Ring Energy Announces Successful Results of Senior Credit Facility Fall 2023 Redetermination and Final Payment for Founders Property Acquisition
21 Dezembro 2023 - 8:45AM
Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”)
today announced that the borrowing base was reaffirmed at $600
million under its $1.0 billion senior revolving credit facility
(the “Credit Facility”). In addition, the Company announced that it
had recently made the final payment of $11.9 million on its
previously-announced acquisition of the Central Basin Platform
assets of Founders Oil & Gas IV, LLC (“Founders”). The payment
was reduced from $15.0 million to $11.9 million as a result of
purchase price adjustments in the final settlement. Separately,
Ring disclosed the recent sale of $1.5 million of non-core assets
located in Gaines County, Texas.
KEY HIGHLIGHTS
-
Reaffirmation of the Credit Facility borrowing base at $600
million;
-
No changes to the terms under the Credit Facility, with next
regularly scheduled bank redetermination for the Company to occur
during the spring of 2024;
-
Finalized the purchase of the Founders properties with the reduced
deferred payment that was $3.1 million less than the
initially-disclosed $15.0 million due to purchase price
adjustments; and
-
Proceeds from the recent sale of $1.5 million in non-core assets
are to be used to further reduce outstanding borrowings on the
Credit Facility.
Paul D. McKinney, Chairman of the Board and
Chief Executive Officer, commented, “As we exit 2023, our industry
continues to experience oil and natural gas price volatility. When
considering the additional uncertainty the recent rapid rise in
interest rates creates, we believe it is important to express our
gratitude to our bank group for their continued support. Ring has
worked hard to strengthen our balance sheet and the quality of the
assets that underpin our Credit Facility. We remain focused on
maximizing free cash flow generation through cost reduction
initiatives, the disposition of non-core assets, and the
acquisition of high margin, low break-even assets and applying the
excess cash from our operations to accelerate paying down debt. We
believe our value focused proven strategy is the right strategy for
times like these and we look forward to 2024 and beyond, creating
value for our stockholders.”
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration,
development, and production company with current operations focused
on the development of its Permian Basin assets. For additional
information, please visit www.ringenergy.com.
Safe Harbor Statement
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements involve a wide variety of risks
and uncertainties, and include, without limitation, statements with
respect to the Company’s strategy and prospects. The
forward-looking statements include statements about the expected
future reserves, production, financial position, business strategy,
revenues, earnings, costs, capital expenditures and debt levels of
the Company, and plans and objectives of management for future
operations. Forward-looking statements are based on current
expectations and assumptions and analyses made by Ring and its
management in light of their experience and perception of
historical trends, current conditions and expected future
developments, as well as other factors appropriate under the
circumstances. However, whether actual results and developments
will conform to expectations is subject to a number of material
risks and uncertainties, including but not limited to: declines in
oil, natural gas liquids or natural gas prices; the level of
success in exploration, development and production activities;
adverse weather conditions that may negatively impact development
or production activities; the timing of exploration and development
expenditures; inaccuracies of reserve estimates or assumptions
underlying them; revisions to reserve estimates as a result of
changes in commodity prices; impacts to financial statements as a
result of impairment write-downs; risks related to level of
indebtedness and periodic redeterminations of the borrowing base
and interest rates under the Company’s credit facility; Ring’s
ability to generate sufficient cash flows from operations to meet
the internally funded portion of its capital expenditures budget;
the impacts of hedging on results of operations; and Ring’s ability
to replace oil and natural gas reserves. Such statements are
subject to certain risks and uncertainties which are disclosed in
the Company’s reports filed with the Securities and Exchange
Commission (“SEC”), including its Form 10-K for the fiscal year
ended December 31, 2022, and its other SEC filings. Ring undertakes
no obligation to revise or update publicly any forward-looking
statements except as required by law.
Contact Information
Al Petrie Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com
Ring Energy (AMEX:REI)
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