Ring Energy (REI) AI Stock Analysis

• Market Cap: $324.56M
• Dividend Yield: N/A
• Average Volume (3M): 4.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -15.44%
• EPS Growth: -113.21%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.02
• Shares Outstanding: 209,395,110
• 10 Day Avg. Volume: 5,971,956
• 30 Day Avg. Volume: 4,723,130
• PEG Ratio: <0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 3.39
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 3.98
• Enterprise Value/Ebitda: 4.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): $293.80M

• Rating: 60 Neutral
• Price Target: $1.50 ▲(70.45% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 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.

Reserve and Production Base

Material reserve growth and a large PUD inventory (500+ locations) provide a multi-year drilling inventory and organic production runway. This supports sustainable output, lowers reliance on immediate acquisitions, and enables long-term returns if capital is allocated prudently.

Improved Cost & Capital Efficiency

Sustained improvements in drilling efficiency, lower LOE and a smaller reinvestment rate materially boost cash conversion and margin resilience. Structural cost reductions raise long-term free cash flow potential and make the business more defensive to lower commodity prices.

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.

Widened Differentials & Gas Weakness

Material regional differentials and weak gas realizations structurally reduce revenue per unit versus benchmarks. Persistent takeaway or basis pressure can compress margins regardless of production, making cash flow and deleveraging plans highly sensitive to local market dynamics.

Volatile Cash Flow & Revenue Trends

Although FCF remained positive, meaningful year-over-year declines and a recent revenue drop indicate earnings and cash generation are volatile and commodity-sensitive. This variability complicates long-term capital planning, slows consistent debt paydown, and raises execution risk if prices or differentials worsen.

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 approximately 77.8 million barrel of oil equivalent. It also had interests in 18,882 net developed acres and 1,406 net undeveloped acres in Andrews and Gaines counties, Texas; 18,437 net developed acres in Culberson and Reeves counties, Texas; and 13,662 net developed acres and 11,993 net undeveloped acres in Yoakum, Runnels, and Coke Counties, Texas and Lea County, New Mexico. Ring Energy, Inc. primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was incorporated in 2004 and is headquartered in The Woodlands, Texas.

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 and new reserves. Key revenue streams include the direct sale of produced hydrocarbons to various customers, including refiners and marketers, which are often facilitated through long-term contracts and spot market sales. Additionally, Ring Energy may benefit from advantageous pricing environments in the oil and gas market, operational efficiencies, and technological advancements in drilling and production methods that enhance recovery rates and reduce costs. The company may also enter into joint ventures or partnerships to share the financial and operational burdens of exploration and development, which can further bolster its revenue potential.

Ring Energy Financial Statement Overview

Summary

Financials are mixed. 2025 results show a sharp earnings reversal (net income swung to a very large loss despite still-positive gross/EBITDA margins), while the balance sheet looks more disciplined than prior years (improved debt-to-equity) and cash generation remains supportive (operating cash flow and free cash flow stayed positive, though FCF declined meaningfully).

Income Statement

Profitability was strong from 2021–2024 (with healthy gross and EBITDA margins), but the 2025 annual report shows a sharp reversal: revenue fell about 5% and net income swung to an extremely large loss, driving net margin deeply negative despite still-positive gross and EBITDA margins. This points to material below-the-line charges or one-time impacts, creating a much weaker and more volatile earnings profile.

Balance Sheet

Leverage appears manageable for the sector with debt-to-equity around ~0.45–0.55 in 2023–2025 (improving from ~0.97–1.07 in 2020–2021), and equity remains sizable versus assets. The key weakness is the 2025 loss, which drove return on equity sharply negative and raises questions about asset quality and future earnings stability if similar write-downs recur.

Cash Flow

Cash generation remains a relative support: operating cash flow stayed positive in 2025 and covered near-term needs, and free cash flow was also positive. However, free cash flow declined meaningfully versus prior years and growth has been volatile, suggesting sensitivity to commodity pricing, capital spending needs, and/or working-capital swings.

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

• Technical Analysis Sentiment: Positive
• Last Price: 0.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.88 is below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.14, and below the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 72.50 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPSN	73 Outperform	$168.00M	25.87	5.92%	5.24%	46.76%	11.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPM	65 Neutral	$157.87M	28.10	3.82%	13.52%	-2.23%	-104.00%
REI	60 Neutral	$324.56M	>-0.01	-4.10%	―	-15.44%	-113.21%
GTE	57 Neutral	$260.15M	-0.78	-60.13%	―	-1.58%	-271.90%
AMPY	52 Neutral	$242.86M	-2.53	-6.90%	―	-9.46%	-144.89%
EP	42 Neutral	$124.16M	-10.01	-31.43%	―	-15.13%	17.34%

Ring Energy Corporate Events

Ring Energy Grants Inducement Equity Awards to New CFO

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 vesting in three equal annual installments starting March 5, 2027. The PSUs, which may result in up to 952,380 shares, will vest over a performance period from January 1, 2026 to December 31, 2028 based on relative total shareholder return and cash return on capital employed, reflecting a board-approved, incentive-heavy compensation structure aimed at aligning the new finance chief’s interests with long-term shareholder value.

The inducement awards were unanimously approved by Ring Energy’s board, including all independent directors, and structured as a material inducement to Johl’s employment under NYSE American rules. Although granted outside the company’s 2021 Omnibus Incentive Plan, the awards follow substantially similar terms, underscoring Ring Energy’s use of performance-linked equity to attract senior leadership and potentially influence capital discipline and returns in its Permian-focused oil and gas operations.

The most recent analyst rating on (REI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.

Ring Energy Reports 2025 Results and 2026 Outlook

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 flow positive for the 25th consecutive quarter while lowering lease operating costs and modestly reducing debt. For full-year 2025, the company grew sales volumes 3% to a record 20,253 Boe/d, increased proved reserves 14% to 153.3 MMBoe, generated record adjusted free cash flow of $50.1 million despite an 18% decline in realized prices, cut capital spending by 35%, paid down $40 million of debt following its Lime Rock acquisition, and guided for essentially flat 2026 production with disciplined capex as it pursues further debt reduction and efficiency gains.

Management highlighted that the fully integrated Lime Rock acquisition exceeded expectations on production, capital and operating costs and helped drive an 18% reduction in monthly lease operating expenses over the last six months of 2025. Looking ahead to 2026, Ring plans a roughly $115 million capital program and about 28 wells to maintain production while prioritizing longer laterals, an improved horizontal mix and balance sheet strengthening, positioning the company defensively in a lower-price scenario but with leverage to accelerate debt reduction if oil prices stay above $60.

The most recent analyst rating on (REI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.

Ring Energy Finalizes Finance Leadership with New Appointments

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 Financial Officer until February 27, 2026. Kwon’s promotion, following a progression of senior accounting roles at Ring and prior experience at Earthstone Energy, formalizes the company’s accounting leadership while the board confirmed there are no family ties, special arrangements or related-party transactions connected to his appointment.

The move completes a broader finance leadership transition that began when Sundip “Sonu” S. Johl started as Executive Vice President and Chief Financial Officer on February 27, 2026, separating the CFO and principal accounting functions between two seasoned executives. This governance step is expected to support stronger financial oversight and internal controls for Ring Energy’s stakeholders as the company sharpens its financial management and compliance framework.

The most recent analyst rating on (REI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.

Ring Energy Appoints New Executive Vice President and CFO

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 banker with more than two decades of experience in upstream oil and gas finance, M&A and capital markets, particularly with Permian Basin-focused E&P companies. Under an offer letter signed on January 29, 2026, Johl will receive a $425,000 base salary, performance-linked annual and long-term incentives, change-in-control protections and equity inducement awards in the form of restricted and performance stock units, signaling Ring’s intention to strengthen its financial and capital markets capabilities as it pursues greater scale and shareholder value in a consolidating upstream sector.

The most recent analyst rating on (REI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.

Ring Energy Reaffirms $585 Million Borrowing Base

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, highlighting confidence in its management and assets. As Ring Energy looks to 2026, it aims to strengthen its balance sheet, manage costs, and maintain production levels, focusing on a value-driven strategy to prepare for future growth and create value for stockholders.

The most recent analyst rating on (REI) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.