Ring Energy (REI) Q4 2024 earnings summary

Executive summary

• Achieved record full-year 2024 sales of 19,648 BOE/day (up 8% YoY) and oil sales of 13,283 BOPD (up 6% YoY), with all-in cash operating costs per BOE down 2% YoY.

• Full-year net income was $67.5M ($0.34/share) and adjusted net income $69.5M ($0.35/share); adjusted EBITDA reached $233.3M despite a 7% drop in realized prices.

• Paid down $40M in debt during 2024, with $70M reduced since August 2023, exiting with $217M liquidity and a leverage ratio of 1.66x.

• Organically grew proved reserves by 3% to 134.2 MMBoe, combining organic reserve replacement and accretive acquisitions.

• Announced pending Lime Rock acquisition (up to $100M), expected to close by end of Q1 2025, expanding CBP footprint and adding scale.

Financial highlights

• Full-year 2024 revenues were $366.3M (up 1% YoY); Q4 revenues were $83.4M, down 7% sequentially.

• Adjusted EBITDA for 2024 was $233.3M (64% margin); adjusted free cash flow was $43.6M, maintaining positive cash flow for over five years.

• Q4 net income was $5.7M ($0.03/share); adjusted net income was $12.3M ($0.06/share).

• All-in cash operating costs per BOE were $23.04 for 2024; Q4 average realized oil price was $68.98/Bbl.

• Cash return on capital employed (CROCE) for 2024 was 15.9%.

Outlook and guidance

• 2025 guidance includes three quarters of Lime Rock asset operations, with expected average sales of 21,000 BOE/day (up 7%) and 13,900 BOPD (up 5%).

• Planned 2025 capital spending midpoint is $154M, with about 49 wells to be drilled, completed, and placed online.

• 2025 LOE guidance is $11.25–$12.25/BOE; Q1 2025 LOE expected at $11.75–$12.25/BOE.

• All 2025 capex to be funded by cash and operations; excess free cash flow targeted for debt reduction.

• 2025 price assumptions: WTI $65–$75/bbl, Henry Hub $2–$4/MCF.