Ring Energy (REI) AI Stock Analysis

• Market Cap: $190.44M
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -15.44%
• EPS Growth: -113.21%
• Country: US
• Employees: 115
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.06
• Shares Outstanding: 207,223,180
• 10 Day Avg. Volume: 871,274
• 30 Day Avg. Volume: 1,469,590
• 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: 3.45
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 4.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.17
• Revenue Forecast (FY): $313.12M

• Rating: 57 Neutral
• Price Target: $1.00 ▲(13.64% Upside)

Ring Energy's overall stock score of 57 reflects a mix of strengths and challenges. The company's strong operational execution and cost management are positive factors, as highlighted in the earnings call. However, financial performance is hindered by profitability and cash flow challenges. Technical analysis indicates bearish momentum, and valuation metrics suggest potential profitability issues. These factors collectively contribute to a moderate overall score.

Positive Factors

Operational Efficiency

Consistent reduction in lifting costs indicates strong operational efficiency, which can enhance profitability and competitiveness in the long term.

Debt Reduction

Effective debt reduction enhances financial stability and flexibility, allowing the company to invest in growth opportunities and weather industry downturns.

Free Cash Flow Generation

Strong free cash flow generation supports financial health and provides resources for strategic investments and debt servicing.

Negative Factors

Net Loss and Impairment Charges

Significant net loss and impairment charges can impact financial performance and investor confidence, posing challenges to profitability.

Revenue Decline

A decline in revenue can indicate challenges in market demand or pricing power, affecting long-term growth prospects and financial stability.

Increased Cash G&A Expenses

Rising general and administrative expenses can pressure margins and reduce the company's ability to invest in growth or return capital to shareholders.

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

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	323.74M	366.33M	361.06M	347.25M	196.31M	113.03M
Gross Profit	168.60M	163.92M	176.39M	219.82M	112.57M	27.82M
EBITDA	150.32M	229.93M	237.53M	225.95M	55.07M	-198.78M
Net Income	-16.23M	67.47M	104.86M	138.64M	3.32M	-253.41M
Balance Sheet
Total Assets	1.43B	1.41B	1.38B	1.27B	684.16M	663.46M
Cash, Cash Equivalents and Short-Term Investments	286.91K	1.87M	296.38K	3.71M	2.41M	3.58M
Total Debt	431.85M	389.10M	430.02M	419.13M	292.68M	314.92M
Total Liabilities	587.02M	549.46M	589.91M	607.90M	383.53M	368.69M
Stockholders Equity	847.66M	858.64M	786.58M	661.10M	300.62M	294.77M
Cash Flow
Free Cash Flow	-49.95M	38.08M	42.96M	65.76M	19.49M	28.33M
Operating Cash Flow	108.95M	194.42M	198.17M	196.98M	72.73M	72.16M
Investing Cash Flow	-158.65M	-150.85M	-222.57M	-308.88M	-51.24M	-43.83M
Financing Cash Flow	49.71M	-42.00M	20.99M	113.21M	-22.66M	-34.75M

Ring Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 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 0.88 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 0.98, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 40.63 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
EPSN	73 Outperform	$106.58M	18.21	5.92%	5.05%	46.76%	11.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GTE	58 Neutral	$136.59M	-1.57	-21.91%	―	-1.58%	-271.90%
REI	57 Neutral	$190.44M	―	-1.91%	―	-15.44%	-113.21%
EPM	54 Neutral	$143.27M	―	-0.19%	11.76%	-2.23%	-104.00%
AMPY	53 Neutral	$216.95M	―	-6.90%	―	-9.46%	-144.89%
EP	41 Neutral	$112.93M	―	-31.43%	―	-15.13%	17.34%

Ring Energy Corporate Events

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.

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.