Ring Energy to acquire CBP assets of Lime Rock Resources IV, LP for $100M

Ring Energy (REI) announced it has entered into an agreement to acquire the Central Basin Platform assets of Lime Rock Resources IV, LP for $100M, subject to customary closing adjustments. The purchase price is comprised of $80M of upfront cash consideration, a $10M deferred cash payment due nine months after closing, and up to 7.4M shares of Ring common stock. The transaction has an effective date of October 1, 2024, and is expected to close by the end of the first quarter of 2025. Lime Rock’s CBP acreage is in Andrews County, Texas, where the majority of the acreage directly offsets Ring’s core Shafter Lake operations, and the remaining acreage is prospective for multiple horizontal targets and exposes the Company to new active plays. The transaction represents another opportunity for the Company to seamlessly integrate strategic, high-quality assets with Ring’s existing operations and create shareholder value through improved operations and synergy capture. The Lime Rock position has been a key target for Ring as the Company has historically sought to consolidate producing assets in core counties on the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital. Additionally, these assets add significant near-term opportunities for field level optimization and cost savings that are core competencies of Ring’s operating team.