Ring Energy (NYSEAMERICAN:REI) recently reported positive second-quarter results, showing an increase in production, improved unit operating costs, and stronger realized pricing. The company also outlined a larger capital program aimed at supporting longer lateral wells, multi-zone development, and infrastructure expansion.
During the second quarter of 2026, Ring Energy’s total sales volumes averaged 19,990 barrels of oil equivalent per day, marking a 3% increase from the previous quarter. The company’s oil sales averaged 12,683 barrels per day, contributing to revenue totaling approximately $104.7 million. This growth was supported by an average realized oil price of about $95.45 per barrel, with overall realized pricing rising 36% sequentially to $57.55 per BOE.
On the cost front, Ring Energy saw improvements as production grew. Lease operating expenses declined to $10.12 per BOE, while all-in cash costs fell to $21.59 per BOE. Cash general and administrative expenses also decreased to $3.19 per BOE, indicating efficient cost management by the company.
The company’s debt reduction efforts were successful as well, with an equity offering generating approximately $65 million in net proceeds, used to reduce borrowings under its revolving credit facility. This move increased liquidity to about $226 million and lowered leverage to approximately 1.7 times.
Looking ahead, Ring Energy has expanded its capital spending plan for the second half of 2026 to $80 million–$100 million. The company expects 2027 BOE sales to grow by about 10% at the midpoint, despite reducing its 2027 capital spending to $135 million–$165 million. Investments in longer laterals, stacked-zone development, and infrastructure are anticipated to lower future drilling and completion costs.
In terms of outlook, Ring Energy expects oil sales volumes of 13,000 to 13,950 barrels per day for the second half of 2026, with LOE of $10 to $10.60 per BOE. The company also provided guidance for 2027, including oil sales of 13,550 to 14,650 barrels per day and total BOE sales of 21,500 to 23,500 per day.
Hedging remains a consideration for Ring Energy, with management noting that stronger oil prices during the second quarter were offset by the company’s hedge position. Approximately 70% of estimated oil sales for the remainder of 2026 are hedged, with a significant portion of hedged volumes utilizing collars to retain exposure to higher commodity prices.
Ring Energy, headquartered in Odessa, Texas, focuses on the development, acquisition, and operation of upstream assets in the United States, with core operations in the prolific Permian Basin. The company trades on the NYSE American under the ticker symbol REI.
Overall, Ring Energy’s second-quarter performance reflects positive momentum in production, pricing, and cost management, positioning the company for continued growth and value creation in the energy sector.
