Here are 1-3 brief analogies to describe Ring Energy (REI):

• A regional ExxonMobil, focused on extracting oil and gas primarily in the Permian Basin.

• Like a smaller ConocoPhillips, specializing in oil and gas production in West Texas.

• Crude Oil: Ring Energy's primary product is the sale of crude oil extracted from its properties.
• Natural Gas: The company also sells natural gas produced from its wells.
• Natural Gas Liquids (NGLs): Ring Energy sells natural gas liquids that are separated from its natural gas production.

Ring Energy (symbol: REI) is an independent oil and natural gas company engaged in the acquisition, exploration, development, and production of oil and natural gas properties. As such, it sells its crude oil and natural gas production primarily to other companies, not directly to individuals.

According to Ring Energy's most recent Form 10-K filing (as of the last available filing, typically March of each year), the company generally sells its crude oil and natural gas production to a limited number of purchasers, which is common in the industry. For the fiscal year ended December 31, 2023, Ring Energy reported the following major customers:

• Trafigura US LLC: This company accounted for approximately 92% of Ring Energy's total crude oil production revenues for the year ended December 31, 2023. Trafigura US LLC is a subsidiary of Trafigura Group Pte. Ltd., a privately held multinational commodity trading company.
• Enterprise Products Operating LLC: This company accounted for approximately 78% of Ring Energy's natural gas production revenues for the year ended December 31, 2023. Enterprise Products Operating LLC is a subsidiary of Enterprise Products Partners L.P. (symbol: EPD), a publicly traded midstream energy company.

The company also noted that a small portion of its production was sold to other third-party purchasers.

Paul D. McKinney, Chief Executive Officer and Chairman of the Board

Paul D. McKinney joined Ring Energy as Chairman and Chief Executive Officer on October 1, 2020. Prior to Ring, he served as President, CEO & Director of SandRidge Energy from January 2019 to December 2019. Before that, he was President & Chief Operating Officer for Yuma Energy, Inc. starting April 2017, after being Executive Vice President and Chief Operating Officer from October 2014. Yuma Energy filed for federal bankruptcy protection in April 2020. Mr. McKinney's career also includes roles as Region Vice President, Gulf Coast Onshore, for Apache Corporation from 2010 through 2013, and Manager, Corporate Reservoir Engineering, for Apache from 2007 through 2010. From 2006 to 2007, he was Vice President and Director, Acquisitions & Divestitures for Tristone Capital, Inc. He began his career with Anadarko Petroleum Corporation, holding various positions over a 23-year period from 1983 to 2006, including Vice President of Reservoir Engineering, Anadarko Canada Corporation. He is also a board member for Pro-Ject Holdings, LLC, a privately owned oil field chemical services company.

Rocky Kwon, Interim Chief Financial Officer, Vice President of Accounting, Controller and Assistant Treasurer

Rocky Kwon was appointed Interim Chief Financial Officer in September 2025. He joined Ring Energy in 2021 as Controller and was promoted to VP of Accounting, Controller, and Assistant Treasurer in 2025. Before joining Ring, Mr. Kwon held roles as Assistant Controller and various other positions at Earthstone Energy, Inc. from 2013 to 2021, where he played a part in its transition from the privately held Oak Valley Resources, LLC, and supported its growth. Prior to Earthstone, he spent seven years in multiple accounting and financial roles within the utilities and energy industry, including at The AES Corporation. He is a Certified Public Accountant and Chartered Global Management Accountant.

Alexander Dyes, Executive Vice President & Chief Operations Officer

Alexander Dyes joined Ring Energy in October 2020. He has served as an Executive Officer of the Company since December 2020. From December 2020 to February 2025, he was Executive Vice President of Engineering and Corporate Strategy, and in March 2025, his title changed to Executive Vice President, Chief Operations Officer. Before Ring Energy, Mr. Dyes served as Vice President - A&D at SandRidge from May 2019 to June 2020. He also worked at Yuma Energy, Inc. from late 2014 to early 2019 as Vice President of A&D/Engineering. He started his career at Apache Corporation in 2007, holding various roles, including his last position as a lead asset Senior Reservoir Engineer in Apache's Permian Region, until 2014.

Phillip B. Feiner Esq., Senior Vice President, General Counsel and Corporate Secretary

Phillip B. Feiner joined Ring Energy in 2024. Most recently, he was General Counsel for Nacero Inc., a renewable fuels company. Prior to Nacero, Mr. Feiner served as General Counsel for HSB Solomon Associates, a global consulting and benchmarking firm in the upstream, midstream, and downstream energy sectors. From 2011 to 2019, he worked at Kosmos Energy, progressing from Assistant General Counsel to Vice President, Legal and HR, and then to Vice President and Deputy General Counsel. Before Kosmos Energy, he was Vice President and General Counsel for Cano Petroleum.

James J. Parr, Executive Vice President and Chief Exploration Officer

James J. Parr joined Ring Energy as Executive Vice President, Exploration and Geosciences in November 2024. From June 2022, he was Vice President, Global New Ventures for Woodside Energy. Before BHP's merger with Woodside in 2022, Mr. Parr was Head of Growth, Petroleum for BHP Petroleum from 2021. He also served as Director of International Exploration for Anadarko Petroleum Corporation from 2018 until its acquisition by OXY in late 2019. From 2011 to 2018, he was Vice President, International New Ventures and Gulf of Mexico for APA (formerly Apache) Corporation. Prior to joining Apache, from 2004 to 2011, Mr. Parr served as Director, Exploration and Business Development for Cabot Oil & Gas Corporation, following various roles with Anadarko, ARCO, and BP.

1. Volatility of Crude Oil Prices: Ring Energy is predominantly an oil and gas exploration and production company, with crude oil sales driving nearly 93% of its total revenue. As such, the volatility of crude oil prices is identified as the core external risk to the business. Sustained lower commodity prices directly impact the company's revenue, free cash flow generation, and its ability to accelerate debt paydown, even with wells having low breakeven points in the Permian Basin.
2. High Debt and Liquidity Concerns: The company faces challenges related to its debt burden, with total borrowings around $428 million as of Q3 2025. Despite management's focus on debt reduction, the debt ratio has been climbing, and liquidity remains a concern, with low current and quick ratios indicating a reliance on future cash flow and its credit facility. A significant non-cash ceiling test impairment of $72.9 million in Q3 2025 further highlights the financial pressure due to lower trailing commodity prices.
3. Production Decline due to Capital Spending Cuts: To manage lower oil prices and prioritize debt reduction, Ring Energy has strategically reduced its capital spending significantly. While a pragmatic move for financial stability, this reduction in capital expenditure creates a near-term operational risk by impacting future production and limiting aggressive growth opportunities. The company is sacrificing future growth for current financial stability.

• The accelerating global energy transition towards renewable energy sources and electric vehicles is a clear emerging threat. This fundamental shift is driven by rapidly falling costs of solar, wind, and battery technologies, coupled with government policies and increasing consumer adoption of electric vehicles. This trend directly threatens the long-term demand for fossil fuels, potentially leading to declining commodity prices and decreased value for Ring Energy's oil and natural gas reserves.
• Increasing pressure from investors and financial institutions regarding Environmental, Social, and Governance (ESG) factors presents an emerging threat in terms of capital access. A growing number of funds and lenders are restricting investments in or increasing borrowing costs for traditional fossil fuel companies, which could make it more challenging and expensive for Ring Energy to secure financing for future exploration, development, and acquisitions.

Addressable Market Sizes (U.S. Permian Basin):

• Crude Oil: In 2023, crude oil production in the Permian Basin was 5.79 million barrels of oil per day (mbd). Projections indicate a rise to 6.3 million barrels per day in 2024 and further to 6.6 million barrels per day in 2025. The Permian Basin is the leading oil-producing basin in North America, contributing approximately 47% of the total U.S. daily crude oil production as of March 2024.
• Natural Gas: The Permian Basin's natural gas production was 19,315 million cubic feet per day (mmcfd) in 2023. This is forecast to average 25.8 billion cubic feet per day (Bcf/d) in 2025. The majority of natural gas produced in the Permian is associated gas, meaning it is produced alongside crude oil from oil-directed wells.

Ring Energy (REI) is poised for future revenue growth over the next 2-3 years, driven by a combination of increased production volumes, strategic acquisitions, optimized capital allocation, and a favorable commodity price environment.

Here are the key expected drivers:

1. Increased Production Volumes: Ring Energy anticipates growth in its oil and natural gas production. Despite reductions in capital spending, the company's updated guidance projects approximately 2% annual production growth over 2024. For the full year 2025, the company forecasts oil production to be between 12,700 and 13,700 barrels per day and overall sales volumes between 19,200 and 20,700 BOE per day. This growth is a direct contributor to higher revenue for an exploration and production company.

2. Strategic Acquisitions and Development of Acquired Assets: The successful integration and development of recently acquired assets are expected to fuel revenue growth. A notable example is the acquisition of Lime Rock's CBP assets, which added 17,700 net acres and over 40 gross drilling locations. Production from these acquired assets has reportedly exceeded initial estimates, contributing to the company's overall output and cash flow.

3. Optimized Capital Allocation and Operational Efficiencies: Ring Energy is focusing on capital discipline and operational excellence to enhance its financial performance. The company has demonstrated its ability to drill, complete, and bring wells into production with lower-than-budgeted costs, while these new wells have exceeded pre-drill production estimates. Improved operational efficiencies, including staff reductions, have also contributed to monthly savings, which can indirectly support investments in revenue-generating activities and improve the profitability of each barrel produced.

4. Favorable Commodity Price Environment: As an oil and natural gas producer, Ring Energy's revenue is highly sensitive to commodity price fluctuations. An increase in oil and natural gas prices would directly lead to higher revenue, assuming stable production volumes. The company aims to maintain flexibility to adapt to changes in oil prices, indicating that a positive pricing trend could significantly boost its financial performance.

Share Repurchases

No significant dollar amount of share repurchases or authorized future repurchases were identified over the last 3-5 years.

Share Issuance

• In August 2022, Ring Energy issued 21,339,986 shares of common stock and 153,176 shares of Series A Convertible Preferred Stock as part of the Stronghold Acquisition, with the preferred stock converting into 42,548,892 shares of common stock by October 2022.
• In 2023, proceeds from the issuance of common stock from warrant exercises totaled $12,301,596.
• The Lime Rock acquisition, which closed on March 31, 2025, included up to 7.4 million shares of Ring common stock as part of the $100 million consideration.

Inbound Investments

No large inbound investments by third-parties were identified over the last 3-5 years.

Outbound Investments

• In August 2022, Ring Energy completed the Stronghold Acquisition, acquiring approximately 37,000 net acres in the Central Basin Platform of the Texas Permian Basin.
• In August 2023, Ring Energy closed the Founders Acquisition, which contributed to increased sales volumes in Q1 2024 and was quickly paid off.
• On March 31, 2025, Ring Energy completed the acquisition of Central Basin Platform assets from Lime Rock Resources IV for $100 million, including a $63.6 million cash payment at closing, a $5.0 million deposit, and $2.3 million in direct transaction costs.

Capital Expenditures

• Ring Energy's capital expenditures were $156.34 million in 2021, $155.21 million in 2022, and $131.22 million in 2023.
• For the full year 2024, capital spending guidance was updated to $147 million to $155 million, focused on drilling and completing 19 to 23 horizontal and 22 to 25 vertical wells, as well as recompletions, workovers, and infrastructure upgrades.
• For the full year 2025, initial capital spending guidance of $138 million to $170 million was reduced to $85 million to $113 million (a 36% reduction), primarily allocated to drilling, completion, and related infrastructure (73%), recompletions and capital workovers (19%), and environmental and facility upgrades (5%).