Ring Energy Q1 Loss of $220.6M Driven by Impairment, Adjusted Profit $7.4M
Ring Energy reported a $220.6 million Q1 net loss, driven by a $162.1 million non-cash ceiling test impairment and a $77.0 million derivative loss on commodity contracts, on $73.7 million revenue. Adjusted net income was $7.4 million and operating cash flow remained positive for the 26th straight quarter.
1. Q1 Financial Results
Ring Energy reported a net loss of $220.6 million for the first quarter, equating to $(1.06) per diluted share. Revenues totaled $73.7 million, up 10% sequentially but down 7% year-over-year, reflecting realized crude prices of $68.97 per barrel, 20% higher than Q4.
2. Production and Revenue Details
Average daily production was 19,351 Boe/d, including 12,276 barrels of oil per day, both at guidance mid-points. Non-operated NWS assets were sold at 200 Boe/d for $4.5 million, valued at roughly 4.5 times next-twelve-months cash flow.
3. Impairment and Derivative Charges
The $162.1 million non-cash ceiling test impairment and a $77.0 million unrealized mark-to-market derivative loss drove the large net deficit. Adjusted EBITDA held steady at $38.3 million, while adjusted net income reached $7.4 million.
4. Cash Flow and Liquidity
Cash flow from operations was $25.9 million, marking the 26th consecutive quarter of positive cash flow. The company ended the period with $160.0 million in liquidity and invested $34.5 million in capital expenditures to expand drilling inventory flexibility.