— Announces Timing of First Quarter 2021 Earnings Release and Conference Call —
THE WOODLANDS, Texas, May 03, 2021 (GLOBE NEWSWIRE) — Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) announced today it further paid down debt in the first quarter of 2021, and provided an update on its previously announced Northwest Shelf (“NWS”) drilling program and sales volumes for the first quarter of 2021. In addition, the Company announced the timing of its first quarter 2021 earnings release and conference call.
Paid Down $7.5 Million of Debt During First Quarter 2021
- Reduced debt balance to $305.5 million on $350 million borrowing base; and
- Increased liquidity to $46.2 million as of March 31, 2021, including $1.7 million cash on hand.
Consistent with its strategy of strengthening the balance sheet by steadily paying down debt, during the first quarter of 2021 Ring used a portion of its free cash flow to further reduce the level of borrowings on its revolving credit facility by $7.5 million. As a result, on March 31, 2021 the Company had a $305.5 million outstanding balance on its revolving credit facility, which has a current borrowing base of $350 million.
NWS Drilling Program
- Completed and placed on production all four wells of the NWS Phase I drilling program during the first quarter 2021;
- All four wells collectively produced 37,550 gross barrels of oil equivalent during March 2021;
- Finished drilling operations on all three wells of the NWS Phase II drilling program before the end of April 2021; and
- All three Phase II wells are expected to be producing by the end of May 2021.
The second phase of the Company’s NWS drilling program includes three wells, with all three wells now successfully drilled and expected to be completed on schedule and within budget. The Bevo 664 C #2H has now been completed and was placed on production in early May. Completion operations on the Bevo 664 A #4H and the Bevo 664 A #3H will commence in mid-May, with both wells targeted to come online by the end of May.
First Quarter 2021 Sales Volumes
- First quarter 2021 net sales averaged 7,960 barrels of oil equivalent per day (“Boepd”), which was significantly impacted by the severe winter storm in February;
- Net sales for first quarter 2021 were also impacted by downtime associated with the temporary production shut-in of offset wells during the completion operations of the four NWS Phase I wells and the conversion of electrical submersible pumps to rod pumps (“CTRs”) on nine wells;
- Average net sales of 9,094 Boepd during March 2021 were down by approximately 200 Boepd due to storm-related third-party gas processing capacity still to be restored; and
- Reaffirmed full year 2021 net sales guidance of 9,000 to 9,500 Boepd.
Sales volumes for the first quarter of 2021 were negatively impacted by the severe winter storm in February that resulted in the shut-in and deferral of more than 60% of Ring’s production for the majority of the storm with restoration of most of the production taking more than two weeks to complete. Temporary downtime associated with completion activity and CTRs also contributed to lower production numbers. Approximately 200 Boepd remains temporarily shut-in awaiting the full restoration of third-party gas processing facilities damaged during the winter storm. As a result, first quarter net sales volumes were 7,960 Boepd (85% oil) with net sales recovering to an average of 9,094 Boepd (87% oil) for March 2021. Despite the impact of the winter storm on first quarter production, Ring reaffirmed its full year 2021 net sales guidance of 9,000 to 9,500 Boepd.
First Quarter 2021 Earnings Release and Conference Call Information
- Earnings release to be issued after close of trading on Monday, May 10, 2021; and
- Earnings conference call to be held on Tuesday, May 11, 2021 at 11:00 AM ET.
Ring plans to issue its first quarter 2021 earnings release after the close of trading on Monday, May 10, 2021. The Company has scheduled a conference call on Tuesday, May 11, 2021 at 11:00 a.m. ET to discuss its first quarter 2021 operational and financial results. To participate, interested parties should dial 877-270-2148 at least five minutes before the call is to begin. Please reference the “Ring Energy First Quarter 2021 Earnings Conference Call.” International callers may participate by dialing 412-902-6510. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “Events” page. An audio replay will also be available on the Company’s website following the call.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the conventional development of its Permian Basin assets in West Texas and New Mexico. For additional information, please visit www.ringenergy.com.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company’s strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2020, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.
David A. Fowler, Investor Relations
Ring Energy, Inc.