Ring Energy Releases Second Quarter 2026 Results, Advances Development Program and Provides Initial 2027 Outlook

Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the second quarter of 2026, announced an expanded development program for second half of 2026, updated guidance for the remainder of 2026 and provided guidance for 2027.

Second Quarter 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 1 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 1 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 1 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.

Management Commentary

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “The second quarter marked another period of efficient and effective execution for Ring Energy. We delivered production within guidance, reduced per-Boe operating costs, significantly increased Adjusted EBITDA, and generated positive Adjusted Free Cash Flow 1 for the 27th straight quarter. Additionally, we continued strengthening our balance sheet while positioning the Company for the next phase of its development strategy. The equity offering completed during the quarter gave us the balance sheet capacity to fund the acceleration of our development transition without losing focus on decreasing our leverage ratio. Rather than choosing between strengthening the balance sheet and investing in the highest-return phase of our development plan, the timing of this raise allowed us to do both. We expect our expanded drilling program to be funded primarily through operating cash flow going forward, with leverage continuing to trend toward our 1.25x target as this investment cycle completes. When considerin...