Ring Energy Inc (NYSE American: REI) is an oil and natural gas exploration and production company that acquires, develops, and produces crude oil, natural gas, and natural gas liquids from properties in the Permian Basin. Revenue comes from the sale of oil, natural gas, and NGL production at prevailing commodity prices, with Phillips 66 Company accounting for 67% of oil and natural gas revenues and 66% of accounts receivable as of December 31, 2025, Concord Energy LLC at 13%, and NGL Crude Partners at 9%. Operations are concentrated in two Permian Basin sub-plays: the Central Basin Platform and the Northwest Shelf. Total production was 7,392,476 Boe for the year ended December 31, 2025, up from 7,191,054 Boe in FY2024. Proved reserves stood at 134,176,684 Boe as of December 31, 2024, with a standardized measure of discounted future net cash flows of $1.123 billion as of December 31, 2025. The company carries interest expense as a recurring cost item and reported a net loss for the year ended December 31, 2025.

Revenue model

Transactional commodity sales: Ring Energy sells crude oil, natural gas, and natural gas liquids at spot and hedged prices. The company uses WTI-referenced oil hedges and Henry Hub-referenced gas hedges to partially offset price exposure. Revenue is entirely tied to production volumes and realized commodity prices, with no subscription, licensing, or service revenue streams disclosed in the FY2025 10-K.

Products and services

Crude oil (primary product), natural gas, and natural gas liquids produced from conventional and unconventional Permian Basin acreage. The company operates under the full cost method for oil and natural gas properties. Production by area for FY2025: Central Basin Platform contributed 4,359,231 Boe and the Northwest Shelf contributed 3,033,245 Boe.

Customers and end markets

Highly concentrated customer base. For the year ended December 31, 2025, three purchasers accounted for approximately 89% of oil and natural gas revenues: Phillips 66 Company (67%), Concord Energy LLC (13%), and NGL Crude Partners (9%). End markets are downstream refining and petrochemical processing. Demand is driven by crude oil and natural gas commodity markets.

Value-chain role

Upstream oil and gas producer. Ring Energy explores, acquires, develops, and produces hydrocarbons, then sells production to midstream and downstream purchasers. The company does not operate refining, midstream pipeline, or marketing businesses. It uses derivative contracts (swaps and collars referencing WTI and Henry Hub) to hedge a portion of production revenue.

Geographic exposure

Operations are entirely domestic, concentrated in the Permian Basin of West Texas. Two active operating areas as of FY2025: the Central Basin Platform and the Northwest Shelf. The Delaware Basin segment had no production in FY2024 or FY2025 following asset sales.

Source: SEC 10-K, filed 2026-03-04

Industry: Crude Petroleum & Natural Gas Peers: Empire Petroleum Corp Amplify Energy Corp BP PRUDHOE BAY ROYALTY TRUST ConocoPhillips Riley Exploration Permian Inc SILVERBOW RESOURCES, INC. VAALCO Energy Inc