Ring Energy Announces Successful Results of Spring 2021 Redetermination of Senior Credit Facility
10 Junho 2021 - 05:45PM
Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”)
today announced that the borrowing base under its senior revolving
credit facility (the “Credit Facility”) was successfully reaffirmed
at its current level of $350 million.
Key Highlights
-
Reaffirmation of the borrowing base at $350 million;
-
Easing of the minimum required oil hedges for calendar 2022 from
4,000 barrels per day (“Bbls/d”) to 3,100 Bbls/d, which is fully
covered by oil hedges currently in place;
-
Enhances price optionality and increases forecasted 2021 cash flow
generation; and
-
Next regularly scheduled bank redetermination will be on or around
November 1, 2021.
Mr. Paul D. McKinney, Chairman of the Board and
Chief Executive Officer, commented, “We are very pleased with the
positive outcome of our spring 2021 bank redetermination. Our focus
on operational excellence and cost reduction initiatives, coupled
with the substantial improvement in economic activity and increased
oil prices, helped to solidify this positive outcome. We appreciate
our banking group’s clear recognition of the enhanced global
backdrop as evidenced by the more than 20% reduction of required
hedging levels for calendar 2022 included in the amended agreement.
As a result, we have pivoted to a more opportunistic hedging
strategy that allows us to benefit from a higher oil price
environment for the second half of 2021, but also adds potential
for increased free cash flow generation in 2022. Our primary focus
remains on maximizing free cash flow generation to better position
Ring to capitalize on future opportunities for the benefit of our
shareholders.”
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
Al Petrie AdvisorsAl Petrie, Senior Partner
apetrie@ringenergy.comPhone: 281-975-2146
Ring Energy (AMEX:REI)
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