RING ENERGY REPORTS THIRD QUARTER 2026 RESULTS, UPDATES GUIDANCE AND ADVANCES DISCIPLINED PORTFOLIO STRATEGY
RING ENERGY, INC. (REI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 RING ENERGY REPORTS THIRD QUARTER 2026 RESULTS, UPDATES GUIDANCE AND ADVANCES DISCIPLINED PORTFOLIO STRATEGY Monetized Non-Core Assets, Added Core Acreage While Advancing Higher-Return Development Program and Reducing Debt The Woodlands, TX – November 5, 2026 – Ring
Facts are quoted from the filing text and checked against it.
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on production, cash flow, and balance‑sheet improvements, informing short‑term trading decisions and longer‑term valuation.
Market read
The filing delivers primary earnings and guidance information, making it a material event for traders tracking mid‑cap energy stocks.
What to watch
Adjusted EBITDA grew 5% and the company added high‑return acreage, which may support future earnings once oil prices stabilize.
Ring Energy posts Q3 2026 GAAP net loss of $(16,600,229) on a $(53,200,280) derivative loss, while Adjusted Net Income rose to $27,251,269 and leverage fell to 1.5x LQA
Adjusted Net Income, Adjusted EBITDA, LOE per Boe, all-in cash costs and debt all improved, and the company reduced revolver borrowings. Against that, GAAP net loss widened to $(16,600,229), Adjusted Free Cash Flow was $(13,799,870) as capital spending rose to $64,035,184, and the company reported that it outspent adjusted free cash flow this quarter by choice.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues (oil, natural gas and NGL), Q3 2026GAAP | $102,343,662 | (2)% | 30% |
| Net income (loss), Q3 2026GAAP | $(16,600,229) | (126)% | 68% |
| Diluted earnings (loss) per share, Q3 2026GAAP | $(0.06) | – | – |
| Total costs and operating expenses, Q3 2026GAAP | $56,820,870 | – | – |
| Income (loss) from operations, Q3 2026GAAP | $45,522,792 | – | – |
| Gain (loss) on derivative contracts, Q3 2026GAAP | $(53,200,280) | (324)% | NM |
| Realized gain (loss) on derivative contracts, Q3 2026other | −$12.2M | 34% | (588)% |
| Unrealized gain (loss) on derivative contracts, Q3 2026GAAP | −$41M | (197)% | NM |
| Benefit from (provision for) income taxes, Q3 2026 (dollars as printed)GAAP | $(1,387,957) | – | – |
| Interest expense, Q3 2026GAAP | $(7,695,843) | (8)% | (24)% |
| Interest expense per Boe, Q3 2026other | $4.05 | (12)% | (23)% |
| Realized price, crude oil (per Bo), Q3 2026other | $83.72 | (12)% | 30% |
| Realized price, all products (per Boe), Q3 2026other | $53.91 | (6)% | 31% |
| Average daily sales volumes (Boe/d), Q3 2026other | 20,635 | 3% | (1)% |
| Crude oil sales volumes (Bo/d), Q3 2026other | 12,818 | 1% | (4)% |
| Net sales (MBoe), Q3 2026other | 1,898.4 | 4% | (1)% |
| Lease operating expenses, Q3 2026GAAP | $19,367,227 | 5% | (5)% |
| Lease operating expenses per Boe, Q3 2026other | $10.20 | 1% | (5)% |
| Depreciation, depletion and amortization, Q3 2026GAAP | $20,900,733 | 4% | (17)% |
| General and administrative expense, Q3 2026GAAP | $9,046,598 | 13% | 11% |
| G&A excluding share-based compensation, Q3 2026non-GAAP | $6,549,559 | 12% | —% |
| Capital expenditures (company definition), Q3 2026non-GAAP | $64,035,184 | 48% | 160% |
| Net cash provided by operating activities, Q3 2026GAAP | $63,050,556 | – | – |
| Net income (loss) per share, Q3 2026 (basic and diluted, as printed)GAAP | $(0.06) | – | – |
| Adjusted Net Income, Q3 2026non-GAAP | $27,251,269 | 14% | 108% |
| Adjusted Net Income per diluted share, Q3 2026non-GAAP | $0.10 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $57,148,698 | 5% | 20% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 56% | – | – |
| All-in cash operating costs per Boe, Q3 2026non-GAAP | $21.03 | – | – |
| Cash operating margin per Boe, Q3 2026non-GAAP | $32.88 | – | – |
| Adjusted Free Cash Flow, Q3 2026non-GAAP | $(13,799,870) | (414)% | (199)% |
| Adjusted Cash Flow from Operations, Q3 2026non-GAAP | $50,410,645 | – | – |
| Consolidated Total Debt to LQA Consolidated EBITDAX, Sept 30, 2026non-GAAP | 1.5x | – | – |
| Leverage Ratio (credit facility covenant), Sept 30, 2026non-GAAP | 1.87 | – | – |
| Revolving line of credit borrowings, Sept 30, 2026GAAP | $350,000,000 | – | – |
| Total liquidity, Sept 30, 2026other | $236.4M | – | – |
| Cash and cash equivalents, Sept 30, 2026GAAP | $1,473,639 | – | – |
| Total assets, Sept 30, 2026GAAP | $1,317,732,866 | – | – |
| Total stockholders' equity, Sept 30, 2026GAAP | $739,320,492 | – | – |
| Revenues (oil, natural gas and NGL), nine months 2026GAAP | $280,696,815 | – | 17% |
| Net income (loss), nine months 2026GAAP | $(172,398,401) | – | (687)% |
| Diluted earnings (loss) per share, nine months 2026GAAP | $(0.74) | – | – |
| Adjusted Net Income, nine months 2026non-GAAP | $58,669,837 | – | 69% |
| Adjusted Net Income per diluted share, nine months 2026non-GAAP | $0.25 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $149,941,011 | – | 3% |
| Realized price, crude oil (per Bo), nine months 2026other | $82.92 | – | 27% |
| Realized price, all products (per Boe), nine months 2026other | $51.42 | – | 18% |
| Average daily sales volumes (Boe/d), nine months 2026other | 19,997 | – | (1)% |
| Crude oil sales volumes (Bo/d), nine months 2026other | 12,594 | – | (5)% |
| Lease operating expenses, nine months 2026GAAP | $55,899,033 | – | (7)% |
| Interest expense, nine months 2026GAAP | $(24,675,004) | – | (21)% |
| Gain (loss) on derivative contracts, nine months 2026GAAP | $(111,706,779) | – | (887)% |
| Ceiling test impairment, nine months 2026GAAP | $162,086,257 | – | – |
| Capital expenditures (company definition), nine months 2026non-GAAP | $141,709,849 | – | 92% |
| Adjusted Free Cash Flow, nine months 2026non-GAAP | $(9,188,374) | – | (121)% |
| Net cash provided by operating activities, nine months 2026GAAP | $129,734,550 | – | – |
Q4 2026 and FY 2027 (updated, pro forma for divestitures) outlook
- Operating expensesLOE per Boe: Q4 2026 $9.80 - $10.30; FY 2027 $9.70 - $10.50
- NoteQ4 2026 total oil sales volumes: 12,900 - 13,500 Bo/d
- NoteQ4 2026 total sales volumes: 20,400 - 21,200 Boe/d (oil 63%, NGLs 20%, gas 17%)
- NoteFY 2027 total oil sales volumes: 13,200 - 14,300 Bo/d
- NoteFY 2027 total sales volumes: 21,000 - 23,000 Boe/d (oil 63%, NGLs 20%, gas 17%)
- NoteQ4 2026 capital spending: $43 - $48 million
- NoteFY 2027 capital spending: $135 - $165 million
- NoteQ4 2026 new >1.5 mile lateral wells drilled: 5; wells completed and online: 5; DUC wells: 4
- NoteFY 2027 new >1.5 mile lateral wells drilled: 20 - 30; wells completed and online: 20 - 30; DUC wells: 0
- NoteCompany states it intends to be cash flow positive during Q4 2026 and for the full year 2026
- NoteHedges as of November 5, 2026 for Oct to Dec 2026: approximately 1.0 million barrels of oil at an average upside protection price of $74.10; approximately 1.2 Bcf of natural gas at an average downside protection price of $3.93
Capital returns
- No share repurchases or dividends are reported in the filing.
- Proceeds from issuance of common stock were $(216,680) in Q3 2026 and $64,780,500 in Q2 2026, per the cash flow statement.
- Common shares outstanding rose to 260,539,607 at Sept 30, 2026 from 207,656,929 at Dec 31, 2025, per the balance sheet.
What drove it
- The company attributes the revenue decline of about 2% versus Q2 2026 primarily to lower realized oil prices.
- Acquired about 16.5k net acres of CBP leasehold for $18.8 million, which the company says expands its core development footprint by over 25% in Crane and Ector Counties.
- Divested about 130 Boe/d (63% oil) and about 9.8k net acres for about $30.5 million in Q3 2026, and closed a further divestiture on October 30, 2026 for about $13.4 million representing about 470 Boe/d (77% oil).
- Q3 2026 derivative results: realized loss of $(12.2) million and unrealized loss of $(41.0) million, which together make up the $(53.2) million gain (loss) on derivative contracts reported in the statement of operations.
- Company states that interest expense declined to $7.7 million reflecting lower debt balances.
- Company states that LOE of $10.20 per Boe was below the mid-point of its guidance range.
- All-in cash operating costs fell 3% to $21.03 per Boe, per the release.
- Drilling and completion costs were reduced to about $475 per foot year-to-date, per the release (footnote: 2026 excludes shorter lateral test wells).
- Company states that it deliberately accelerated drilling and infrastructure investment, with capital spending of about $64.0 million.
Concerns
- GAAP net loss of $(16,600,229) for Q3 2026 and $(172,398,401) for the nine months, driven by a $(53,200,280) loss on derivative contracts in the quarter and a $162,086,257 ceiling test impairment year-to-date.
- Adjusted Free Cash Flow was $(13,799,870) in Q3 2026 and $(9,188,374) year-to-date, after capital expenditures of $64,035,184 in the quarter.
- Management states it chose to outspend adjusted free cash flow this quarter, so the program is funded in part by asset sale proceeds.
- Capital expenditures rose 48% versus Q2 2026 and 160% versus Q3 2025.
- Realized oil price fell about 12% versus Q2 2026 to $83.72 per Bo.
- Trade receivables and accounts payable both increased in Q3 2026 (accounts receivable $49,387,082 at Sept 30, 2026 versus $30,938,908 at Dec 31, 2025; accounts payable $117,296,494 versus $90,258,731).
- Safe harbor section cites the ongoing conflict with Iran and the closure of the Strait of Hormuz as a risk to commodity prices and results.
- Total liabilities increased to $578,412,374 at Sept 30, 2026 from $569,894,007 at Dec 31, 2025 even as revolver borrowings fell.
What to watch
- Whether Ring is cash flow positive in Q4 2026 and for the full year, as management stated.
- Q4 2026 total sales of 20,400 to 21,200 Boe/d and oil of 12,900 to 13,500 Bo/d against Q3 actuals of 20,635 Boe/d and 12,818 Bo/d.
- Q4 2026 capital spending of $43 to $48 million against $64.0 million spent in Q3 2026.
- Updated FY 2027 guidance, which the company says is being updated pro forma for divestitures.
- Outcome of the hedging book, including the Q4 2026 swap and collar positions on WTI and Henry Hub.
- Progress on revolver debt reduction and the 1.5x LQA leverage ratio.
- Performance of the first 2-mile horizontal wells and the company's stated D&C cost of about $475 per foot year-to-date.
Balance sheet and cash flow
- Revolving credit facility borrowings were $350 million at Sept 30, 2026 against a current borrowing base of $585 million, down $10 million from $360 million at June 30, 2026, per the release.
- Total liquidity at Sept 30, 2026 was approximately $236.4 million, consisting of $235.0 million of revolver availability (after a $35 thousand letter of credit reduction) and approximately $1.5 million of cash.
- Q3 2026 cash flow statement: net cash provided by operating activities $63,050,556; payments to develop oil and natural gas properties $(63,127,489); proceeds from divestiture of oil and natural gas properties $30,500,000; net cash used in financing activities $(11,775,649).
- Nine months 2026: net cash provided by operating activities $129,734,550; payments to develop oil and natural gas properties $(135,562,945); proceeds from divestiture of oil and natural gas properties $35,368,950.
- Total assets were $1,317,732,866 and total stockholders' equity was $739,320,492 at Sept 30, 2026, against $1,411,899,249 and $842,005,242 at Dec 31, 2025 (year-end balances, shown in the balance sheet).
- Accumulated deficit moved to $(143,378,402) at Sept 30, 2026 from retained earnings of $29,019,999 at Dec 31, 2025.
- Derivative liabilities were $44,004,900 current and $20,007,162 non-current at Sept 30, 2026.
- Leverage Ratio covenant calculation at Sept 30, 2026: Consolidated Total Debt $352,092,752 and Pro Forma Consolidated EBITDAX $188,560,770, giving 1.87 against a maximum allowed of 3.00x. Consolidated Total Debt to LQA Consolidated EBITDAX is 1.5 (non-GAAP).
Analysis
Ring Energy reported Q3 2026 revenues of $102,343,662, down about 2% from $104,681,489 in Q2 2026 and up 30% from $78,601,336 in Q3 2025. The company attributes the sequential decline primarily to lower realized oil prices, which fell to $83.72 per Bo from $95.45, a decline of 12%. Sales volumes rose to 20,635 Boe/d from 19,990 Boe/d, and crude oil volumes rose to 12,818 Bo/d from 12,683 Bo/d. Versus Q3 2025, volumes were down 1% and crude volumes were down 4%, so the year-over-year revenue increase rests on price, with the realized oil price up 30%.
The headline GAAP result is a net loss of $(16,600,229), or $(0.06) per diluted share, compared with net income of $64,793,310 in Q2 2026. The swing is dominated by a $(53,200,280) loss on derivative contracts, which includes an unrealized loss of $(41.0) million and a realized loss of $(12.2) million. Income from operations was still positive at $45,522,792. On a non-GAAP basis, Adjusted Net Income rose 14% sequentially to $27,251,269, or $0.10 per diluted share, and Adjusted EBITDA rose 5% to $57,148,698. The release states that Adjusted EBITDA margin was 56% against 52% in Q2 2026, and 61% in Q3 2025.
Cost metrics improved. LOE per Boe was $10.20, against $10.73 in Q3 2025 and $10.12 in Q2 2026, and the company states this was below the midpoint of its guidance range. All-in cash operating costs per Boe were $21.03, down from $22.35 a year earlier, and cash operating margin per Boe rose to $32.88 from $18.75. Interest expense fell to $(7,695,843) from $(10,052,320) year-over-year, which the company links to lower debt balances. G&A rose 13% sequentially to $9,046,598, and the release does not explain that increase.
Capital allocation was the central trade-off of the quarter. Capital expenditures were $64,035,184, up 48% from Q2 2026, and Adjusted Free Cash Flow was $(13,799,870) against $4,374,688 in Q2 2026. Management says it chose to outspend adjusted free cash flow to accelerate its program, funded partly by $30,500,000 of non-core asset sales. Revolver borrowings fell $10.0 million to $350.0 million, and the LQA leverage ratio improved to 1.5x from 1.7x. Cash rose to $1,473,639 and total liquidity was approximately $236.4 million. Year-to-date Adjusted Free Cash Flow is $(9,188,374), against $44,450,587 in the first nine months of 2025.
The guidance reset is the main forward item. Q4 2026 total sales are guided to 20,400 to 21,200 Boe/d with oil of 12,900 to 13,500 Bo/d, capital spending of $43 to $48 million, and LOE of $9.80 to $10.30 per Boe. FY 2027 is updated pro forma for divestitures to 21,000 to 23,000 Boe/d, capital spending of $135 to $165 million, and 20 to 30 new lateral wells, with LOE of $9.70 to $10.50 per Boe. Because no prior outlook was supplied, the release cannot be checked against earlier targets. The company states it intends to be cash flow positive in Q4 2026 and for the full year. Figures that deserve attention are the derivative loss, the negative Adjusted Free Cash Flow, and whether the Q4 capital and cash flow targets are met.
Management, verbatim
With strong commodity prices, encouraging well performance and the cash surplus from asset dispositions, we deliberately chose to outspend adjusted free cash flow this quarter to accelerate our program.
Paul D. McKinney, Chairman of the Board and Chief Executive Officer
Having said that, we have not lost our focus on capital discipline – we intend to be cash flow positive during the fourth quarter and for the full year.
Paul D. McKinney, Chairman of the Board and Chief Executive Officer
Not in the filing
stated, not guessed- No prior-period outlook was supplied, so vs_prior_guidance is empty.
- Revenue breakdown by product (oil, natural gas, NGL revenue dollars) is not printed; only realized prices and volumes are given.
- No segment or geographic revenue split is reported.
- Prior-year and prior-quarter comparatives for total assets and stockholders' equity are not printed on the same period basis (year-end Dec 31, 2025 balances are shown instead).
- Prior-year value for the Adjusted Net Income per diluted share change and EPS percentage changes are not printed.
- Consensus estimates, analyst expectations and share price reaction are not in the documents.
- Revolver borrowings prior-quarter figure is given in text as $360 million at June 30, 2026; prior-year balance comes from the leverage calculation table.
- Interest expense per Boe percentage change for Q3 2026 vs Q2 2026 is printed as (12)%; no separate interest expense per Boe prior-year value beyond the summary table.
- Full-year 2026 guidance and prior-year full-year comparatives are not included.
- Guidance for revenue, gross margin and tax rate is not provided.
- Prior-quarter LQA leverage ratio period is not labelled in the release; it is stated only as 'from 1.7x'.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Ring Energy, a U.S. listed oil producer, released its Q3 2026 earnings via an SEC Form 8‑K, including operational metrics, financial results, and updated Q4 guidance.
Ticker impact
Ring Energy filed its Q3 2026 results and updated guidance, reporting a net loss, asset divestitures and revised Q4 production guidance.
likely modest downside as investors price in the net loss and lower realized oil price despite higher adjusted earnings.
The filing is the first public disclosure of the quarter's financials and guidance; the mix of a loss and modest operational improvements suggests limited upside and potential pressure.
Market effects
Oil and gas sector may see slight pressure as a mid-cap producer reports a loss and lower realized prices, highlighting commodity price sensitivity.
U.S. energy stocks could experience modest pullback in the near term.
Limited; the news is company‑specific with modest macro implications.
Counterpoint
The asset divestitures and debt reduction could position Ring Energy for a turnaround, offering a buying opportunity if the market overreacts to the loss.
Key entities
- companyRing Energy, Inc.
U.S. oil and gas producer reporting Q3 2026 results.
