Ring Energy, Inc. Announces Third Quarter and Nine Month 2015 Financial and Operating Results

Ring Energy, Inc. (NYSE MKT: REI) (“Ring”)(“Company”) announced today
financial results for the three months and nine months ended September
30, 2015. For the three month period ended September 30, 2015, Ring had
oil and gas revenues of $8,629,007 compared to $10,929,771 for the
quarter ended September 30, 2014, and net loss of $1,138,268 or $0.04
per fully diluted share, compared to a net income of $1,726,469, or
$0.06 per fully diluted share, for the same period in 2014. For the nine
month period ended September 30, 2015, the Company reported oil and gas
revenues of $23,651,498, compared to oil and gas revenues of $28,104,461
for the nine month period ended September 30, 2014, and a net loss for
the nine month period ended September 30, 2015 of $1,579,725, or $0.06
per fully diluted share, compared to a net income of $5,711,896, or
$0.22 per fully diluted share, for the same period in 2014. The revenue
decrease was primarily due to lower received oil and gas prices.

For the three months ended September 30, 2015, oil sales volume
increased to 181,069 barrels, compared to 124,526 barrels for the same
period in 2014, and gas sales volume increased to 165,942 MCF (thousand
cubic feet), compared to 8,192 MCF for the same period in 2014. For the
nine months ended September 30, 2015, oil sales volume increased to
483,918 barrels, compared to 307,003 barrels for the same period in
2014, and gas sales volume increased to 280,307 MCF, compared to 23,951
MCF for the same period in 2014. The average commodity prices received
by Ring were $45.24 per barrel of oil and $2.64 per MCF of natural gas
for the quarter ended September 30, 2015, compared to $87.58 per barrel
of oil and $2.92 per MCF of natural gas for the quarter ended September
30, 2014. The average prices received for the nine months ended
September 30, 2015 were $47.31 per barrel of oil and $2.70 per MCF of
natural gas, compared to $91.21 per barrel of oil and $4.24 per MCF of
natural gas for the nine month period ended September 30, 2014.

Lease operating expenses, including production taxes, for the three
months ended September 30, 2015 were $15.94 per barrel of oil equivalent
(“BOE”), an 8% increase from the prior year. Depreciation, depletion and
amortization costs, including accretion, decreased 37% to $22.86 per
BOE. General and administrative costs, which included a $650,968 charge
for stock based compensation, were $9.59 per BOE, a 34% decrease. For
the nine months ended September 30, 2015, lease operating expenses,
including production taxes, were $15.27 per BOE, a 6% increase.
Depreciation, depletion and amortization costs, including accretion,
were $22.20 per BOE, a 28% decrease, and general and administrative
costs, which included a $1,962,142 charge for stock based compensation,
were $10.88 per BOE, a 33% decrease.

There was outstanding debt of $40,900,000 on the Company’s $500 million
senior secured credit facility at September 30, 2015.

Net cash flow from operations for the three and nine months ended
September 30, 2015 was $3,522,565 or $0.12 per fully diluted share, and
$11,309,746, or $0.41 per fully diluted share, compared to net cash flow
of $7,995,660 and $20,691,009, or $0.30 and $0.81 per fully diluted
share for the same periods in 2014 (1).

Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “As commodity
prices continue to be depressed, we have focused our attention on
improving efficiencies at both our legacy properties in the Permian
Basin and our recently acquired Delaware Basin acreage. We have made
infrastructure improvements at both sites and continue to work closely
with all our vendors. We remain patient and diligent as we evaluate
additional acquisition opportunities. We have built a solid company with
years of drilling inventory and are anxious to restart our development
program.”

Non-GAAP Financial Measures:

Earnings for the three months ended September 30, 2015 include a
non-cash charge for stock based compensation of $650,968. Earnings for
the nine months ended September 30, 2015 include a non-cash charge for
stock based compensation of $1,962,142. Excluding such items, the
Company’s earnings would have been a net loss of $0.02 per diluted share
for the three months ended September 30, 2015, and a net loss of $0.01
for the nine months ended September 30, 2015. The Company believes
results excluding these items are more comparable to estimates provided
by security analysts and, therefore, are useful in evaluating
operational trends of the Company and its performance, compared to other
similarly situated oil and gas producing companies.

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development and
production company with current operations in Texas and Kansas. www.ringenergy.com

Safe Harbor Statement

This release contains forward-looking statements within the meaning of
the “safe-harbor” provisions of the Private Securities Litigation Reform
Act of 1995 that involve a wide variety of risks and uncertainties,
including, without limitations, statements with respect to the Company’s
strategy and prospects. Such statements are subject to certain risks and
uncertainties which are disclosed in the Company’s reports filed with
the SEC, including its Form 10-K for the fiscal year ended December 31,
2014, its Form 10-Q for the quarter ended September 30, 2015 and its
other filings with the SEC. Readers and investors are cautioned that the
Company’s actual results may differ materially from those described in
the forward-looking statements due to a number of factors, including,
but not limited to, the Company’s ability to acquire productive oil
and/or gas properties or to successfully drill and complete oil and/or
gas wells on such properties, general economic conditions both
domestically and abroad, and the conduct of business by the Company, and
other factors that may be more fully described in additional documents
set forth by the Company.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006772/en/

News by QuoteMedia

www.quotemedia.com