Ring Energy (REI) Valuation Update - Aug 11

[dan_s]

REI closed at $1.77 on August 9.
I have updated my forecast/valuation model for Ring. My valuation stays at $4.40/share. TipRank's Price Target stays at $3.00.

Ring is profitable and free cash flow positive. It just needs to keep beating its production guidance and using free cash flow to pay down debt. It has lots of "Running Room" in the Central Basin Platform area of the Permian Basin.

The Matterhorn Express Pipeline should improve natural gas prices in the CBP area.