Ring Energy - Q3 Results

[dan_s]

Notes below are from John White at Roth Capital:

REI reported 3Q 2017 EPS/CFPS/EBITDA of $0.06/$0.17/$9.2 million, in line with our estimates of $0.05/$0.17/$9.0 million. The consensus figures for the quarter were $0.04/$0.18/$9.6 million.

Cash provided by operating activities, before changes in working capital, for the three months ended September 30, 2017 was $10,270,367, or $0.19 per fully diluted share < My forecast for cash flow per share was $0.17. CFPS s/b $0.25 in Q4 as production is expected to ramp up this quarter. - Dan

REI beat our EPS forecast by a penny and slightly beat our EBITDA estimate primarily due to a slightly higher realized oil price which in turn generated slightly higher revenues, partially offset by higher lease operating expense and higher production taxes. Our estimate of CFPS of $0.17 was on the mark with the actual figure of $0.17.

Oil and gas production was 4,135 BOE per day, which was on top of the previously announced figure of 4,127 BOE per day. < Production s/b ~5,200 BOE per day in Q4. - Dan

Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “The third quarter showed great results from our continued progress in cost containment and our accelerated drilling program. We contracted a second horizontal drilling rig in mid-August and are extremely excited with our initial results. We have continued making infrastructure improvements on our Central Basin Platform and Delaware Basin assets and now have secured a dedicated fracking crew that should keep our drilling program on track. In the third quarter we entered into two “hedging” contracts on a portion of our daily production that began the first of October and run through the end of 2018. In July, we completed a public stock offering with the proceeds to be used on our drilling and development program. We have a strong balance sheet, no debt, and with our dedicated staff will continue to look for opportunities that will benefit the Company and our shareholders.”

[wilmawatts]

Good company, good results