Ring Energy Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
Yellow judges the company, not the share price. The open question is this: does the shift to longer horizontal wells lift returns on capital far enough that the next price decline does not end in another write-down and another equity raise? Why not green: Ring had to write down its properties twice in fifteen months — $108.8 million in fiscal 2025 and $162.1 million in the first quarter of 2026. Fiscal 2025 brought the first annual loss since 2020, and in May 2026 equity had to be raised 18 percent below the market price to relieve the credit facility. Its own leverage target of 1.25 is explicitly not yet reached. Why not red: every single red criterion fails. No going concern doubt anywhere in the filings. Stockholders' equity of $753.4 million against $528.1 million of liabilities. Cash from operations of $150.8 million in 2025 and $66.7 million in the first half of 2026. Full covenant compliance at June 30, 2026, $226.1 million of available liquidity and no maturity before June 2029. An unqualified Grant Thornton opinion including internal control as of December 31, 2025, and a NYSE American listing with no visible delisting process. Price, price-book ratio and the 2026 share price move played no part in this rating — those are price arguments, not quality arguments. A covenant breach, a sharply reduced borrowing base or a going concern warning would make red the right level. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Ring Energy is a case study in the gap between a commodity price and what reaches the shareholder. The operation runs cleanly: cost per barrel down, proved reserves up 14 percent, $150.8 million of cash from operations in 2025, borrowings cut from $420 million to $360 million. And still the first half of 2026 closed with a $155.8 million loss, because the properties had to be written down by $162.1 million, settled hedges cost $23.7 million and the natural gas left the field at a negative price. In between sit 51.1 million new shares at $1.35 whose proceeds went into repaying the credit facility — to a lending group that, per the prospectus, includes affiliates of the placing banks. Buying here means buying cheap reserves — and a capital structure that hands the next upswing first to the lenders and then to the hedge counterparties. Not investment advice.
Business model
A pure commodity producer with no second leg: 919 gross producing wells across 111,714 gross acres, all in the Texas Permian Basin (December 31, 2025). It is a simple, transparent business with 153.3 million barrels of oil equivalent of proved reserves — but the price at which it sells is set nowhere inside the company.
Operating trend
Lease operating expense per barrel of oil equivalent fell 8 percent to $10.26 in the first half of 2026, proved reserves grew 14 percent in 2025, and company-adjusted EBITDA rose 42 percent quarter over quarter to $54.5 million in the second quarter of 2026. Management describes it as the 27th consecutive quarter of positive adjusted free cash flow.
Earnings quality
Both the quarterly and the half-year 2026 figures are driven by valuation effects. The $64.8 million second quarter profit contains a $42.2 million non-cash mark-to-market gain on derivatives; the $155.8 million half-year loss contains a $162.1 million write-down on the properties. Company-adjusted net income for the quarter was $24.0 million.
Dilution
Shares outstanding rose from 100.2 million (end of 2021) to 260.5 million (June 30, 2026) — up 160 percent in four and a half years. In May and June 2026 alone 51,111,111 shares were sold at $1.35, 18 percent below the last reported price of $1.65 on May 11, 2026. With 450 million shares authorized, 189.5 million remain unissued.
Balance sheet and financing
Stockholders' equity is comfortably positive at $753.4 million, 59 percent of total assets (June 30, 2026). Borrowings were cut from $420 million to $360 million in six months, the facility runs to June 2029 and all covenants were met at the reporting date, with $226.1 million of liquidity available. Against that stands a cash balance of just $1.1 million — the liquidity is almost entirely a lending commitment.
Price risk and hedging
The credit agreement obliges Ring to hedge at least half of its proved developed producing volumes on a rolling 24-month basis. As of August 4, 2026 roughly 70 percent of expected second-half 2026 oil sales were capped at an average of $71.47, while the second quarter of 2026 realized $95.45. The realized loss on settled hedges was $23.7 million in the first half of 2026.
Worth Noting
REI reached our research list through the platform scanner "Reddit Hot Stocks", which collects smaller U.S. stocks discussed unusually often in investor forums. An entry there is not a buy signal but a sentiment signal — a reason to read the primary filings.
Every figure in this analysis comes from SEC primary documents (Form 10-Q for the quarter ended June 30, 2026, filed August 5, 2026; Form 10-Q for the quarter ended March 31, 2026; Forms 10-K for 2025 and 2024; Forms 10-Q for September 30, 2025 and June 30, 2025; Form 8-K of August 6, 2026 with Exhibit 99.1; prospectus supplement 424B5 of May 14, 2026; Form 8-K of March 3, 2026). After the latest quarterly report only the earnings release and two beneficial ownership reports were filed up to the data cut-off; the earnings release has been reviewed. The $1.52 price anchor is the closing price of September 8, 2026 and deliberately not a live quote.
The December 31, 2025 comparatives used here are the revised figures from the Form 10-Q for the quarter ended June 30, 2026. Ring corrected an error it classified as immaterial covering fiscal years 2017 through 2025 in the first quarter of 2026; retained earnings at December 31, 2025 therefore differ from the 2025 annual report ($29.0 million versus $23.3 million), as does stockholders' equity ($842.0 million versus $836.3 million).
Avoiding confusion: the company described here is Ring Energy, Inc., registered with the U.S. securities regulator, the SEC, under CIK 0001384195 and trading as REI on NYSE American. All reserve and price figures refer to barrels of oil equivalent (Boe), where six thousand cubic feet of natural gas count as one barrel of oil equivalent.
Stock Watch
This analysis is as of September 9, 2026. Stock Watch will tell you what's changed at REI since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 0.8378 $ to 2.00 $ · Last price: 1.30 $ (As of: September 29, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/29/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Oil & Gas E&P
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Ring Energy Inc REI | 0.3 | – | 8.6 | 76.5 | 74.3 | -16.2 | 14.9 |
| ConocoPhillips COP | 152.8 | 21.3 | 6.0 | 47.6 | 22.1 | 7.5 | 35.0 |
| EOG Resources Inc EOG | 75.0 | 13.8 | 5.5 | 62.6 | 37.9 | -3.5 | 27.5 |
| Occidental Petroleum Corporation OXY | 54.6 | 71.7 | 5.4 | 73.3 | 17.7 | -20.3 | 20.5 |
| Devon Energy Corporation DVN | 53.3 | 12.8 | 7.2 | 50.3 | 6.9 | 7.8 | 29.6 |
| Diamondback Energy Inc FANG | 51.7 | 186.3 | 8.7 | 72.4 | 5.8 | 36.3 | 28.0 |
| EQT Corporation EQT | 30.7 | 9.5 | 5.4 | 80.8 | 57.4 | 73.7 | -6.7 |
| Texas Pacific Land Corporation TPL | 22.1 | 45.2 | 30.4 | 93.3 | 77.2 | 13.1 | 7.8 |
| Expand Energy Corporation EXE | 20.1 | 6.2 | 3.5 | 47.1 | 34.0 | 176.0 | -19.4 |
| Median of companies shown | 51.7 | 17.6 | 6.0 | 72.4 | 34.0 | 7.8 | 20.5 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 31 | -57 | -38 | -0.97 | 11 | 291 | 308 |
| 2017 | 67 | 16 | 2 | 0.03 | 43 | 357 | 414 |
| 2018 | 120 | 20 | 9 | 0.15 | 70 | 463 | 567 |
| 2019 | 196 | 60 | 30 | 0.44 | 107 | 524 | 973 |
| 2020 | 113 | -269 | -253 | -3.48 | 72 | 295 | 663 |
| 2021 | 196 | 96 | 3 | 0.03 | 73 | 301 | 684 |
| 2022 | 347 | 192 | 139 | 0.98 | 197 | 661 | 1,269 |
| 2023 | 361 | 146 | 105 | 0.54 | 198 | 787 | 1,377 |
| 2024 | 366 | 133 | 67 | 0.34 | 194 | 859 | 1,408 |
| 2025 | 307 | 74 | -35 | -0.17 | 151 | 836 | 1,513 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q3 | 0.07 | -46.20 | 89 | -4.70 | 38.00 | 51 | 9 |
| 2024: Q4 | 0.06 | -45.50 | 83 | -16.50 | 6.80 | 47 | 10 |
| 2025: Q1 | 0.05 | -50.00 | 79 | -16.30 | 11.50 | 28 | -3 |
| 2025: Q2 | 0.05 | -58.30 | 83 | -16.70 | 25.00 | 33 | -56 |
| 2025: Q3 | 0.06 | -14.30 | 79 | -11.90 | -65.70 | 45 | 21 |
| 2025: Q4 | 0.02 | -66.70 | 67 | -19.80 | -19.20 | 45 | 19 |
| 2026: Q1 | 0.04 | -20.00 | 74 | -6.90 | -299.40 | 26 | -9 |
| 2026: Q2 | 0.09 | 80.00 | 105 | 26.70 | 61.90 | 41 | -4 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Growth
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 0.28 | 0.26 – 0.30 | 357 | 47.4% | 2 |
| 12/31/2027 | 0.24 | 0.21 – 0.28 | 353 | -13.1% | 3 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 1.6% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $26.9M |
|---|---|
| Market cap | $345.0M |
| Free cash flow in year ten | $31.6M |
| Terminal value as a share of market value | 48.3% |
For comparison: over the past five years free cash flow grew by 13.3% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Ring Energy erwähnt künstliche Intelligenz in keinem der sechs ausgewerteten SEC-Berichte — weder als Produkt noch als Werkzeug noch als Risiko; das Geschäft ist reine Öl- und Gasförderung im Permian-Becken mit 111 Vollzeitbeschäftigten.
View the full file — quotes, sources, reviewed filings
Filings Reviewed: 10-Q 2026-08-05 · 10-Q 2026-05-06 · 10-K 2026-03-04 · 10-Q 2025-11-06 · 10-Q 2025-08-06 · 10-K 2025-03-05
Rated on September 9, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -4.0%
- More than 10% revenue growth is expected for the coming year -70.6%
- Share count grows by less than 3% a year 13.5%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 1.1%
- Gross margin at 40% or higher and without meaningful erosion 60.7%
- Goodwill from acquisitions does not grow faster than revenue 0.0%
- Net debt below twice EBITDA 4.4 x EBITDA
- Operating cash flow covers the profits of the last three years 406 m
- Return on capital at 15% or higher, or up versus two years ago 5.3%
- Insiders hold at least 10% or are net buyers 8.7%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
4/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 29.1%
- Exp. sales growth 3Y > 5% 7.2%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 7.2%
- Net debt < 4x EBIT 5.7x
- EBIT positive, 10Y straight 8
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% -4.2%
- ROCE > 15% 5.3%
- Expected return > 10% 23.6%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
The company
About the Company
Ring Energy, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties. The company has interests in 74,717 net developed acres and 4,366 net undeveloped acres in Andrews, Gaines, Crane, Ector, Winkler, and Ward counties, Texas; and 8,833 net developed acres and 8,318 net undeveloped acres in Yoakum County, Texas and Lea County, New Mexico. It primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was founded in 2004 and is headquartered in The Woodlands, Texas.
- Employees
- 111
- Headquarters
- The Woodlands, TX
- Address
- 1725 Hughes Landing Boulevard, 77380 The Woodlands, United States
- Phone
- 281 397 3699
- Website
- ringenergy.com
- IPO Date
- 04/10/2007
- ISIN
- US76680V1089
- Stock Split
- 1:18 on 06/02/2008
Management
| Name | Title | Birth Year |
|---|---|---|
| Paul D. McKinney | CEO & Chairman of the Board | 1959 |
| Alexander Dyes | Executive VP & Chief Operations Officer | 1986 |
| Rocky Kwon | VP, Chief Accounting Officer & Principal Accounting Officer | 1981 |
| Phillip B. Feiner Esq. | Senior VP, General Counsel & Corporate Secretary | 1974 |
| James J. Parr | Executive VP & Chief Exploration Officer | 1961 |
| Sundip Singh Johl | Executive VP, CFO, Principal Financial Officer & Treasurer | – |
| Hollie Lamb | Vice President of Oil, Gas Marketing, Regulatory & Compliance | 1977 |
| Shawn D. Young | Senior Vice President of Operations | 1969 |
| Al Petrie | Officer of Investor Relations | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Data as of: September 29, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.