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Permian Acquistion – Ring Energy Inc.

Ring Energy Inc. · Jun 9, 2023 · 32 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. Permian Acquistion – Ring Energy Inc. – slide 1
    VALUE FOCUSED PROVEN STRATEGY www.ringenergy.com NYSE American: REI
  2. Permian Acquistion – Ring Energy Inc. – slide 2
    Independent Oil & Gas Company Focused on Conventional Permian Assets in Texas Record Q1 2023 Net NWS Sales 18,292 Boe/d Highly oil weighted 69% oil 16% gas 15% NGL 2022 SEC Proved Reserves1,2 138.1 MMBoe/PV10 2.77 Billion DB…
  3. Permian Acquistion – Ring Energy Inc. – slide 3
    Committed to ESG Critical to Sustainable Success Progressing our ESG Journey Created ESG Task Force in 2021 to monitor Companys adherence to ESG standards and formally communicate to CEO and the Board on ongoing basis. Established…
  4. Permian Acquistion – Ring Energy Inc. – slide 4
    Value Focused Proven Strategy Sustainably Deliver Competitive Returns Attract and Retain Highly Qualified People Pursue Strategic A&D to Pursue Operational Lower Breakeven Costs Excellence with a Sense & Build Inventory of…
  5. Permian Acquistion – Ring Energy Inc. – slide 5
    Value Focused Proven Strategy Delivering Peer-leading Returns KEY TAKEAWAYS Added Size & Scale accretive acquisition of Stronghold assets 3Q2022 Record net sales of over 18,000 Boepd Increased Proved Reserves3 78% over prior year…
  6. Permian Acquistion – Ring Energy Inc. – slide 6
    Q1 2023 Highlights Proven Strategy Leads to Record Results BOE Oil Adjusted Cash Adjusted Free Cash Leverage Liquidity3 Production Production Flow From Ops1 EBITDA1 Flow1 Ratio2 Q1 18,292 12,660 49.4 58.6 10.5 1.65x 179 2023…
  7. Permian Acquistion – Ring Energy Inc. – slide 7
    Enhancing Value for Shareholders Executing Strategy Improves Annual Key Metrics1 Production/Share ACFFO1 (million) 0.04 200 0.04 173 Up Up 150 Up 0.03 33% 33% 149% 0.03 100 70 50 0.02 - 2021 2022 2021 2022…
  8. Permian Acquistion – Ring Energy Inc. – slide 8
    Enhancing Value for Shareholders Executing Strategy Improves Annual Key Metrics CROCE1 All-in Cost Operating Margins2/BOE 25% 90.00 80.00 20.7% 20% 76.95 70.00 Up 60.00 63.14 52.59 15% 79% 50.00 11.6% 39.33 Up 40.00…
  9. Permian Acquistion – Ring Energy Inc. – slide 9
    2023 Outlook Proven Strategy Leads to Shareholder Value Sales Boe/d Oil Sales Bo/d 20,000 15,000 Net Sales Pursue Operational 18,300 17,800 to 18,800 Boe/d 15,000 12,450 Excellence with a 10,000 Mid-point 18,300 Boe/d 10,000…
  10. Permian Acquistion – Ring Energy Inc. – slide 10
    Compelling Value Proposition Proven Strategy Leads to Shareholder Value1,2 EV/2023E Adjusted EBITDA3 EV/PV-103 YE22 1P Reserves 2023E Adjusted FCF3 Yield 6.0x 0.8x 30% 25% 0.7x 5.0x 20% 0.6x 15% 4.0x 0.5x 10% 5% 3.0x 0.4x 0%…
  11. Permian Acquistion – Ring Energy Inc. – slide 11
    Value Proposition 2023 and Beyond Trading at a discount to peer average Delivering higher returns than peer average Value focused strategy is proven by record 2022 & Q1 2023 results Disciplined and capital efficient budget is…
  12. Permian Acquistion – Ring Energy Inc. – slide 12
    Asset Overview www.ringenergy.com NYSE American: REI
  13. Permian Acquistion – Ring Energy Inc. – slide 13
    Company Overview Core Assets Operating Statistics Q1 2023 Net Production (MBoe/d) 18.3 Oil (Bo/d) 69% 12.7 Gas (Mcf/d) 16% 17.8 NGLs (Bbls/d) 15% 2.7 LOE ( per Boe) 10.61 YE22 PD Reserves1 PV10 (MM) 1,907 YE22 PD Reserves1…
  14. Permian Acquistion – Ring Energy Inc. – slide 14
    Core Assets in NWS and CBP Record Sales Significant Increase in PD Reserves1 Focus investments on growing core asset areas in NWS & CBP 107% Increase YOY NWS CBP DLWR 160,000 PD PUD 14,000 140,000 2% 12,000 120,000 10,000…
  15. Permian Acquistion – Ring Energy Inc. – slide 15
    Assets Overview New Drill Inventory Performance Consistent Hz Well Performance Consistent Vertical Well Performance SA Horizonal Play1 CBP Vertical Multi-Stacked Pay2 60,000 30,000 Shorter Cycles Times & Lower Capex Drive 50,000…
  16. Permian Acquistion – Ring Energy Inc. – slide 16
    Asset Overview Deep Inventory of High-Return Drilling and Re-Completion Locations Select Recent New Drill Horizontal Well Results Northwest Shelf Select Recent New Drill Vertical Well Results Peak IP Lateral Geological Central…
  17. Permian Acquistion – Ring Energy Inc. – slide 17
    San Andres Reservoir Proven, Conventional, Top Tier Returns San Delaware Midland Andres Hz Hz Hz Permian Basin has produced 30 BBbl High ROR Oil Play San Andres accounts for 40% Low D&C Costs Low D&C costs1 3.2 - 4.4 MM per well…
  18. Permian Acquistion – Ring Energy Inc. – slide 18
    Proved Reserves1 and Inventory SEC YE 2022 Reserves by Category (%) Reserves by PV-102 (MM) Reserves by Product (%) Locations Gaines 35% 867 17% 19% Lea Yoakum 138 138 400+ 3 2,774 Andrews Total Gross MMBoe MM MMBoe…
  19. Permian Acquistion – Ring Energy Inc. – slide 19
    Financial Overview www.ringenergy.com NYSE American: REI
  20. Permian Acquistion – Ring Energy Inc. – slide 20
    2023 Guidance Grow Production, Generate FCF, Pay Down Debt Sales Volumes Q2 2023 FY 2023 Total (Boe/d) 17,900 18,400 17,800 18,800 Oil (%) 69% 66-70% CAPEX Allocation NGLs (%) 15% 14-16% 8% Gas (%) 16% 16-18% Capital Program…
  21. Permian Acquistion – Ring Energy Inc. – slide 21
    Historical Metrics Quarterly Analysis of FCF1 Leverage Ratio 2.80x 2.13x 1.41x2 1.56x2 1.65x2 (LTM)2 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 70 58.6 60 56.0 56.3 50 47.4 Adj. EBITDA/ Capital / Int Exp 40 35.6 30 20…
  22. Permian Acquistion – Ring Energy Inc. – slide 22
    Reducing Debt & Increasing Liquidity Disciplined Capital Spending & Sustainably Generating FCF is the Key Debt Paydown Liquidity1 25 200 Stronghold 180 188 20 20 Acquisition final 179 deferred 160 165 17 cash 15 payment…
  23. Permian Acquistion – Ring Energy Inc. – slide 23
    Appendix www.ringenergy.com NYSE American: REI
  24. Permian Acquistion – Ring Energy Inc. – slide 24
    Financial Overview Derivative Summary Oil Hedges (WTI) Gas Hedges (Henry Hub) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Swaps: NYMEX Swaps: Hedged…
  25. Permian Acquistion – Ring Energy Inc. – slide 25
    Income Statement and Operational Stats Income Statement Operational Stats (Unaudited) Three Months Ended Three Months Ended March 31, December 31, March 31, March 31, December 31, March 31, 2023 2022 2022 2023 2022 2022 Net sales…
  26. Permian Acquistion – Ring Energy Inc. – slide 26
    Balance Sheet and Cash Flow Statement Balance Sheet (Unaudited) March 31, 2023 December 31, 2022 Cash Flow (Unaudited) Three Months Ended March 31, December 31, March 31, ASSETS 2023 2022 2022 Current Assets Cash and cash…
  27. Permian Acquistion – Ring Energy Inc. – slide 27
    Non-GAAP Reconciliations Adjusted Net Income Adjusted EBITDA (Unaudited) (Unaudited) Three Months Ended Three Months Ended March 31, December 31, March 31, March 31, December 31, March 31, 2023 2022 2022 2023 2022 2022 Per Per…
  28. Permian Acquistion – Ring Energy Inc. – slide 28
    Non-GAAP Reconciliations (cont.) Leverage Ratio Adjusted Free Cash Flow (Unaudited) (Unaudited) Three Months Ended EBITDAX Calculation: Q3 2022 Q4 2022 Q1 2023 Annualized LQA March 31, December 31, March 31, 2023 2022 2022…
  29. Permian Acquistion – Ring Energy Inc. – slide 29
    Non-GAAP Reconciliations (cont.) Adjusted Cash Flow from Operations (ACFFO) PV-10 (in thousands) (Unaudited) As of Three Months Ended December 31, March 31, December 31, March 31, 2022 2023 2022 2022 Present value of estimated…
  30. Permian Acquistion – Ring Energy Inc. – slide 30
    Experienced Management Team Shared Vision with a Track Record of Success Add Add Add Photo Photo Photo Paul D. McKinney Stephen D. Brooks Alexander Dyes Travis Thomas Hollie Lamb Marinos Baghdati Chairman & Chief EVP of Land,…
  31. Permian Acquistion – Ring Energy Inc. – slide 31
    Refreshed Board of Directors Accomplished and Diversified Experience Paul D. McKinney Anthony D. Petrelli Roy I. Ben-Dor John A. Crum David S. Habachy Richard E. Harris Thomas L. Mitchell Regina Roesener Clayton E. Woodrum…
  32. Permian Acquistion – Ring Energy Inc. – slide 32
    COMPANY CONTACT Al Petrie (281) 975-2146 apetrieringenergy.com Chris Delange (281) 975-2146 cdelangeringenergy.com ANALYST COVERAGE Alliance Global Partners (A.G.P.) Jeff Grampp (949) 296-4171 jgramppallianceg.com ROTH…

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