Ring Energy Inc (REI) Reports Q3 2023 Earnings, Records 10% Increase in Adjusted EBITDA
Ring Energy Inc (REI) reported a net loss of $7.5 million in Q3 2023, compared to a net income of $28.8 million in Q2 2023.
The company achieved a record Adjusted EBITDA of $58.6 million, a 10% increase from Q2 2023.
Net Cash Provided by Operating Activities increased by 28% to $55.4 million in Q3 2023 from $43.4 million in Q2 2023.
Ring Energy Inc (REI) closed the sale of its non-core operated New Mexico assets for $4.5 million in September 2023.
Ring Energy Inc (REI) released its Q3 2023 earnings report on November 3, 2023. Despite reporting a net loss of $7.5 million, the company achieved a record Adjusted EBITDA of $58.6 million, marking a 10% increase from the second quarter of 2023. The company also increased its Net Cash Provided by Operating Activities by 28% to $55.4 million in the third quarter of 2023 from $43.4 million in the second quarter.
Financial Performance and Highlights
Ring Energy Inc (REI) reported a net loss of $7.5 million, or $(0.04) per diluted share, in the third quarter of 2023, compared to a net income of $28.8 million, or $0.15 per diluted share, in the second quarter of 2023. The company attributed the net loss to a loss on derivative contracts of $39.2 million in Q3 2023, while Q2 2023 included a gain on derivative contracts of $3.3 million.
Despite the net loss, Ring Energy Inc (REI) achieved a record Adjusted EBITDA of $58.6 million for the third quarter of 2023, a 10% increase from $53.5 million in the second quarter of 2023. The company also increased Net Cash Provided by Operating Activities by 28% to $55.4 million in the third quarter of 2023 from $43.4 million in the second quarter.
The company also reported that it closed the sale of its non-core operated New Mexico assets for $4.5 million in September 2023, resulting in net proceeds of approximately $3.8 million.
Future Outlook
Looking ahead, Ring Energy Inc (REI) updated its guidance for the fourth quarter of 2023 based on the company's outlook for sales volumes, operating expenses, and capital spending. The company expects to benefit from the current pricing environment, the stepped-up third quarter capital spending program, and a full quarter's production from the Founders Acquisition.
Ring Energy Inc (REI) is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets.
Explore the complete 8-K earnings release (here) from Ring Energy Inc for further details.
This article first appeared on GuruFocus.
