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Sep 30, 2024
Ring Energy Q3 2024 Earnings Report
Ring Energy's financial performance was highlighted by record sales, strategic divestiture, and significant debt reduction.
Key Takeaways
Ring Energy reported a strong third quarter in 2024, marked by record sales of 20,108 Boe/d, a strategic divestiture of non-core assets for $5.5 million, and a $15 million reduction in debt. The company's performance reflects successful execution of its drilling and completion program and a focus on reducing operating costs.
Achieved record sales of 20,108 Boe/d, exceeding the high end of guidance.
Reported net income of $33.9 million, or $0.17 per diluted share.
Reduced debt by $15.0 million, bringing outstanding borrowings to $392.0 million.
Divested non-core vertical wells for $5.5 million, enhancing balance sheet.
Forward Guidance
Ring Energy updated its full year 2024 guidance to reflect the recent divestiture of non-core vertical assets and provided guidance for the fourth quarter of 2024, targeting sales volumes of 12,950 to 13,550 Bo/d and 19,200 to 20,000 Boe/d, with capital expenditures between $33 million and $41 million.
Positive Outlook
- Capital spending is fully funded by cash on hand and cash from operations.
- Excess Adjusted Free Cash Flow is targeted for further debt reduction.
- Focus on drilling and completion activity in Q4.
- Targeted well recompletions, infrastructure upgrades, and well reactivations planned.
- Aims at non-operated drilling, completion, and capital workovers.
Challenges Ahead
- Guidance reflects the divestiture of non-core assets.
- Commodity prices may affect debt reduction progress.
- Potential pullback in capital if oil prices are consistently lower.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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