Ring Energy, Inc., an independent oil and natural gas exploration and production company based in The Woodlands, Texas, reported its financial results for the three and nine months ended September 30, 2024. The company operates primarily in the Permian Basin, focusing on oil and liquids-rich formations.
For the third quarter of 2024, Ring Energy generated total revenues of $89.2 million, a decrease of 5% from $93.7 million in Q3 2023. The decline was attributed to lower average realized prices for natural gas, which resulted in negative revenue of $3.9 million, despite an increase in oil sales volume. Oil revenues for the quarter were approximately $90.4 million, reflecting a slight increase in production volume due to recent acquisitions and drilling activities. For the nine months ended September 30, 2024, total revenues rose to $282.9 million, an 8% increase from $261.1 million in the same period of 2023.
Net income for Q3 2024 was $33.9 million, a significant recovery from a net loss of $7.5 million in Q3 2023. For the nine-month period, net income increased to $61.8 million, compared to $54.0 million in the prior year. Basic earnings per share for Q3 2024 were $0.17, compared to a loss of $0.04 in Q3 2023.
Total costs and operating expenses for Q3 2024 were $59.4 million, up from $54.1 million in Q3 2023. The increase was driven by higher lease operating expenses and general administrative costs. The company reported a net cash provided by operating activities of $147.1 million for the nine months ended September 30, 2024, compared to $142.4 million in the same period of 2023.
Strategically, Ring Energy has focused on growth through acquisitions and operational efficiency. The company completed the Founders Acquisition in August 2023 for approximately $62.4 million, which contributed to increased production. Additionally, the company has divested non-core assets, including the sale of certain oil and gas properties for $5.5 million in September 2024.
As of September 30, 2024, total assets were $1.4 billion, with total liabilities decreasing to $548.5 million. The company reported total stockholders' equity of $851.3 million, up from $786.6 million at the end of 2023. Ring Energy continues to manage its debt effectively, with $392 million outstanding on its credit facility, which has a borrowing base of $600 million and matures in August 2026. The company is also actively hedging its production to mitigate risks associated with commodity price volatility.
About RING ENERGY, INC.
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