Ring Energy (REI) Update - Feb 18

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Ring Energy (REI) Update - Feb 18

Post by dan_s »

I have updated my forecast/valuation model for REI and posted it to the EPG website.

Highlights:
> Ring is profitable: $0.15 EPS in 2018, $0.63 EPS in 2019 and forecast is for $0.64 EPS in 2020.
> At $1.83 it is trading today at 1X operating cash flow per share.
> Production growth of 77% year-over-year in 2019. My forecast assumes just 16% YOY growth in 2020. < The company has not provided production guidance.
> If WTI averaged $50/bbl for all future periods, this company would still be profitable and able to fund steady production grow with cash flow from operations.

Ring has agreed to host a Dallas luncheon for us on March 12.
Dan Steffens
Energy Prospectus Group
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