Ring Energy (REI) AI Stock Analysis

• Market Cap: $185.87M
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.84
• Revenue Growth: 1.46%
• EPS Growth: -38.55%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.34
• Shares Outstanding: 206,524,500
• 10 Day Avg. Volume: 2,153,799
• 30 Day Avg. Volume: 2,155,147
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.55
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.72
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.47
• Price Target Upside: 277.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Ring Energy's overall stock score reflects substantial financial and operational challenges, particularly with the cessation of revenue and cash flows in 2024. While acquisitions and a low P/E ratio provide some positive aspects, the bearish technical indicators and cautious earnings call sentiment weigh heavily. The company needs strategic interventions to improve its market position.

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 and natural gas that it extracts from its operated properties. The company's primary revenue streams include the sale of produced oil and natural gas to third-party purchasers, which include oil refineries and natural gas processing companies. The price of these commodities is influenced by market conditions, including supply and demand dynamics, geopolitical factors, and global economic trends. Additionally, the company may engage in hedging activities to manage price risks associated with fluctuations in oil and gas prices. Significant partnerships with service providers, suppliers, and joint venture partners can also contribute to operational efficiency and cost management, further impacting the company's profitability.

Ring Energy Financial Statement Overview

Summary

Ring Energy's financial performance indicates significant challenges, notably the cessation of revenue and cash flows in 2024. Despite previous growth, this points to operational and financial distress.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
366.33M	361.06M	347.25M	196.31M	113.03M
	Gross Profit
-140.01M	176.94M	220.19M	112.57M	26.62M
	EBIT
132.90M	145.78M	191.74M	95.76M	8.84M
	EBITDA
229.93M	238.95M	226.94M	55.82M	-197.88M
	Net Income Common Stockholders
67.47M	104.86M	138.64M	3.32M	-253.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.87M	296.38K	3.71M	2.41M	3.58M
	Total Assets
1.41T	1.38B	1.27B	684.16M	663.46M
	Total Debt
389.10M	430.02M	419.13M	292.68M	314.92M
	Net Debt
387.24M	429.72M	415.42M	290.27M	311.34M
	Total Liabilities
549.46M	589.91M	607.90M	383.53M	368.69M
	Stockholders Equity
858.64M	786.58M	661.10M	300.62M	294.77M
Cash Flow		Free Cash Flow
38.08M	42.96M	65.76M	19.49M	28.33M
	Operating Cash Flow
194.42M	198.17M	196.98M	72.73M	72.16M
	Investing Cash Flow
-150.85M	-222.57M	-308.88M	-51.24M	-43.83M
	Financing Cash Flow
-42.00M	20.99M	113.21M	-22.66M	-34.75M

Ring Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 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 0.92 is above the 20-day moving average (MA) of 0.88, below the 50-day MA of 1.07, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 52.77 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	69 Neutral	$214.45M	21.23	9.73%	―	-0.55%	-74.83%
BRY	68 Neutral	$199.42M	10.28	2.59%	14.11%	-2.73%	-49.90%
Sector *	56 Neutral	$6.99B	3.72	-4.39%	5.96%	-0.24%	-48.44%
REI	55 Neutral	$185.87M	2.67	8.20%	―	1.46%	-38.55%
FET	55 Neutral	$187.28M	―	-36.95%	―	10.50%	-493.15%
WTI	43 Neutral	$171.28M	―	203.83%	3.45%	-1.39%	-655.53%
TBN	39 Underperform	$246.67M	―	-10.70%	―	―	57.82%

Ring Energy Corporate Events

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.

Spark’s Take on REI Stock

According to Spark, TipRanks’ AI Analyst, REI is a Neutral.

Ring Energy faces significant financial and operational challenges, particularly with the sudden absence of revenue and cash flows in 2024. Although recent earnings call insights and a low P/E ratio offer some positive outlook, the technical analysis suggests a bearish trend. The stock is currently overshadowed by financial instability, requiring strategic intervention to improve its market position.

To see Spark’s full report on REI stock, click here.

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.

Spark’s Take on REI Stock

According to Spark, TipRanks’ AI Analyst, REI is a Neutral.

Ring Energy faces significant financial and operational challenges, particularly with the sudden absence of revenue and cash flows. While technical indicators suggest a bearish trend, recent acquisitions and low P/E ratio provide some positive outlook. However, these are currently overshadowed by financial instability.

To see Spark’s full report on REI stock, click here.

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.

Spark’s Take on REI Stock

According to Spark, TipRanks’ AI Analyst, REI is a Neutral.

Ring Energy’s overall stock score reflects significant operational and financial challenges, especially with the sudden absence of revenue and cash flows in 2024. While technical indicators point to a bearish trend, the company’s low P/E ratio suggests potential undervaluation. The recent earnings call and successful acquisitions provide a positive outlook, but these factors are overshadowed by current financial instability.

To see Spark’s full report on REI stock, click here.

Ring Energy Completes Acquisition of Permian Basin Assets

On March 31, 2025, Ring Energy completed the acquisition of Lime Rock Resources’ Central Basin Platform assets in the Permian Basin for approximately $68.6 million in cash and 6.5 million shares of common stock. This acquisition enhances Ring Energy’s scale and operational synergies, increases its high-return inventory portfolio, and strengthens its position as a leading conventional Permian consolidator, driving significant adjusted free cash flow and debt reduction.

Ring Energy Expands with $100M Acquisition Deal

On February 25, 2025, Ring Energy announced a Purchase and Sale Agreement to acquire oil and gas interests from Lime Rock Resources for $100 million, with the transaction expected to close by the end of the first quarter of 2025. This acquisition aims to expand Ring’s Central Basin Platform operations in Andrews County, Texas, enhancing operational synergies and shareholder value by integrating high-quality assets, increasing free cash flow, and strengthening the company’s inventory of drilling locations.