Ring Energy (REI) investor relations material

Executive overview

• Focused operations in the Permian Basin, especially the Central Basin Platform and Southern Northwest Shelf, with headquarters in The Woodlands, Texas.

• Recent production averaged over 21,000 barrels per day, with proved reserves at 134 million barrels, increased by 12 million barrels after the LimeRock acquisition.

• Strategy centers on applying shale technologies to conventional rock, yielding competitive returns and lower drilling costs.

• Record production and cash flow achieved, with significant debt reduction and improved leverage ratio.

• Emphasis on operational excellence, safety, and environmental responsibility, with top-tier emissions reductions.

Financial performance and cost management

• Achieved record adjusted free cash flow of nearly $25 million, up over 300%, with most applied to debt repayment.

• Lease operating costs and all-in cash operating costs reduced by 12% quarter-over-quarter.

• Capital spending for the year reduced by 36% while increasing oil production by 2%.

• Integration of LimeRock assets led to a 50% reduction in required headcount and further cost savings.

• Hedging program covers about 55% of proved reserve forecast for 2025 and 2026 at $65 floors.

Strategic direction and growth

• Long-term strategy prioritizes maximizing free cash flow and maintaining a strong balance sheet.

• Production has grown over 23% compounded annually since 2020, with proved reserves up 88%.

• Focus on high operational ownership and high net revenue interest to improve profitability.

• Central Basin Platform identified as a key area for future growth, leveraging underexplored resources and existing infrastructure.

• Recent acquisitions (Stronghold, Founders, LimeRock) have transformed the company and improved efficiency.