RING ENERGY ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER 2014 $REI
Ring Energy, Inc. (NYSE MKT: REI) (“Ring”)(“Company”) announced today record financial results for the first quarter ended March 31, 2014. For the three month period ended March 31, 2014, Ring had oil and gas revenues of $5,970,452 compared to $1,151,957 for the quarter ended March 31, 2013, a 418% increase and net income of $1,163,689, or $0.05 per diluted share, compared to net loss of $965,280 or $0.07 loss per diluted share, for the same period in 2013, a 221% increase.
The revenue increase was due to increases in production volumes, primarily due to development activity. For the three months ended March 31, 2014, oil sales volume increased to 63,944 barrels, compared to 14,245 barrels for the same period in 2013, a 349% increase and gas sales volume increased to 8,617 MCF (thousand cubic feet), compared to 5,757 MCF for the same period in 2013, a 50% increase. The remaining production that was not sold by March 31, 2014, was held in storage and sold in the second quarter. The average commodity prices received by Ring were $92.71 per barrel of oil and $4.88 per MCF of natural gas for the quarter ended March 31, 2014, compared to $88.62 per barrel of oil and $3.77 per MCF of natural gas for the quarter ended March 31, 2013.
Lease operating expenses for the three months ended March 31, 2014 were $11.79 per barrel of oil equivalent (“BOE”). Depreciation, depletion and amortization costs were $23.40 per BOE, and general and administrative costs, which included a $659,468 charge for stock based compensation, were $23.93 per BOE.
Net cash flow from operations for the three months ended March 31, 2014 was $4,061,171,or $0.16 per diluted share, compared to net cash flow of $205,544, or $0.01 per diluted share for the same period in 2013 (1).
Ring’s Chief Executive Officer, Mr. Kelly Hoffman, stated, “We continue to ramp up our 2014 development program. Our first quarter resulted in 24 development wells drilled and one re-completion on an existing well on our Permian Basin properties, where we continue to have a 100% success rate on newly drilled development wells. We now have two rigs drilling full time in Texas. We currently have a third rig drilling in Kansas and hope to announce the results of the initial five wells drilled in Kansas by mid-June. We plan to drill as many as 35 new wells in Texas in the second quarter, while continuing the re-stimulation of selected existing wells. We have increased our credit facility to a maximum of $50,000,000, with an immediate initial borrowing base of $25,000,000.
We are in a position to maintain an aggressive development program, while continuing to seek additional acquisitions.”
Ring Energy, Inc. is an oil and gas exploration, development and production company with current operations in Texas and Kansas.About Ring Energy, Inc.
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, 2013. 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.
K M Financial, Inc.
Contact: Bill Parsons, 702-489-4447
