Key Highlights

  • Premarket shares fell 0.85% to $1.16 after Ring Energy closed 9.30% lower at $1.17 on June 15.
  • Previous-session volume reached 7.91 million shares, with the stock trading between $1.16 and $1.25.
  • First-quarter sales averaged 19,351 barrels of oil equivalent per day, including 12,276 barrels of oil per day.
  • Adjusted EBITDA reached $38.3 million, while adjusted free cash flow was approximately $0.2 million.

Ring Energy, Inc. (NYSE American:REI) moved lower before the June 16 opening bell, extending a sharp decline from the previous session as falling crude prices weakened sentiment toward smaller US oil producers.

The stock traded around $1.16 in premarket activity, down 0.85% from its June 15 close of $1.17. Ring Energy lost $0.12, or 9.30%, during Monday’s regular session after opening at $1.23.

The company produces oil and natural gas from properties in the Permian Basin, including the Central Basin Platform and Delaware Basin. Its revenue and cash generation remain sensitive to changes in realised commodity prices.

Ring Energy’s latest quarterly results showed oil sales of 12,276 barrels per day and total sales of 19,351 barrels of oil equivalent per day. Both figures were close to the midpoint of the company’s guidance.

The company recorded a first-quarter net loss of $220.6 million, largely reflecting a $162.1 million non-cash impairment and a $77 million unrealised derivative loss. Adjusted net income, which excludes selected items, was $7.4 million, or $0.04 per diluted share.

Adjusted EBITDA was $38.3 million, while adjusted free cash flow fell to about $0.2 million after capital expenditure reached $34.5 million. Lease operating expense was $10.41 per barrel of oil equivalent, below the company’s guidance range.

Ring Energy also completed an equity offering in May, strengthening its balance sheet while increasing the number of outstanding shares. The stock’s June 15 close left the company with a market capitalisation of approximately $243.5 million.

Shares have traded between $0.72 and $2.00 over the past 52 weeks. The latest premarket decline kept the stock near the lower half of that range.