Ring Energy (REI) AI Stock Analysis

• Market Cap: $181.86M
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 2.7
• Beta (1Y): 0.72
• Revenue Growth: -13.66%
• EPS Growth: -4.85%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.05
• Shares Outstanding: 206,544,770
• 10 Day Avg. Volume: 4,256,360
• 30 Day Avg. Volume: 3,137,157
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.39
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 3.02
• Enterprise Value/Ebitda: 2.65
• 1Y Price Target: $2.32
• Price Target Upside: 146.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $1.00 ▲(6.38% Upside)

Ring Energy's overall stock score reflects a balance of strong operational performance and cost management achievements, tempered by challenges in profitability and cash flow. The stock's undervaluation presents an opportunity, but technical indicators suggest caution due to potential overbought conditions. The company's strategic focus on cost reduction and debt management is a positive long-term factor.

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 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 shows resilience in revenue growth and operational efficiency, but faces challenges with negative gross profit margin and declining net profit margin. The balance sheet is strong, and cash flow generation is solid, though declining free cash flow growth is a concern.

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	203.99M	-140.01M	176.94M	220.19M	112.57M	26.62M
EBITDA	232.90M	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	46.88M	38.08M	42.96M	65.76M	19.49M	28.33M
Operating Cash Flow	126.99M	194.42M	198.17M	196.98M	72.73M	72.16M
Investing Cash Flow	-177.09M	-150.85M	-222.57M	-308.88M	-51.24M	-43.83M
Financing Cash Flow	50.03M	-42.00M	20.99M	113.21M	-22.66M	-34.75M

Ring Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.94
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.94 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.80, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.95 is Neutral, neither overbought nor oversold. The STOCH value of 78.03 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
REI	68 Neutral	$181.86M	2.74	8.08%	―	-13.66%	-4.85%
EPSN	64 Neutral	$126.40M	24.54	5.18%	4.34%	45.90%	-2.29%
EPM	57 Neutral	$166.39M	89.30	-1.24%	9.82%	3.79%	-131.01%
Sector *	54 Neutral	C$4.15B	0.97	16.40%	5.23%	10.45%	-57.37%
AMPY	53 Neutral	$162.27M	10.26	3.66%	―	-10.36%	-43.83%
EP	51 Neutral	$156.29M	―	-30.24%	―	-10.49%	17.74%
GTE	43 Neutral	$134.81M	21.67	-16.06%	―	-5.53%	-216.84%

Ring Energy Corporate Events

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.

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.

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.