Ring Energy (REI) AI Stock Analysis

• Market Cap: $212.74M
• Dividend Yield: N/A
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.70
• Revenue Growth: -13.66%
• EPS Growth: -4.85%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.05
• Shares Outstanding: 206,544,770
• 10 Day Avg. Volume: 2,584,223
• 30 Day Avg. Volume: 2,684,862
• PEG Ratio: -0.10
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 7.07
• Enterprise Value/Market Cap: 2.90
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 2.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $1.00 ▲(6.38% Upside)

Ring Energy's overall stock score reflects its strong earnings call performance and undervaluation, offset by technical analysis indicating potential bearish momentum and financial performance challenges. The company's operational efficiency and cost management are strengths, but profitability and cash flow issues need addressing.

Ring Energy Business Overview & Revenue Model

Company Description

Ring Energy, Inc. is an oil and natural gas exploration and production company headquartered in the United States. The company focuses on acquiring, developing, and producing oil and gas properties primarily in the Permian Basin and other regions known for their rich hydrocarbon resources. Ring Energy aims to enhance shareholder value through strategic acquisitions and efficient production practices while maintaining a commitment to sustainable operations and environmental responsibility.

How the Company Makes Money

Ring Energy generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company earns money by extracting hydrocarbons from its oil and gas reserves and selling them to various markets, including refineries and distributors. Key revenue streams include the sale of oil, which typically constitutes the majority of its income, as well as natural gas sales. The company may also engage in hedging activities to mitigate price volatility in the oil and gas markets, further stabilizing its revenue. Additionally, partnerships with other energy firms for joint ventures or shared resources can provide financial benefits and enhance operational efficiencies, contributing to its overall earnings.

Ring Energy Financial Statement Overview

Summary

Ring Energy demonstrates resilience in revenue growth and operational efficiency, as seen in its EBIT and EBITDA margins. However, the negative gross profit margin and declining net profit margin in 2024 highlight cost management challenges. The balance sheet remains strong with a healthy equity ratio and manageable debt levels. Cash flow generation is solid, though the decline in free cash flow growth warrants attention. Overall, the company is stable but faces profitability and cash flow challenges that need addressing.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	334.38M	366.33M	361.06M	347.25M	196.31M	113.03M
Gross Profit	223.46M	241.55M	176.94M	220.19M	112.57M	26.62M
EBITDA	227.81M	229.93M	238.95M	226.94M	55.82M	-197.88M
Net Income	69.28M	67.47M	104.86M	138.64M	3.32M	-253.41M
Balance Sheet
Total Assets	1.52B	1.41B	1.38B	1.27B	684.16M	663.46M
Cash, Cash Equivalents and Short-Term Investments	9.60M	1.87M	296.38K	3.71M	2.41M	3.58M
Total Debt	452.53M	389.10M	430.02M	419.13M	292.68M	314.92M
Total Liabilities	618.44M	549.46M	589.91M	607.90M	383.53M	368.69M
Stockholders Equity	897.90M	858.64M	786.58M	661.10M	300.62M	294.77M
Cash Flow
Free Cash Flow	-9.14M	38.08M	42.96M	65.76M	19.49M	28.33M
Operating Cash Flow	160.28M	194.42M	198.17M	196.98M	72.73M	72.16M
Investing Cash Flow	-195.45M	-150.85M	-222.57M	-308.88M	-51.24M	-43.83M
Financing Cash Flow	33.99M	-42.00M	20.99M	113.21M	-22.66M	-34.75M

Ring Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 0.94 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.03, and below the 200-day MA of 1.00, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 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
REI	―	$212.74M	2.92	8.08%	―	-13.66%	-4.85%
EPSN	―	$108.97M	21.16	5.18%	5.11%	45.90%	-2.29%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPM	―	$152.21M	133.43	1.50%	10.84%	-0.04%	-71.98%
AMPY	―	$175.22M	11.75	3.66%	―	-10.36%	-43.83%
GTE	―	$133.40M	-2.03	-16.06%	―	-5.53%	-216.84%
EP	―	$116.49M	―	-30.24%	―	-10.49%	17.74%

Ring Energy Corporate Events

Ring Energy Appoints Interim CFO Amid Leadership Change

On September 12, 2025, Ring Energy announced the resignation of its Chief Financial Officer, Travis T. Thomas, who left to pursue other opportunities. His departure was amicable, with no disagreements on company operations or policies. Rocky Kwon, previously Vice President of Accounting and Assistant Treasurer, was appointed as Interim CFO while the company searches for a permanent successor. This leadership transition is part of Ring Energy’s strategic objectives to maintain financial success and focus on debt reduction.

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’s Earnings Call: Record Gains Amid Challenges

Ring Energy’s recent earnings call painted a mixed picture of the company’s financial health and strategic direction. The sentiment was generally positive, highlighting strong operational performance and strategic cost reductions that led to record production and free cash flow. However, the company also faced challenges due to lower realized commodity prices and stock underperformance, primarily driven by external selling pressure.

Ring Energy Reports Steady Q2 2025 Performance

Ring Energy Inc., an independent oil and natural gas exploration and production company based in The Woodlands, Texas, focuses on developing resources in the Permian Basin. The company is known for its growth-oriented approach in the oil and gas sector.

Ring Energy Reports Strong Q2 2025 Results

On August 6, 2025, Ring Energy announced its second-quarter 2025 results, highlighting record oil sales and adjusted free cash flow despite a challenging pricing environment. The company reported a net income of $20.6 million and reduced capital expenditures by 48% compared to the previous quarter. Ring Energy’s strategic focus on cost reduction and operational efficiency allowed it to pay down $12 million in debt and maintain positive cash flow for the 23rd consecutive quarter. The company also updated its guidance for the remainder of the year, emphasizing debt reduction and financial strengthening amid lower oil prices.

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.