Ring Energy, Inc. Announces Third Quarter and Nine Month 2015 Financial and Operating Results

Ring Energy Inc. (NYSE MKT: REI) (“Ring”)(“Company”) announced today financial results for the three months and nine months ended September 30, 2015. For the three month period ended September 30, 2015, Ring had oil and gas revenues of $8,629,007 compared to $10,929,771 for the quarter ended September 30, 2014, and net loss of $1,138,268 or $0.04 per fully diluted share, compared to a net income of $1,726,469, or $0.06 per fully diluted share, for the same period in 2014. For the nine month period ended September 30, 2015, the Company reported oil and gas revenues of $23,651,498, compared to oil and gas revenues of $28,104,461 for the nine month period ended September 30, 2014, and a net loss for the nine month period ended September 30, 2015 of $1,579,725, or $0.06 per fully diluted share, compared to a net income of $5,711,896, or $0.22 per fully diluted share, for the same period in 2014. The revenue decrease was primarily due to lower received oil and gas prices.

For the three months ended September 30, 2015, oil sales volume increased to 181,069 barrels, compared to 124,526 barrels for the same period in 2014, and gas sales volume increased to 165,942 MCF (thousand cubic feet), compared to 8,192 MCF for the same period in 2014. For the nine months ended September 30, 2015, oil sales volume increased to 483,918 barrels, compared to 307,003 barrels for the same period in 2014, and gas sales volume increased to 280,307 MCF, compared to 23,951 MCF for the same period in 2014. The average commodity prices received by Ring were $45.24 per barrel of oil and $2.64 per MCF of natural gas for the quarter ended September 30, 2015, compared to $87.58 per barrel of oil and $2.92 per MCF of natural gas for the quarter ended September 30, 2014. The average prices received for the nine months ended September 30, 2015 were $47.31 per barrel of oil and $2.70 per MCF of natural gas, compared to $91.21 per barrel of oil and $4.24 per MCF of natural gas for the nine month period ended September 30, 2014.

Lease operating expenses, including production taxes, for the three months ended September 30, 2015 were $15.94 per barrel of oil equivalent (“BOE”), an 8% increase from the prior year. Depreciation, depletion and amortization costs, including accretion, decreased 37% to $22.86 per BOE. General and administrative costs, which included a $650,968 charge for stock based compensation, were $9.59 per BOE, a 34% decrease. For the nine months ended September 30, 2015, lease operating expenses, including production taxes, were $15.27 per BOE, a 6% increase. Depreciation, depletion and amortization costs, including accretion, were $22.20 per BOE, a 28% decrease, and general and administrative costs, which included a $1,962,142 charge for stock based compensation, were $10.88 per BOE, a 33% decrease.

There was outstanding debt of $40,900,000 on the Company’s $500 million senior secured credit facility at September 30, 2015.

Net cash flow from operations for the three and nine months ended September 30, 2015 was $3,522,565 or $0.12 per fully diluted share, and $11,309,746, or $0.41 per fully diluted share, compared to net cash flow of $7,995,660 and $20,691,009, or $0.30 and $0.81 per fully diluted share for the same periods in 2014 (1).

Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “As commodity prices continue to be depressed, we have focused our attention on improving efficiencies at both our legacy properties in the Permian Basin and our recently acquired Delaware Basin acreage. We have made infrastructure improvements at both sites and continue to work closely with all our vendors. We remain patient and diligent as we evaluate additional acquisition opportunities. We have built a solid company with years of drilling inventory and are anxious to restart our development program.”

Non-GAAP Financial Measures:

Earnings for the three months ended September 30, 2015 include a non-cash charge for stock based compensation of $650,968. Earnings for the nine months ended September 30, 2015 include a non-cash charge for stock based compensation of $1,962,142. Excluding such items, the Company’s earnings would have been a net loss of $0.02 per diluted share for the three months ended September 30, 2015, and a net loss of $0.01 for the nine months ended September 30, 2015. The Company believes results excluding these items are more comparable to estimates provided by security analysts and, therefore, are useful in evaluating operational trends of the Company and its performance, compared to other similarly situated oil and gas producing companies.

About Ring Energy, Inc.

Ring Energy Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas. www.ringenergy.com

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the Company’s strategy and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2014, its Form 10-Q for the quarter ended September 30, 2015 and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.

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K M Financial, Inc.
Bill Parsons, 702-489-4447