Episode Details

Paul McKinney, Chairman and CEO, and Sonu Johl, EVP and CFO of Ring Energy, Inc. (NYSE American: REI), join us to review their Q2 2026 operations and financials, of oil production from their current portfolio of conventional and long horizontal wells and focused on growth through development within the Central Basin of the Permian Basin in Texas.

Q2 2026 HIGHLIGHTS:

Strengthened Financial Position

• Reported net income of $64.8 million (included a $42.2 million unrealized mark-to-market gain on commodity derivative contracts), or $0.27 per diluted share, and Adjusted Net Income of $24.0 million, or $0.10 per diluted share;
• Reduced borrowings under the Company’s revolving credit facility by $66 million during the quarter and increased liquidity to approximately $226.1 million at June 30, 2026;
• Increased Adjusted EBITDA 42% to $54.5 million from $38.3 million in the first quarter; year-to-date Adjusted EBITDA totaled $92.8 million; and
• Generated net cash provided by operating activities of $40.8 million and remained cash flow positive for over 6 consecutive years.

Continued Operational and All-In Cash Cost Improvements

• Produced 12,683 barrels of oil per day and 19,990 barrels of oil equivalent (“Boe”) per day, both within guidance;
• Reported lease operating expense of $10.12 per Boe, near the low end of guidance and below first quarter levels; and
• Reduced Company all-in-cash costs by 5% in first half 2026 to $21.68 per Boe as compared to first half 2025.

Advanced Development and Infrastructure Initiatives

• Invested approximately $43.2 million in capital expenditures during the quarter, including three ~2-mile horizontal wells drilled, one saltwater disposal well (“SWD”), a frac pond, and other infrastructure projects; and
• Continued execution of multiple technical and operational initiatives aimed at improving capital efficiency, expanding development opportunities and enhancing long-term stockholder value.

Positioned for Improved Returns and Sustainable Growth

• Second half 2026 oil production guidance range of 13,000 to 13,950 Bopd, with the midpoint approximately 2% above prior guidance.
• Second half 2026 LOE per Boe guidance range of $10.00 to $10.60, with the midpoint approximately 2% below prior guidance.
• Initial 2027 guidance targets:
  • Production growth approximately 10% over full-year 2026;
  • LOE per Boe approximately 1% lower than full-year 2026; and
  • Capital expenditures approximately 10% lower than full-year 2026.

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If you have any question for Paul or Sonu regarding Ring Energy, then please email those to us at Fleck@kereport.com or  Shad@kereport.com.

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