Ring Energy, Inc. (REI): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico da exploração energética, a Ring Energy, Inc. (REI) surge como uma potência estratégica na bacia do Permiano, transformando a extração de hidrocarbonetos por meio de modelagem de negócios inovadores e proezas tecnológicas. Com Reservas significativas de petróleo e gás e uma abordagem focada em laser para a produção eficiente, a REI navega no cenário complexo do desenvolvimento do petróleo, alavancando técnicas avançadas de perfuração, parcerias estratégicas e um compromisso com soluções de energia sustentável. Este mergulho profundo na Canvas de modelo de negócios da Ring Energy revela um projeto sofisticado que posiciona a empresa na vanguarda da exploração moderna de petróleo e gás, prometendo valor potencial para investidores e mercados de energia.

Ring Energy, Inc. (REI) - Modelo de negócios: Parcerias -chave

Parcerias de joint venture com empresas de exploração de petróleo e gás

A partir de 2024, a energia do anel possui joint ventures estratégicos com as seguintes empresas:

Empresa parceira	Detalhes da parceria	Foco geográfico
Exploração Brigham	Compartilhamento de área da bacia de Delaware	Novo México
Recursos Permianos	Colaboração de Direitos Minerais	Texas

Acordos de direitos minerais

A Ring Energy mantém acordos de direitos minerais nas principais regiões:

• Texas: 24.000 acres líquidos nos condados de Andrews e Gaines
• Novo México: 16.500 acres líquidos no condado de Lea

Parcerias financeiras

As parcerias financeiras incluem:

Instituição financeira	Linha de crédito	Quantia
JPMorgan Chase	Linha de crédito rotativo	US $ 250 milhões
Wells Fargo	Linha de capital de giro	US $ 100 milhões

Fornecedores de tecnologia e equipamentos

Principais equipamentos e parcerias de tecnologia:

• Schlumberger: Tecnologia de perfuração
• Halliburton: Serviços de fraturamento hidráulico
• Baker Hughes: Equipamento de conclusão bem

Ring Energy, Inc. (REI) - Modelo de negócios: Atividades -chave

Exploração e produção de petróleo e gás natural

A partir do quarto trimestre de 2023, as reservas totais comprovadas da Ring Energy eram 55,3 milhões de barris de petróleo equivalente (MMBOE), com 93% localizados na plataforma da bacia central da bacia do Permiano.

Métrica de produção	Q4 2023 dados
Produção diária média	22.300 barris de petróleo equivalente por dia (BOEPD)
Produção de petróleo	13.100 barris por dia
Produção de gás natural	54,5 milhões de pés cúbicos por dia

Operações de fraturamento hidráulico e hidráulica

Em 2023, a Ring Energy executou um programa abrangente de perfuração focado na bacia do Permiano.

• Despesas totais de capital para perfuração: US $ 245 milhões
• Número de poços líquidos perfurados: 47 poços
• Profundidade média de perfuração: 10.500 pés

Aquisição e Desenvolvimento de Ativos em Bacia Permiana

O foco estratégico da Ring Energy permanece na bacia do Permiano, com concentração geográfica específica.

Localização do ativo	Cultura	Líquido acres
Plataforma da bacia central	29.000 acres	25.700 acres líquidos
Bacia de Delaware	15.000 acres	13.500 acres líquidos

Gerenciamento e otimização do reservatório

A energia do anel emprega técnicas avançadas de gerenciamento de reservatórios para maximizar a eficiência da extração.

• Melhoria do fator de recuperação: 2-3% ano a ano
• Técnicas aprimoradas de recuperação de petróleo implementadas em 60% das zonas operacionais
• Taxa de sucesso da perfuração horizontal: 95%

Inovação tecnológica contínua em técnicas de extração

Investimento em avanços tecnológicos para melhorar a eficiência operacional.

Investimento em tecnologia	2023 Despesas
Imagem sísmica avançada	US $ 12,5 milhões
Ferramentas de exploração de inteligência artificial	US $ 8,3 milhões
Tecnologia de perfuração horizontal	US $ 15,7 milhões

Ring Energy, Inc. (REI) - Modelo de negócios: Recursos -chave

Reservas significativas de petróleo e gás na bacia do Permiano

Em 31 de dezembro de 2022, a Ring Energy relatou:

Categoria de reserva	Quantidade	Unidade
Reservas totais comprovadas	50.2	Milhões de barris de petróleo equivalente (MMBOE)
Provados reservas desenvolvidas	34.4	MMBOE
Reservas não desenvolvidas comprovadas	15.8	MMBOE

Equipamento avançado de perfuração e extração

Os principais ativos do equipamento incluem:

• 7 plataformas de perfuração
• 12 plataformas de trabalho
• Múltiplos recursos de perfuração horizontal

Engenharia de petróleo qualificada e experiência geológica

Composição técnica da força de trabalho:

Categoria profissional	Número de funcionários
Engenheiros de Petróleo	32
Geólogos	18
Especialistas do reservatório	14

Forte capital financeiro e capacidade de investimento

Recursos financeiros a partir do terceiro trimestre de 2023:

• Total de ativos: US $ 1,2 bilhão
• Caixa e equivalentes em dinheiro: US $ 42,3 milhões
• Capacidade de empréstimos: Linha de crédito rotativo de US $ 250 milhões

Terras estratégicas e direitos de minerais

Portfólio atual de direitos e direitos minerais:

Localização	Cultura	Líquido acres
Bacia de Delaware	27,600	19,400
Plataforma da bacia central	15,300	10,700

Ring Energy, Inc. (REI) - Modelo de negócios: proposições de valor

Produção de hidrocarbonetos de alta qualidade na bacia do Permiano

A partir do quarto trimestre de 2023, a energia do anel demonstrou reservas comprovadas de aproximadamente 62,4 milhões de barris de petróleo equivalente (BOE), com 89% de composição de petróleo na bacia do Permiano.

Métrica de produção	2023 desempenho
Produção diária média	19.800 boe por dia
Porcentagem de petróleo	89%
Reservas comprovadas	62,4 milhões de Boe

Extração de petróleo e gás eficiente e econômica

A eficiência operacional da Ring Energy é demonstrada através de principais métricas financeiras:

• Despesas operacionais de arrendamento de US $ 8,47 por Boe em 2023
• Custos de encontro e desenvolvimento de US $ 15,64 por Boe
• Despesas totais de capital de US $ 180,3 milhões em 2023

Compromisso com o desenvolvimento de energia sustentável e responsável

Métrica de sustentabilidade	2023 desempenho
Alvo de redução de gases de efeito estufa	Redução de 15% planejada até 2025
Taxa de reciclagem de água	62% da água produzida reciclada

Potencial para retornos atraentes para os acionistas

O desempenho financeiro destaca para 2023:

• Receita: US $ 466,2 milhões
• Lucro líquido: US $ 124,7 milhões
• Fluxo de caixa livre: US $ 203,6 milhões

Aproveitando recursos tecnológicos avançados

Métricas de investimento em tecnologia:

• Técnicas avançadas de perfuração horizontal nos condados de Andrews e Gaines, Texas
• Comprimento lateral médio: 10.200 pés
• Investimento de P&D em tecnologia: US $ 12,4 milhões em 2023

Ring Energy, Inc. (REI) - Modelo de Negócios: Relacionamentos do Cliente

Contratos de longo prazo com compradores de energia

Em 31 de dezembro de 2023, a energia do anel mantida 12 Acordos de compra ativos de longo prazo com empresas regionais de energia. Duração média do contrato: 5,2 anos. Volume contratado total: 18.500 barris por dia.

Tipo de contrato	Número de contratos	Duração média
Compra de energia de longo prazo	12	5,2 anos

Vendas diretas para refinarias e mercados de negociação de energia

Em 2023, a energia do anel executada Transações de vendas diretas com 7 refinarias primárias e 3 plataformas de negociação de energia. Volume total de vendas diretas: 6,2 milhões de barris.

• Refinarias servidas: 7
• Plataformas de negociação de energia: 3
• Volume anual de vendas diretas: 6,2 milhões de barris

Relações com investidores e relatórios financeiros transparentes

Energia do anel conduzido 4 chamadas trimestrais Em 2023, com 87% de participação institucional do investidor. Métricas de comunicação de investidores:

Métrica	Valor
Chamadas de ganhos trimestrais	4
Taxa de participação do investidor	87%

Engajamento com comunidades locais em regiões operacionais

Energia do anel investido US $ 1,2 milhão em programas de desenvolvimento comunitário nas regiões operacionais do Texas e do Novo México em 2023.

• Investimento comunitário: US $ 1,2 milhão
• Regiões primárias: Texas, Novo México

Atendimento ao cliente responsivo em compras de energia

Desempenho do atendimento ao cliente para compras de energia em 2023:

Métrica de serviço	Desempenho
Tempo médio de resposta	2,4 horas
Taxa de satisfação do cliente	92%

Ring Energy, Inc. (REI) - Modelo de Negócios: Canais

Vendas diretas para mercados de energia

A partir do quarto trimestre 2023, os canais de vendas diretos da Ring Energy se concentraram na produção de petróleo e gás natural da bacia de Delaware, no Texas e no Novo México. Volume total de produção: 15.310 barris de petróleo equivalente por dia (BOE/D).

Canal de vendas	Volume (boe/d)	Porcentagem de receita
Vendas de petróleo bruto	10,720	70%
Vendas de gás natural	4,590	30%

Plataformas de negociação de commodities

A Ring Energy utiliza várias plataformas de negociação de commodities para vendas de produtos de energia.

• Futuros de petróleo bruto nymEx wti
• NYMEX HENRY HUB FUTUROS DE GAS NATURAL
• Plataformas Intercontinental Exchange (ICE)

Relações de investimento através de mercados financeiros

Listagem da Bolsa de Valores da NYSE AMERICAN: Ticker REI

Métrica do mercado financeiro	Valor	Data
Capitalização de mercado	US $ 387,2 milhões	Janeiro de 2024
Volume médio de negociação diária	512.000 ações	Q4 2023

Plataformas digitais para comunicação de investidores

Os canais de comunicação de investidores digitais incluem:

• Site corporativo: www.ringenergy.com
• Plataforma de arquivamento da SEC Edgar
• Relações com investidores E -mail: ir@ringenergy.com

Conferências do setor e redes do setor de energia

Principais redes e participação da conferência em 2023-2024:

Conferência	Localização	Data
Petróleo Enercom & Conferência de Gás	Denver, co	Agosto de 2023
Conferência de Energia Hart	Houston, TX	Novembro de 2023

Ring Energy, Inc. (REI) - Modelo de negócios: segmentos de clientes

Refinarias de petróleo

A partir do quarto trimestre de 2023, a energia do anel serve refinarias de petróleo na bacia do Permiano, direcionando especificamente as regiões do oeste do Texas e do Novo México.

Tipo de refinaria	Fornecimento anual de petróleo (barris)	Valor do contrato
Grandes refinarias regionais	1,2 milhão	US $ 87,4 milhões
Refinarias de tamanho médio	650,000	US $ 42,6 milhões

Empresas de comércio de energia

A energia do anel fornece volumes de petróleo bruto para plataformas de negociação de energia.

• Volume diário de produção: 16.250 barris
• Valor anual do contrato de negociação: US $ 129,3 milhões
• Principais parceiros comerciais: 7 empresas nacionais de comércio de energia

Investidores institucionais e de varejo

A base de investidores da Ring Energy em janeiro de 2024:

Categoria de investidores	Número de investidores	Investimento total
Investidores institucionais	82	US $ 215,6 milhões
Investidores de varejo	12,450	US $ 47,3 milhões

Consumidores de energia industrial

Principais segmentos de clientes industriais para energia do anel:

• Setor de manufatura: 35% da base de clientes industriais
• Indústrias petroquímicas: 28% da base de clientes industriais
• Fornecimento anual de energia industrial: 4,8 milhões de barris
• Valor total do contrato industrial: US $ 312,7 milhões

Mercados de energia regional e nacional

Estatísticas de penetração de mercado para energia do anel:

Segmento de mercado	Quota de mercado	Receita anual
Mercado Regional do Texas	6.2%	US $ 187,5 milhões
NOVO MEXICO MERCADO REGIONAL	4.7%	US $ 142,3 milhões
Mercado Nacional de Energia	1.3%	US $ 76,9 milhões

Ring Energy, Inc. (REI) - Modelo de negócios: estrutura de custos

Despesas de exploração e perfuração

Para o ano fiscal de 2023, a Ring Energy registrou despesas totais de exploração e perfuração de US $ 78,3 milhões. O detalhamento detalhado inclui:

Categoria de despesa	Valor ($)
Custos de pesquisa sísmica	12,5 milhões
Operações de perfuração	45,2 milhões
Consultoria geológica	6,8 milhões
Log de poço	13,8 milhões

Investimentos de equipamentos e tecnologia

As despesas de capital para equipamentos e tecnologia em 2023 totalizaram US $ 92,6 milhões, com a seguinte alocação:

• Platas de perfuração: US $ 37,4 milhões
• Equipamento de produção: US $ 28,9 milhões
• Sistemas de monitoramento digital: US $ 15,3 milhões
• Tecnologia de manutenção: US $ 11 milhões

Aquisição de direitos de terra e mineral

Energia do anel gasto US $ 45,2 milhões na aquisição de direitos de terra e mineral em 2023, com foco em:

• Levaneira de Delaware: US $ 28,6 milhões
• Direitos adicionais da região do Permiano: US $ 16,6 milhões

Custos operacionais e de manutenção

Categoria de despesa operacional	Custo anual ($)
Operações de campo	62,7 milhões
Manutenção do equipamento	24,3 milhões
Transporte e logística	18,5 milhões
Trabalho e pessoal	41,2 milhões

Despesas de conformidade e gestão ambiental

Os custos de conformidade ambiental e regulatória para 2023 foram US $ 15,6 milhões, incluindo:

• Avaliações de impacto ambiental: US $ 4,2 milhões
• Monitoramento de emissões: US $ 3,8 milhões
• Relatórios regulatórios: US $ 2,6 milhões
• Remediação e restauração: US $ 5 milhões

Ring Energy, Inc. (REI) - Modelo de negócios: fluxos de receita

Vendas de petróleo bruto

A partir do terceiro trimestre de 2023, a energia do anel relatou a produção total de petróleo de 5.428 barris por dia. O preço médio realizado no petróleo foi de US $ 76,48 por barril.

Métrica	Valor	Período
Produção total de petróleo	5.428 barris por dia	Q3 2023
Preço do petróleo realizado	US $ 76,48 por barril	Q3 2023

Receitas de produção de gás natural

A produção de gás natural para energia do anel no terceiro trimestre de 2023 foi de 6,6 milhões de pés cúbicos por dia, com um preço médio realizado de US $ 2,73 por mil pés cúbicos.

Métrica	Valor	Período
Produção de gás natural	6,6 milhões de pés cúbicos por dia	Q3 2023
Preço percebido do gás	US $ 2,73 por mil pés cúbicos	Q3 2023

Receita de leasing de direitos minerais

A Ring Energy possui aproximadamente 99.000 acres líquidos na bacia de Delaware. A renda de leasing varia de acordo com a área cultivada e o mercado.

Contratos de hedge e derivado financeiro

A partir do terceiro trimestre de 2023, a energia do anel tinha contratos de hedge cobrindo:

• 3.000 barris de petróleo por dia a US $ 74,05 Preço médio
• 5.000 mmbtu de gás natural por dia a US $ 3,45 Preço médio

Potenciais oportunidades de venda de ativos e desenvolvimento

A Ring Energy relatou receita total de US $ 77,8 milhões no terceiro trimestre de 2023, com potencial para receita adicional por meio de gerenciamento estratégico de ativos.

Métrica financeira	Valor	Período
Receita total	US $ 77,8 milhões	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.