Ring Energy (REI) investor relations material

Executive summary

• Achieved strong operational and financial results in Q2 2026, with production of 19,990 Boe/d and revenue growth driven by higher oil prices, disciplined capital allocation, and infrastructure investments.

• Strengthened balance sheet through $65–$69 million equity offering, reducing revolver borrowings by $66 million and improving liquidity to $226 million.

• Expanded horizontal drilling inventory, drilled first 2-mile horizontal wells, and accelerated investments in infrastructure and longer laterals.

• Updated 2026 guidance and provided initial 2027 outlook, reflecting confidence in asset base and operational momentum.

• Pursued strategic acquisitions and divestitures, including Yoakum County acquisition and sale of non-operated interests.

Financial highlights

• Q2 2026 revenue reached $104.7 million, up 27% year-over-year and 42% sequentially, supported by a 36% increase in realized prices to $57.55/BOE.

• Net income for Q2 2026 was $64.8 million, including a $42.2 million unrealized derivative gain; adjusted net income was $24.0 million.

• Adjusted EBITDA for Q2 2026 was $54.5 million, with a margin of 52%.

• Lease operating expense per Boe was $10.12, near the low end of guidance and down 3% sequentially.

• All-in cash costs per Boe for Q2 2026 were $21.59, a 1% improvement quarter-over-quarter.

Outlook and guidance

• H2 2026 oil sales guidance: 13,000–13,950 bbl/day; LOE per BOE: $10.00–$10.60.

• FY 2027 sales volumes guided at 21,500–23,500 Boe/d, with LOE expected at $9.80–$10.60/Boe.

• Capital spending for FY 2027 projected at $135–$200 million, focused on drilling, recompletions, and infrastructure.

• 2026–2027 capital program emphasizes longer laterals, with 70% of new wells >1.5 miles in 2H 2026.

• Hedges in place for 2026–2027 to protect cash flow while retaining upside exposure.