Ring Energy Inc (REI)
XASE:REI
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Ring Energy
(NYSE MKT:REI)
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Rating:50Neutral
Price Target:
$1.00
▼(-20.00% Downside)
Action:Reiterated
Date:05/23/26
The score is held down primarily by deteriorated reported profitability, negative TTM free cash flow, and weak technical momentum. The latest earnings call provides a partial offset with reaffirmed guidance, structural LOE improvements, adjusted profitability and sustained positive free-cash-flow history, but leverage above target and large accounting charges keep overall risk elevated.
Positive Factors
Low lease operating expense (LOE)
Sustained LOE reductions reflect structural cost improvements and operating discipline, widening per-BOE margins across the asset base. Lower LOE supports durable cash generation, funds reinvestment or debt paydown, and increases resilience to moderate commodity price weakness over months.
Negative Factors
Large non-cash accounting charges
Material non-cash impairments and derivative losses sharply reduce reported equity and generate volatility in earnings and book value. Persistent or recurring write-downs can signal asset valuation risk, restrict reported profitability metrics, and weigh on investor confidence and covenant headroom over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low lease operating expense (LOE)
Sustained LOE reductions reflect structural cost improvements and operating discipline, widening per-BOE margins across the asset base. Lower LOE supports durable cash generation, funds reinvestment or debt paydown, and increases resilience to moderate commodity price weakness over months.
Read all positive factors
Ring Energy (REI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$271.62M
Dividend YieldN/A
Average Volume (3M)5.93M
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-14.01%
EPS Growth-454.24%
CountryUS
Employees115
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-1.28
Shares Outstanding253,853,620
10 Day Avg. Volume4,568,029
30 Day Avg. Volume5,933,528
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 Cap2.45
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit3.91
Enterprise Value/Ebitda-5.53
Forecast
1Y Price Target
$2.50Price Target Upside100.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)$510.27M
Ring Energy Business Overview & Revenue Model
Company Description
Ring Energy, Inc. operates as an oil and natural gas exploration and production firm, concentrating its efforts on the acquisition, development, and extraction of these resources across Texas and New Mexico. By the close of 2021, specifically Dece...
How the Company Makes Money
Ring Energy makes money primarily by producing and selling hydrocarbons—crude oil, natural gas, and NGLs—from its operated and non-operated wells. Revenue is generated when produced volumes are sold to third-party purchasers/marketers (typically a...
Ring Energy Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operational and strategic picture: the company delivered recurring structural cost improvements, drilling efficiency gains, production in line with guidance, meaningful infrastructure investments to enable higher-return horizontal development, strong realized oil pricing, adjusted profitability, sustained free cash flow for 26 consecutive quarters, and ample liquidity. Offsetting these positives were large non-cash accounting charges (a ceiling test impairment and an unrealized derivative loss) that depressed reported net income, negative realized gas pricing, a temporary pause in debt reduction that increased borrowings and leverage to ~2.4x, and modest near-term production timing effects. Management positioned the infrastructure acceleration as a deliberate, shareholder-focused tradeoff to capture expected higher prices and improved long-term capital efficiency. On balance, operational momentum and cash-generation fundamentals outweigh the near-term accounting and timing headwinds.Positive Updates
Strong Operating Cost Performance
Lease operating expenses (LOE) of $18.1 million, or $10.41 per BOE, below the low end of guidance for the fourth consecutive quarter; more than $1.7 million per month lower than pro forma Q1 2025 (implying >$5.1 million lower for the quarter) and over $2.00/BOE improvement versus pro forma Q1 2025, indicating structural cost reductions and margin expansion.
Negative Updates
Large Non-Cash Accounting Charges
Recorded a $162.1 million non-cash ceiling test impairment under full cost accounting and a $77 million unrealized derivative loss in the quarter, which materially depressed reported net income despite being non-cash and driven by trailing average SEC prices and forward curve movement.
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Q1-2026 Updates
Positive
Negative
Strong Operating Cost Performance
Lease operating expenses (LOE) of $18.1 million, or $10.41 per BOE, below the low end of guidance for the fourth consecutive quarter; more than $1.7 million per month lower than pro forma Q1 2025 (implying >$5.1 million lower for the quarter) and over $2.00/BOE improvement versus pro forma Q1 2025, indicating structural cost reductions and margin expansion.
Read all positive updates
Company Guidance
Management reaffirmed guidance for the next three quarters and said the company “delivered on sales guidance,” reporting Q1 oil sales of 12,276 bbl/d and total sales of 19,351 BOE/d; Q1 capex of $34.5M (slightly above guidance) with just over $5M (~15% of capex) spent on saltwater disposal/frac water/facilities, six wells drilled and seven completions (five one‑mile horizontals, >80% of the program, avg WI ~91%; one vertical; one DUC at 100% WI); LOE $18.1M or $10.41/BOE (below the low end of guidance for the fourth straight quarter); realized pricing $42.30/BOE (oil $68.07/bbl, gas -$2.54/Mcf); adjusted net income $7.4M and adjusted EBITDA $38.3M (offset by a $77M unrealized derivative loss and a $162.1M ceiling‑test impairment); liquidity $160M, borrowings up ≈$6M, leverage ~2.4x (target ~1.25x), hedges cover 72% of oil at a $73.27 average ceiling and 73% of gas at a $3.78 floor, and the company reported its 26th consecutive quarter of positive free cash flow.Ring Energy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 301.76M | 307.18M | 366.33M | 361.06M | 347.25M | 196.31M |
| Gross Profit | 170.49M | 186.47M | 163.92M | 176.39M | 219.82M | 112.57M |
| EBITDA | -120.59M | 96.15M | 229.93M | 237.53M | 225.95M | 55.07M |
| Net Income | -264.43M | -34.73M | 67.47M | 104.86M | 138.64M | 3.32M |
Balance Sheet | ||||||
| Total Assets | 1.25B | 1.51B | 1.41B | 1.38B | 1.27B | 684.16M |
| Cash, Cash Equivalents and Short-Term Investments | 1.04M | 902.91K | 1.87M | 296.38K | 3.71M | 2.41M |
| Total Debt | 428.41M | 423.24M | 389.10M | 430.02M | 419.13M | 292.68M |
| Total Liabilities | 632.74M | 677.21M | 549.46M | 589.91M | 607.90M | 383.53M |
| Stockholders Equity | 621.98M | 836.28M | 858.64M | 786.58M | 661.10M | 300.62M |
Cash Flow | ||||||
| Free Cash Flow | -25.64M | 52.93M | 38.08M | 42.96M | 65.76M | 19.49M |
| Operating Cash Flow | 148.37M | 150.85M | 194.42M | 198.17M | 196.98M | 72.73M |
| Investing Cash Flow | -107.92M | -179.50M | -150.85M | -222.57M | -308.88M | -51.24M |
| Financing Cash Flow | -40.52M | 27.69M | -42.00M | 20.99M | 113.21M | -22.66M |
Ring Energy Technical Analysis
Negative
1.25
Price Trends
1.40
Negative
1.41
Negative
1.19
Negative
Market Momentum
-0.09
Positive
33.95
Neutral
7.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REI, the sentiment is Negative. The current price of 1.25 is above the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.40, and above the 200-day MA of 1.19, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 33.95 is Neutral, neither overbought nor oversold. The STOCH value of 7.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $163.95M | -14.83 | -8.07% | 5.24% | 53.71% | -303.17% | |
56 Neutral | $135.96M | -36.37 | -5.44% | 13.52% | -3.16% | -313.41% | |
54 Neutral | $162.67M | 15.76 | 2.78% | ― | -21.23% | -41.25% | |
52 Neutral | $221.00M | -0.75 | -107.19% | ― | -4.90% | -2372.77% | |
50 Neutral | $271.62M | -0.83 | -33.01% | ― | -14.01% | -454.24% | |
47 Neutral | $103.86M | -1.20 | -277.83% | ― | -23.13% | -316.13% |
* Energy Sector Average
REI
Ring Energy
1.07
0.28
34.76%
EPM
Evolution Petroleum
3.79
-0.43
-10.17%
GTE
Gran Tierra Energy
6.25
1.48
31.03%
AMPY
Amplify Energy
3.94
0.74
23.12%
EPSN
Epsilon Energy
5.42
-1.63
-23.09%
EP
Empire Petroleum
2.61
-2.67
-50.54%
Ring Energy Corporate Events
Executive/Board ChangesShareholder Meetings
Ring Energy Shareholders Back Board, Pay and Auditor
Positive
May 22, 2026
At Ring Energy, Inc.’s 2026 annual meeting of stockholders held on May 21, 2026, investors representing about 69.3% of the company’s outstanding common shares participated in key governance votes. Stockholders elected all seven directo...
Private Placements and FinancingRegulatory Filings and Compliance
Ring Energy Launches Major Underwritten Common Stock Offering
Neutral
May 14, 2026
On May 12, 2026, Ring Energy, Inc. entered into an underwriting agreement with Mizuho Securities USA, BofA Securities and Raymond James for an underwritten public offering of 44,444,445 shares of its common stock, with a 30-day option for underwri...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Ring Energy Names New Principal Financial Officer, Updates Investors
Neutral
May 7, 2026
On May 4, 2026, Ring Energy’s board named Sundip “Sonu” S. Johl as Principal Financial Officer, adding to his roles as Executive Vice President, Chief Financial Officer and Treasurer, while former principal financial officer Rock...
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.