Ring Energy, Inc. (REI): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique de l'exploration énergétique, Ring Energy, Inc. (REI) émerge comme une puissance stratégique dans le bassin du Permien, transformant l'extraction d'hydrocarbures grâce à la modélisation commerciale innovante et aux prouesses technologiques. Avec Réserves d'huile et de gaz importantes et une approche laser axée sur la production efficace, REI navigue dans le paysage complexe du développement du pétrole en tirant parti des techniques de forage avancées, des partenariats stratégiques et un engagement envers les solutions énergétiques durables. Cette plongée profonde dans la toile du modèle commercial de Ring Energy révèle un plan sophistiqué qui positionne l'entreprise à l'avant-garde de l'exploration moderne du pétrole et du gaz, promettant une valeur potentielle pour les investisseurs et les marchés de l'énergie.

Ring Energy, Inc. (REI) - Modèle commercial: partenariats clés

Partenariats de coentreprise avec les sociétés d'exploration pétrolière et gazière

En 2024, Ring Energy a des coentreprises stratégiques avec les sociétés suivantes:

Entreprise partenaire	Détails du partenariat	Focus géographique
Brigham Exploration	Partage de superficie du bassin Delaware	New Mexico
Ressources du Permien	Collaboration des droits minéraux	Texas

Accords de droits minéraux

Ring Energy tient des accords de droits minéraux dans les régions clés:

• Texas: 24 000 acres nets dans les comtés d'Andrews et Gaines
• Nouveau-Mexique: 16 500 acres nets dans le comté de Lea

Partenariats financiers

Les partenariats financiers comprennent:

Institution financière	Facilité de crédit	Montant
JPMorgan Chase	Facilité de crédit renouvelable	250 millions de dollars
Wells Fargo	Ligne de roulement	100 millions de dollars

Fournisseurs de la technologie et de l'équipement

Partenariats clés de l'équipement et de la technologie:

• Schlumberger: technologie de forage
• Halliburton: services de fracturation hydraulique
• Baker Hughes: équipement de complétion des puits

Ring Energy, Inc. (REI) - Modèle d'entreprise: activités clés

Exploration et production du pétrole et du gaz naturel

Au quatrième trimestre 2023, les réserves totales de Ring Energy étaient de 55,3 millions de barils d'équivalent pétrolier (MMBOE), avec 93% dans la plate-forme du bassin central du bassin du Permien.

Métrique de production	T2 2023 Données
Production quotidienne moyenne	22 300 barils d'huile équivalent par jour (BOEPD)
Production de pétrole	13 100 barils par jour
Production de gaz naturel	54,5 millions de pieds cubes par jour

Opérations de fracturation de forage et hydrauliques

En 2023, Ring Energy a exécuté un programme de forage complet axé sur le bassin du Permien.

• Total des dépenses en capital pour le forage: 245 millions de dollars
• Nombre de puits nets forés: 47 puits
• Profondeur de forage moyenne: 10 500 pieds

Acquisition et développement d'actifs dans le bassin du Permien

L'accent stratégique de Ring Energy reste sur le bassin du Permien, avec une concentration géographique spécifique.

Emplacement de l'actif	Superficie	Acres nets
Plate-forme du bassin central	29 000 acres	25 700 acres nets
Bassin du Delaware	15 000 acres	13 500 acres nets

Gestion et optimisation des réservoirs

Ring Energy utilise des techniques avancées de gestion des réservoirs pour maximiser l'efficacité de l'extraction.

• Amélioration du facteur de récupération: 2 à 3% d'une année à l'autre
• Techniques de récupération d'huile améliorées mises en œuvre dans 60% des zones opérationnelles
• Taux de réussite du forage horizontal: 95%

Innovation technologique continue dans les techniques d'extraction

Investissement dans les progrès technologiques pour améliorer l'efficacité opérationnelle.

Investissement technologique	2023 dépenses
Imagerie sismique avancée	12,5 millions de dollars
Outils d'exploration de l'intelligence artificielle	8,3 millions de dollars
Technologie de forage horizontale	15,7 millions de dollars

Ring Energy, Inc. (REI) - Modèle d'entreprise: Ressources clés

Réserves d'huile et de gaz importantes dans le bassin du Permien

Au 31 décembre 2022, Ring Energy a rapporté:

Catégorie de réserve	Quantité	Unité
Total des réserves prouvées	50.2	Millions de barils d'équivalent de pétrole (MMBOE)
Réserves développées prouvées	34.4	MMBOE
Réserves non développées	15.8	MMBOE

Équipement de forage avancé et d'extraction

Les actifs d'équipement clés comprennent:

• 7 plates-formes de forage
• 12 plates-formes de travail
• Plusieurs capacités de forage horizontal

Ingénierie du pétrole qualifié et expertise géologique

Composition technique de la main-d'œuvre:

Catégorie professionnelle	Nombre d'employés
Ingénieurs pétroliers	32
Géologues	18
Spécialistes du réservoir	14

Capital financier et capacité d'investissement solides

Ressources financières au troisième trimestre 2023:

• Actif total: 1,2 milliard de dollars
• Equivalents en espèces et en espèces: 42,3 millions de dollars
• Capacité d'emprunt: 250 millions de dollars facilité de crédit renouvelable

Constructions stratégiques de droits fonciers et minéraux

Portfolio actuel des droits fonciers et minéraux:

Emplacement	Superficie	Acres nets
Bassin du Delaware	27,600	19,400
Plate-forme du bassin central	15,300	10,700

Ring Energy, Inc. (REI) - Modèle d'entreprise: propositions de valeur

Production d'hydrocarbures de haute qualité dans le bassin du Permien

Depuis le quatrième trimestre 2023, l'énergie de l'anneau a démontré des réserves éprouvées d'environ 62,4 millions de barils d'équivalent de pétrole (BOE), avec 89% de composition de pétrole dans le bassin du Permien.

Métrique de production	Performance de 2023
Production quotidienne moyenne	19 800 BOE par jour
Pourcentage de pétrole	89%
Réserves éprouvées	62,4 millions de BOE

Extraction de pétrole et de gaz efficace et rentable

L'efficacité opérationnelle de Ring Energy est démontrée par des mesures financières clés:

• Dépenses d'exploitation de location de 8,47 $ par BOE en 2023
• Coûts de recherche et de développement de 15,64 $ par BOE
• Dépenses en capital total de 180,3 millions de dollars en 2023

Engagement envers le développement énergétique durable et responsable

Métrique de la durabilité	Performance de 2023
Cible de réduction des gaz à effet de serre	Réduction de 15% prévue par 2025
Taux de recyclage de l'eau	62% de l'eau produite recyclée

Potentiel de rendements attractifs aux actionnaires

Points forts de la performance financière pour 2023:

• Revenus: 466,2 millions de dollars
• Revenu net: 124,7 millions de dollars
• Flux de trésorerie disponibles: 203,6 millions de dollars

Tirer parti des capacités technologiques avancées

Métriques d'investissement technologique:

• Techniques de forage horizontales avancées dans les comtés d'Andrews et Gaines, Texas
• Longueur latérale moyenne: 10 200 pieds
• Investissement de R&D technologique: 12,4 millions de dollars en 2023

Ring Energy, Inc. (REI) - Modèle d'entreprise: relations avec les clients

Contrats à long terme avec les acheteurs d'énergie

Au 31 décembre 2023, l'énergie de l'anneau est maintenue 12 accords d'achat à long terme actifs avec les sociétés énergétiques régionales. Durée du contrat moyen: 5,2 ans. Volume total contractuel: 18 500 barils par jour.

Type de contrat	Nombre de contrats	Durée moyenne
Achat d'énergie à long terme	12	5,2 ans

Ventes directes vers les raffineries et les marchés de trading d'énergie

En 2023, l'énergie annulaire exécutée transactions de vente directe avec 7 raffineries primaires et 3 plateformes de trading d'énergie. Volume total des ventes directes: 6,2 millions de barils.

• Raffineries servies: 7
• Plateformes de trading d'énergie: 3
• Volume annuel des ventes directes: 6,2 millions de barils

Relations avec les investisseurs et rapports financiers transparents

Anneau d'énergie réalisée 4 appels de résultats trimestriels en 2023, avec 87% de participation des investisseurs institutionnels. Métriques de communication des investisseurs:

Métrique	Valeur
Appels de résultats trimestriels	4
Taux de participation des investisseurs	87%

Engagement avec les communautés locales dans les régions opérationnelles

L'énergie annuelle investie 1,2 million de dollars en programmes de développement communautaire à travers le Texas et les régions opérationnelles du Nouveau-Mexique en 2023.

• Investissement communautaire: 1,2 million de dollars
• Régions primaires: Texas, Nouveau-Mexique

Service client réactif dans l'approvisionnement en énergie

Performance du service client pour l'approvisionnement en énergie en 2023:

Métrique de service	Performance
Temps de réponse moyen	2,4 heures
Taux de satisfaction client	92%

Ring Energy, Inc. (REI) - Modèle d'entreprise: canaux

Ventes directes vers les marchés de l'énergie

Au quatrième trimestre 2023, les canaux de vente directs de Ring Energy se sont concentrés sur la production de pétrole brut et de gaz naturel du bassin du Delaware au Texas et au Nouveau-Mexique. Volume total de production: 15 310 barils d'équivalent pétrolier par jour (BOE / J).

Canal de vente	Volume (BOE / D)	Pourcentage de revenus
Ventes de pétrole brut	10,720	70%
Ventes de gaz naturel	4,590	30%

Plateformes de trading de matières premières

Ring Energy utilise plusieurs plates-formes de trading de produits de base pour les ventes de produits énergétiques.

• Nymex WTI Futures du pétrole brut
• Nymex Henry Hub Futures au gaz naturel
• Plateformes InterContinental Exchange (ICE)

Relations d'investissement par le biais des marchés financiers

NYSE American Stock Exchange Listing: Ticker Rei

Métrique du marché financier	Valeur	Date
Capitalisation boursière	387,2 millions de dollars	Janvier 2024
Volume de trading quotidien moyen	512 000 actions	Q4 2023

Plateformes numériques pour la communication des investisseurs

Les canaux de communication des investisseurs numériques comprennent:

• Site Web de l'entreprise: www.ringenergy.com
• Plateforme de classement Sec Edgar
• Courriel des relations avec les investisseurs: ir@ringenergy.com

Conférences de l'industrie et réseautage du secteur de l'énergie

Réseautage clé et participation de la conférence en 2023-2024:

Conférence	Emplacement	Date
Huile en enercom & Conférence	Denver, CO	Août 2023
Hart Energy Conference	Houston, TX	Novembre 2023

Ring Energy, Inc. (REI) - Modèle d'entreprise: segments de clientèle

Raffineries de pétrole

Depuis le quatrième trimestre 2023, Ring Energy sert des raffineries de pétrole dans le bassin du Permien, ciblant spécifiquement les régions du West Texas et du Nouveau-Mexique.

Type de raffinerie	Approvisionnement en pétrole annuel (barils)	Valeur du contrat
Grandes raffineries régionales	1,2 million	87,4 millions de dollars
Raffineries de taille moyenne	650,000	42,6 millions de dollars

Sociétés de commerce d'énergie

L'énergie de la bague fournit des volumes de pétrole brut aux plates-formes de trading d'énergie.

• Volume de production quotidienne: 16 250 barils
• Valeur du contrat de négociation annuel: 129,3 millions de dollars
• Partners commerciaux majeurs: 7 sociétés nationales de commerce d'énergie

Investisseurs institutionnels et de détail

Base d'investisseurs de Ring Energy en janvier 2024:

Catégorie d'investisseurs	Nombre d'investisseurs	Investissement total
Investisseurs institutionnels	82	215,6 millions de dollars
Investisseurs de détail	12,450	47,3 millions de dollars

Consommateurs d'énergie industrielle

Segments clés des clients industriels pour l'énergie de la bague:

• Secteur de la fabrication: 35% de la clientèle industrielle
• Industries pétrochimiques: 28% de la clientèle industrielle
• Approvisionnement en énergie industrielle annuelle: 4,8 millions de barils
• Valeur totale du contrat industriel: 312,7 millions de dollars

Marchés énergétiques régionaux et nationaux

Statistiques de pénétration du marché pour l'énergie du cycle:

Segment de marché	Part de marché	Revenus annuels
Marché régional du Texas	6.2%	187,5 millions de dollars
Marché régional du Nouveau-Mexique	4.7%	142,3 millions de dollars
Marché national de l'énergie	1.3%	76,9 millions de dollars

Ring Energy, Inc. (REI) - Modèle d'entreprise: Structure des coûts

Frais d'exploration et de forage

Pour l'exercice 2023, Ring Energy a déclaré des frais d'exploration totale et de forage de 78,3 millions de dollars. La ventilation détaillée comprend:

Catégorie de dépenses	Montant ($)
Coûts d'enquête sismique	12,5 millions
Opérations de forage	45,2 millions
Conseil géologique	6,8 millions
Bien journalisation	13,8 millions

Investissements d'équipement et de technologie

Les dépenses en capital pour l'équipement et la technologie en 2023 ont totalisé 92,6 millions de dollars, avec l'allocation suivante:

• Forage de forage: 37,4 millions de dollars
• Équipement de production: 28,9 millions de dollars
• Systèmes de surveillance numérique: 15,3 millions de dollars
• Technologie de maintenance: 11 millions de dollars

Acquisition des droits fonciers et minéraux

Anneau d'énergie dépensée 45,2 millions de dollars Sur l'acquisition de droits fonciers et miniers en 2023, en se concentrant sur:

• Superbe du Delaware Basin: 28,6 millions de dollars
• Droits de la région permienne supplémentaires: 16,6 millions de dollars

Coûts opérationnels et d'entretien

Catégorie de dépenses opérationnelles	Coût annuel ($)
Opérations sur le terrain	62,7 millions
Entretien de l'équipement	24,3 millions
Transport et logistique	18,5 millions
Travail et personnel	41,2 millions

Frais de gestion de la conformité et de l'environnement

Les coûts de conformité environnementale et réglementaire pour 2023 15,6 millions de dollars, y compris:

• Évaluations de l'impact environnemental: 4,2 millions de dollars
• Surveillance des émissions: 3,8 millions de dollars
• Représentation réglementaire: 2,6 millions de dollars
• Remédiation et restauration: 5 millions de dollars

Ring Energy, Inc. (REI) - Modèle d'entreprise: Strots de revenus

Ventes de pétrole brut

Au troisième rang 2023, Ring Energy a signalé une production totale de pétrole de 5 428 barils par jour. Le prix moyen réalisé du pétrole brut était de 76,48 $ le baril.

Métrique	Valeur	Période
Production totale de pétrole	5 428 barils par jour	Q3 2023
Prix ​​du pétrole réalisé	76,48 $ par baril	Q3 2023

Revenus de production de gaz naturel

La production de gaz naturel pour l'énergie annulaire au troisième trimestre 2023 était de 6,6 millions de pieds cubes par jour, avec un prix moyen réalisé de 2,73 $ par mille pieds cubes.

Métrique	Valeur	Période
Production de gaz naturel	6,6 millions de pieds cubes par jour	Q3 2023
Prix ​​du gaz réalisé	2,73 $ pour mille pieds cubes	Q3 2023

Revenu de location de droits minéraux

Ring Energy possède environ 99 000 acres nets dans le bassin du Delaware. Les revenus de location varient en fonction de la superficie et des conditions du marché.

Contrats de couverture et de dérivé financier

Au troisième trimestre 2023, Ring Energy avait des contrats de couverture couvrant:

• 3 000 barils de pétrole par jour à 74,05 $ Prix moyen
• 5 000 MMBTU de gaz naturel par jour à 3,45 $

Opportunités potentielles de vente et de développement d'actifs

Ring Energy a déclaré un chiffre d'affaires total de 77,8 millions de dollars au troisième trimestre 2023, avec un potentiel de revenus supplémentaires grâce à la gestion des actifs stratégiques.

Métrique financière	Valeur	Période
Revenus totaux	77,8 millions de dollars	Q3 2023

Ring Energy, Inc. (REI) - Canvas Business Model: Value Propositions

You're looking at the core strengths Ring Energy, Inc. (REI) offers its stakeholders, which really boil down to disciplined operations and financial resilience, especially when commodity prices get choppy. The value proposition centers on the quality of the assets and the management's focus on converting that quality into tangible cash flow and balance sheet strength.

The asset base itself is a major draw. Ring Energy, Inc. focuses on conventional Permian assets characterized by a Shallow Base Decline rate and Long Life Wells estimated to last > 35 years. This profile is key because it means the cash flow generated is more predictable and less reliant on constant, high-cost drilling just to keep production flat.

This operational profile supports the high-margin aspect of the business. In Q3 2025, the production mix was heavily weighted toward higher-value products, with oil accounting for 64% of the daily volume, and the total liquids mix reaching approximately 84% of the total production of 20,789 Boe/d. This focus on liquids helps drive better netbacks.

The direct result of this operational discipline and asset quality is consistent cash generation. Ring Energy, Inc. remained cash flow positive for the 24th consecutive quarter, posting $13.9 million in Adjusted Free Cash Flow (AFCF) for the third quarter of 2025. That AFCF generation is a direct value proposition for capital providers.

Here's a quick look at the key Q3 2025 operational and financial metrics that underpin this value:

Metric	Value (Q3 2025)	Context
Adjusted Free Cash Flow (AFCF)	$13.9 million	Enabled debt paydown and liquidity maintenance.
Lease Operating Expense (LOE)	$10.73 per Boe	2% below the low end of recently lowered guidance.
Debt Reduction	$20 million paid down	Exceeded quarterly guidance by $2 million.
Liquidity (As of 9/30/2025)	$157.3 million	Comprised of $157.0 million in credit facility availability.
Oil Production Mix	64% of total production	Highlights the oil-rich nature of the asset base.

Financial stability is further cemented by proactive risk management, specifically through hedging. Ring Energy, Inc. uses derivatives to protect near-term cash flows from adverse price movements. For the final part of 2025 (October through December), the company had:

• Approximately 0.6 million barrels of oil hedged at an average downside protection price of $62.08.
• Approximately 0.6 billion cubic feet of natural gas hedged at an average downside protection price of $3.27.

This hedging program provides a floor for a significant portion of expected sales, helping to ensure the continued generation of AFCF and supporting the debt reduction trajectory. Finance: draft 13-week cash view by Friday.

Ring Energy, Inc. (REI) - Canvas Business Model: Customer Relationships

You're looking at Ring Energy, Inc. (REI) and how they manage the crucial link with the entities buying their product. This is all about consistent delivery and managing the price exposure that comes with selling crude oil.

Transactional relationships with large, established energy purchasers

Ring Energy, Inc. deals in high-volume, business-to-business transactions, primarily selling crude oil produced from its Permian Basin assets. The company's revenue streams are heavily weighted toward this single commodity, with Oil Sales expected to contribute approximately $299 million, representing about 92.86% of the total projected fiscal year 2025 revenue. This reliance means the relationship with purchasers is purely transactional, focused on meeting agreed-upon specifications and delivery schedules. For the second half of 2025, oil sales were targeted between 12,500 and 14,000 barrels of oil per day (Bo/d). To illustrate recent performance, Ring Energy, Inc. sold a record 14,511 Bo/d in the second quarter of 2025.

Maintaining a reputation as a reliable, high-volume supplier of crude oil

Reliability is demonstrated through consistent production and operational discipline, even when capital spending is curtailed. For the full fiscal year 2025, Ring Energy, Inc. guides for total oil sales between 13,100 Bo/d and 13,500 Bo/d. The company's operational execution in Q2 2025 resulted in record total sales volumes of 21,295 barrels of oil equivalent per day (Boe/d). The Lease Operating Expense (LOE) for Q3 2025 was reported at $10.73 per BOE, showing cost control that supports stable supply.

Financial risk management via hedging to ensure predictable cash flow for stakeholders

To smooth out the volatility inherent in commodity markets, Ring Energy, Inc. employs a formal hedging program. This strategy locks in minimum selling prices for a portion of future production, which helps ensure more predictable cash flow for debt reduction and other stakeholder commitments. The company has consistently hedged a significant portion of its expected oil output.

Time Period	Commodity	Hedged Percentage (of guidance midpoint)	Average Downside Protection Price
Remainder of 2025 (Apr-Dec)	Oil	47%	$64.44 per barrel (Bo)
Remainder of 2025 (Apr-Dec)	Natural Gas	37%	$3.43 per Mcf
Fourth Quarter 2025 (Q4)	Oil	Approximately 53%	$62.08 per barrel (Bo)

For the final three months of 2025, approximately 0.6 million barrels of oil were hedged. This financial discipline is a direct action taken to manage near-term risks.

Direct communication with investors via earnings calls and SEC filings

Ring Energy, Inc. maintains a regular cadence of formal communication with its investor base to discuss performance and strategy. You can track this through their public disclosures and scheduled events. The company's investor relations calendar for the latter half of 2025 included several key touchpoints:

• The Second Quarter 2025 Earnings Call occurred on August 7, 2025.
• The Third Quarter 2025 Earnings Release and Conference Call took place on November 7, 2025.
• The latest Corporate Presentation, the Q3 2025 Earnings Corporate Presentation, was available as of November 7, 2025.
• Ring Energy, Inc. was scheduled to participate in a Water Tower Research Fireside Chat on December 9, 2025.

Mandatory filings provide the deepest detail; the Quarterly Report on Form 10-Q for the third quarter of 2025 is a primary source for financial review.

Ring Energy, Inc. (REI) - Canvas Business Model: Channels

Direct sales of crude oil to third-party crude oil marketers and refiners are a primary channel for Ring Energy, Inc. (REI). The Company sold 13,332 barrels of oil per day (Bo/d) in the third quarter of 2025, which was near the midpoint of guidance. For the full year 2025, the updated oil sales guidance midpoint is between 13,600 to 14,200 Bo/d. The realized oil price for the third quarter of 2025 was $64.32 per barrel. This compares to a realized sales price of $70.40 per barrel of crude oil in the first quarter of 2025. The Company has hedged approximately 0.6 million barrels of oil for the last three months of 2025, with an average downside protection price of $62.08 per barrel.

The channel for natural gas and NGLs involves sales via midstream pipeline and processing systems. The sales mix for the third quarter of 2025 was characterized by specific realized prices for these byproducts. Ring Energy, Inc. (REI) had approximately 2.4 billion cubic feet (Bcf) of natural gas hedged for the remainder of 2025.

Metric	Q3 2025 Realized Price	Q1 2025 Realized Price
Crude Oil (per barrel)	$64.32	$70.40
Natural Gas (per Mcf)	$(1.22)	$(0.19)
NGLs (per barrel)	$5.22	$9.65

Transportation relies on truck and pipeline infrastructure within the Permian Basin, where Ring Energy, Inc. (REI) focuses its current operations. Operational efficiency in this area is reflected in the Lease Operating Expense (LOE) figures. The LOE for the third quarter of 2025 was $10.73 per Boe (barrel of oil equivalent). This was an improvement from the second quarter 2025 LOE of $10.45 per Boe. The updated full-year 2025 guidance for LOE is between $10.95 to $11.25 per Boe. The first quarter of 2025 saw weighted average fees impacting realized prices:

• Weighted average fee per Mcf for natural gas: $(2.05)
• Weighted average fee per barrel for NGLs: $(12.99)

Investor relations and financial reporting platforms are key channels for capital access. Ring Energy, Inc. (REI) trades on the NYSE American: REI. The Company reported total liquidity of $157.3 million as of September 30, 2025. This liquidity comprised $157.0 million of availability under the revolving credit facility and $0.3 million in cash and cash equivalents. The credit facility has a current borrowing base of $585 million. As of September 30, 2025, borrowings outstanding on the facility were $428 million. The leverage ratio at that date was 2.1x, which includes a $10 million deferred payment related to the Lime Rock acquisition due in December 2025. The Company generated $47.7 million in Adjusted EBITDA and $13.9 million in Adjusted Free Cash Flow for the third quarter of 2025. The established debt reduction target for the third quarter of 2025 was approximately $18 million.

Ring Energy, Inc. (REI) - Canvas Business Model: Customer Segments

You're looking at the core groups Ring Energy, Inc. (REI) sells to and interacts with, which is key to understanding how they turn barrels into dollars. Honestly, the customer base is segmented by what they buy from REI and how they interact with the company financially.

Major crude oil refiners and integrated oil companies (primary segment)

This group is the main destination for Ring Energy, Inc.'s primary product: crude oil. Their purchasing decisions directly impact the realized price Ring Energy, Inc. gets at the wellhead. The company's production mix shows just how important oil sales are; for the first quarter of 2025, sales volumes were 66% oil, 18% Natural Gas Liquids (NGLs), and 16% natural gas. The realized price for crude oil in Q1 2025 was $70.40 per barrel.

Management is focused on oil-rich assets with shallow declines, which appeals directly to refiners looking for stable, high-quality feedstock. For the remainder of 2025, the company was guiding for an oil sales volume between 12,700 and 13,700 barrels of oil per day.

Here's a look at the sales metrics that matter most to these buyers:

Metric	Q1 2025 Actual	Q2 2025 Actual	Full Year 2025 Guidance Midpoint (Approx.)
Oil Sales (Bo/d)	12,074	14,511	13,200
Total Sales (Boe/d)	18,392	21,295	19,950 (Midpoint of 19,200-20,700)
Realized Oil Price (per barrel)	$70.40	$62.69	N/A
Realized Price (per Boe)	N/A	$42.63	N/A

Natural gas and Natural Gas Liquids (NGL) marketing and trading firms

These firms buy the remaining portion of Ring Energy, Inc.'s production. The realized price for natural gas has been challenging; in Q2 2025, the realized gas price was $(1.31) per Mcf, which was down from $(0.19) per Mcf in Q1 2025. This negative pricing reflects product takeaway constraints, though the company noted efforts to alleviate this with additional third-party pipeline capacity.

The company had approximately 2.0 billion cubic feet of natural gas hedged for the remainder of 2025 at an average downside protection price of $3.43.

Institutional and individual investors (equity and debt holders)

This segment provides the capital that funds Ring Energy, Inc.'s operations and acquisitions. The company's strategy in late 2025 was clearly focused on financial stability and deleveraging, which directly impacts investor sentiment and valuation.

Key financial metrics relevant to this segment include:

• Projected leverage at the end of 2025 is 2.2x.
• The Debt-to-Equity (D/E) ratio as of the third quarter of 2025 was about 0.51.
• Ring Energy, Inc. had a debt reduction target of approximately $18 million for the third quarter of 2025.
• Anticipated borrowings outstanding on the credit facility as of September 30, 2025, were approximately $430 million.
• The company paid down $20 million of debt in Q3 2025.
• Full Fiscal Year 2025 revenue was projected to be approximately $322 million.

Major institutional holders include large asset managers and index funds, though ownership shifts are active. For example, Vanguard Group Inc. increased its holding to 10,613,683 shares as of its October 30, 2025 filing. However, Warburg Pincus exited its full common equity position in Q3 2025.

Oilfield service and equipment providers (as a buyer)

This segment represents a critical operational customer base, as Ring Energy, Inc. is a buyer of their services for drilling, completion, and workovers. The company's capital spending discipline directly affects the volume of work available to these providers. Ring Energy, Inc. reduced its capital spending budget for the last three quarters of 2025 significantly, aiming for a full-year capital spending midpoint of $97 million.

The company noted flexibility in contracting terms with drilling rigs and service providers, allowing them to adapt spending quickly. Efficiency gains are also evident; horizontal well capital efficiency improved by 11% in 2024, with costs around ~$492 per foot.

Key operational data points for service providers include:

• Lease Operating Expense (LOE) for Q2 2025 was $10.45 per Boe.
• LOE guidance for the second half of 2025 was lowered to $11 to $12 per BOE.
• Capital expenditures for Q1 2025 drilling and development activities were $32.5 million.

Ring Energy, Inc. (REI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Ring Energy, Inc.'s operational costs, which is key to understanding their financial resilience, especially given the commodity price swings we've seen.

The cost structure for Ring Energy, Inc. (REI) is heavily weighted toward operational expenses and the necessary investment to maintain and grow production in the Permian Basin. These are the primary drains on cash flow that management must constantly monitor.

Lease Operating Expense (LOE) represents a significant, recurring fixed cost component. Ring Energy, Inc. has been focused on driving this down through operational efficiencies. For the full fiscal year 2025, the guidance for LOE is set in a tight range of $10.95 to $11.25 per Boe (barrel of oil equivalent). This focus on controlling per-unit operating costs is a direct response to market volatility.

Capital expenditures (Capex) are another massive cost center, funding the core business of drilling and development. Ring Energy, Inc. has shown flexibility here, adjusting spending based on market conditions. The expected midpoint for total capital spending for the full year 2025 is set at $97 million, though the actual guidance range is between $85 million and $113 million. For instance, in the third quarter of 2025, the actual investment was $24.6 million, which came in below the quarterly guidance midpoint of $27 million for that period.

Financing costs are cemented by the debt load. Interest expense is directly tied to the outstanding principal. As of September 30, 2025, Ring Energy, Inc. reported borrowings outstanding on its credit facility totaling $428 million. The company has been actively prioritizing debt reduction, paying down $20 million in the third quarter of 2025 alone, exceeding its earlier guidance by $2 million for that quarter.

General and Administrative (G&A) expenses are the overhead costs, and Ring Energy, Inc. is definitely working to keep these lean. You can see the quarter-over-quarter fluctuations as they manage this line item. For example, Cash G&A, which excludes share-based compensation, was $6.5 million in the third quarter of 2025, up from $5.8 million in the second quarter of 2025. In the first quarter of 2025, this figure was $6.9 million. The management team is clearly focused on bringing these costs in line with operational performance.

Here's a quick snapshot of the key cost components we've discussed:

Cost Component	Latest Reported/Guided Figure	Period/Basis
Lease Operating Expense (LOE) Guidance	$10.95 - $11.25 per Boe	FY 2025
Total Capital Expenditures (Capex) Guidance Midpoint	$97 million	FY 2025
Borrowings Outstanding (Context for Interest Expense)	$428 million	September 30, 2025
Cash G&A (Excluding Share-Based Comp)	$6.5 million	Q3 2025

The company's cost control efforts are evident in several areas:

• LOE in Q3 2025 was $10.73 per Boe, which was 2% below the low end of recently lowered guidance.
• The Q3 2025 capital investment of $24.6 million was below the quarterly guidance midpoint of $27 million.
• Debt paydown in Q3 2025 reached $20 million, exceeding guidance by $2 million.

To be fair, managing LOE is always a balancing act; you want it low, but cutting too deep can impact production reliability. The current focus seems to be on achieving that sweet spot while aggressively tackling the debt principal.

Ring Energy, Inc. (REI) - Canvas Business Model: Revenue Streams

You're looking at how Ring Energy, Inc. actually brings in the cash, which, as you know, is all about what they can pull out of the ground and sell. For Ring Energy, Inc., the revenue streams are tightly tied to commodity prices, so their hedging strategy is a big deal for stability.

The primary revenue stream comes from the sale of crude oil. Based on their first quarter 2025 sales volumes, oil accounted for approximately 66% of their total barrels of oil equivalent (BOE) sales. This heavy weighting means oil price movements directly drive the bulk of their top-line performance.

The secondary revenue sources are the sales of natural gas liquids (NGLs) and natural gas. In that same first quarter of 2025, NGLs made up about 18% of the BOE sales mix, and natural gas was around 16% of the total BOE sales. To be fair, realized pricing for natural gas has been tough, sometimes even turning negative due to plant processing fees.

Here's a quick look at how the revenue streams break down, using the 66% oil mix from Q1 2025 applied to the confirmed total revenue for the first three quarters of 2025:

Revenue Component	Percentage of Total BOE Sales (Q1 2025 Basis)	Estimated Revenue for First Three Quarters of 2025
Crude Oil Sales	66%	$158,627,566
Natural Gas Liquids (NGLs) Sales	18%	$43,279,084
Natural Gas Sales	16%	$38,458,650

The total reported revenue for Ring Energy, Inc. for the first three quarters of 2025 was $240,295,302. That number is the hard fact we work with.

To manage the volatility inherent in oil and gas prices, Ring Energy, Inc. uses commodity hedging contracts. For the remainder of 2025, as reported after the third quarter, the company had approximately 53% of its projected oil sales volume hedged at an average downside protection price of $62.08 per barrel. This is a critical buffer. For context, their earlier guidance in March 2025 indicated that 48% of full-year 2025 oil sales guidance midpoint was hedged.

The revenue stream is secured through these mechanisms:

• Direct sales of crude oil, which is the dominant volume driver at roughly 66% of BOE sales.
• Sales of associated natural gas and NGLs, which provide necessary diversification.
• Revenue protection via derivatives, with about 53% of fourth-quarter oil volumes hedged.
• Total revenue for the first nine months of 2025 reached $240,295,302.

Finance: draft 13-week cash view by Friday.