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Ring Bolsters Hedges as Part of Credit Facility Redetermination

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   |    Monday,December 02,2019

Ring Energy, Inc. has entered into an amendment to the $1.0B senior credit facility as part of the scheduled fall redetermination.

The amendment reaffirmed the immediate borrowing base at $425 million and required the Company, as it has been required in the past, to enter into additional hedges for 2020 and 2021.

The next redetermination evaluation is scheduled for May 2020.

Hedging Update

The new hedges are for a total of 3,500 BOPD, bringing the total amount of oil hedged for 2020 to 5,500 BOPD. The following table provides the details of the new hedges that have been put in place:

       

BOPD

        

Put Price

        

Call Price
       

1,000

        

$50.00

        

$58.40
       

1,000

        

$50.00

        

$58.25
       

1,500

        

$50.00

        

$58.65

With the additional hedges in place, the 5,500 BOPD hedged by the Company for 2020 have a floor of $50.00 and an average ceiling of $61.06. Management stated they have satisfied the amendment requirements for 2020 and are actively watching the pricing for 2021 hedges and anticipate entering into hedges for 2021 in the near future.



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