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Ring Energy Inc$0.66($.05)(7.21%)

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 Ring Energy Announces Fourth Quarter and Twelve Month 2019 Financial and Operational Results
   Monday, March 16, 2020 5:26:00 PM ET

Company Achieves Year-End Goal of Becoming Cash Flow Positive

MIDLAND, Texas--(BUSINESS WIRE)--Ring Energy, Inc. (NYSE American: REI) (“Ring”) (“Company”) announced today financial results for the three months and twelve months ended December 31, 2019. For the three-month period ended December 31, 2019, the Company reported oil and gas revenues of $52,231,186 compared to revenues of $27,561,908 for the quarter ended December 31, 2018. For the twelve months ended December 31, 2019, the Company reported oil and gas revenues of $195,702,831, compared to $120,065,361 for the twelve months ended December 31, 2018.



For the three months ended December 31, 2019, Ring reported net income of $5,026,694, or $0.07 per diluted share, compared to a net loss of $7,079,308, or $0.11 per fully diluted share for the three months ended December 31, 2018. For the twelve months ended December 31, 2019, the Company reported net income of $29,496,551, or $0.44 per diluted share, compared to net income of $8,999,760, or $0.15 per fully diluted share for the twelve-month period ended December 31, 2018.

For the three months ended December 31, 2019, the net income included a pre-tax unrealized loss on derivatives of $6,066,991 and a non-cash charge for stock-based compensation of $646,590. Excluding these items, the net income per diluted share would have been $0.17. For the twelve months ended December 31, 2019, the net income included a pre-tax unrealized loss on derivatives of $3,000,078 and a non-cash charge for stock-based compensation of $3,082,625. Excluding these items, the net income per diluted share would have been $0.58. 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.

For the three months ended December 31, 2019, oil sales volume increased to 923,384 barrels, compared to 542,964 barrels (Ring Only) for the same period in 2018, a 70.0% increase, and gas sales volume increased to 779,099 MCF (thousand cubic feet), compared to 302,890 MCF (Ring Only) for the same period in 2018, a 157.2% increase. On a barrel of oil equivalent (“BOE”) basis for the three months ended December 31, 2019, production sales were 1,053,234 BOEs, compared to 593,446 BOEs (Ring Only) for the same period in 2018, an 77.4% increase, and 1,028,812 BOEs for the third quarter of 2019, a 2.4% increase. For the twelve months ended December 31, 2019, oil sales volume increased to 3,536,126 barrels, compared to 2,047,295 (Ring Only) barrels for the same period in 2018, a 72.7% increase, and gas sales volume increased to 2,476,472 MCF, compared to 1,112,177 MCF (Ring Only) for the same period in 2018, a 122.6% increase. On a BOE basis for the twelve months ended December 31, 2019, production sales increased to 3,948,871 BOEs, compared to 2,232,658 BOEs (Ring Only) for the same period in 2018, a 76.8% increase.

The average commodity prices received by the Company were $54.92 per barrel of oil and $1.94 per MCF of natural gas for the quarter ended December 31, 2019, compared to $49.62 per barrel of oil and $2.05 per MCF of natural gas for the quarter ended December 31, 2018. On a BOE basis for the three-month period ended December 31, 2019, the average price received was $49.59, compared to $46.44 per BOE for the three months ended December 31, 2018. The average prices received for the twelve months ended December 31, 2019 were $54.27 per barrel of oil and $1.54 per MCF of natural gas, compared to $56.99 per barrel of oil and $3.05 per MCF of natural gas for the twelve-month period ended December 31, 2018. On a BOE basis for the twelve-month period ended December 31, 2019, the average price received was $49.56, compared to $53.78 per BOE for the twelve months ended December 31, 2018.

The average price differential the Company experienced from WTI pricing in the fourth quarter 2019 was approximately $2.00.

As of December 31, 2019, the Company had entered into derivative contracts for 2020 in the form of costless collars of NYMEX WTI Crude Oil, with an offsetting put option (“floor”) and call option (“ceiling”). The contracts are for a total of 5,500 barrels of oil per day for the period of January 2020 through December 2020. The costless collar pricing does not take into account any pricing differentials between NYMEX WTI pricing and the price received by the Company.

BOPD

Put Price

Call Price

2,000

$

50.00

$

65.61

1,000

$

50.00

$

58.40

1,000

$

50.00

$

58.25

1,500

$

50.00

$

58.65

Subsequent to December 31, 2019, the Company has entered into derivative contracts for 2021 in the form of costless collars of NYMEX WTI Crude oil. The contracts are for a total of 4,500 barrels of oil per day for the period of January 2021 through December 2021. Again, the costless collar pricing does not take into account any pricing differentials between NYMEX WTI pricing and the price received by the Company.

BOPD

Put Price

Call Price

1,000

$

45.00

$

54.75

1,000

$

45.00

$

52.71

1,000

$

40.00

$

55.08

1,500

$

40.00

$

55.35

Lease operating expenses (“LOE”), including production taxes, for the three months ended December 31, 2019 were $13.64 per BOE, equaling 27.5% of the quarter’s revenue and a 13.7% decrease from same period in 2018. Depreciation, depletion and amortization costs, including accretion, decreased 21% to $14.06 per BOE from the fourth quarter 2018 and equaled 28.3% of the fourth quarter 2019 revenue. General and administrative costs, which included a $646,590 charge for stock-based compensation and $554,755 for an operating lease expense, were $4.87 per BOE, a 15.6% decrease from the fourth quarter 2018 and equaled 9.8% of the fourth quarter 2019 revenue. For the twelve months ended December 31, 2019, lease operating expenses, including production taxes, were $14.59 per BOE, representing 29.4% of the 2019 revenue and a 2.5% decrease from the twelve months ended December 31, 2018. Depreciation, depletion and amortization costs, including accretion, were $14.47 per BOE, representing 29.2% of the 2019 revenue and a 18.4% decrease from the prior year. General and administrative costs, which included a $3,082,625 charge for stock-based compensation and $925,217 for operating lease expenses, were $5.27 per BOE, representing 10.6% of the 2019 revenue and an 8.5% decrease from 2018.

Mr. Randy Broaddrick, Vice President and Chief Financial Officer, commented, “On February 22, 2020, the Company submitted an 8K filing to the Securities and Exchange Commission (“SEC”) regarding a correction to the Company financials for the first three quarters of 2019. The correction was the result of an error in the calculation / recording of the excess tax benefit related to the Company’s equity-based compensation. As this is a non-cash tax entry, the adjustment has no effect on cash flows, pre-tax earnings, liquidity, EBITDA or future operations. As a result, the Company not only achieved its primary goal of becoming cash flow neutral by year end, it surpassed it by becoming cash flow positive by approximately $4 million. We are extremely proud of this accomplishment and will continue to operate within generated cash flow while diligently working to reduce our outstanding debt.”

Cash provided by operating activities, before changes in working capital, for the three and twelve months ended December 31, 2019 was $30,090,898, or $0.44 per fully diluted share, and $107,506,194, or $1.61 per fully diluted share, compared to $10,631,255 and $66,151,783, or $0.17 and $1.09 per fully diluted share for the same periods in 2018. Earnings before interest, taxes, depletion and other non-cash items (“Adjusted EBITDA”) for the three and twelve months ended December 31, 2019 were $33,375,704, or $0.49 per fully diluted share, and $120,366,929, or $1.80 per fully diluted share, compared to $10,973,726 and $66,481,825, or $0.18 and $1.09 in 2018. (See accompanying table for a reconciliation of net income to adjusted EBITDA).

Total capital expenditures for the three and twelve months ended December 31, 2019 were approximately $24.7 and $442.8 million. The three-month amount included $0.8 million of asset retirement obligations. The twelve-month amount includes $301.3 million for property acquisitions, $4.4 million of asset retirement obligations and was reduced $7.5 million by property divestitures.

As of December 31, 2019, the outstanding balance on the Company’s $1 billion senior credit facility was $366.5 million. The weighted average interest rate on borrowings under the senior credit facility was 4.49%. On December 2, 2019, the Company announced it had completed the scheduled fall 2019 redetermination evaluation of its senior credit facility. The Company entered into an amendment to the senior credit facility as part of the scheduled fall redetermination, The amendment reaffirmed the immediate borrowing base at $425 million and required the Company, as it has been required in the past, to enter into hedges for 2020 and 2021. The Company has satisfied the requirement for 2020 and 2021 hedges. The next redetermination evaluation is scheduled for May 2020.

The Company also announced today that its estimated total proved reserves of oil and natural gas as of December 31, 2019 increased 121.5% to 81.1 million barrels of oil equivalent (BOE), from 36.6 million BOE at year end 2018, and 132.3% when adjusted for 2019 oil and gas sales. Ring replaced 1,226.1% of production in 2019. The 2019 year-end proved reserves consisted of 71.4 million barrels of crude oil (88%) and 58.3 Bcf of natural gas (12%). Of the 81.1 million BOE of total proved reserves, 58% are proved developed and 42% are proved undeveloped. The proved developed reserves consist of proved developed producing (53%) and proved developed non-producing (5%).

The estimated present value, using a 10% discount rate, of the future net cash flows before income taxes (“PV-10”) of the Company’s proved oil and natural gas reserves as of December 31, 2019 was $1,102.8 million, using year-end average received pricing of $52.41 per barrel for oil and $1.47 per Mcf for natural gas. These estimates were audited by the independent engineering firm of Cawley, Gillespie & Associates, Inc., Fort Worth, Texas.

The following table summarizes our total net proved reserves, pre-tax PV10 value and Standardized Measure of Discounted Future Net Cash Flows as of December 31, 2019. All of the Company’s reserves are in the Permian Basin in Texas and New Mexico.

Oil
(Bbl)

Natural
Gas (Mcf)

Total
(Boe)

Pre-Tax PV10
Value

Standardized
Measure of
Discounted Future
Net Cash Flows

71,359,014

58,271,882

81,070,994

$

1,102,795,800

$

923,175,051

The Company’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “The fourth quarter continued to validate our assessment of our Northwest Shelf asset as the new wells we are drilling continue to exceed our expectations. We continue to improve efficiencies and cut costs where possible. With the oil price volatility we are currently experiencing, it is important for us to focus on maximizing every dollar spent in support of our on-going drilling and development program. That attitude made it possible to achieve our primary goals for 2019 of becoming cash flow neutral / positive, and annualized production growth. We continue to have serious discussions regarding the potential sale of our Delaware Basin asset and recognize the importance of strengthening our balance sheet.”

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

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, 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, 2019. 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.

RING ENERGY, INC.
STATEMENTS OF OPERATIONS
    
 

Three Months Ended

 

Twelve Months Ended

 

 

 

 

 

 

    
Oil and Gas Revenues 

$

52,231,186

 

 

$

27,561,908

 

$

195,702,831

 

 

$

120,065,361

 

    
Costs and Operating Expenses  . 
Oil and gas production costs 

 

12,040,300

 

 

 

8,163,826

 

 

48,496,225

 

 

 

27,801,989

 

Oil and gas production taxes 

 

2,327,383

 

 

 

1,225,119

 

 

9,130,379

 

 

 

5,631,093

 

Depreciation, depletion and amortization 

 

14,544,775

 

 

 

10,448,829

 

 

56,204,269

 

 

 

39,024,886

 

Ceiling test impairment 

 

-

 

 

 

14,172,309

 

 

-

 

 

 

14,172,309

 

Asset retirement obligation accretion 

 

262,321

 

 

 

113,236

 

 

943,707

 

 

 

606,459

 

Operating lease expense 

 

554,755

 

 

 

-

 

 

925,217

 

 

 

-

 

General and administrative expense 

 

4,579,634

 

 

 

3,425,359

 

 

19,866,706

 

 

 

12,867,686

 

    
Total Costs and Operating Expenses 

 

34,309,168

 

 

 

37,548,678

 

 

135,566,503

 

 

 

100,104,422

 

    
Income (Loss) from Operations 

 

17,922,018

 

 

 

(9,986,770

)

 

60,136,328

 

 

 

19,960,939

 

    
Other Income (Expense)    
Interest income 

 

6

 

 

 

0

 

 

13,511

 

 

 

97,855

 

Interest expense 

 

(4,276,122

)

 

 

(342,471

)

 

(13,865,556

)

 

 

(427,898

)

Realized loss on derivatives 

 

-

 

 

 

(4,553,476

)

 

-

 

 

 

(11,153,702

)

Unrealized gain (loss)on change in fair value of derivatives 

 

(6,066,991

)

 

 

6,424,910

 

 

(3,000,078

)

 

 

3,968,287

 

    
Net Other Income (Expense) 

 

(10,343,107

)

 

 

1,528,963

 

 

(16,852,123

)

 

 

(7,515,458

)

    
Income Before Provision for Income Taxes 

 

7,578,911

 

 

 

(8,457,807

)

 

43,284,205

 

 

 

12,445,481

 

    
(Provision for) Income Taxes 

 

(2,552,217

)

 

 

1,378,499

 

 

(13,787,654

)

 

 

(3,445,721

)

    
Net Income (Loss) 

$

5,026,694

 

 

($

7,079,308

)

$

29,496,551

 

 

$

8,999,760

 

    
Basic Earnings (Loss) Per Common Share 

$

0.07

 

 

($

0.12

)

$

0.44

 

 

$

0.15

 

Diluted Earnings (Loss) Per Common Share 

$

0.07

 

 

($

0.11

)

$

0.44

 

 

$

0.15

 

    
    
Basic Weighted-Average Common Shares Outstanding 

 

67,823,981

 

 

 

60,857,325

 

 

66,571,738

 

 

 

59,531,200

 

Diluted Weighted-Average Common Shares Outstanding 

 

67,835,724

 

 

 

61,715,829

 

 

66,757,028

 

 

 

60,848,177

 

COMPARATIVE OPERATING STATISTICS
   

Three Months Ended December 31,

2019

 

2018

 

Change

 

% of 4th Qrt. 2019
Revenue

   
Net Sales - BOE per day

 

11,448

 

 

6,450

 

77.5

%

 
Per BOE:   
Average Sales Price

$

49.59

 

$

46.44

 

6.8

%

 
   
Lease Operating Expenses

 

11.43

 

 

13.75

 

-16.9

%

 

23.0

%

Production Taxes

 

2.21

 

 

2.06

 

7.3

%

 

4.5

%

DD&A

 

13.81

 

 

17.61

 

-21.5

%

 

27.8

%

Accretion

 

0.25

 

 

0.19

 

31.5

%

 

0.5

%

General & Administrative Expenses

 

4.35

 

 

5.77

 

-24.6

%

 

8.7

%

Operating Lease Expense

 

0.53

   

1.0

%

   

Twelve Months Ended December 31,

2019

 

2018

 

Change

 

% of Annual 2019
Revenue

   
Net Sales - BOE per day

 

10,819

 

 

6,117

 

76.8

%

 
Per BOE:   
Average Sales price

$

49.56

 

$

53.78

 

-7.8

%

 
   
Lease Operating Expenses

 

12.28

 

 

12.45

 

-1.3

%

 

24.8

%

Production Taxes

 

2.31

 

 

2.52

 

-8.3

%

 

4.6

%

DD&A

 

14.23

 

 

17.48

 

-18.6

%

 

28.7

%

Accretion

 

0.24

 

 

0.27

 

-11.1

%

 

0.5

%

General & Administrative Expenses

 

5.03

 

 

5.76

 

-12.7

%

 

10.1

%

Operating Lease Expense

 

0.23

   

0.5

%

Net Oil and Gas Reserves*
As of December 31, 2019
  
Standardized
Measure of
 Discounted Future
 Crude OilNat. GasTotalPV-10Net Cash Flows
 (MMBbls)(MMcf)(MMBOE)(MM$)(MM$)
  
Proved Developed Reserves 

37,841,310

31,503,590

43,091,908

$

650,951

$

544,926

  
Proved Developed Non-Producing 

3,400,740

2,964,280

3,894,787

$

62,760

$

52,537

  
Proved Undeveloped Reserves 

30,116,964

23,804,012

34,084,299

$

389,085

$

325,712

  
Total Proved Reserves 

71,359,014

58,271,882

81,070,994

$

1,102,796

$

923,175

*Reserve estimates as of December 31, 2019 are based on an average price of $52.41 for oil and $1.47 for natural gas.

RING ENERGY, INC.
BALANCE SHEET
  
 

December 31,

 

December 31,

 

 

  
ASSETS 
Current Assets 
Cash 

$

10,004,622

 

$

3,363,726

 

Accounts receivable 

 

22,909,195

 

 

12,643,478

 

Joint interest billing receivable 

 

1,812,469

 

 

578,144

 

Prepaid expenses and retainers 

 

3,982,255

 

 

258,909

 

Total Current Assets 

 

38,708,541

 

 

16,844,257

 

Property and Equipment 
Oil and natural gas properties subject to amortization 

 

1,083,966,135

 

 

641,121,398

 

Financing lease asset subject to depreciation 

 

858,513

 

 

-

 

Fixed assets subject to depreciation 

 

1,465,551

 

 

1,465,551

 

Total Property and Equipment 

 

1,086,290,199

 

 

642,586,949

 

Accumulated depreciation, depletion and amortization 

 

(157,074,044

)

 

(100,576,087

)

Net Property and Equipment 

 

929,216,155

 

 

542,010,862

 

Operating lease asset 

 

1,867,044

 

Deferred Income Taxes 

 

-

 

 

7,786,479

 

Deferred Financing Costs 

 

3,214,408

 

 

424,061

 

Total Assets 

$

973,006,148

 

$

567,065,659

 

  
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current Liabilities 
Accounts payable 

$

54,635,602

 

$

51,910,432

 

Financing lease liability 

 

280,970

 

 

-

 

Operating lease liability 

$

1,175,904

 

 

-

 

Derivative liabilities 

 

3,000,078

 

 

-

 

Total Current Liabilities 

 

59,092,554

 

 

51,910,432

 

  
Deferred income taxes 

 

6,001,176

 

 

-

 

Revolving line of credit 

 

366,500,000

 

 

39,500,000

 

Financing lease liability, less current portion 

 

424,126

 

 

-

 

Operating lease liability, less current portion 

 

691,140

 

 

-

 

Asset retirement obligations 

 

16,787,219

 

 

13,055,797

 

Total Liabilities 

 

449,496,215

 

 

104,466,229

 

  
Stockholders' Equity 
Preferred stock - $0.001 par value; 50,000,000 shares authorized; 
no shares issued or outstanding 

 

-

 

 

-

 

Common stock - $0.001 par value; 150,000,000 shares authorized; 
67,993,797 shares and 63,229,710 shares 
issued and outstanding, respectively 

 

67,994

 

 

63,230

 

Additional paid-in capital 

 

526,301,281

 

 

494,892,093

 

Accumulated deficit 

 

(2,859,342

)

 

(32,355,893

)

Total Stockholders' Equity 

 

523,509,933

 

 

462,599,430

 

Total Liabilities and Stockholders' Equity 

$

973,006,148

 

$

567,065,659

 

RING ENERGY, INC.
STATEMENTS OF CASH FLOW

Twelve Months Ended

December 31,

 

December 31,

 

 
Cash Flows From Operating Activities
Net income (loss)

$

29,496,551

 

$

8,999,760

 

Adjustments to reconcile net income (loss) to net cash 
Provided by operating activities:
Depreciation, depletion and amortization

 

56,204,269

 

 

39,024,886

 

Ceiling test impairment

 

-

 

 

14,172,309

 

Accretion expense

 

943,707

 

 

606,459

 

Amortization of deferred financing costs

 

991,310

 

Share-based compensation

 

3,082,625

 

 

3,870,934

 

Deferred income tax expense

 

9,500,517

 

 

2,537,837

 

Excess tax expense (benefit) related to share-based compensation  

 

3,855,389

 

 

907,884

 

Adjustment to deferred tax asset for change in effective tax rate  

 

431,748

 

 

-

 

Change in fair value of derivative instruments

 

3,000,078

 

 

(3,968,286

)

Changes in assets and liabilities:
Accounts receivable

 

(10,035,648

)

 

666,283

 

Prepaid expenses and retainers

 

(1,878,667

)

 

(318,190

)

Accounts payable

 

12,320,308

 

 

4,435,269

 

Settlement of asset retirement obligation

 

(1,295,966

)

 

(577,824

)

Net Cash Provided by Operating Activities

 

106,616,221

 

 

70,357,321

 

Cash Flows from Investing Activities
Payments for the Wishbone Acquisition

 

(276,061,594

)

 

-

 

Payments to purchase oil and natural gas properties 

 

(3,400,411

)

 

(4,656,484

)

Proceeds from divestiture of oil and natural gas properties 

 

8,547,074

 

 

-

 

Payments to develop oil and natural gas properties 

 

(152,125,320

)

 

(198,870,366

)

Proceeds from disposal of fixed assets subject to depreciation  

 

-

 

 

105,536

 

Net Cash Used in Investing Activities

 

(423,040,251

)

 

(203,421,314

)

Cash Flows From Financing Activities
Proceeds from revolving line of credit

 

327,000,000

 

 

39,500,000

 

Proceeds from issuance of common stock, net of offering costs  

 

-

 

 

81,821,138

 

Proceeds from option exercise

 

-

 

 

100,000

 

Payment of deferred financing costs

 

(3,781,657

)

 

-

 

Reduction of financing lease liabilities

 

(153,417

)

 

-

 

Net Cash Provided by Financing Activities

 

323,064,926

 

 

121,421,138

 

Net Increase (Decrease) in Cash

 

6,640,896

 

 

(11,642,855

)

Cash at Beginning of Period

 

3,363,726

 

 

15,006,581

 

Cash at End of Period

$

10,004,622

 

$

3,363,726

 

Supplemental Cash flow Information
Cash paid for interest

$

10,364,313

 

$

323,916

 

 
Noncash Investing and Financing Activities
Asset retirement obligation incurred during development 

 

631,727

 

 

1,311,956

 

Asset retirement obligation acquired

 

39,701

 

 

2,571,549

 

Asset retirement obligation revision of estimate

 

-

 

 

87,980

 

Operating lease assets obtained in exchange for new operating lease liability  

 

2,319,185

 

 

-

 

Financing lease assets obtained in exchange for new financing lease liability  

 

858,513

 

 

-

 

Prepaid asset settled in divestiture of oil and natural gas properties  

 

1,019,876

 

Oil and natural gas assets and properties acquired
through stock issuance

 

-

 

 

11,204,258

 

Capitalized expenditures attributable to drilling projects 
financed through current liabilities

 

15,170,000

 

 

26,000,000

 

Acquisition of oil and gas properties
Assumption of joint interest billing receivable

 

1,464,394

 

 

-

 

Assumption of prepaid assets

 

2,864,554

 

 

-

 

Assumption of accounts and revenue payables

 

(1,234,862

)

 

-

 

Asset retirement obligation incurred through acquisition 

 

(3,705,941

)

 

-

 

Common stock issued as partial consideration in asset acquisition  

 

(28,331,327

)

 

-

 

Oil and gas properties subject to amortization

 

305,004,775

 

 

-

 

Cash Paid

 

276,061,594

 

 

-

 

 
RECONCILIATION OF CASH FLOW FROM OPERATIONS  
 
Net cash provided by operating activities

$

106,616,221

 

$

70,357,321

 

Change in operating assets and liabilities

 

889,973

 

 

(4,205,538

)

 
Cash flow from operations

$

107,506,194

 

$

66,151,783

 

Management believes that the non-GAAP measure of cash flow from operations is useful information for investors because it is used internally and is accepted by the investment community as a means of measuring the Company's ability to fund its capital program. It is also used by professional research analysts in providing investment recommendations pertaining to companies in the oil and gas exploration and production industry.
RING ENERGY, INC.
NON-GAAP DISCLOSURE RECONCILIATION
ADJUSTED EBITDA
  

Twelve Months Ended

December 31,

 

 

December 31,

 

 

  
NET INCOME

$

29,496,551

 

$

8,999,760

 

  
Net other (income) expense

 

16,852,123

 

 

7,515,458

 

Realized loss on derivatives

 

-

 

 

(11,153,702

)

Income tax expense

 

13,787,654

 

 

3,445,721

 

Depreciation, depletion and amortization

 

56,204,269

 

 

39,024,886

 

Accretion of discounted liabilities

 

943,707

 

 

606,459

 

Ceiling test impairment

 

-

 

 

14,172,309

 

Stock based compensation

 

3,082,625

 

 

3,870,934

 

  
ADJUSTED EBITDA

$

120,366,929

 

$

66,481,825

 

 

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

Source: Ring Energy, Inc.



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