Ring Energy Inc (REI)
XASE:REI
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Ring Energy
(NYSE MKT:REI)
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Rating:60Neutral
Price Target:
$1.50
▼(-5.06% Downside)
Action:ReiteratedDate:03/07/26
The score is held back primarily by the 2025 earnings shock (large reported loss/impairment) and negative P/E, despite supportive cash flow and improved leverage. Technicals are favorable with price above major moving averages, but momentum looks stretched (high RSI). The earnings call adds support through credible free-cash-flow and debt-reduction focus for 2026 with hedge protection, though near-term commodity price/differential risks remain.
Positive Factors
Consistent Free Cash Flow
A long track record of positive adjusted free cash flow (record $50.1M in 2025 and 25 consecutive quarters) underpins durable internal funding for capex, debt reduction and shareholder returns. This persistent cash generation increases financial flexibility and lowers refinancing dependence across cycles.
Negative Factors
Large Non‑cash Impairment
A sizable non-cash impairment undermines earnings quality and signals potential asset valuation or reserve-estimate risk. Recurring or additional write-downs would reduce equity value, depress reported returns, and could constrain future capital allocation if asset economics prove weaker than modeled.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Free Cash Flow
A long track record of positive adjusted free cash flow (record $50.1M in 2025 and 25 consecutive quarters) underpins durable internal funding for capex, debt reduction and shareholder returns. This persistent cash generation increases financial flexibility and lowers refinancing dependence across cycles.
Read all positive factors
Ring Energy (REI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$330.84M
Dividend YieldN/A
Average Volume (3M)5.28M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth-15.44%
EPS Growth-113.21%
CountryUS
Employees115
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.02
Shares Outstanding209,395,110
10 Day Avg. Volume5,380,180
30 Day Avg. Volume5,284,920
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.21
Price to Sales (P/S)0.58
P/FCF Ratio3.39
Enterprise Value/Market Cap2.28
Enterprise Value/Revenue2.45
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda4.37
Forecast
1Y Price Target
$2.50Price Target Upside58.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)$278.90M
Ring Energy Business Overview & Revenue Model
Company Description
Ring Energy, Inc., an exploration and production company, engages in the acquisition, exploration, development, and production of oil and natural gas in Texas and New Mexico. As of December 31, 2021, the company's proved reserves consisted of appr...
How the Company Makes Money
Ring Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its oil and gas properties. The company engages in exploration and production activities, allowing it to tap into existing an...
Ring Energy Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call emphasized substantial operational and financial progress: record full-year adjusted free cash flow ($50.1M), reserve and inventory growth, meaningful cost and capital-efficiency improvements, and significant debt reduction and liquidity. Management presented a disciplined 2026 plan focused on maintaining production, improving capital efficiency, and further deleveraging while preserving hedge coverage. Counterbalancing these positives were near-term headwinds from lower realized prices and widened differentials that drove a sequential revenue decline and a Q4 net loss that included sizable non-cash impairment charges, along with operational disruptions (gas plant outage and winter storm) and a small non-core asset sale at a modest multiple. On balance, the call portrays a company that delivered resilient results in a weak-price environment, strengthened its balance sheet, and set a path to prioritize debt reduction and free cash flow — outweighing the near-term negatives.Positive Updates
Record Adjusted Free Cash Flow and Strong Cash Generation
Generated $50.1 million of adjusted free cash flow for full year 2025 and delivered a 25th consecutive quarter of adjusted free cash flow; adjusted free cash flow increased 15% year-over-year despite an 18% decline in realized commodity prices.
Negative Updates
Sequential Price and Revenue Weakness
Realized overall price declined 14% sequentially in Q4 to $35.45/BOE from $41.10/BOE (driven by an 11% drop in oil realized pricing); total revenue fell 15% quarter-over-quarter to $66.9 million from $78.6 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted Free Cash Flow and Strong Cash Generation
Generated $50.1 million of adjusted free cash flow for full year 2025 and delivered a 25th consecutive quarter of adjusted free cash flow; adjusted free cash flow increased 15% year-over-year despite an 18% decline in realized commodity prices.
Read all positive updates
Company Guidance
Ring Energy’s 2026 guidance assumes $60/boe WTI and $3.50/Mcf Henry Hub and targets average sales of 19,500–20,800 BOE/d (midpoint 20,150 BOE/d) with oil sales of 12,500–13,400 bbl/d (midpoint 12,950 bbl/d) (after a ~200 BOE/d divestiture and a January storm impact of ~500–540 BOE/d); full‑year capital spending is $100–130 million (midpoint $115M) with 23–32 wells planned (Q1 CapEx $28–34M, midpoint $31M), a midpoint horizontal mix of ~85% (≈23 horizontals) including the first two‑mile well and longer laterals (>1.5 miles), expected LOE of $10.15–$11.50/BOE (midpoint $10.65/BOE), approximately 2.3 million barrels of oil hedged (~48% of estimated oil sales at midpoint) and 4.7 Bcf of gas hedges (~66% of estimated gas sales), and a clear emphasis on generating free cash flow to pay down debt.Ring Energy Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 307.18M | 366.33M | 361.06M | 347.25M | 196.31M |
| Gross Profit | 186.47M | 163.92M | 176.39M | 219.82M | 112.57M |
| EBITDA | 172.39M | 229.93M | 237.53M | 225.95M | 55.07M |
| Net Income | -34.73M | 67.47M | 104.86M | 138.64M | 3.32M |
Balance Sheet | |||||
| Total Assets | 1.51B | 1.41B | 1.38B | 1.27B | 684.16M |
| Cash, Cash Equivalents and Short-Term Investments | 902.91K | 1.87M | 296.38K | 3.71M | 2.41M |
| Total Debt | 423.24M | 389.10M | 430.02M | 419.13M | 292.68M |
| Total Liabilities | 677.21M | 549.46M | 589.91M | 607.90M | 383.53M |
| Stockholders Equity | 836.28M | 858.64M | 786.58M | 661.10M | 300.62M |
Cash Flow | |||||
| Free Cash Flow | 52.93M | 38.08M | 42.96M | 65.76M | 19.49M |
| Operating Cash Flow | 150.85M | 194.42M | 198.17M | 196.98M | 72.73M |
| Investing Cash Flow | -179.50M | -150.85M | -222.57M | -308.88M | -51.24M |
| Financing Cash Flow | 27.69M | -42.00M | 20.99M | 113.21M | -22.66M |
Ring Energy Technical Analysis
Positive
1.58
Price Trends
1.32
Positive
1.12
Positive
1.02
Positive
Market Momentum
0.07
Positive
63.36
Neutral
71.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REI, the sentiment is Positive. The current price of 1.58 is above the 20-day moving average (MA) of 1.51, above the 50-day MA of 1.32, and above the 200-day MA of 1.02, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REI.
Ring Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $270.70M | 4.20 | 10.56% | ― | -9.46% | -144.89% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $163.12M | 28.10 | 4.46% | 13.52% | -2.23% | -104.00% | |
63 Neutral | $186.83M | -22.04 | -4.55% | 5.24% | 46.76% | 11.48% | |
60 Neutral | $330.84M | ― | -4.02% | ― | -15.44% | -113.21% | |
56 Neutral | $320.16M | -0.78 | -56.05% | ― | -1.58% | -271.90% | |
43 Neutral | $113.11M | -0.44 | -177.26% | ― | -15.13% | 17.34% |
* Energy Sector Average
REI
Ring Energy
1.58
0.43
37.39%
EPM
Evolution Petroleum
4.66
-0.02
-0.36%
GTE
Gran Tierra Energy
9.07
4.14
83.98%
AMPY
Amplify Energy
6.56
2.82
75.40%
EPSN
Epsilon Energy
6.25
-0.51
-7.60%
EP
Empire Petroleum
3.07
-3.21
-51.08%
Ring Energy Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ring Energy Grants Inducement Equity Awards to New CFO
Positive
Mar 6, 2026
On March 5, 2026, Ring Energy granted inducement equity awards to its new Executive Vice President, Chief Financial Officer and Treasurer, Sonu Johl, consisting of 317,460 restricted stock units and 476,190 performance stock units, with the RSUs v...
Business Operations and StrategyFinancial Disclosures
Ring Energy Reports 2025 Results and 2026 Outlook
Positive
Mar 5, 2026
On March 4, 2026, Ring Energy reported that in the fourth quarter of 2025 it sold 13,124 barrels of oil per day and 20,508 barrels of oil equivalent per day, posted a net loss of $12.8 million driven by a non-cash impairment, but remained cash flo...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Ring Energy Finalizes Finance Leadership with New Appointments
Positive
Mar 4, 2026
On March 1, 2026, Ring Energy’s board appointed Rocky Kwon as Chief Accounting Officer and principal accounting officer, adding to his existing role as Vice President and Principal Financial Officer after he had served as Interim Chief Finan...
Business Operations and StrategyExecutive/Board Changes
Ring Energy Appoints New Executive Vice President and CFO
Positive
Feb 3, 2026
On February 3, 2026, Ring Energy, Inc. announced that its board appointed Sundip “Sonu” S. Johl as Executive Vice President, Chief Financial Officer and Treasurer, effective February 27, 2026, bringing in a veteran energy investment ba...
Business Operations and StrategyPrivate Placements and Financing
Ring Energy Reaffirms $585 Million Borrowing Base
Positive
Dec 16, 2025
On December 16, 2025, Ring Energy announced the reaffirmation of its borrowing base at $585 million under its $1.0 billion senior revolving credit facility. The company expressed gratitude for the continued support from its banking syndicate, high...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.