Ring Energy, Inc. (NYSE: REI)

Ring Energy, Inc. is an independent oil and natural gas exploration and production company focused on the Permian Basin in Texas. The company engages in the development, production, acquisition, and exploration of oil and natural gas resources, targeting the oil and liquids-rich producing formations in the Northwest Shelf and the Central Basin Platform. As of December 31, 2025, Ring Energy held interests in 919 gross producing wells and had leasehold acreage positions totaling 111,714 gross acres. The company's proved reserves are oil-weighted, with approximately 59% consisting of oil, 19% of natural gas, and 22% of natural gas liquids (NGLs).

Ring Energy generates revenue through the exploration, development, and production of oil and natural gas. The company's primary products include crude oil, natural gas, and NGLs, which are sold to end users, marketers, and other purchasers with access to nearby pipeline facilities. The company's revenue is derived from the sale of these hydrocarbons, with a significant portion of its reserves classified as proved developed, indicating a focus on near-term production.

• Exploration and Production: Ring Energy's core business segment involves the exploration and production of oil and natural gas. The company targets the Northwest Shelf and Central Basin Platform in the Permian Basin, focusing on horizontal and vertical development potential. The segment includes the operation of 919 gross producing wells and the management of 111,714 gross acres of leasehold positions. The company's proved reserves are oil-weighted, with a significant portion classified as proved developed, ensuring a steady production profile. The segment also includes the Lime Rock Acquisition, which expanded the company's asset base and production capabilities.

Ring Energy operates in a highly competitive environment for acquiring properties, marketing oil and natural gas, and securing competent personnel. Some competitors possess greater financial resources and technical personnel, which can affect the company's ability to acquire additional properties and find and develop reserves. Key competitors include other independent exploration and production companies operating in the Permian Basin. Ring Energy's competitive advantages include a high-quality asset base in one of North America's leading oil and gas producing regions, a de-risked Permian Basin acreage position with multi-year drilling inventory, and a concentrated acreage position with a high degree of operational control. The company also benefits from an experienced management team with substantial technical and operational expertise and a commitment to cost-efficient operations, health, safety, and environmental protection.

Ring Energy principally sells its oil and natural gas production to end users, marketers, and other purchasers with access to nearby pipeline facilities. In areas without practical access to pipelines, oil is trucked to storage facilities. For the year ended December 31, 2025, sales to three customers represented 89% of the company's oil, natural gas, and NGL revenues. These customers included Phillips 66 Company, Concord Energy LLC, and NGL Crude Partners. The company believes that the loss of any of these purchasers would not materially impact its business due to the availability of alternative purchasers.