Ring Energy (REI) Update - Feb 18
Posted: Tue Feb 18, 2020 6:54 pm
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.
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.