Ring Energy (REI) AI Stock Analysis

• Market Cap: $310.83M
• Dividend Yield: N/A
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• 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: 207,223,180
• 10 Day Avg. Volume: 4,912,625
• 30 Day Avg. Volume: 4,315,891
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 2.14
• 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: 64 Neutral
• Price Target: $1.00 ▲(13.64% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by steady but mixed financial performance (profitability and free cash flow pressure despite a solid balance sheet), and constructive technical trends that look somewhat stretched. Earnings call takeaways and corporate events are modest positives (cost control, debt reduction, borrowing base reaffirmation), while valuation signals are weak due to a negative P/E and no dividend yield data.

Positive Factors

Balance Sheet Strength

A strong equity ratio (57.1%) and reduced leverage (debt/equity ~0.45) provide a durable financial cushion. This lowers refinancing risk, supports capital spending through commodity cycles, preserves access to credit, and gives management flexibility for disciplined growth or opportunistic M&A.

Operational Efficiency and Cash Generation

Consistent adjusted free cash flow ($13.9M in the quarter) and low lifting costs ($10.73/BOE) indicate sustainable operational control. Reliable FCF enables ongoing debt reduction, funds maintenance capital, and supports a value-driven strategy that remains relevant across commodity cycles.

Banking Confidence / Liquidity

Lenders reaffirming a $585M borrowing base signals confidence in reserves and collateral quality. That structural liquidity backing reduces short-term funding risk, supports planned capex and operations, and strengthens the company’s ability to execute its multi-quarter strategy.

Negative Factors

Impairment-driven Net Losses

Large noncash impairment charges that produced a substantial net loss reduce reported book value and signal potential asset underperformance or commodity-driven reserve write-downs. Recurring impairments can erode equity, tighten borrowing terms, and constrain capital deployment over multiple quarters.

Negative Gross Profit Margin

A negative gross margin indicates production or cash costs exceeded revenue on core operations, pointing to structural cost or price realization issues. Even if EBITDA remains positive, sustained negative gross margins undermine long-term profitability and cash available for reinvestment.

Declining Free Cash Flow Growth

A drop in free cash flow growth (−11.35%) limits internal funding for capex, debt reduction, and shareholder returns. Even with positive FCF levels, a negative growth trend reduces strategic optionality and increases sensitivity to prolonged weaker commodity prices over the next several quarters.

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 stable but mixed: modest revenue growth and healthy EBIT/EBITDA margins are offset by a negative gross profit margin in 2024, a sharply lower net margin (29.04% to 18.42%), and declining free cash flow growth (-11.35%). Balance sheet leverage is manageable (debt-to-equity 0.45) with a solid equity ratio (57.10%).

Income Statement

Ring Energy has shown a steady increase in revenue over the years, with a notable revenue growth rate of 1.46% from 2023 to 2024. However, the gross profit margin turned negative in 2024, indicating cost management issues. The net profit margin decreased significantly from 29.04% in 2023 to 18.42% in 2024, reflecting decreased profitability. Despite these challenges, the company maintains healthy EBIT and EBITDA margins, indicating operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 57.10% in 2024, suggesting financial stability. The debt-to-equity ratio improved to 0.45, indicating a manageable level of leverage. Return on equity decreased from 13.33% in 2023 to 7.86% in 2024, reflecting reduced profitability relative to shareholders' equity.

Cash Flow

Operating cash flow remains robust, though it slightly decreased from 2023 to 2024. The free cash flow to net income ratio is positive, indicating the company generates sufficient cash relative to its net income. However, the free cash flow growth rate was negative, declining by 11.35% from 2023 to 2024, which could be a concern for future investments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	323.74M	0.00	366.33M	361.06M	347.25M	196.31M
Gross Profit	168.60M	-585.09M	163.92M	176.39M	219.82M	112.57M
EBITDA	150.32M	28.70B	229.93M	237.53M	225.95M	55.07M
Net Income	-16.23M	-34.73B	67.47M	104.86M	138.64M	3.32M
Balance Sheet
Total Assets	1.43B	1.41T	1.41B	1.38B	1.27B	684.16M
Cash, Cash Equivalents and Short-Term Investments	286.91K	0.00	1.87M	296.38K	3.71M	2.41M
Total Debt	431.85M	0.00	389.10M	430.02M	419.13M	292.68M
Total Liabilities	587.02M	0.00	549.46M	589.91M	607.90M	383.53M
Stockholders Equity	847.66M	0.00	858.64M	786.58M	661.10M	300.62M
Cash Flow
Free Cash Flow	-28.88M	0.00	38.08M	42.96M	65.76M	19.49M
Operating Cash Flow	153.44M	0.00	194.42M	198.17M	196.98M	72.73M
Investing Cash Flow	-181.92M	0.00	-150.85M	-222.57M	-308.88M	-51.24M
Financing Cash Flow	28.77M	0.00	-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 1.33, below the 50-day MA of 1.11, and below the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 70.08 is Negative, neither overbought nor oversold. The STOCH value of 65.83 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	$158.14M	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	$156.47M	28.10	3.82%	13.52%	-2.23%	-104.00%
REI	64 Neutral	$310.83M	―	-1.91%	―	-15.44%	-113.21%
GTE	55 Neutral	$243.19M	-0.78	-21.91%	―	-1.58%	-271.90%
AMPY	52 Neutral	$235.98M	-2.53	-6.90%	―	-9.46%	-144.89%
EP	42 Neutral	$138.90M	-10.01	-31.43%	―	-15.13%	17.34%

Ring Energy Corporate Events

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.

Ring Energy Reports Q3 2025 Financial Results

On November 6, 2025, Ring Energy reported its third-quarter 2025 financial results, revealing a net loss of $51.6 million due to non-cash impairment charges, but also achieving an adjusted net income of $13.1 million. The company maintained strong cash flow, reducing its debt by $20 million and increasing liquidity to $157.3 million, while continuing to focus on capital discipline and operational efficiency to enhance its competitive position.

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.