Ring Energy (REI) AI Stock Analysis

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Ring Energy

(NYSE MKT:REI)

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Rating:57Neutral

Price Target:$1.50▲(4.90% 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

Positive operating cash generationSustained positive operating cash flow shows the producing asset base can fund the business even while reported earnings are weak. Positive TTM free cash flow provides some internal funding capacity, although its recent decline indicates that reinvestment needs remain material.

Negative Factors

Severe TTM profitability deteriorationThe sharp swing to a very large TTM net loss shows that revenue growth has not translated into durable earnings power. Continued earnings volatility can weaken retained equity, reduce internally funded investment capacity, and make financial performance highly sensitive to operating and commodity conditions.

Ring Energy (REI) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $372.57M
Dividend Yield: ―
Average Volume (3M): 3.42M
Price to Earnings (P/E): -1.3
Beta (1Y): 0.34
Revenue Growth: -3.15%
EPS Growth: -416.57%
Country: US
Employees: 111
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

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 Decembe...

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 gener...

Ring Energy Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:16.26%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

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.

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

Overall financials are mixed. The income statement is the key weakness, with TTM showing a sharp swing into a very large net loss and high earnings volatility. Offsetting this, leverage is described as moderate for the sector and operating cash flow remains strongly positive, with positive (but sharply lower) TTM free cash flow.

Income Statement

34Negative

Balance Sheet

62Positive

Cash Flow

58Neutral

Financial statement breakdown
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

Technical Analysis SentimentPositive

Last Price1.43

Price Trends

50DMA1.41Positive

100DMA1.31Positive

200DMA1.35Positive

Market Momentum

MACD0.01Negative

RSI57.16Neutral

STOCH84.85Negative

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 1.43 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.41, and above the 200-day MA of 1.35, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REI.

Ring Energy Risk Analysis

Ring Energy disclosed 34 risk factors in its most recent earnings report. Ring Energy reported the most risks in the "Production" category.

Finance & Corporate9
Tech & Innovation1
Legal & Regulatory7
Production11
Ability to Sell1
Macro & Political5

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Ring Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

REI against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNRG	80Outperform	$361.36M	15.01	11.47%	―	-19.15%	-28.59%
EPSN	72Outperform	$195.63M	-32.98	-2.92%	3.87%	53.71%	-204.13%
PED	66Neutral	$221.18M	-4.29	-9.65%	―	229.37%	-332.30%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPM	57Neutral	$154.45M	-51.21	-3.80%	12.63%	0.59%	-345.77%
REI	57Neutral	$372.57M	-1.30	-28.80%	―	-3.15%	-416.57%
AMPY	52Neutral	$177.02M	8.54	5.13%	―	-23.70%	30.67%

* Energy Sector Average

Performance Comparison

REI and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
REI	Ring Energy Inc	1.43	0.48	50.21%
EPM	Evolution Petroleum	3.80	-0.13	-3.38%
AMPY	Amplify Energy Corp.	4.27	-0.41	-8.76%
PNRG	Primeenergy	228.33	93.18	68.95%
PED	Pedevco Corp	16.64	4.16	33.33%
EPSN	Epsilon Energy Ltd.	6.46	1.80	38.72%

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 sta...

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.

Date of analysis: Aug 07, 2026

Ring Energy AI Stock Analysis