Ring Energy (REI) AI Stock Analysis

• Market Cap: $161.17M
• Dividend Yield: N/A
• Average Volume (3M): 5.10M
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.73
• Revenue Growth: -4.51%
• EPS Growth: -10.09%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 62
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.05
• Shares Outstanding: 206,524,500
• 10 Day Avg. Volume: 5,640,549
• 30 Day Avg. Volume: 5,102,389
• PEG Ratio: <0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.54
• Enterprise Value/Market Cap: 4.43
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 0.74
• 1Y Price Target: $2.24
• Price Target Upside: 187.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $1.00 ▲(28.21%Upside)

Ring Energy's overall score is driven by strong valuation metrics and positive earnings call sentiment. However, challenges in financial performance and a bearish technical trend moderate the overall score. The company's strategic initiatives in response to market volatility are commendable, but profitability and cash flow challenges remain significant.

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 makes money through the exploration, development, and production of crude oil and natural gas. The company's primary revenue streams are derived from the sale of these hydrocarbons extracted from its properties in the Permian Basin. Ring Energy generates income by selling its produced oil and gas to various buyers, including refineries and marketers, at prevailing market prices. The company's financial performance is influenced by factors such as commodity prices, production volumes, and operational efficiency. Additionally, Ring Energy may engage in strategic partnerships or joint ventures to optimize resource development and enhance its revenue potential.

Ring Energy Financial Statement Overview

Summary

Ring Energy's financial performance is challenged by significant issues such as the abrupt cessation of revenue and cash flows in 2024, despite some historical growth and stability. The lack of equity and liabilities in 2024 raises concerns about financial transparency and stability.

Income Statement

The income statement exhibits volatility in revenue with a growth of 4% from 2022 to 2023, followed by a significant drop to zero in 2024. Gross profit margins and net income have been inconsistent, showing substantial fluctuations. Despite a positive EBIT and EBITDA margin in 2023, the zero revenue in 2024 significantly impacts the overall income performance.

Balance Sheet

The balance sheet highlights a concerning lack of equity in 2024, with a previous debt-to-equity ratio of 0.55 in 2023. The growth in total assets over the years suggests expansion, yet the absence of liabilities or equity in 2024 raises red flags about financial stability and transparency. Previous equity ratios indicated a moderately leveraged position.

Cash Flow

Cash flow analysis reveals inconsistencies with operating cash flow and free cash flow being positive in prior years but nonexistent in 2024. Historical free cash flow to net income ratios were positive, indicating efficient cash conversion, but the sudden absence of cash flows in 2024 suggests operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	350.92M	366.33M	361.06M	347.25M	196.31M	113.03M
Gross Profit	221.97M	-140.01M	176.94M	220.19M	112.57M	26.62M
EBITDA	233.49M	229.93M	238.95M	226.94M	55.82M	-197.88M
Net Income	71.07M	67.47M	104.86M	138.64M	3.32M	-253.41M
Balance Sheet
Total Assets	1.51B	1.50B	1.38B	1.27B	684.16M	663.46M
Cash, Cash Equivalents and Short-Term Investments	1.10M	1.87M	296.38K	3.71M	2.41M	3.58M
Total Debt	463.45M	389.10M	430.02M	419.13M	292.68M	314.92M
Total Liabilities	629.64M	549.46M	589.91M	607.90M	383.53M	368.69M
Stockholders Equity	875.97M	858.64M	786.58M	661.10M	300.62M	294.77M
Cash Flow
Free Cash Flow	60.62M	38.08M	42.96M	65.76M	19.49M	28.33M
Operating Cash Flow	177.61M	194.42M	198.17M	196.98M	72.73M	72.16M
Investing Cash Flow	-213.96M	-150.85M	-222.57M	-308.88M	-51.24M	-43.83M
Financing Cash Flow	36.08M	-42.00M	20.99M	113.21M	-22.66M	-34.75M

Ring Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.78 is below the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.81, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REI.

Ring Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTK	72 Outperform	$432.86M	31.12	12.80%	―	11.97%	188.31%
BRY	70 Neutral	$258.40M	9.56	-5.66%	3.60%	-31.28%	-1265.13%
REI	69 Neutral	$161.17M	2.21	8.52%	―	-4.51%	-10.09%
FET	58 Neutral	$251.60M	―	-32.34%	―	7.31%	-326.94%
WTI	54 Neutral	$253.96M	―	203.83%	2.16%	-5.05%	-383.38%
Sector *	52 Neutral	C$2.92B	-1.03	-3.46%	6.02%	3.01%	-47.13%
TBN	39 Underperform	$246.67M	―	-10.70%	―	―	57.82%

Ring Energy Corporate Events

Ring Energy Updates Credit Agreement Amid Market Volatility

On June 18, 2025, Ring Energy, Inc. announced the entry into a Third Amended and Restated Credit Agreement, which reduces the borrowing base to $585 million and extends the maturity date to June 2029. The agreement also names Bank of America as the new administrative agent, reflecting a strategic move to strengthen the company’s financial position amidst volatile oil and gas prices. The company aims to generate free cash flow through cost reductions and strategic asset management, maintaining a stable borrowing base and creating value for stakeholders.

The most recent analyst rating on (REI) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.

Ring Energy Stockholder Meeting Approves Key Proposals

On May 22, 2025, Ring Energy held a stockholder meeting where several key proposals were voted on. The stockholders elected seven directors, approved executive compensation on an advisory basis, approved an amendment to the 2021 Omnibus Incentive Plan to increase available shares by 11.5 million, and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for fiscal year 2025.

The most recent analyst rating on (REI) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Ring Energy stock, see the REI Stock Forecast page.

Ring Energy Reports Strong Q1 2025 Results

On May 7, 2025, Ring Energy announced its first quarter 2025 results, reporting a net income of $9.1 million and exceeding oil sales volume guidance. The company completed a significant acquisition of Central Basin Platform assets, which have outperformed initial forecasts, and updated its 2025 guidance to reflect a 47% reduction in capital spending for the remainder of the year. Despite a decrease in revenues compared to previous quarters, Ring Energy maintained positive cash flow and liquidity, showcasing its resilience amid fluctuating oil prices.

Ring Energy Cuts Capital Spending Amid Oil Price Drop

On April 24, 2025, Ring Energy updated its guidance for the second quarter of 2025, reaffirming its sales volume outlook while significantly reducing its capital spending guidance by over 50% to $18 million in response to declining oil prices. The company aims to emphasize debt reduction to manage potential risks associated with prolonged low oil prices, maintaining its sales volume guidance with midpoints of 14,200 barrels of oil per day and 21,500 barrels of oil equivalent per day.

Ring Energy Exceeds Q1 Oil Sales Guidance

On April 18, 2025, Ring Energy announced an operational update revealing that its first quarter oil sales volumes exceeded the company’s guidance, driven by successful drilling operations. The company also completed the acquisition of Central Basin Platform assets from Lime Rock Resources, enhancing cash flow and operational synergies. These developments are expected to strengthen Ring Energy’s market position and operational success in the coming months.

Ring Energy Appoints Carla Tharp to Board

On April 8, 2025, Regina Roesener announced her retirement from the Ring Energy board, effective April 14, 2025, with no disputes influencing her decision. Subsequently, on April 9, 2025, the board appointed Carla Tharp as a director, effective April 14, 2025, who will also serve on the Audit and NESG Committees. Tharp, with extensive experience in the oil and gas sector, is expected to contribute significantly to Ring Energy’s strategic direction and long-term success.