What are the investment strengths of Ring Energy Inc (REI)?

Extreme valuation discount: P/B 0.21x, P/S 0.56x, EV/EBITDA 5.1x vs 1.4B in PP&E - market pricing permanent impairment that may not materialize Operating margin 27% TTM exceeds industry median 18% - core business generates profit before interest/impairments

What are the investment risks for Ring Energy Inc (REI)?

Negative FCF (-29M TTM) with 287K cash and -46M working capital - liquidity crisis risk if oil prices decline or credit tightens EPS declined -53% 3Y CAGR with negative ROE/ROA/ROIC - value trap potential as capital destruction continues

Ring Energy Inc

REI

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Ring Energy Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-12

Snapshot

73M asset impairment charge TTM drove net loss of -16.2M despite 87M operating income - non-cash charge masks operating profitability[Asset Impairment Charge]
Trading at 0.21x book value (4.10/share) vs 182M market cap - 79% discount to tangible equity of 848M[Price to Book Ratio]
Interest expense of 41M TTM consumes 47% of operating income (87M) - debt service severely constrains cash flow[Interest Expense]

Watch Triggers

Free Cash Flow TTM: Turns positive (>0) — Validates thesis that high capex is temporary; enables debt paydown
Interest Expense: Falls below 35M annually — Signals deleveraging progress; improves net income trajectory
Asset Impairment Charge: No additional charges >20M — Confirms reserve quality; removes earnings volatility

Bull Case

Extreme valuation discount: P/B 0.21x, P/S 0.56x, EV/EBITDA 5.1x vs 1.4B in PP&E - market pricing permanent impairment that may not materialize

Price to Book RatioPrice to Sales RatioProperty Plant & Equipment

Operating margin 27% TTM exceeds industry median 18% - core business generates profit before interest/impairments

Operating Margin TTMOperating Income TTM

Bear Case

Negative FCF (-29M TTM) with 287K cash and -46M working capital - liquidity crisis risk if oil prices decline or credit tightens

Free Cash Flow TTMCash and EquivalentsWorking Capital

EPS declined -53% 3Y CAGR with negative ROE/ROA/ROIC - value trap potential as capital destruction continues

EPS Growth 3YReturn on Equity TTMReturn on Invested Capital TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

35%

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Forward Thesis

FCF will turn positive if capex normalizes from 182M TTM to maintenance levels (~100M)

1-3ylow

Operating cash flow of 153M TTM provides base
Current capex at 56% of revenue is unsustainable
432M debt requires deleveraging priority

Cash flow TTM 153M vs FCF -29MCapex TTM -182M (56% of revenue)Debt/equity 0.51x with 429M long-term debt

Valuation Context

Caveats

Public Strategies Rankings

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REI Fundamentals

Mining, Quarrying, and Oil and Gas Extraction → Oil and Gas Extraction

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$307.97M		—
Enterprise Value	$739.53M		—
P/E Ratio	0.00		—
Total Revenue - TTM	$323.74M	-15.4%	—
Earnings Per Share (diluted) - TTM	$-0.08	-51.9%	—
Operating Margin - TTM	27.0%	-12.2%	—
Net Margin - TTM	-5.01%	-34.5%	—
Free Cash Flow - TTM	$-28.73M		—
Return on Common Equity - TTM	-1.91%	-16.1%	—
Beta 5Y (Monthly)	unknown		—

REI Dividend History

No dividends

REI Stock Splits

No stock splits

REI SEC Filings

Filing Date	Report Date	Report Type	Filing Link
11/06/25	09/30/25	10-Q	0001384195-25-000018
08/06/25	06/30/25	10-Q	0001628280-25-038401
05/07/25	03/31/25	10-Q	0001628280-25-023254
03/05/25	12/31/24	10-K	0001628280-25-010585
11/06/24	09/30/24	10-Q	0001628280-24-045791
08/06/24	06/30/24	10-Q	0001628280-24-035242
05/06/24	03/31/24	10-Q	0001628280-24-020695
03/07/24	12/31/23	10-K	0001628280-24-009691
11/02/23	09/30/23	10-Q	0001628280-23-036452
08/03/23	06/30/23	10-Q	0001628280-23-027315
05/03/23	03/31/23	10-Q	0001628280-23-015268
03/09/23	12/31/22	10-K	0001628280-23-007323
11/10/22	09/30/22	10-Q	0001104659-22-116659
08/04/22	06/30/22	10-Q	0001104659-22-086191
05/10/22	03/31/22	10-Q	0001104659-22-058222
03/16/22	12/31/21	10-K	0001104659-22-034569
11/09/21	09/30/21	10-Q	0001104659-21-136311
08/09/21	06/30/21	10-Q	0001104659-21-102124
05/10/21	03/31/21	10-Q	0001104659-21-064004
03/16/21	12/31/20	10-K	0001104659-21-037111
11/09/20	09/30/20	10-Q	0001104659-20-123053
08/10/20	06/30/20	10-Q	0001104659-20-092837
05/11/20	03/31/20	10-Q	0001104659-20-059532
03/16/20	12/31/19	10-K	0001104659-20-034179
11/06/19	09/30/19	10-Q	0001104659-19-060512
08/07/19	06/30/19	10-Q	0001144204-19-038217
05/08/19	03/31/19	10-Q	0001144204-19-024497
02/28/19	12/31/18	10-K	0001144204-19-011298
03/17/21	12/31/18	10-K/A	0001104659-21-037791
11/06/18	09/30/18	10-Q	0001144204-18-057622
08/08/18	06/30/18	10-Q	0001144204-18-042805
05/08/18	03/31/18	10-Q	0001144204-18-026122
03/15/18	12/31/17	10-K	0001144204-18-014905
11/08/17	09/30/17	10-Q	0001144204-17-057271
08/08/17	06/30/17	10-Q	0001144204-17-041208
05/09/17	03/31/17	10-Q	0001144204-17-025606
03/15/17	12/31/16	10-K	0001144204-17-014740
11/08/16	09/30/16	10-Q	0001144204-16-132417
08/08/16	06/30/16	10-Q	0001144204-16-117209
05/09/16	03/31/16	10-Q	0001144204-16-099905
03/15/16	12/31/15	10-K	0001144204-16-088170
11/09/15	09/30/15	10-Q	0001144204-15-063818
08/10/15	06/30/15	10-Q	0001144204-15-047720
05/06/15	03/31/15	10-Q	0001144204-15-027955
03/16/15	12/31/14	10-K	0001144204-15-016346
11/06/14	09/30/14	10-Q	0001078782-14-001933
08/08/14	06/30/14	10-Q	0001078782-14-001407
05/08/14	03/31/14	10-Q	0001078782-14-000821
03/21/14	12/31/13	10-K	0001078782-14-000424
11/07/13	09/30/13	10-Q	0001078782-13-002140
08/13/13	06/30/13	10-Q	0001078782-13-001559
05/14/13	03/31/13	10-Q	0001078782-13-000940
04/01/13	12/31/12	10-K	0001078782-13-000609
11/14/12	09/30/12	10-Q	0001078782-12-002869
08/14/12	06/30/12	10-Q	0001078782-12-002057
05/15/12	03/31/12	10-Q	0001078782-12-001363
03/20/12	12/31/11	10-K	0001078782-12-000754
11/14/11	09/30/11	10-Q	0001078782-11-003244
08/15/11	06/30/11	10-Q	0001078782-11-002212
05/13/11	03/31/11	10-Q	0001078782-11-001359
03/31/11	12/31/10	10-K	0001078782-11-000832
11/10/10	09/30/10	10-Q	0001078782-10-002483
08/11/10	06/30/10	10-Q	0001078782-10-001793
05/12/10	03/31/10	10-Q	0001078782-10-001020
03/31/10	12/31/09	10-K	0001078782-10-000645
12/29/09	09/30/09	10-K	0000931731-09-000311
08/11/09	06/30/09	10-Q	0000931731-09-000204
05/15/09	03/30/09	10-Q	0000931731-09-000146
02/13/09	12/31/08	10-Q	0000931731-09-000040
09/30/08	09/30/08	Unknown	--
08/14/08	06/30/08	10-Q	0000931731-08-000154
03/31/08	03/30/08	Unknown	--
12/31/07	12/31/07	10QSB	0001273511-08-000002
09/30/07	09/30/07	10KSB	0001273511-07-000063
06/30/07	06/30/07	10QSB	0001273511-07-000045
03/31/07	03/30/07	Unknown	--
12/31/06	12/31/06	10QSB	0001273511-07-000016