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Ring Energy
(REI)
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Rating:57Neutral
Price Target:
$1.50
▲(4.17% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial performance driven by a sharp TTM profitability deterioration and earnings volatility, despite supportive operating cash flow and moderate leverage. Offsetting factors include a constructive (but not strong) technical setup and a positive earnings-call outlook with improving costs, volume-growth targets, and balance-sheet actions. Valuation is a headwind due to the negative P/E and lack of a provided dividend yield.
Positive Factors
Production Growth and Inventory
The planned increase in BOE sales and more than a decade of inventory provide Ring with a substantial development runway. Longer laterals, co-developed pads, and continued leasing could support sustained production growth and reduce reliance on short-lived operational gains.
Negative Factors
Severe TTM Profitability Deterioration
The sharp TTM loss indicates that revenue growth has not translated into durable earnings power. Persistently weak profitability could constrain internally funded investment, reduce returns on the asset base, and make future results more sensitive to operating and commodity-price changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Production Growth and Inventory
The planned increase in BOE sales and more than a decade of inventory provide Ring with a substantial development runway. Longer laterals, co-developed pads, and continued leasing could support sustained production growth and reduce reliance on short-lived operational gains.
Read all positive factors
Ring Energy (REI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$351.73M
Dividend YieldN/A
Average Volume (3M)3.41M
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth-3.15%
EPS Growth-416.57%
CountryUS
Employees111
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-1.10
Shares Outstanding260,539,600
10 Day Avg. Volume2,038,437
30 Day Avg. Volume3,414,530
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.21
Price to Sales (P/S)0.58
P/FCF Ratio3.39
Enterprise Value/Market Cap1.76
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit3.12
Enterprise Value/Ebitda-4.47
Forecast
1Y Price Target
$2.08Price Target Upside44.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.26
Revenue Forecast (FY)$348.99M
Ring Energy Business Overview & Revenue Model
Company Description
Ring Energy, Inc. operates as an oil and natural gas exploration and production firm, concentrating its efforts on the acquisition, development, and extraction of these resources across Texas and New Mexico. By the close of 2021, specifically Dece...
How the Company Makes Money
Ring Energy makes money primarily by producing crude oil and natural gas from its operated and non-operated wells and selling those hydrocarbons to purchasers (e.g., refiners, marketers, and midstream counterparties) at market-based prices that ge...
Ring Energy Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook: management reported sequential production growth, meaningful realized price gains, solid revenue ($104.7M), improved unit costs, strengthened liquidity via a $65M equity raise used to reduce revolver borrowings, and updated guidance showing 2027 volume growth (~10% BOE midpoint). The company is investing to transition to longer laterals and co-developed pads to enhance capital efficiency and expects further cost savings (~$7.5M+ potential). Headwinds include limited participation in Q2 upside due to prior hedges, continued natural gas takeaway/price pressure (–$8.14/Mcf differential), and leverage that remains above the <1.25x target (currently ~1.7x) which keeps some hedging/credit constraints in place. Overall, the highlights—growth guidance, balance sheet improvement, cost and capital-efficiency initiatives, and stronger realized oil prices—outweigh the lowlights, though material execution and market risks remain.Positive Updates
Production Growth and Volume Metrics
Q2 total BOE sales averaged 19,990 BOE/day, up from 19,351 BOE/day in Q1 (+3% sequential). Oil sales averaged 12,683 barrels of oil/day. Updated H2 2026 oil sales guidance is 13,000–13,950 bbl/day (midpoint ~+2% vs prior), and initial 2027 guidance targets oil sales 13,550–14,650 bbl/day and BOE sales 21,500–23,500 BOE/day (midpoint ~+10% vs estimated 2026 BOE sales).
Negative Updates
Hedge Program Limited Participation in Q2 Upside
Hedges established earlier in the year limited participation in stronger oil prices during Q2, reducing upside to realized revenue despite higher market prices; significant portion of 2026 production remains hedged (~70%), constraining near-term upside.
Read all updates
Q2-2026 Updates
Positive
Negative
Production Growth and Volume Metrics
Q2 total BOE sales averaged 19,990 BOE/day, up from 19,351 BOE/day in Q1 (+3% sequential). Oil sales averaged 12,683 barrels of oil/day. Updated H2 2026 oil sales guidance is 13,000–13,950 bbl/day (midpoint ~+2% vs prior), and initial 2027 guidance targets oil sales 13,550–14,650 bbl/day and BOE sales 21,500–23,500 BOE/day (midpoint ~+10% vs estimated 2026 BOE sales).
Read all positive updates
Company Guidance
Ring updated 2026 guidance and gave initial 2027 targets: for 2H‑2026 oil sales of 13,000–13,950 bbl/d (midpoint ≈ +2%), LOE of $10.00–$10.60/BOE (2H midpoint ≈ –2%), H2 capex $80–$100M and full‑year 2026 capex $158–$178M; Q2 results included 19,990 BOE/d (12,683 bbl/d oil), realized $57.55/BOE (oil ~$95.45/bbl), revenue ~$104.7M, LOE $18.4M ($10.12/BOE), all‑in cash costs $21.59/BOE and cash G&A $3.19/BOE. Balance sheet actions: ~$65M net equity proceeds used to reduce revolver, liquidity ≈ $226M, borrowings ≈ $360M and LQA leverage ≈ 1.7x (target <1.25x). 2027 initial outlook: oil sales 13,550–14,650 bbl/d, BOE sales 21,500–23,500 BOE/d (midpoint ≈ +10% vs. 2026 est.), LOE $9.80–$10.60/BOE (midpoint ≈ –1%), capex $135–$165M (midpoint ≈ –10% vs. est. 2026), plan to drill ~20–30 horizontal wells, and hedges for remainder of 2026 of ~1.7MM bbls (~70% of oil sales midpoint) with ~30% unhedged and 2.4 Bcf gas hedged (~62% of gas sales).Ring Energy Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 323.84M | 307.18M | 366.33M | 361.06M | 347.25M | 196.31M |
| Gross Profit | 198.37M | 186.47M | 163.92M | 176.39M | 219.82M | 112.57M |
| EBITDA | -138.49M | 96.15M | 229.93M | 237.53M | 225.95M | 55.07M |
| Net Income | -220.27M | -34.73M | 67.47M | 104.86M | 138.64M | 3.32M |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.51B | 1.41B | 1.38B | 1.27B | 684.16M |
| Cash, Cash Equivalents and Short-Term Investments | 1.14M | 902.91K | 1.87M | 296.38K | 3.71M | 2.41M |
| Total Debt | 363.78M | 423.24M | 389.10M | 430.02M | 419.13M | 292.68M |
| Total Liabilities | 528.13M | 677.21M | 549.46M | 589.91M | 607.90M | 383.53M |
| Stockholders Equity | 753.42M | 836.28M | 858.64M | 786.58M | 661.10M | 300.62M |
Cash Flow | ||||||
| Free Cash Flow | 26.85M | 52.93M | 38.08M | 42.96M | 65.76M | 19.49M |
| Operating Cash Flow | 155.87M | 150.85M | 194.42M | 198.17M | 196.98M | 72.73M |
| Investing Cash Flow | -130.39M | -179.50M | -150.85M | -222.57M | -308.88M | -51.24M |
| Financing Cash Flow | -24.33M | 27.69M | -42.00M | 20.99M | 113.21M | -22.66M |
Ring Energy Technical Analysis
Positive
1.44
Price Trends
1.40
Negative
1.31
Positive
1.32
Positive
Market Momentum
-0.03
Positive
46.01
Neutral
53.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REI, the sentiment is Positive. The current price of 1.44 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.40, and above the 200-day MA of 1.32, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REI.
Ring Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $334.72M | 14.27 | 11.47% | ― | -19.15% | -28.59% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $171.20M | -3.51 | -9.65% | ― | 229.37% | -332.30% | |
64 Neutral | $183.82M | -30.58 | -2.92% | 4.12% | 53.71% | -204.13% | |
63 Neutral | $146.23M | -49.80 | -3.80% | 13.19% | 0.59% | -345.77% | |
57 Neutral | $351.73M | -1.18 | -28.80% | ― | -3.15% | -416.57% | |
52 Neutral | $189.87M | 8.93 | 5.13% | 59.31% | -23.70% | 30.67% |
* Energy Sector Average
REI
Ring Energy
1.35
0.33
32.35%
EPM
Evolution Petroleum
3.64
-0.51
-12.23%
AMPY
Amplify Energy
4.58
-0.12
-2.55%
PNRG
Primeenergy
211.50
61.52
41.02%
PED
Pedevco
12.88
1.58
13.95%
EPSN
Epsilon Energy
6.07
1.50
32.79%
Ring Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
Ring Energy boosts Q2 results and future outlook
Positive
Aug 6, 2026
On August 5, 2026, Ring Energy reported strong second quarter 2026 results, with net income of $64.8 million, adjusted net income of $24 million and a 42% jump in adjusted EBITDA to $54.5 million, supported by higher realized commodity prices and ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.