REI · Ring Energy, Inc.

Ring Energy delivered Q1 2026 sales volumes of 19,351 Boe/d (64% oil), aligning with guidance midpoint despite a 6% decline from Q4 2025, supported by realized oil prices of $68.97/Bo (up 20% QoQ). Revenues rose 10% QoQ to $73.7 million, but a $162.1 million non-cash ceiling test impairment from lower SEC prices and $77.0 million unrealized derivative losses drove a GAAP net loss of $220.6 million ($1.06/share). Adjusted Net Income of $7.4 million ($0.04/share) reflects core operational strength, with LOE at $10.41/Boe (12% below YoY) from cost reduction efforts. Capex of $34.5 million (up 42% QoQ) targeted infrastructure for longer laterals and efficiency, including 15% faster NWS drilling times; sold non-operated assets for $4.5 million. Cash flow remained positive at $25.9 million operating, extending 26 quarters. Balance sheet shows $160 million liquidity, with borrowings up $6 million to $426 million (borrowing base $585 million). Management paused debt reduction to seize opportunities amid expected elevated oil prices from Iranian Conflict, prioritizing Adjusted Free Cash Flow while planning debt focus later in 2026. Guidance reaffirmed with rising production midpoints to 20,600 Boe/d in Q4, capex tapering, and steady LOE. Sundip Johl's elevation to Principal Financial Officer adds energy banking expertise from Raymond James, UBS, Citi. Presentation materials highlight Permian conventional assets' upside via horizontal development in CBP/NWS.