Warburg Pincus filed a Form 144 after today's close reporting a sale of 4.4 million REI shares today (market value $7.6 million). https://www.ringenergy.com/investors/sec-filings/all-sec-filings?form_type=&year=##document-1440-0000950170-24-113525-2
The same filing documents Warburg's having sold 6.2 million shares on 9/8/24.
A 13D filed on 9/18/24 reported that Warburg and various affiliates owned ~ 39.9 million shares (20.1 % of the shares outstanding)
At a recent EPG luncheon with the company, Ring's CEO explained in detail his belief that Warburg's holdings have been an overhang for the pps because large potential investors have expected Warburg to continue dumping their shares, weighing on the share price, and are reluctant to get into the stock until Warburg liquidates its position.
So, it appears that Warburg, et al's holdings are now about 35.5 million shares. Still a long ways to go, but at least there is progress. Worth watching imo.
REI - Warburg sells 4.4 mm more shares
Re: REI - Warburg sells 4.4 mm more shares
REI trades at less than 2X 2024 operating cash flow per share. That is insane for a profitable company that is generating free cash flow and growing production. Ring just needs to stay focused on reducing debt.
Warburg should sell out and move on if they are not going to support the company.
REI closed at $1.67 today. My valuation is $4.20.
Warburg should sell out and move on if they are not going to support the company.
REI closed at $1.67 today. My valuation is $4.20.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: REI - Warburg sells 4.4 mm more shares
Looked back at the 7/5/22 Stronghold acquisition PR. https://www.ringenergy.com/news-presentations-events/press-releases/detail/180/ring-energy-announces-agreement-to-acquire-strongholds. Excerpt:
"The equity component of the consideration will be approximately 21.3 million shares of Ring’s common stock based on a 20-day VWAP of $3.60 per share as of June 30, 2022, and 153,176 shares of new Series A convertible preferred stock that will be automatically converted to common stock upon stockholder approval of the conversion into approximately 42.5 million shares of common stock at the equivalent price of $3.60 per common share. The effective date of the Transaction is June 1, 2022 and closing is anticipated in the third quarter of 2022."
Assuming the Series A convertible preferred conversion took place under the above terms, it appears that Warburg's total position totaled almost 64 million common shares. If so, and if they are now down to 35.5 million, they've sold almost half. (Can't help but notice the $3.60 p/s implied price of the deal.)
Wonder whether anything about future sales can be inferred from the fact that they made two substantial sales recently, one on 9/8/24 and another on 10/8/24. Might there be other sales in November and December? Are they trying to get to any particular goal by YE? Also, who is buying their shares? Do they intend to hold some shares long term?
"The equity component of the consideration will be approximately 21.3 million shares of Ring’s common stock based on a 20-day VWAP of $3.60 per share as of June 30, 2022, and 153,176 shares of new Series A convertible preferred stock that will be automatically converted to common stock upon stockholder approval of the conversion into approximately 42.5 million shares of common stock at the equivalent price of $3.60 per common share. The effective date of the Transaction is June 1, 2022 and closing is anticipated in the third quarter of 2022."
Assuming the Series A convertible preferred conversion took place under the above terms, it appears that Warburg's total position totaled almost 64 million common shares. If so, and if they are now down to 35.5 million, they've sold almost half. (Can't help but notice the $3.60 p/s implied price of the deal.)
Wonder whether anything about future sales can be inferred from the fact that they made two substantial sales recently, one on 9/8/24 and another on 10/8/24. Might there be other sales in November and December? Are they trying to get to any particular goal by YE? Also, who is buying their shares? Do they intend to hold some shares long term?