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Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc.

Ring Energy Inc. · Sep 27, 2019 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 1
  2. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 2
    Investment Highlights • The management team has extensive experience in the Central Basin Platform and has successfully operated through multiple cycles • Ring’s co-founders were formerly co-founders and senior managers of Arena…
  3. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 3
    Ring Co-Founders’ Prior Success ? Proven and simple strategy ? Arena Resources was formed in 2001 by Tim Rochford and Stan McCabe with a focus of growing production and reserves organically and via acquisition ? Sold in July 2010 for…
  4. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 4
    Company Strategy Acquire ? Look for “upside opportunity” ? Focus on the Permian Basin ? Low Risk Multipay Reserves ? Credit facility in place ? Access to capital markets Exploit ? Apply new horizontal technologies ? Add…
  5. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 5
    Why REI Is Different (1) Percentage based on production volume Existing San Andres fields Ring acreage ? “Conventional” producer, NOT a “shale” producer ? San Andres – oil saturated dolomite reservoir ? Greater than 90% black…
  6. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 6
    Gross Acres Net Acres Central Basin Platform 111,834 80,083 Northwest Shelf 50,481 38,241 Delaware Basin 20,218 19,917 Total Acreage 182,533 138,241 Executive Summary (1) Ring reserves as of 12/31/2018 based on SEC pricing…
  7. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 7
    Proven Conventional Reservoir Source: US Department of Energy & DrillingInfo San Andres Overview Permian Basin Geology Denotes Ring acreage San Andres Hz Delaware Basin Hz Midland Basin Hz High ROR Oil Play ? ? ? IPs >750 Bo/d…
  8. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 8
  9. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 9
    Central Basin Platform Asset (1) Based on 12/31/2018 CGA reserve report using SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas) (2) Based on 12/31/2018 Ring internal reserve report using SEC pricing ($62.04/Bbl of oil and $3.10/Mcf…
  10. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 10
    Central Basin Drilling Inventory Note: Locations reflect gross locations on this page (1) As of 12/31/2018 (2) Number of locations per SEC report (3) Number of locations per internal estimates (1),(2) (1),(3) (3) All 1.0 mile and…
  11. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 11
    $50.00 $55.00 $60.00 IRR (%) 82% 104% 131% Years to Payout 1.3 1.1 1.0 ROI Disc 2.7x 3.0x 3.4x ROI Undisc 5.2x 5.9x 6.5x PV-10 (000s) $3,764 $4,487 $5,210 Net EUR (MBOE) 342 342 342 Net Realized Price Received ($/Boe) Central…
  12. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 12
    Northwest Shelf Asset (1) Based on 12/31/2018 Ring internal reserve report using SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas) Asset Description ? 50,481 gross / 38,241 net total acres ? June net production of 5,072 Boe/d (91%…
  13. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 13
    Northwest Shelf Accretive Drilling Inventory Note: Locations reflect gross locations on this page (1) Based on 12/31/2018 Ring internal reserve report using SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas) All 1.0 mile and 1.5 mile…
  14. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 14
    Northwest Shelf Well Economics & Type Curve (1) $1,000 / acre times 640 acres (2) LOE includes $2,550 per month plus $5.25/Bbl of oil (3) Excludes location acreage cost (4) Includes location acreage cost (5) Economics based on a…
  15. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 15
    Delaware Basin Assets (1) Based on 12/31/2018 CGA reserve report using SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas) (2) Based on 12/31/2018 Ring internal reserve report using SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas)…
  16. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 16
    Delaware Basin Drilling Inventory Note: Locations reflect gross locations on this page (1) Number of locations per SEC report (2) Number of locations per internal estimates Proved Reserves 14.6 MMBoe Proved PV-10 $169 MM Current…
  17. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 17
    Recent Developments & 2019 Capex Recent Developments ? Upon closing the Yoakum County assets on April 11th, Ring Energy, Inc. (“Ring” or the “Company”) immediately spud its first 1-mile San Andres horizontal well on the newly acquired…
  18. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 18
    2019 Amended Capex Objectives 2019 Amended Capex ? Objectives: ? Cash flow neutrality by year-end 2019 ? Modest year-over-year production growth ? Manage debt ? Reduced capex from preliminary $154 MM to amended $ 152 MM ? Maintain…
  19. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 19
    Growth in Reserves & Production (1) Represents operational data, not sales data; excludes Kansas production (2) Only includes 7 months of the Delaware Basin acquisition (3) Pro forma for Wishbone acquisition ? Transformative…
  20. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 20
    Potential Locations by Tier and Area Location Tiers (All Areas) ? Tier 1: Highest confidence wells. These wells would represent “type curve” production. At $50/Boe realized price received, they reflect an IRR over 80%, a net reserve of…
  21. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 21
    www.ringenergy.com NYSE American: REI 23 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Permian Gross Acres Permian Net Acres Permian Acreage Growth Date Permian Gross Acres Permian Net…
  22. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 22
    Net Asset Value (1) NAV/share calculated as YE2018 PV-10 based on SEC pricing ($62.04/Bbl of oil and $3.10/Mcf of gas) less total pro forma debt of $341MM (includes Wishbone acquisition) divided by current shares outstanding Note: PV-10…
  23. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 23
  24. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 24
  25. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 25
  26. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 26
    Oil and Gas Reserves as of 12/31/2018 (1) Cawley Gillespie YE2018 SEC report with prices of $62.04/bbl and $3.10/Mcf (2) Ring Internal engineering report using SEC pricing of $62.04/bbl and $3.10/Mcf (3) Wishbone reserves per Ring…
  27. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 27
    Income Statement (1) Per Fully Diluted Share (2) Cash flow from operations before working capital changes 3 Months Ended June 30, 6 Months Ended June 30, 2019 2018 2019 2018 Revenue $51,334,225 $29,924,883 $93,132,540 $59,816,274…
  28. Johnson Rice and Company 2019 Energy Conference – Ring Energy Inc. – slide 28
    Balance Sheet (1) Includes Deferred Income Taxes and Deferred Financing Costs As of As of ($ thousands) 6/30/2019 12/31/2018 Assets: Cash and Cash Equivalents $10,579 $3,364 Other Current Assets 28,032 13,480 Total Current Assets…

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