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March 2020 Corporate Presentation – Ring Energy Inc.

Ring Energy Inc. · Mar 18, 2020 · 34 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. March 2020 Corporate Presentation – Ring Energy Inc. – slide 1
    Corporate Presentation March 2020 www.ringenergy.com www.ringenergy.com OTCQX:RNGE NYSE American: REI
  2. March 2020 Corporate 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. March 2020 Corporate 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. March 2020 Corporate 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 2019 Proved Reserves(1): 81.1 MMBoe…
  5. March 2020 Corporate 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. March 2020 Corporate 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. March 2020 Corporate Presentation – Ring Energy Inc. – slide 7
    San Andres Formation www.ringenergy.com NYSE American: REI 8
  8. March 2020 Corporate Presentation – Ring Energy Inc. – slide 8
    Northwest Shelf Asset Asset Description 48,188 gross / 36,599 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…
  9. March 2020 Corporate Presentation – Ring Energy Inc. – slide 9
    Northwest Shelf Accretive Drilling Inventory Total Proved PV-10 ( MM) Proved Reserves 45.3 MMBoe 137 300 Proved PV-10 676 MM 231 676 Q419 Average Net 355 42 Production 6,489 Boe/d(1) 363 Purchase Price 300 MM 21 Assets…
  10. March 2020 Corporate Presentation – Ring Energy Inc. – slide 10
    Northwest Shelf Well Economics & Type Curve 1000 40/Boe Realized Price San Andres Curve Parameters (1.0 mile lateral) Oil Gas Peak Rate 350 BOPD 300 MCFPD Average D&C Cost 2.17MM Initial Decline 85 85 B Factor 1.5 1.5 Average…
  11. March 2020 Corporate Presentation – Ring Energy Inc. – slide 11
    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 115 producing…
  12. March 2020 Corporate Presentation – Ring Energy Inc. – slide 12
    Central Basin Drilling Inventory Total Proved PV-10 ( MM) 68 Proved Reserves 25.7 MMBoe 137 667 20 Proved PV-10 341 MM 341 Q419 Average Net 3,936 Boe/d 42 Production 253 363 PDP PDNP PUD 29 37 (1),(2) (1),(3)…
  13. March 2020 Corporate Presentation – Ring Energy Inc. – slide 13
    Central Basin Well Economics & Type Curve San Andres Curve Parameters 40/Boe Realized Price (1.0 mile lateral) Oil Gas Peak Rate 305 BOPD 95 MCFPD Average D&C Cost 1.8MM Initial Decline 96.5 96.5 B Factor 1.8 1.8 Average Cost per…
  14. March 2020 Corporate Presentation – Ring Energy Inc. – slide 14
    Delaware Basin Assets Asset Description Culberson and Reeves 20,219 gross / 19,998 net total acres Bell Canyon: 20,218 gross / 19,917 net Counties, Texas Cherry Canyon: 14,098 gross / 13,798 net Brushy Canyon: 11,453 gross / 11,162…
  15. March 2020 Corporate Presentation – Ring Energy Inc. – slide 15
    Delaware Basin Drilling Inventory Total Proved PV-10 ( MM) 21 Proved Reserves 10.0 MMBoe 137 Proved PV-10 86 MM 577 43 86 Q419 Average 980 Boe/d Behind pipe zones 42 Net Production 109 of interest 363 22 PDP PDNP PUD…
  16. March 2020 Corporate 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. March 2020 Corporate Presentation – Ring Energy Inc. – slide 17
    Realized /Boe Peer Comparison Q4 2019 Q3 2019 Realized Price per Boe (Net of G&T)(1) Q4 2019 Q3 2019 60.00 49.58 48.93 50.00 44.92 44.64 40.00 38.23 37.50 35.92 36.84 36.73 35.79 35.25 34.47 35.22 34.98 31.39 29.67…
  18. March 2020 Corporate Presentation – Ring Energy Inc. – slide 18
    Hedging Overview Summary of Crude Oil Hedges 1,800,000 1,642,500 68.00 1,600,000 1,400,000 61.06 61.06 61.06 61.06 64.00 Volume (Bbls) 1,200,000 60.00 Price (/Bbl) 1,000,000 54.65 56.00 800,000 500,500 500,500…
  19. March 2020 Corporate Presentation – Ring Energy Inc. – slide 19
    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 Eagle Ford, TX Eagle Ford, TX CBP / NWS, TX 4.00 Delaware, TX…
  20. March 2020 Corporate Presentation – Ring Energy Inc. – slide 20
    REI Shortened Cycle Times by Improving Efficiencies Spud to Turning Well On 60 Past two years improved Efficiencies by 35% Returns revenues sooner 50 49 Resulted in increased returns 48 Enables immediate response to market…
  21. March 2020 Corporate Presentation – Ring Energy Inc. – slide 21
    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 Achieved FCF with 4 MM in Surplus Cash…
  22. March 2020 Corporate Presentation – Ring Energy Inc. – slide 22
    Recent Developments & 2020 Capex Recent Developments During Q419 Ring drilled four one-mile horizontal San Andres wells on its Northwest Shelf assets acquired in April 2019. Three of the four reported IPs and the one remaining well…
  23. March 2020 Corporate Presentation – Ring Energy Inc. – slide 23
    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…
  24. March 2020 Corporate Presentation – Ring Energy Inc. – slide 24
    Growth in Reserves & Production Transformative acquisition of Wishbone in early 2019 has propelled growth and enabled the Company to reach positive cash flow with a 4 MM cash surplus by year-end 2019 Increased proved reserves from…
  25. March 2020 Corporate Presentation – Ring Energy Inc. – slide 25
    REI Valuation Matrix Market Capitalization / EBITDA Net Asset Valuation Period EBITDA YTD Totals YE 2019 PDP PV-10 651.0 MM Q1 2019 24.2 MM Debt 366.5 MM Q2 2019 33.3 MM 57.5 MM Cash 10.0 MM Q3 2019 29.5 MM 87.0 MM Implied Equity…
  26. March 2020 Corporate Presentation – Ring Energy Inc. – slide 26
    Net Asset Value Proved PV-10 (MM) Proved NAV/Share 137 389 Total Proved PV-10 1,103 42 10.83(1) 651 363 63 PDP PDNP PUD 3P PV-10 (MM) 3P NAV/Share 160 336 273 Total 3P 109 PV-10 1,485 1,123 16.45(1) 1,103…
  27. March 2020 Corporate Presentation – Ring Energy Inc. – slide 27
    Appendix www.ringenergy.com NYSE American: REI
  28. March 2020 Corporate Presentation – Ring Energy Inc. – slide 28
    Management Team Lloyd T. (Tim) Rochford Co-Founder and Chairman of the Board Mr. Rochford, 73, has been active as an entrepreneur in the oil and gas industry since 1973. During that time, he has personally founded, or co-founded,…
  29. March 2020 Corporate Presentation – Ring Energy Inc. – slide 29
    Management Team (cont'd) Daniel D. Wilson Executive Vice President and Chief Operating Officer Mr. Wilson, 58, has 30 years of experience in operating, evaluating and exploiting oil and gas properties. He has experience in production,…
  30. March 2020 Corporate Presentation – Ring Energy Inc. – slide 30
    Oil and Gas Reserves As Of December 31, 2019 Crude Oil Natural Gas Total PV-10 (MBbls) (MMcf) (MBoe) ( MM) Proved Developed Reserves: 37,841 31,504 43,092 651 Proved Developed Non-Producing Reserves: 3,401 2,964 3,895 63…
  31. March 2020 Corporate Presentation – Ring Energy Inc. – slide 31
    Income Statement 3 Months Ended December 31, 12 Months Ended December 31, 2019 2018 2019 2018 Revenue 52,231,186 27,561,908 195,702,831 120,065,361 Pre-Tax Income 7,578,911 (8,457,807) 43,284,205 12,445,481 Net Income…
  32. March 2020 Corporate Presentation – Ring Energy Inc. – slide 32
    Balance Sheet As of As of ( thousands) 12/31/2019 12/31/2018 Assets: Cash and Cash Equivalents 10,005 3,364 Other Current Assets 28,704 13,480 Total Current Assets 38,709 16,844 PP&E, net 929,216 542,011 Total Assets(1)…
  33. March 2020 Corporate Presentation – Ring Energy Inc. – slide 33
    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…
  34. March 2020 Corporate Presentation – Ring Energy Inc. – slide 34

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