Ring Energy (REI) Update - Jan 28

[dan_s]

I talked to Ring on Monday. They are having several one-on-one meetings with fund managers this week. Apparently one of them was impressed because very heavy trading volume today has pushed the share price up over 15% this afternoon.

REI is currently trading for barely over 1X my operating cash flow per share forecast of $90 million ($1.10/share) for 2021. Actual operating CFPS was $0.78 in 2020.

A 1.5 drilling rig program (1 in 1H 2021 and 2 in 2H 2021) should increase production from ~9,000 Boepd in Q4 to over 12,500 Boepd by year-end 2021.