Ring Energy Announces Successful Results of Senior Credit Facility Fall 2023 Redetermination and Final Payment for Founders Property Acquisition

THE WOODLANDS, Texas, Dec. 21, 2023 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today announced that the borrowing base was reaffirmed at $600 million under its $1.0 billion senior revolving credit facility (the “Credit Facility”). In addition, the Company announced that it had recently made the final payment of $11.9 million on its previously-announced acquisition of the Central Basin Platform assets of Founders Oil & Gas IV, LLC (“Founders”). The payment was reduced from $15.0 million to $11.9 million as a result of purchase price adjustments in the final settlement. Separately, Ring disclosed the recent sale of $1.5 million of non-core assets located in Gaines County, Texas.

KEY HIGHLIGHTS

• Reaffirmation of the Credit Facility borrowing base at $600 million;        
• No changes to the terms under the Credit Facility, with next regularly scheduled bank redetermination for the Company to occur during the spring of 2024;
• Finalized the purchase of the Founders properties with the reduced deferred payment that was $3.1 million less than the initially-disclosed $15.0 million due to purchase price adjustments; and
• Proceeds from the recent sale of $1.5 million in non-core assets are to be used to further reduce outstanding borrowings on the Credit Facility.

Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “As we exit 2023, our industry continues to experience oil and natural gas price volatility. When considering the additional uncertainty the recent rapid rise in interest rates creates, we believe it is important to express our gratitude to our bank group for their continued support. Ring has worked hard to strengthen our balance sheet and the quality of the assets that underpin our Credit Facility. We remain focused on maximizing free cash flow generation through cost reduction initiatives, the disposition of non-core assets, and the acquisition of high margin, low break-even assets and applying the excess cash from our operations to accelerate paying down debt. We believe our value focused proven strategy is the right strategy for times like these and we look forward to 2024 and beyond, creating value for our stockholders.”