Ring Energy (REI) Update - May 15
Posted: Wed May 15, 2019 5:14 pm
David Fowler, Ring's President, gave us an excellent presentation at our Hess Club luncheon on Houston on May 15
Their recent Wishbone Acquisition that closed in April gives this company a lot more running room in areas that have well-level IRR's over 100% (fully-loaded with leasehold costs) on over 1,000 potential horizontal drilling locations.
> Current production is ~10,600 Boepd (90% crude oil), which compares to Q1 production of 9,762 Boepd.
> Ring's 2019 D&C Capex Budget is $154 million, which should be fully funded by operating cash flow by Q4 2019.
> Ring's goal is 20% annual production growth, fully funded by operating cash flows after 2019.
> MOST IMPRESSIVE to me was slide 23. Ring's Net Asset Value using proforma PV10 value of just their proved reserves (less 100% of their debt) is $11.53/share. Double today's closing price.
The slides that David spoke from can be found on Ring's website here: https://investor.ringenergy.com/events-presentations
Their recent Wishbone Acquisition that closed in April gives this company a lot more running room in areas that have well-level IRR's over 100% (fully-loaded with leasehold costs) on over 1,000 potential horizontal drilling locations.
> Current production is ~10,600 Boepd (90% crude oil), which compares to Q1 production of 9,762 Boepd.
> Ring's 2019 D&C Capex Budget is $154 million, which should be fully funded by operating cash flow by Q4 2019.
> Ring's goal is 20% annual production growth, fully funded by operating cash flows after 2019.
> MOST IMPRESSIVE to me was slide 23. Ring's Net Asset Value using proforma PV10 value of just their proved reserves (less 100% of their debt) is $11.53/share. Double today's closing price.
The slides that David spoke from can be found on Ring's website here: https://investor.ringenergy.com/events-presentations