GRAPHIC) — 30KB
• image_2a.jpg (GRAPHIC) — 61KB
• image_4.jpg (GRAPHIC) — 0KB
• image_5.jpg (GRAPHIC) — 0KB
• rei-20231231_g1.jpg (GRAPHIC) — 119KB
• 0001628280-24-009691.txt (&nbsp;) — 13234KB
• rei-20231231.xsd (EX-101.SCH) — 96KB
• rei-20231231_cal.xml (EX-101.CAL) — 129KB
• rei-20231231_def.xml (EX-101.DEF) — 429KB
• rei-20231231_lab.xml (EX-101.LAB) — 943KB
• rei-20231231_pre.xml (EX-101.PRE) — 677KB
• rei-20231231_htm.xml (XML) — 1907KB

Forward Looking Statements

Forward Looking Statements 3 Glossary of Certain Oil and Natural Gas Terms 5 PART I Item 1:

Business

Business 8 Item 1A:

Risk Factors

Risk Factors 21 Item 1B: Unresolved Staff Comments 34 I tem 1 C: Cybersecurity 34 Item 2:

Properties

Properties 35 Item 3:

Legal Proceedings

Legal Proceedings 48 Item 4: Mine Safety Disclosures 48 PART II Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48 Item 6: Reserved 49 Item 7:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 50 Item 7A:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 62 Item 8:

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 64 Item 9: Changes in and Disagreement's With Accountants on Accounting and Financial Disclosure 64 Item 9A:

Controls and Procedures

Controls and Procedures 64 Item 9B: Other Information 67 Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 68 PART III Item 10: Directors, Executive Officers and Corporate Governance 68 Item 11:

Executive Compensation

Executive Compensation 68 Item 12:

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 68 Item 13: Certain Relationships and Related Transactions, and Director Independence 68 Item 14: Principal Accountant Fees and Services 68 PART IV Item 15: Exhibit and Financial Statement Schedules 69 Item 16: Form 10-K Summary 72 2 Table of Contents

Forward Looking Statements

Forward Looking Statements This Annual Report on Form 10-K (herein, "Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact included in this Annual Report regarding our strategy, future operations, financial position, estimated revenues and expenses, projected costs, prospects, plans, and objectives of management are forward-looking statements. When used in this Annual Report, the words "may," "will," "could," "would," "should," "believe," "anticipate," "intend," "estimate," "expect," "plan," "pursue," "target," "continue," "potential," "guidance," "project," or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of the date of this Annual Report. Although we believe that our plans, intentions, and expectations reflected in or suggested by the forward-looking statements we make in this Annual Report are reasonable, we can give no assurance that these plans, intentions, or expectations will be achieved. We are making investors aware that such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated. Such factors include: declines or volatility in the prices we receive for our oil and natural gas; our ability to raise additional capital to fund future capital expenditures; our ability to generate sufficient net cash provided by operating activities, borrowings, or other sources to enable us to fully develop and produce our oil and natural gas properties; general economic conditions, whether internationally, nationally, or in the regiona

: Business

Item 1: Business General Ring Energy, Inc., a Nevada corporation ("Ring," "Ring Energy," the "Company," "we," "us," "our," or similar terms), is a growth oriented independent oil and natural gas exploration and production company based in The Woodlands, Texas and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused in the Permian Basin of Texas. Our drilling operations target the oil and liquids rich producing formations in the Northwest Shelf and the Central Basin Platform, in the Permian Basin in Texas. As of December 31, 2023, our leasehold acreage positions totaled 96,127 gross (80,535 net) acres and we held interests in 1,043 gross (864 net) producing wells. Proved reserves as of December 31, 2023 (based upon the report of our independent petroleum engineer of that date) were approximately 129.8 million Boe, of which we are the operator of approximately 98%. All of our properties are located in the Permian Basin and our proved reserves are oil-weighted, with approximately 63% consisting of oil, 19% consisting of natural gas, and 18% consisting of NGLs. Approximately 68% of the reserves are classified as PD and 32% are classified as PUD. Within the PD reserve category, 242 recompletion and re-activation opportunities are classified as PDNP and within the PUD reserve category, we have a total of 211 proved locations (33% horizontal and 67% vertical) based on the reserve report as of December 31, 2023. We believe our core leasehold in the Northwest Shelf and Central Basin Platform contain additional potential drilling locations. For the calculation of Boe, a barrel of oil is weighted on a 6 to 1 ratio to one thousand cubic feet ("Mcf") of natural gas. 2023 Highlights and Major Developments Closed the Founders Acquisition on August 15, 2023 Achieved record full year production of 18,119 Boepd (69% oil), a year-over-year increase of 47% Executed a phased drilling program in 2023 that included dr

View Full Filing

View this 10-K filing on SEC EDGAR