REI 1st QTR ER Beat EPS Estimates

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Cliff_N
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REI 1st QTR ER Beat EPS Estimates

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Ring Energy Announces First Quarter 2023
Results and Reiterates Full Year 2023 Guidance
Produced Record Sales Volumes at High End of Guidance Range

THE WOODLANDS, Texas, May 03, 2023 (GLOBE NEWSWIRE) -- Ring Energy, Inc.
(NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial
results for the first quarter of 2023. In addition, the Company provided second quarter
guidance and reiterated its full year 2023 outlook.

First Quarter 2023 Highlights and Recent Key Items
Grew first quarter 2023 sales volumes 2% to a record 18,292 barrels of oil equivalent
per day (“Boe/d”) (69% oil) from 17,856 Boe/d (68% oil) for the fourth quarter of 2022;
First quarter 2023 sales volumes were at the high-end of the Company’s
guidance range of 17,800 to 18,300 Boe/d;

Reported net income of $32.7 million, or $0.17 per diluted share, in the first quarter of
2023, versus net income of $14.5 million, or $0.08 per diluted share’ in the fourth
quarter of 2022;

First quarter 2023 included a gain on derivative contracts of $9.5 million while
fourth quarter 2022 included a loss on derivative contracts of $19.3 million;
Increased Adjusted Net Income
1 by 15% to $25.0 million, or $0.14 per share, for the
first quarter of 2023 from $21.8 million, or $0.13 per share, in the fourth quarter of
2022;
Generated record Adjusted EBITDA
1 of $58.6 million for the first quarter of 2023, which
was 4% higher than the previous record set in the fourth quarter of 2022 of
$56.3 million;
Delivered Free Cash Flow
1 of $10.5 million and record Cash Flow from Operations
1 of
$49.4 million in the first quarter of 2023;
Remained cash flow positive for the 14
th consecutive quarter;
Ended first quarter 2023 with liquidity of $179.0 million and a Leverage Ratio
2 of 1.65x;
Under the terms of the Stronghold property acquisition (the “Stronghold
Transaction”) that closed on August 31, 2022, Ring made the final deferred
purchase price payment of $15.0 million during the first quarter of 2023 and a
payment of $3.5 million for post-closing adjustments;
Commenced its 2023 development program in January, including drilling and
completing four horizontal (“Hz”) wells in the Northwest Shelf (“NWS”) and three
vertical wells in the Central Basin Platform (“CBP”), as well as performed six
recompletions in the CBP;
Provided guidance for the second quarter and reiterated its full year 2023 outlook for
sales volumes, operating expenses and capital spending;
Expects second quarter 2023 sales volumes of 17,900 to 18,400 Boe/d and full
year 2023 sales volumes of 17,800 to 18,800 Boe/d; and
Entered into agreements in April 2023 with certain holders of the Company’s
outstanding warrants for the early exercise of an aggregate of 14.5 million warrants to
purchase a like amount of common shares at a reduced exercise price of $0.62 per
share (original exercise price of $0.80 per share) that resulted in gross cash proceeds
of approximately $9.0 million. Following the full exercise, approximately 78,200
warrants to purchase shares of Ring Common Stock remained outstanding.
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