Ring Energy (REI) investor relations material

Executive summary

• Achieved record adjusted free cash flow of $50.1 million in 2025, up 15% year-over-year, despite an 18% drop in realized commodity prices, and maintained 25 consecutive quarters of positive cash flow.

• Increased total proved reserves by 14% to 153 MMBoe and extended drilling inventory to over 500 locations, exceeding 10 years.

• Fully integrated Lime Rock acquisition, exceeding expectations in production, capital efficiency, and LOE, and paid down $40 million in debt since the acquisition.

• Improved drilling capital efficiency by 19% since 2023 and reduced capital spending by 35% year-over-year to $98.2 million.

• Maintained strong operational execution, beating production and cost guidance, and increased sales volumes by 3% year-over-year to a record 20,253 Boe/d.

Financial highlights

• FY 2025 production averaged 20,253 Boe/d (65% oil), with Q4 production at 20,508 Boe/d, slightly down sequentially due to a third-party outage.

• Adjusted EBITDA for 2025 was $184.0 million, with a 60% margin, and all-in cash operating costs reduced to $22.23/Boe.

• Q4 2025 net loss was $12.8 million (including $35.9 million non-cash impairment); full year net loss was $34.7 million (including $108.8 million non-cash impairment); adjusted net income for the year was $38.4 million.

• Q4 2025 revenues were $66.9 million, down 15% sequentially; full year revenues were $307.2 million, down 16% year-over-year.

• Lease Operating Expense (LOE) for Q4 2025 was $10.02/Boe, 7% below guidance; full year LOE was $10.73/Boe.

Outlook and guidance

• 2026 production guidance midpoint is 20,150 Boe/d, essentially flat year-over-year, with capital spending set at a midpoint of $115 million and 23–32 wells to be drilled and completed.

• LOE guidance for 2026 is $10.65/Boe midpoint, expected to remain stable or slightly below 2025 levels.

• 2026 Adjusted Free Cash Flow projected at $75 million at $75 WTI, with a 28% yield.

• Focus remains on capital efficiency, cost reductions, and using free cash flow to reduce debt if oil prices remain above $60.