RING ENERGY, INC.

Permian oil E&P with a loss year, weak liquidity, and customer concentration despite solid operating cash margin.

Strengths

• Healthy operating cash margin 49% (64th pct) and oil-weighted reserves up 14%
• Concentrated, operator-controlled Permian acreage with active hedging

Risks

• Net loss: net margin -11%, ROE -4.2% (30th), revenue down 16%
• Tight liquidity — current ratio 0.61, cash under $1M
• 89% of revenue from three customers; ~32% PUD reserves needing capital

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -11.3%)
• Weak liquidityCurrent ratio 0.61 (<1)
• Customer concentration~89% of revenue from one customer/distributor — For the year ended December 31, 2025, sales to three customers represented 89% of our oil, natural gas, and NGL revenues
• Chronic dilutionShare count +31%/yr over 4y (dilution, book value/share -5%)
• Insider buyingInsider buying — 2 open-market buy(s) by 2 insider(s) (cluster of 2 insiders, ~$338,340, last 6mo) Form 4 ↗