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1Q 2020 Earnings Presentation – Ring Energy Inc.

Ring Energy Inc. · May 19, 2020 · 33 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. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 1
    Corporate Presentation May 2020 www.ringenergy.com www.ringenergy.com OTCQX:RNGE NYSE American: REI
  2. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 7
    San Andres Formation www.ringenergy.com NYSE American: REI 8
  8. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 8
    Northwest Shelf Asset Asset Description 48,188 gross / 36,599 net total acres Q120 average net production of 6,589 Boe/d (85% oil) 151 gross active wells as of March 31, 2020 73 operated horizontal San Andres wells 37 operated…
  9. 1Q 2020 Earnings 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 Q120 Average Net 355 6,589 Boe/d 42 Production 363 Purchase Price 300 MM 21 Assets acquired…
  10. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 10
    Northwest Shelf Well Economics & Type Curve 1000 San Andres Curve Parameters 40/Boe Realized Price (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. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 11
    Central Basin Platform Asset Asset Description 90,611 gross / 63,500 net total acres Q120 average net production of 3,488 Boe/d (95% oil) 410 gross active wells as of March 31, 2020 277 producing vertical wells 115 producing…
  12. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 12
    Central Basin Drilling Inventory Total Proved PV-10 ( MM) 68 Proved Reserves 25.7 MMBoe 137 Proved PV-10 341 MM 667 341 20 Q120 Average Net 3,488 Boe/d 42 Production 253 363 PDP PDNP PUD 29 37 (1),(2) (1),(3)…
  13. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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 Q120 Average 821 Boe/d Behind pipe zones 42 Net Production 109 of interest 363 22 PDP PDNP PUD…
  16. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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. 1Q 2020 Earnings 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 1,200,000 60.00 Volume (Bbls) Price (/Bbl) 1,000,000 54.65 56.00 800,000 500,500 500,500 506,000…
  19. 1Q 2020 Earnings 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% Returns revenues sooner 50 49 Resulted in increased returns 48 Enables immediate response to market…
  20. 1Q 2020 Earnings 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 400 360.5 366.5 366.5 366.5 6.0 350 16.0 Purchase Price 300 MM…
  21. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 21
    Recent Developments & 2020 Capex Recent Developments During Q120 Ring drilled four horizontal San Andres wells on its Northwest Shelf assets (2 1.0 mile, 2 1.5 mile) in Yoakum County, Texas. All four new drills reported IPs, plus two…
  22. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 22
    2020 Capex Objectives 2020 Objectives Capex Objectives: Revised 2020 Capex of estimated 25-27 MM (reduced from 85-90 MM) Suspend 2020 drilling to protect balance sheet and outspend Design 2020 capex to stay within cash flow Agility…
  23. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 23
    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…
  24. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 24
    REI Valuation Matrix Market Capitalization / EBITDA Borrowing Base / Enterprise Value Period EBITDA YTD Totals Shares Outstanding 68.0 MM Q1 2019 24.2 MM Share Price (5/11/2020) 0.79 Q2 2019 33.3 MM 57.5 MM Market Capitalization…
  25. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 25
    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…
  26. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 26
    Appendix www.ringenergy.com NYSE American: REI
  27. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 27
    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,…
  28. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 28
    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,…
  29. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 29
    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…
  30. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 30
    Income Statement 3 Months Ended March 31, 12 Months Ended December 31, 2020 2019 2019 2018 Revenue 39,570,328 41,798,315 195,702,831 120,065,361 Pre-Tax Income 56,254,034 9,134,019 43,284,205 12,445,481 Net Income…
  31. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 31
    Balance Sheet As of As of ( thousands) 3/31/2020 12/31/2019 Assets: Cash and Cash Equivalents 12,531 10,005 Other Current Assets 52,261 28,704 Total Current Assets 64,792 38,709 PP&E, net 931,573 929,216 Total Assets(1)…
  32. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 32
    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…
  33. 1Q 2020 Earnings Presentation – Ring Energy Inc. – slide 33

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