Ring Energy (REI) investor relations material

Executive summary

• Q3 portfolio actions generated $30.5M from non-core sales, funded $18.8M of CBP acreage purchases and supported $10M of debt reduction; LQA leverage was 1.5x.

• Sales volumes rose 3% QoQ and adjusted EBITDA increased to $57.1M, while accelerated capital spending drove adjusted free cash flow of negative $13.8M.

• Longer-lateral development and infrastructure investment support planned 2027 production growth and improved well economics.

Financial highlights

• Q3 revenue was $102.3M, up 30% YoY and down 2% QoQ; realized price was $53.91/Boe, while realized oil price was $83.72/Bbl, down 12% QoQ.

• GAAP net loss was $16.6M, or $0.06 per diluted share; adjusted net income was $27.3M, or $0.10 per share.

• Adjusted EBITDA was $57.1M with a 56% margin; cash from operating activities was $63.1M and adjusted free cash flow was negative $13.8M, including $64.0M of capital expenditures.

• Nine-month revenue was $280.7M; net loss was $172.4M, including a $162.1M non-cash ceiling-test impairment and $111.7M derivative loss.

• Q3 interest expense declined to $7.7M, down 8% QoQ and 24% YoY.

Outlook and guidance

• Q4 2026 guidance: oil sales of 12,900–13,500 Bbl/d, total sales of 20,400–21,200 Boe/d, LOE of $9.80–$10.30/Boe and capital spending of $43–$48M.

• FY 2027 guidance: oil sales of 13,200–14,300 Bbl/d, total sales of 21,000–23,000 Boe/d, LOE of $9.70–$10.50/Boe and capital spending of $135–$165M.

• 2027 plans include 20–30 new horizontal wells with laterals longer than 1.5 miles; management expects 10% production growth on a similar, slightly lower capital program.

• Management expects Q4 spending to step down, with positive free cash flow in Q4 and for FY 2026; 2027 capital deployment may change with prices, cash flow and leverage progress.

• Guidance assumes 63% oil, 20% NGLs and 17% gas; 2027 capital is weighted to H1.