Wed, May 7, 9:18 PM (11 days ago)
**Ring Energy, Inc. (REI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $79.1 million, down 16% YoY due to lower oil prices and reduced production. - **Net Income:** $9.1 million, up from $5.5 million in Q1 2024. - **Earnings per Share (EPS):** $0.05, up from $0.03 in Q1 2024. - **Cash Flow from Operations:** $28.4 million, down from $45.2 million in Q1 2024. - **Cash on Hand:** $1.1 million, down from $1.9 million in Q1 2024. - **Capital Expenditures:** $102.6 million, up from $39.5 million in Q1 2024, driven by the Lime Rock Acquisition. **Profit Margins:** - **Operating Margin:** 28.2%, down from 39.8% in Q1 2024. - **Net Margin:** 11.5%, up from 5.8% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $28.4 million, down from $45.2 million in Q1 2024. - **Investing Cash Flow:** -$102.6 million, up from -$39.5 million in Q1 2024. - **Financing Cash Flow:** $73.5 million, up from -$4.6 million in Q1 2024. **Earnings Changes:** - **Revenue Decrease:** $15.4 million, primarily due to lower oil prices and reduced production. - **Operating Expenses:** Increased by $0.3 million, driven by higher lease operating expenses and gathering, transportation, and processing costs. - **Derivative Gains/Losses:** Improved by $18.1 million, primarily due to changes in crude oil futures prices. **Quarterly Performance Discussion:** - **Oil Sales:** Decreased by $15.8 million due to lower volumes and prices. - **Natural Gas Sales:** Improved slightly due to higher volumes and prices. - **Natural Gas Liquids (NGLs) Sales:** Decreased slightly due to lower prices. - **Production Costs:** Increased due to higher electricity costs and other operational expenses. - **General and Administrative (G&A) Expenses:** Increased by $1.2 million due to higher bonus compensation and salaries. **Trends and Uncertainties:** - **Commodity Prices:** Volatile, with continued uncertainty. - **Inflation:** Increased costs associated with capital programs and production operations. - **Natural Gas Takeaway Capacity:** Lack of sufficient pipeline transportation impacting natural gas revenues. - **Acquisitions:** Continued focus on strategic acquisitions to grow production and reserves. **Future Operations Impact:** - **Lime Rock Acquisition:** Completed in Q1 2025, adding strategic assets in the Permian Basin. - **Drilling and Completion:** Continued focus on drilling and completing wells in the Northwest Shelf and Central Basin Platform. - **Debt Management:** Focus on reducing long-term debt and deleveraging assets. - **Hedging:** Continued use of derivative instruments to manage commodity price risk. **Ticker:** REI