Ring Energy (REI)
:REI
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Ring Energy
(REI)
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Rating:50Neutral
Price Target:
$1.50
▲(20.00% Upside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by deteriorated TTM financial performance (losses, negative EBITDA, and negative free cash flow) and a weak near-term technical setup (below key short-term moving averages with subdued momentum). Offsetting this, the latest earnings call points to improving operations (low LOE, execution vs guidance, adjusted profitability) and acceptable liquidity, but elevated leverage vs target and accounting-driven headline losses keep overall risk moderate.
Positive Factors
Durable cash generation
Ring’s 26-quarter streak of positive free cash flow, adjusted EBITDA of $38.3M and roughly stable operating cash flow (~$148–198M historically) plus $160M liquidity indicate persistent cash generation. This durable cash flow supports ongoing capex, hedging, and gradual deleveraging across commodity cycles.
Negative Factors
Eroded profitability
Revenue down roughly 26% YoY and TTM negative EBITDA and net losses have eroded equity and ROE. Persistent earnings weakness reduces retained earnings, constrains internal funding for growth or debt reduction, and makes the company more reliant on external financing or asset sales absent sustained price or efficiency improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable cash generation
Ring’s 26-quarter streak of positive free cash flow, adjusted EBITDA of $38.3M and roughly stable operating cash flow (~$148–198M historically) plus $160M liquidity indicate persistent cash generation. This durable cash flow supports ongoing capex, hedging, and gradual deleveraging across commodity cycles.
Read all positive factors
Ring Energy (REI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$278.51M
Dividend YieldN/A
Average Volume (3M)5.21M
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-14.01%
EPS Growth-454.24%
CountryUS
Employees115
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-1.28
Shares Outstanding209,409,180
10 Day Avg. Volume4,138,206
30 Day Avg. Volume5,207,875
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.21
Price to Sales (P/S)0.58
P/FCF Ratio3.39
Enterprise Value/Market Cap2.74
Enterprise Value/Revenue2.53
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda6.18
Forecast
1Y Price Target
$2.50Price Target Upside100.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.23
Revenue Forecast (FY)$510.27M
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 appr...
How the Company Makes Money
Ring Energy makes money primarily by producing and selling hydrocarbons—crude oil, natural gas, and natural gas liquids (NGLs)—from its operated and non-operated wells. Revenue is recognized based on the volumes produced and sold and the market pr...
Ring Energy Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operational and strategic picture: the company delivered recurring structural cost improvements, drilling efficiency gains, production in line with guidance, meaningful infrastructure investments to enable higher-return horizontal development, strong realized oil pricing, adjusted profitability, sustained free cash flow for 26 consecutive quarters, and ample liquidity. Offsetting these positives were large non-cash accounting charges (a ceiling test impairment and an unrealized derivative loss) that depressed reported net income, negative realized gas pricing, a temporary pause in debt reduction that increased borrowings and leverage to ~2.4x, and modest near-term production timing effects. Management positioned the infrastructure acceleration as a deliberate, shareholder-focused tradeoff to capture expected higher prices and improved long-term capital efficiency. On balance, operational momentum and cash-generation fundamentals outweigh the near-term accounting and timing headwinds.Positive Updates
Strong Operating Cost Performance
Lease operating expenses (LOE) of $18.1 million, or $10.41 per BOE, below the low end of guidance for the fourth consecutive quarter; more than $1.7 million per month lower than pro forma Q1 2025 (implying >$5.1 million lower for the quarter) and over $2.00/BOE improvement versus pro forma Q1 2025, indicating structural cost reductions and margin expansion.
Negative Updates
Large Non-Cash Accounting Charges
Recorded a $162.1 million non-cash ceiling test impairment under full cost accounting and a $77 million unrealized derivative loss in the quarter, which materially depressed reported net income despite being non-cash and driven by trailing average SEC prices and forward curve movement.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Operating Cost Performance
Lease operating expenses (LOE) of $18.1 million, or $10.41 per BOE, below the low end of guidance for the fourth consecutive quarter; more than $1.7 million per month lower than pro forma Q1 2025 (implying >$5.1 million lower for the quarter) and over $2.00/BOE improvement versus pro forma Q1 2025, indicating structural cost reductions and margin expansion.
Read all positive updates
Company Guidance
Management reaffirmed guidance for the next three quarters and said the company “delivered on sales guidance,” reporting Q1 oil sales of 12,276 bbl/d and total sales of 19,351 BOE/d; Q1 capex of $34.5M (slightly above guidance) with just over $5M (~15% of capex) spent on saltwater disposal/frac water/facilities, six wells drilled and seven completions (five one‑mile horizontals, >80% of the program, avg WI ~91%; one vertical; one DUC at 100% WI); LOE $18.1M or $10.41/BOE (below the low end of guidance for the fourth straight quarter); realized pricing $42.30/BOE (oil $68.07/bbl, gas -$2.54/Mcf); adjusted net income $7.4M and adjusted EBITDA $38.3M (offset by a $77M unrealized derivative loss and a $162.1M ceiling‑test impairment); liquidity $160M, borrowings up ≈$6M, leverage ~2.4x (target ~1.25x), hedges cover 72% of oil at a $73.27 average ceiling and 73% of gas at a $3.78 floor, and the company reported its 26th consecutive quarter of positive free cash flow.Ring Energy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 301.76M | 307.18M | 366.33M | 361.06M | 347.25M | 196.31M |
| Gross Profit | 170.49M | 186.47M | 163.92M | 176.39M | 219.82M | 112.57M |
| EBITDA | 123.65M | 172.39M | 229.93M | 237.53M | 225.95M | 55.07M |
| Net Income | -264.43M | -34.73M | 67.47M | 104.86M | 138.64M | 3.32M |
Balance Sheet | ||||||
| Total Assets | 1.25B | 1.51B | 1.41B | 1.38B | 1.27B | 684.16M |
| Cash, Cash Equivalents and Short-Term Investments | 1.04M | 902.91K | 1.87M | 296.38K | 3.71M | 2.41M |
| Total Debt | 428.41M | 423.24M | 389.10M | 430.02M | 419.13M | 292.68M |
| Total Liabilities | 632.74M | 677.21M | 549.46M | 589.91M | 607.90M | 383.53M |
| Stockholders Equity | 621.98M | 836.28M | 858.64M | 786.58M | 661.10M | 300.62M |
Cash Flow | ||||||
| Free Cash Flow | -25.64M | 52.93M | 38.08M | 42.96M | 65.76M | 19.49M |
| Operating Cash Flow | 148.37M | 150.85M | 194.42M | 198.17M | 196.98M | 72.73M |
| Investing Cash Flow | -107.92M | -179.50M | -150.85M | -222.57M | -308.88M | -51.24M |
| Financing Cash Flow | -40.52M | 27.69M | -42.00M | 20.99M | 113.21M | -22.66M |
Ring Energy Technical Analysis
Negative
1.25
Price Trends
1.42
Negative
1.18
Positive
1.06
Positive
Market Momentum
-0.04
Positive
36.88
Neutral
12.17
Positive
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 1.25 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.42, and above the 200-day MA of 1.06, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.88 is Neutral, neither overbought nor oversold. The STOCH value of 12.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REI.
Ring Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $192.08M | 63.84 | -4.55% | 5.24% | 53.71% | -303.17% | |
60 Neutral | $318.59M | -0.66 | -63.64% | ― | -4.90% | -2372.77% | |
56 Neutral | $161.07M | -4.36 | 4.46% | 13.52% | -3.16% | -313.41% | |
53 Neutral | $210.57M | -1.68 | 10.56% | ― | -21.23% | -41.25% | |
50 Neutral | $278.51M | -0.36 | -33.01% | ― | -14.01% | -454.24% | |
44 Neutral | $102.79M | -4.01 | -177.26% | ― | -22.34% | -282.22% |
* Energy Sector Average
REI
Ring Energy
1.33
0.49
59.09%
EPM
Evolution Petroleum
4.49
0.36
8.59%
GTE
Gran Tierra Energy
9.01
4.13
84.63%
AMPY
Amplify Energy
5.10
2.19
75.26%
EPSN
Epsilon Energy
6.35
-0.30
-4.50%
EP
Empire Petroleum
2.79
-1.37
-32.88%
Ring Energy Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Ring Energy Names New Principal Financial Officer, Updates Investors
Neutral
May 7, 2026
On May 4, 2026, Ring Energy’s board named Sundip “Sonu” S. Johl as Principal Financial Officer, adding to his roles as Executive Vice President, Chief Financial Officer and Treasurer, while former principal financial officer Rock...
Business Operations and StrategyExecutive/Board Changes
Ring Energy Grants Inducement Equity Awards to New CFO
Positive
Mar 6, 2026
On March 5, 2026, Ring Energy granted inducement equity awards to its new Executive Vice President, Chief Financial Officer and Treasurer, Sonu Johl, consisting of 317,460 restricted stock units and 476,190 performance stock units, with the RSUs v...
Business Operations and StrategyFinancial Disclosures
Ring Energy Reports 2025 Results and 2026 Outlook
Positive
Mar 5, 2026
On March 4, 2026, Ring Energy reported that in the fourth quarter of 2025 it sold 13,124 barrels of oil per day and 20,508 barrels of oil equivalent per day, posted a net loss of $12.8 million driven by a non-cash impairment, but remained cash flo...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Ring Energy Finalizes Finance Leadership with New Appointments
Positive
Mar 4, 2026
On March 1, 2026, Ring Energy’s board appointed Rocky Kwon as Chief Accounting Officer and principal accounting officer, adding to his existing role as Vice President and Principal Financial Officer after he had served as Interim Chief Finan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.