Ring Energy Q1 revenue falls

Overview

• U.S. oil and gas producer's Q1 revenue fell 7% yr/yr

• Adjusted net income rose to $7.4 mln, driven by cost controls and higher realized prices

• Company reported $220.6 mln net loss, mainly from non-cash impairment and derivative losses

Outlook

• Ring Energy sees Q2 2026 oil sales volumes of 12,450–13,450 Bo/d and total sales of 19,400–21,000 Boe/d

• Company expects Q2 2026 capital spending of $28 mln to $36 mln

• Ring Energy expects to resume debt reduction during the remainder of 2026, balancing growth and financial strength

Result Drivers

• COST CONTROLS - Lease operating expense fell below company guidance due to ongoing cost reduction efforts

• HIGHER REALIZED OIL PRICES - Realized oil price rose 20% from Q4, supporting revenue

• NON-CASH CHARGES - Net loss driven by $162.1 mln non-cash impairment and $77.0 mln unrealized derivative loss

Company press release: ID:nGNX2ql2BG

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Ring Energy Inc is $2.60, about 44.4% above its May 6 closing price of $1.80

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 6 three months ago

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