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Dec 31, 2024
Ring Energy Q4 2024 Earnings Report
Ring Energy reported a decline in revenue and net income in Q4 2024 due to lower commodity prices and increased costs.
Key Takeaways
Ring Energy generated $83.4 million in revenue for Q4 2024, a 17% decrease year-over-year. Net income fell significantly to $5.7 million, impacted by lower realized oil prices and higher operating expenses. Adjusted net income was $12.3 million, while adjusted EBITDA stood at $50.9 million. The company reduced capital expenditures by 12% compared to Q3 2024 and continued debt reduction efforts.
Revenue declined 17% YoY to $83.4 million.
Net income decreased to $5.7 million from $50.9 million in Q4 2023.
Adjusted EBITDA fell to $50.9 million, down 22% YoY.
Capital expenditures reduced by 12% to $37.6 million.
Ring Energy
Ring Energy
Forward Guidance
Ring Energy expects 2025 revenue growth driven by increased production volumes and potential acquisitions, with capital spending remaining flat.
Positive Outlook
- Projected average daily sales volumes of 21,000 Boe/d, a 7% increase.
- Stable capital expenditure plan of approximately $154 million.
- Potential production uplift from Lime Rock asset acquisition in Q2 2025.
- Focus on debt reduction and maintaining strong liquidity position.
- Continued improvement in capital efficiency for horizontal and vertical wells.
Challenges Ahead
- Oil price volatility could impact revenue projections.
- Higher lease operating expenses anticipated in 2025.
- Potential integration costs from Lime Rock acquisition.
- Regulatory uncertainties surrounding production growth plans.
- Commodity price hedging may limit upside from higher oil prices.