The following is a summary of the Ring Energy, Inc. (REI) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Ring Energy reported an 11% increase in average per day total sales volume over the same period in 2023.

• Adjusted EBITDA grew 7% year-to-date.

• Year-to-date adjusted free cash flow increased 34%.

• Q3 adjusted EBITDA was $54 million; adjusted free cash flow amounted to $1.9 million.

• Reduced debt by $33 million year-to-date, achieving $392 million in outstanding debt by end of Q3.

• Third quarter revenue reached $89.2 million, a 10% decrease from Q2, mainly due to lower overall realized pricing.

Business Progress:

• Acquired Founders Central Basin Platform Assets; accretive acquisition expanding core operating area and enhancing inventory of low risk, high return drilling locations.

• Sold certain non-core high operating cost vertical wells, using proceeds to pay down $15 million of debt in Q3.

• Drilling plans include four to six horizontal and vertical wells by year end.

• Continuing focus on capital discipline and strategic acquisitions to strengthen balance sheet.

Opportunities:

• Leveraging acquisitions like Founders Central Basin Platform Assets for expanded operations and improved capital allocation.

• New drilling in Q4 aimed at testing and potentially expanding production inventory organically.

Risks:

• Managed a 7% and 12% decrease in realized third quarter oil and BOE sales pricing respectively; dependent on commodity market conditions which can affect revenue and cash flow.

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