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February 2020 Investor Presentation – Ring Energy Inc.

Ring Energy Inc. · Feb 5, 2020 · 29 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. February 2020 Investor Presentation – Ring Energy Inc. – slide 1
    Corporate Presentation February 2020 wwww.rw i ng.reinnegrgeyn.ceormgy.coOmTCQ NYSE American: REI
  2. February 2020 Investor Presentation – Ring Energy Inc. – slide 2
    Ring Energy Team Management Team Key Board Members Kelly Hoffman Lloyd T. (Tim) Rochford Chief Executive Officer and Director Co-Founder and Executive Chairman of the Board Co-Founded AOCO and pioneered Fuhrman Mascho Co-Founder of…
  3. February 2020 Investor Presentation – Ring Energy Inc. – slide 3
    Investment Highlights Build strong Permian acreage position in conventional reservoirs with a focused asset base in the Central Basin Platform (CBP), Northwest Shelf (NWS) and Delaware Basins Permian Focus The Permian offers…
  4. February 2020 Investor Presentation – Ring Energy Inc. – slide 4
    Executive Summary Company Profile Midland, Texas based E&P company focused on domestic exploration and production of oil and natural gas with current operations primarily in Texas Northwest Shelf Pro forma Year End 2018 Proved…
  5. February 2020 Investor Presentation – Ring Energy Inc. – slide 5
    Why REI Is Different Conventional producer, NOT an unconventional shale Ring acreage producer Existing San Andres fields San Andres oil saturated dolomite reservoir with natural porosity and permeability San Andres greater than…
  6. February 2020 Investor Presentation – Ring Energy Inc. – slide 6
    Proven Conventional Reservoir San Andres Overview Permian Basin Geology Over the past 90 years the Permian Basin has produced 30 BBbl The San Andres produced 12 BBbl and 3 Tcf during that same time (40% of total Permian Basin…
  7. February 2020 Investor Presentation – Ring Energy Inc. – slide 7
    San Andres Formation www.ringenergy.com NYSE American: REI 7
  8. February 2020 Investor Presentation – Ring Energy Inc. – slide 8
    Central Basin Platform Asset Asset Description 97,956 gross / 65,799 net total acres Q419 average net production of 3,936 Boe/d (96% oil) 372 gross active wells as of December 31, 2019 254 producing vertical wells 101 producing…
  9. February 2020 Investor Presentation – Ring Energy Inc. – slide 9
    Central Basin Drilling Inventory Total Proved PV-10 (MM) 769 71 Proved Reserves 22.0 MMBoe 13 Proved PV-10 372 MM 372 Q419 Average Net 3,936 Boe/d Production 288 PDP PDNP PUD 78 17 (1),(2) (1),(3) (3) PUD Probable…
  10. February 2020 Investor Presentation – Ring Energy Inc. – slide 10
    Central Basin Well Economics & Type Curve San Andres Curve Parameters (1.0 mile lateral) Oil Gas Peak Rate Peak Rate 305 305 BOPD BOPD 95 MCFPD 95 MCFPD Average D&C Cost 1.9MM Initial Decline Initial Decline 96.5 96.5 96.5…
  11. February 2020 Investor Presentation – Ring Energy Inc. – slide 11
    Northwest Shelf Asset Asset Description 50,481 gross / 38,241 net total acres Q419 average net production of 6,489 Boe/d(1) (87%oil) 159 gross active wells as of December 31, 2019 69 operated horizontal San Andres wells 50 operated…
  12. February 2020 Investor Presentation – Ring Energy Inc. – slide 12
    Northwest Shelf Accretive Drilling Inventory Total Proved PV-10 (MM) 363 Proved Reserves 34.3 MMBoe - 94% Proved PV-10 582 MM - 107% 582 288 290 Production 6,000 Boe/d - 98% Purchase Price 300 MM 4 Assets acquired in April…
  13. February 2020 Investor Presentation – Ring Energy Inc. – slide 13
    Northwest Shelf Well Economics & Type Curve San Andres 1000 Curve Parameters (1.0 mile lateral) Oil Gas Peak Rate 350 BOPD 300 MCFPD Average D&C Cost 2.4MM Initial Decline 85 85 B Factor 1.5 1.5 Average Cost per 100 Final…
  14. February 2020 Investor Presentation – Ring Energy Inc. – slide 14
    Delaware Basin Assets Asset Description 20,218 gross / 19,917 net total acres Culberson and Reeves Bell Canyon: 20,218 gross / 19,917 net Cherry Canyon: 14,098 gross / 13,798 net Counties, Texas Brushy Canyon: 11,453 gross /…
  15. February 2020 Investor Presentation – Ring Energy Inc. – slide 15
    Delaware Basin Drilling Inventory Total Proved PV-10 (MM) Proved Reserves 14.6 MMBoe 66 Proved PV-10 169 MM 577 75 169 Q419 Average 980 Boe/d Behind pipe zones Net Production 109 of interest 29 PDP PDNP PUD Vertical…
  16. February 2020 Investor Presentation – Ring Energy Inc. – slide 16
    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…
  17. February 2020 Investor Presentation – Ring Energy Inc. – slide 17
    Realized /Boe Peer Comparison Q3 2019 - Q2 2019 Realized Price per Boe (Net of G&T) (1) Q3 2019 Q2 2019 60.00 51.95 48.93 50.00 44.64 45.31 41.51 42.15 39.81 39.51 40.00 38.49 38.52 38.54 35.92 36.95 36.72 35.79 35.25…
  18. February 2020 Investor Presentation – Ring Energy Inc. – slide 18
    F&D Cost Peer Comparison F&D Cost (/Boe)(1) 16.00 13.99 14.00 12.00 11.20 10.96 10.00 8.47 8.00 8.00 7.26 6.00 5.46 4.33 4.00 Eagle Ford, TX Eagle Ford, TX CBP / NWS, TX Delaware, TX…
  19. February 2020 Investor Presentation – Ring Energy Inc. – slide 19
    REI Shortened Cycle Times by Improving Efficiencies Spud to Turning Well On 60 Past two years improved Efficiencies by 35% Saved time and money 50 49 Resulted in increased returns. 48 40 39 35 32 32 30 30 26 1.5…
  20. February 2020 Investor Presentation – Ring Energy Inc. – slide 20
    Path to Free Cash Flow (Capital Discipline) Quarterly Debt Position ( MM) Prior Period Outstanding Debt Incremental Debt Drawn in Period 450 Current Borrowing Base 400 360.5 366.5 6.0 350 16.0 Purchase Price 300 MM (1)…
  21. February 2020 Investor Presentation – Ring Energy Inc. – slide 21
    Recent Developments & 2020 Capex Recent Developments During Q419 Ring drilled four one-mile horizontal San Andrews wells on its Northwest Shelf assets acquired in April 2019. Three of the four reported IPs and the one remaining well…
  22. February 2020 Investor Presentation – Ring Energy Inc. – slide 22
    2020 Capex Objectives 2020 Capex Objectives Objectives: Drill out of cash flow Remain Free Cash Flow Positive through 2020 Reduce and manage debt Flat to modest year-over-year production growth 2020 Capex of 85-90 MM (reduced from…
  23. February 2020 Investor Presentation – Ring Energy Inc. – slide 23
    Growth in Reserves & Production Transformative acquisition of Wishbone in early 2019 has propelled growth and positioned the Company to reach cash flow neutrality by year-end 2019 Acquisition increased proved reserves from 36.6 MMBoe…
  24. February 2020 Investor Presentation – Ring Energy Inc. – slide 24
    REI Valuation Matrix Market Capitalization / EBITDA Net Asset Valuation Period EBITDA YTD Totals YE 2018 PDP PV-10 652.7 MM Q1 2019 24.2 MM Debt 366.5 MM Q2 2019 33.3 MM 57.5 MM Cash 7.6 MM Q3 2019 29.5 MM 87.0 MM Implied Equity…
  25. February 2020 Investor Presentation – Ring Energy Inc. – slide 25
    Net Asset Value Proved PV-10 (MM) Proved NAV/Share 425 Total Proved PV-10 1,123 11.16(1) 653 46 PDP PDNP PUD 3P PV-10 (MM) 3P NAV/Share 160 Total 3P 336 PV-10 1,619 18.47(1) 1,123 Proved Probable Possible…
  26. February 2020 Investor Presentation – Ring Energy Inc. – slide 26
    Oil and Gas Reserves as of 12/31/2018 Ring Crude Oil Natural Gas NGL Total PV-10 (MBbls) (MMcf) (MBbl) (MBoe) (in thousands) Proved Developed Producing Reserves: 17,774 27,799 - 22,407 362,870 Proved Developed Non-Producing…
  27. February 2020 Investor Presentation – Ring Energy Inc. – slide 27
    Income Statement 3 Months Ended September 30, 9 Months Ended September 30, 2019 2018 2019 2018 Revenue 50,339,105 32,687,179 143,471,645 92,503,453 Pre-Tax Income 11,663,278 6,290,574 35,705,294 20,903,288 Net Income…
  28. February 2020 Investor Presentation – Ring Energy Inc. – slide 28
    Balance Sheet As of As of ( thousands) 9/30/2019 12/31/2018 Assets: Cash and Cash Equivalents 7,599 3,364 Other Current Assets 26,212 13,480 Total Current Assets 33,811 16,844 PP&E, net 919,462 542,011 Total Assets(1)…
  29. February 2020 Investor Presentation – Ring Energy Inc. – slide 29
    Analyst Coverage Ring Energy, Inc. Analyst Coverage FIRM ANALYST(S) Alliance Group Partners (A.G.P.) Bhakti Pavani (949) 296-3196 bpavaniallianceg.com Capital One Securities, Inc. Richard Tullis (504) 593-6118…

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