Here are a few brief analogies for Ring Energy (REI):

• Ring Energy is like a smaller, regionally focused ConocoPhillips, specializing in finding and producing oil and natural gas exclusively in Texas and New Mexico.
• Think of Ring Energy as a focused Occidental Petroleum, but dedicated solely to exploring and extracting oil and gas from the Permian Basin region of Texas and New Mexico.

• Oil: The company extracts and sells crude oil from its operations in Texas and New Mexico.
• Natural Gas: The company extracts and sells natural gas from its operations in Texas and New Mexico.

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 Energy, he served as President, CEO & Director of SandRidge Energy from January 2019 to December 2019. Before SandRidge, he was President & Chief Operating Officer for Yuma Energy, Inc. from April 2017, after serving as Executive Vice President and Chief Operating Officer since October 2014. Yuma Energy, Inc. filed for bankruptcy in April 2020. His career also includes roles at Apache Corporation as Region Vice President, Gulf Coast Onshore, and Manager, Corporate Reservoir Engineering, and at Anadarko Petroleum Corporation where he held various positions over 23 years from 1983 to 2006. He also served as Vice President and Director, Acquisitions & Divestitures for Tristone Capital, Inc. from 2006 to 2007. Mr. McKinney is a director for Pro-Ject Holdings, LLC, a privately owned oil field chemical services company.

Sundip "Sonu" S. Johl – Executive Vice President, Chief Financial Officer and Treasurer

Sundip "Sonu" S. Johl joined Ring Energy as Executive Vice President, Chief Financial Officer and Treasurer, effective February 27, 2026. He brings over 20 years of experience across upstream oil and gas investment banking, corporate finance, and strategic advisory roles, with deep expertise in mergers and acquisitions, capital markets, valuation, and financial strategy. From 2020 through January 2026, Mr. Johl was Managing Director, Co-Head of Energy Investment Banking at Raymond James & Associates, Inc., where he advised public and private E&P companies, including those in the Permian Basin. He also served as Managing Director, Co-Head of E&P at UBS Investment Banking Global Energy Group from 2018 to 2020, and as a Director at Citi Investment Banking Global Energy Group from 2009 to 2018.

Alexander Dyes – Executive Vice President, Chief Operations Officer

Alexander Dyes joined Ring Energy in October 2020 and has served as an Executive Officer of the Company since December 2020. In March 2025, his title was changed to Executive Vice President, Chief Operations Officer, after serving as Executive Vice President of Engineering and Corporate Strategy. Prior to Ring Energy, Mr. Dyes was Vice President - A&D at Sandridge from May 2019 to June 2020. Before that, he worked at Yuma Energy, Inc. from late 2014 to early 2019 as Vice President of A&D/Engineering. He began his career at Apache Corporation in 2007.

Shawn Young – Vice President of Operations

Shawn Young was promoted to Vice President of Operations effective July 2024, having initially joined Ring Energy in 2022 as Production Engineering Manager. He is a petroleum engineer with over 33 years of experience in the energy industry, encompassing roles in both large and small public and private companies. Prior to Ring Energy, he served as Vice President – East Texas & Rockies Business Unit Lead for Legacy Reserves Inc./Revenir Energy. Before Legacy, Mr. Young held operations engineering and operations management roles for Legado Resources, an Encap-backed private equity company, since 2008. He also worked at Henry Petroleum and spent 15 years with Anadarko Petroleum Corporation.

James Parr – Executive Vice President and Chief Exploration Officer

James Parr serves as the Executive Vice President and Chief Exploration Officer at Ring Energy.

Key Risks to Ring Energy (REI)

1. Commodity Price Volatility: Ring Energy's financial performance is highly susceptible to extreme volatility in global crude oil and natural gas prices. Fluctuations in these commodity prices directly impact the company's revenue, cash flow, profitability, and the valuation of its assets on the balance sheet. For instance, in the third quarter of 2025, market volatility led to a significant non-cash ceiling test impairment charge of $72.9 million. The company's future free cash flow projections are also sensitive to strip prices for oil.
2. Financial Health and Debt Levels: The company's financial health presents a significant risk, particularly concerning its debt and ability to cover interest payments. Ring Energy has shown signs of potential financial distress, as indicated by its Altman Z-Score. Interest payments on its debt are noted as not being well covered by its earnings before interest and taxes (EBIT). Although Ring Energy has been working to reduce its debt-to-equity ratio, its overall debt level and interest coverage remain key vulnerabilities.
3. Regulatory and Environmental Risks: Ring Energy is exposed to risks associated with evolving environmental and governmental regulations. Changes in regulations, particularly those related to hydraulic fracturing and climate change, could materially affect the company's operating costs and access to markets. Furthermore, future environmental, social, and governance (ESG) compliance developments could adversely impact the company's ability to raise both equity and debt capital.

• Accelerated global adoption of Electric Vehicles (EVs): This represents a clear emerging threat to the long-term demand for crude oil, which is a primary product for Ring Energy, as the transportation sector increasingly shifts away from gasoline-powered internal combustion engines.
• Rapid expansion of renewable energy sources (solar, wind) and advancements in energy storage technologies: This trend directly threatens the demand for natural gas in electricity generation and contributes to a broader systemic shift away from fossil fuels across the energy sector, impacting the market for Ring Energy's products.

Ring Energy, Inc. (REI) operates within the oil and natural gas exploration and production sector, with primary activities focused in Texas and New Mexico. The addressable markets for their main products, crude oil and natural gas, can be quantified by the significant economic output and production volumes within these regions.

Texas

In Texas, the oil and natural gas industry represents a substantial addressable market. The direct Gross Regional Product (GRP) for the Texas oil and natural gas industry was estimated at $385 billion in 2025. Texas leads the United States in crude oil production, supplying approximately 2.1 billion barrels to energy markets in 2025, setting a new record. For natural gas, Texas also set a new record in 2025, producing over 13.5 trillion cubic feet (Tcf). In 2024, Texas accounted for 43% of the nation's crude oil production and 28% of its natural gas gross withdrawals.

New Mexico

New Mexico also presents a significant addressable market for oil and natural gas. In the fiscal year 2025, the state's oil and gas industry generated a record-breaking $13.1 billion in state and local revenue. As of May 2024, the oil and gas sector in New Mexico was valued at a staggering $27 billion, making it the largest contributor to the state's GDP. New Mexico has emerged as the nation's second-largest crude oil-producing state after Texas, with oil production surpassing 2 million barrels per day (mb/d) in 2024. Specifically, as of March 2024, New Mexico produced approximately 2.014 million barrels of oil daily. Furthermore, New Mexico was the third-largest natural gas-producing state in 2024, contributing 8% of the nation's total natural gas gross withdrawals.

Ring Energy, Inc. (REI) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Increased Production Volumes from Organic Development of Existing Assets: Ring Energy plans to sustain and grow its production through ongoing drilling programs, successful well completions, and the development of its extensive drilling inventory within the Permian Basin. The company has demonstrated its ability to organically grow reserves and recorded record sales volumes in 2023 and 2024. Management's strategy involves investing capital to maintain or slightly increase production, with projections for continued sales volume growth in 2025. The company reported record oil and total sales volumes in Q2 2025, exceeding guidance midpoints. Furthermore, the successful integration and continued development of recently acquired assets, such as Lime Rock's CBP assets, have also contributed to increased production and future drilling locations.

2. Optimization of Product Mix Towards Higher-Value Crude Oil: Ring Energy has strategically focused on increasing crude oil production as a percentage of its overall product mix. This emphasis on higher-value crude oil directly enhances the company's realized prices per barrel of oil equivalent (BOE), thereby contributing to revenue growth. The company aimed to grow crude oil production in 2023 and 2024 due to improved economics, with oil representing 70% of its product mix in Q1 2024. This focus on oil-rich assets is a deliberate strategy for resilience against commodity price volatility.

3. Improved Capital Efficiency and Cost Management: Enhancements in capital efficiency for drilling and completion activities, coupled with rigorous cost control, allow Ring Energy to maximize production output per dollar invested. This operational excellence supports sustained production volumes and enables more effective reinvestment into its asset base, indirectly contributing to revenue growth by optimizing the allocation of resources for new production. The company has shown a reduction in year-over-year operating costs and improved drilling capital efficiency. Additionally, Ring Energy reported lease operating expenses below guidance and aims to maintain low operating costs while meeting production targets.

Share Issuance

• Ring Energy's outstanding shares significantly increased over the past few years, rising from 99.78 million at the end of 2021 to 206.68 million by the end of 2025.
• The company experienced notable increases in outstanding shares of 63.09% in 2022 and 20.04% in 2023.

Outbound Investments

• In March 2025, Ring Energy completed the acquisition of Central Basin Platform (CBP) assets from Lime Rock Resources IV, LP, for approximately $70.9 million, including a $63.6 million cash payment.
• The company made a deferred payment of $10 million in December 2025 related to the Lime Rock acquisition.
• Ring Energy also completed the Founders Acquisition in August 2023, which contributed to an increase in its production.
• During the third quarter of 2024, the company divested non-core vertical wells and associated facilities in the Central Basin Platform for $5.5 million.

Capital Expenditures

• Ring Energy's capital expenditures were $152 million for the full year 2023 and $151.9 million for the full year 2024.
• Capital spending for 2025 significantly decreased to $98.2 million, representing a 35% reduction from the previous year, partly due to a more than 50% decrease in Q2 2025 spending in response to lower oil prices.
• For 2026, the company projects total capital spending between $100 million and $130 million, with a midpoint of $115 million, primarily focused on drilling and completing 23 to 32 wells, with a higher emphasis on horizontal drilling.