Ring Energy Provides Guidance on First Quarter 2021 Debt Reduction, Drilling Program and Sales Volumes
03 Maio 2021 - 7:45AM
Ring Energy, Inc. (NYSE American: REI) (“Ring” or
the “Company”) announced today it further paid down debt in the
first quarter of 2021, and provided an update on its previously
announced Northwest Shelf (“NWS”) drilling program and sales
volumes for the first quarter of 2021. In addition, the Company
announced the timing of its first quarter 2021 earnings release and
conference call.
Paid Down $7.5 Million of Debt During
First Quarter 2021
- Reduced debt
balance to $305.5 million on $350 million borrowing base; and
- Increased
liquidity to $46.2 million as of March 31, 2021, including $1.7
million cash on hand.
Consistent with its strategy of strengthening
the balance sheet by steadily paying down debt, during the first
quarter of 2021 Ring used a portion of its free cash flow to
further reduce the level of borrowings on its revolving credit
facility by $7.5 million. As a result, on March 31, 2021 the
Company had a $305.5 million outstanding balance on its revolving
credit facility, which has a current borrowing base of $350
million.
NWS Drilling Program
- Completed and
placed on production all four wells of the NWS Phase I drilling
program during the first quarter 2021;
- All four wells
collectively produced 37,550 gross barrels of oil equivalent during
March 2021;
- Finished
drilling operations on all three wells of the NWS Phase II drilling
program before the end of April 2021; and
- All three Phase
II wells are expected to be producing by the end of May 2021.
The second phase of the Company’s NWS drilling
program includes three wells, with all three wells now successfully
drilled and expected to be completed on schedule and within budget.
The Bevo 664 C #2H has now been completed and was placed on
production in early May. Completion operations on the Bevo 664 A
#4H and the Bevo 664 A #3H will commence in mid-May, with both
wells targeted to come online by the end of May.
First Quarter 2021 Sales
Volumes
- First quarter
2021 net sales averaged 7,960 barrels of oil equivalent per day
(“Boepd”), which was significantly impacted by the severe winter
storm in February;
- Net sales for
first quarter 2021 were also impacted by downtime associated with
the temporary production shut-in of offset wells during the
completion operations of the four NWS Phase I wells and the
conversion of electrical submersible pumps to rod pumps (“CTRs”) on
nine wells;
- Average net
sales of 9,094 Boepd during March 2021 were down by approximately
200 Boepd due to storm-related third-party gas processing capacity
still to be restored; and
- Reaffirmed full
year 2021 net sales guidance of 9,000 to 9,500 Boepd.
Sales volumes for the first quarter of 2021 were
negatively impacted by the severe winter storm in February that
resulted in the shut-in and deferral of more than 60% of Ring’s
production for the majority of the storm with restoration of most
of the production taking more than two weeks to complete. Temporary
downtime associated with completion activity and CTRs also
contributed to lower production numbers. Approximately 200 Boepd
remains temporarily shut-in awaiting the full restoration of
third-party gas processing facilities damaged during the winter
storm. As a result, first quarter net sales volumes were 7,960
Boepd (85% oil) with net sales recovering to an average of 9,094
Boepd (87% oil) for March 2021. Despite the impact of the winter
storm on first quarter production, Ring reaffirmed its full year
2021 net sales guidance of 9,000 to 9,500 Boepd.
First Quarter 2021 Earnings Release and
Conference Call Information
- Earnings release
to be issued after close of trading on Monday, May 10, 2021;
and
- Earnings
conference call to be held on Tuesday, May 11, 2021 at 11:00 AM
ET.
Ring plans to issue its first quarter 2021
earnings release after the close of trading on Monday, May 10,
2021. The Company has scheduled a conference call on Tuesday, May
11, 2021 at 11:00 a.m. ET to discuss its first quarter 2021
operational and financial results. To participate, interested
parties should dial 877-270-2148 at least five minutes before the
call is to begin. Please reference the “Ring Energy First Quarter
2021 Earnings Conference Call.” International callers may
participate by dialing 412-902-6510. The call will also be webcast
and available on Ring’s website at www.ringenergy.com under
“Investors” on the “Events” page. An audio replay will also be
available on the Company’s website following the call.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration,
development, and production company with current operations focused
on the conventional development of its Permian Basin assets in West
Texas and New Mexico. 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 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, 2020, 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.
Contact Information
David A. Fowler, Investor RelationsRing Energy, Inc.Office:
432-682-7464dfowler@ringenergy.com
Ring Energy (AMEX:REI)
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