THE WOODLANDS, Texas, March 04, 2026 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the fourth quarter and full year 2025, year-end 2025 proved reserves and provided 2026 operational and financial guidance.

Fourth Quarter 2025 Highlights

Sold 13,124 barrels of oil per day (“Bo/d”), near the mid-point of guidance and 20,508 barrels of oil equivalent per day (“Boe/d”) which was above the mid-point of guidance;
Reported a net loss of $12.8 million, or $(0.06) per diluted share, which included a $35.9 million of non-cash ceiling test impairment, and Adjusted Net Income¹ of $3.6 million, or $0.02 per diluted share;
Remained cash flow positive for the 25th consecutive quarter, generating Adjusted Free Cash Flow (“AFCF”)¹ of $5.7 million;
Reduced debt $8.0 million after retiring a $10.0 million deferred payment obligation;
Lowered Lease Operating Expense (“LOE”) to $10.02 per Boe, 7% below the low end of guidance; and
Capital expenditures of $24.3 million, which was within guidance;

Full Year 2025 Highlights

Increased sales volumes year-over-year (“YoY”) by 3% to a record 20,253 Boe/d with oil sales essentially flat at 13,263 Bo/d;
Reported a net loss of $34.7 million, or $(0.17) per diluted share, which included a $108.8 million non-cash ceiling test impairment, and Adjusted Net Income¹ of $38.4 million, or $0.19 per diluted share;
Generated record Adjusted Free Cash Flow¹ of $50.1 million, despite an 18% reduction in realized prices, and remained cash flow positive for over 6 consecutive years;
Proved reserves increased by 14%, or 19.1 MMBoe, to 153.3 MMBoe;
Decreased capital expenditures by 35% YoY to $98.2 million;
Paid down $40.0 million of debt since closing the acquisition of Central Basin Platform (“CBP”) assets from Lime Rock Resources IV, LP (“Lime Rock”) on March 31, 2025;
Reaffirmed the borrowing base at $585 million, exited 2025 with ~$166 million of liquidity, and borrowings of $420 million; and
Fully integrated Lime Rock acquisition with production, capex and LOE beating expectations to date.

2026 Outlook

Targeting essentially flat sales from the prior year after the disposition of approximately 200 Boe/d of non-operated production;
- Production midpoint of 20,150 Boe/d and 12,950 Bo/d
Disciplined capital spending program with a midpoint of $115 million;
- Total wells drilled, completed and online (midpoint) of ~28 wells.

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^{1. Non-GAAP financial measure. Please see “Non-GAAP Financial Information” at the end of this release for details and reconciliations of GAAP to Non-GAAP.}

Management Commentary

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented:

“Ring Energy delivered strong operational and financial results in 2025, demonstrating the effectiveness of our disciplined, value focused strategy. While the year presented significant challenges across the oil and gas sector, including a roughly 18% year over year decline in realized prices, we responded decisively early in the first quarter. By adjusting our drilling plans, reducing our capital spending, focusing investment on our highest return opportunities and taking advantage of the production from the Lime Rock acquisition, we protected margins, improved efficiency, and performed well despite a volatile macroeconomic backdrop.

Overall, Ring increased production by 3% year over year, and in the last six months, we reduced our lease operating expenses by approximately $1.4 million per month – an 18% reduction². In addition to the new reserves added by the Lime Rock transaction, we replaced 169% of our 2025 production organically which contributed to our strong 14% increase in year-over-year reserves.

These operational improvements drove strong financial results. We generated a record $50 million of Adjusted Free Cash Flow, a 15% increase year over year, paid down $40 million of debt since closing the Lime Rock acquisition, and paid the $10 million deferred cash payment for the Lime Rock acquisition. Importantly, we extended our record to 25 consecutive quarters of positive cash flow generation. Our consistent execution continues to support sustainable free cash flow across commodity cycles.”

Mr. McKinney concluded, “In 2026, we are focused on improving capital efficiency through cost reductions, improving the horizontal mix of our capital program, and drilling longer lateral wells. At a $60 oil price, we intend to maintain production, reduce debt, and continue growing our inventory and reserves. If prices continue above $60, we will accelerate debt reduction. On behalf of the Board and management team, we thank our employees for their disciplined execution in 2025 and look forward to our continued success and creating value for our stockholders in 2026.”

Summary Results

	Quarter					Year
	Q4 2025	Q3 2025	Q4 2025 to Q3 2025 % Change	Q4 2024	Q4 2025 to Q4 2024 % Change	FY 2025	FY 2024	FY % Change
Average Daily Sales Volumes (Boe/d)	20,508	20,789	(1)%	19,658	4%	20,253	19,648	3%
Crude Oil (Bo/d)	13,124	13,332	(2)%	12,916	2%	13,263	13,283	—%
Net Sales (MBoe)	1,886.8	1,912.6	(1)%	1,808.5	4%	7,392.5	7,191.1	3%
Realized Price - All Products ($/Boe)	$35.45	$41.10	(14)%	$46.14	(23)%	$41.55	$50.94	(18)%
Realized Price - Crude Oil ($/Bo)	$57.47	$64.32	(11)%	$68.98	(17)%	$63.53	$74.87	(15)%
Revenues ($MM)	$66.9	$78.6	(15)%	$83.4	(20)%	$307.2	$366.3	(16)%
Net Income (Loss) ($MM)	$(12.8)	$(51.6)	75%	$5.7	(325)%	$(34.7)	$67.5	(151)%
Adjusted Net Income¹($MM)	$3.6	$13.1	(73)%	$12.3	(71)%	$38.4	$69.5	(45)%
Adjusted EBITDA¹($MM)	$38.4	$47.7	(19)%	$50.9	(25)%	$184.0	$233.3	(21)%
Capital Expenditures ($MM)	$24.3	$24.6	(1)%	$37.6	(35)%	$98.2	$151.9	(35)%
Adjusted Free Cash Flow¹($MM)	$5.7	$13.9	(59)%	$4.7	21%	$50.1	$43.6	15%

Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.” In addition, see section titled “Condensed Operating Data” for additional details concerning costs and expenses discussed below.
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^{2. Based on the comparison of the pro forma lease operating expenses of Ring and Lime Rock during the six months prior to the closing date of the Lime Rock acquisition and the last six months of the period.}

Select Expenses and Other Items

	Quarter					Year
	Q4 2025	Q3 2025	Q4 2025 to Q3 2025 % Change	Q4 2024	Q4 2025 to Q4 2024 % Change	FY 2025	FY 2024	FY % Change
Lease operating expenses (“LOE”) ($MM)	$18.9	$20.5	(8)%	$20.3	(7)%	$79.4	$78.3	1%
Lease operating expenses ($/BOE)	$10.02	$10.73	(7)%	$11.24	(11)%	$10.73	$10.89	(1)%
Depreciation, depletion and amortization ($MM)	$23.0	$25.2	(9)%	$24.5	(6)%	$96.4	$98.7	(2)%
Depreciation, depletion and amortization ($/BOE)	$12.19	$13.19	(8)%	$13.57	(10)%	$13.04	$13.73	(5)%
General and administrative expenses (“G&A”) ($MM)	$8.0	$8.1	(1)%	$8.0	—%	$31.9	$29.6	8%
General and administrative expenses ($/BOE)	$4.26	$4.26	—%	$4.44	(4)%	$4.32	$4.12	5%
G&A excluding share-based compensation ($MM)	$6.6	$6.5	2%	$6.4	3%	$25.8	$24.1	7%
G&A excluding share-based compensation ($/BOE)	$3.47	$3.41	2%	$3.52	(1)%	$3.49	$3.36	4%
G&A excluding share-based compensation & transaction costs ($MM)	$6.5	$6.5	—%	$6.3	3%	$25.8	$24.1	7%
G&A excluding share-based compensation & transaction costs ($/BOE)	$3.46	$3.41	1%	$3.51	(1)%	$3.49	$3.35	4%
Interest expense ($MM)	$9.1	$10.1	(10)%	$10.1	(10)%	$40.4	$43.3	(7)%
Interest expense ($/BOE)	$4.83	$5.26	(8)%	$5.59	(14)%	$5.47	$6.02	(9)%
Gain (loss) on derivative contracts ($MM) ⁽¹⁾	$17.5	$0.4	4275%	$(6.3)	378%	$31.7	$(2.4)	1421%
Realized gain (loss) on derivative contracts ($MM)	$2.7	$2.5	8%	$0.7	286%	$5.5	$(5.2)	206%
Unrealized gain (loss) on derivative contracts ($MM)	$14.8	$(2.1)	805%	$(7.0)	311%	$26.2	$2.8	836%

^{(1) A summary listing of the Company’s outstanding derivative positions at December 31, 2025 is included in the tables shown later in this release. For full year 2026, the Company currently has approximately 2.3 million barrels of oil (approximately 48% of oil sales guidance midpoint) hedged at an average downside protection price of $65.21 and approximately 4.7 billion cubic feet of natural gas (approximately 66% of natural gas sales guidance midpoint) hedged at an average downside protection price of $3.79.}

Balance Sheet and Liquidity: Total liquidity at December 31, 2025 was $165.9 million, a 5% increase from September 30, 2025 and a 24% decrease from December 31, 2024. Liquidity at December 31, 2025 consisted of cash and cash equivalents of $0.9 million and $165.0 million of availability under Ring’s revolving credit facility, which includes a reduction of $35 thousand for letters of credit. On December 31, 2025, the Company had $420.0 million in borrowings outstanding on its revolving credit facility that has a current borrowing base of $585.0 million. Ring paid down $8 million of debt during the fourth quarter of 2025 and $40.0 million since the closing of the Lime Rock Acquisition in March 2025. The Company is targeting further debt reduction during 2026 dependent on market conditions, the timing of capital spending, and other considerations.

During the fourth quarter of 2025, the Company’s borrowing base of $585 million under its revolving credit facility was reaffirmed. The next regularly scheduled bank redetermination is scheduled to occur during May 2026. Ring is currently in compliance with all applicable covenants under its revolving credit facility.

Ceiling Test Impairment

The Company accounts for its assets under the full cost method of accounting, which requires calculation of the limitation on capitalized costs (the full cost ceiling) each quarter. Due to a decrease in the twelve month average commodity pricing, the Company recorded a non-cash impairment charge of $35.9 million in the fourth quarter of 2025. This non-cash charge had no net impact on cash flows.

Drilling and Completion Activity

In 4Q 2025 the Company finished drilling and completed a 1.5-mile horizontal well in the Northwest Shelf in which drilling began in the third quarter of 2025. The Company drilled and completed two additional 1-mile horizontal wells in the Central Basin Platform, one in Andrews County and one in Crane County (both with a working interest of 100%). Also in Crane County the Company drilled and completed one vertical well (with a working interest of 100%).

The table below sets forth Ring’s drilling and completions activities by quarter for 2025 and for the full year:

Quarter	Area	Wells Drilled	Wells Completed

1Q 2025	Northwest Shelf (Horizontal)	4	4
	Central Basin Platform (Vertical)	3	3
	Total	7	7

2Q 2025	Central Basin Platform (Horizontal)	1	1
	Central Basin Platform (Vertical)	1	1
	Total	2	2

3Q 2025	Central Basin Platform (Horizontal)	4	4
	Central Basin Platform (Vertical)	1	1
	Total	5	5

4Q 2025	Northwest Shelf (Horizontal)	1	1
	Central Basin Platform (Horizontal)	2	2
	Central Basin Platform (Vertical)	1	1
	Total	4	4

FY 2025	Northwest Shelf (Horizontal)	5	5
	Central Basin Platform (Horizontal)	7	7
	Central Basin Platform (Vertical)	6	6
	Total	18	18

2026 Capital Investment, Sales Volumes, and Operating Expense Guidance

Sales volumes for the first quarter 2026 were temporarily impacted by a winter storm reducing volumes over a five day period. Oil sales reduction was approximately 39,050 Bo (430 Bo/d), and Boe sales reduction was approximately 48,250 Boe (540 Boe/d). All production has been restored. Additionally, Ring Energy sold approximately 150 Bo/d or 200 Boe/d of non-operated production.

The guidance in the table below represents the Company's current good faith estimate of the range of likely future results. Guidance could be affected by the factors discussed below in the "Safe Harbor Statement" section.

	Q1 2026	Q2 2026	Q3 2026	Q4 2026	FY 2026

Sales Volumes:
Total Oil (Bo/d)	12,100 – 12,500	12,450 – 13,450	12,750 – 13,750	12,800 – 13,800	12,500 – 13,400
*Midpoint (Bo/d)*	*12,300*	*12,950*	*13,250*	*13,300*	*12,950*
Total (Boe/d)	19,100-19,600	19,400 – 21,000	19,700 – 21,300	19,800 – 21,400	19,500 - 20,800
*Midpoint (Boe/d)*	*19,350*	*20,200*	*20,500*	*20,600*	*20,150*
Oil (%)	64%	64%	65%	65%	64%
NGLs (%)	20%	20%	20%	20%	20%
Gas (%)	16%	16%	15%	15%	16%

Capital Program:
Capital spending⁽¹⁾⁽²⁾(millions)	$28 - $34	$28 - $36	$27 - $35	$17 - $25	$100 - $130
*Midpoint (millions)*	$31	$32	$31	$21	$*115*
New Hz wells drilled	5 - 6	5 - 7	5 - 7	3 - 5	18 - 25
New Vertical wells drilled	1	1 - 2	1 - 2	1	4 - 6
Completion of DUC wells	1	0	0	0	1
Wells completed and online	7 - 8	6 - 9	6 - 9	4 - 6	23 - 32

Operating Expenses:
LOE (per Boe)	$10.75 - $11.25	$10.05 - $11.05	$10.00 - $11.00	$10.00 - $11.00	$10.15 - $11.15
*Midpoint (per Boe)*	$*11.00*	$*10.55*	$*10.50*	$*10.50*	$*10.65*

⁽¹⁾ In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades and well reactivations. Also included is anticipated spending for leasing acreage and non-operated drilling, completion, capital workovers, and facility improvements.

⁽²⁾ Based on the $115 million midpoint of spending guidance, the Company expects the following estimated allocation of capital investment:

• 68% for drilling, completion, and related infrastructure, and conversions;
• 26% for recompletions and capital workovers;
• 5% for land and non-operated capital; and
• 1% for environmental and emission reducing facility upgrades.

Year-End 2025 Proved Reserves

The Company's year-end 2025 SEC proved reserves were 153.3 MMBoe, up 14% compared to 134.2 MMBoe at year-end 2024. During 2025, Ring recorded reserve additions of 14.0 MMBoe for acquisitions, 11.2 MMBoe for extensions, discoveries and improved recovery, and 1.3 MMBoe of positive revisions related to changes in pricing and performance. Offsetting these additions was 7.4 MMBoe of production.

The SEC twelve-month first day of the month average prices used for year-end 2025 were $61.82 per barrel of crude oil and $3.387 per MMBtu of natural gas, both before adjustment for quality, transportation, fees, energy content, and regional price differentials, while for year-end 2024 they were $71.96 per barrel of crude oil and $2.130 per MMBtu of natural gas — a decrease of 14% and an increase of 59%, respectively.

Year-end 2025 SEC proved reserves were comprised of approximately 59% crude oil, 19% natural gas, and 22% natural gas liquids. At year end, approximately 68% of 2025 proved reserves were classified as proved developed and 32% as proved undeveloped. This is compared to year-end 2024 when approximately 69% of proved reserves were classified as proved developed and 31% were classified as proved undeveloped. The Company’s year-end 2025 proved reserves were prepared by Cawley, Gillespie & Associates, Inc., an independent petroleum engineering firm.

The PV-10 value at year-end 2025 was $1,318.2 million versus $1,462.8 million at the end of 2024.

	Oil (Bbl)		Gas (Mcf)		Natural Gas Liquids (Bbl)		Net (Boe)		PV-10⁽¹⁾

Balance, December 31, 2024	80,904,071		149,817,162		28,303,085		134,176,684		$	1,462,827,136

Purchase of minerals in place	9,915,483		10,067,543		2,373,336		13,966,743
Extensions, discoveries and improved recovery	7,281,553		10,624,783		2,133,786		11,186,136
Sales of minerals in place	—		—		—		—
Production	(4,841,164	)	(6,980,958	)	(1,387,818	)	(7,392,476	)
Revisions of previous quantity estimates	(2,939,895	)	12,652,046		2,171,955		1,340,734

Balance, December 31, 2025	90,320,048		176,180,576		33,594,344		153,277,821		$	1,318,208,128

⁽¹⁾ PV-10 is a non-GAAP financial measure and is derived from the Standardized Measure of Discounted Future Net Cash Flows, which is the most directly comparable generally accepted accounting principles in the United States (“GAAP”) measure.

In accordance with guidelines established by the SEC, estimated proved reserves as of December 31, 2025 were determined to be economically producible under existing economic conditions, which requires the use of the 12-month average commodity price for each product, calculated as the unweighted arithmetic average of the first-day-of-the-month price for the year ended December 31, 2025. The SEC average prices used for year-end 2025 were $61.82 per barrel of crude oil (WTI) and $3.387 per MMBtu of natural gas (Henry Hub), both before adjustment for quality, transportation, fees, energy content, and regional price differentials. Such prices were held constant throughout the estimated lives of the reserves. Future production and development costs are based on year-end costs with no escalations.

Standardized Measure of Discounted Future Net Cash Flows

Ring’s standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and changes in the standardized measure as described below were prepared in accordance with GAAP.

*As of December 31,*		2025			2024

Future cash inflows	$	5,976,599,552		$	6,165,487,616
Future production costs		(2,473,482,048	)		(2,432,555,200	)
Future development costs⁽¹⁾		(573,423,296	)		(536,825,664	)
Future income taxes		(402,808,797	)		(465,768,645	)
Future net cash flows		2,526,885,411			2,730,338,107
10% annual discount for estimated timing of cash flows		(1,403,392,079	)		(1,497,401,764	)

Standardized Measure of Discounted Future Net Cash Flows	$	1,123,493,332		$	1,232,936,343

⁽¹⁾ Future development costs include not only development costs but also future asset retirement costs.

Reconciliation of PV-10 to Standardized Measure

PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. Moreover, GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves or for reserves calculated using prices other than SEC prices. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to represent the fair value of our oil and natural gas reserves.

The following table reconciles the PV-10 value of the Company’s estimated proved reserves as of December 31, 2025 to the Standardized Measure:

SEC Pricing Proved Reserves
Standardized Measure Reconciliation
Present value of estimated future net revenues (PV-10)	$	1,318,208,128
Future income taxes, discounted at 10%		194,714,796
Standardized measure of discounted future net cash flows	$	1,123,493,332

Conference Call Information

Ring will hold a conference call on Thursday, March 5, 2026 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its fourth quarter and full year 2025 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 2025 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company’s strategy and prospects. The forward-looking statements include statements about the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company and plans and objectives of management for future operations. Forward-looking statements also include assumptions and projections for quarterly and full year 2026 guidance for sales volumes, oil, NGL and natural gas mix as a percentage of total sales, capital expenditures, operating expenses and the projected impacts thereon. Forward-looking statements are based on current expectations and assumptions and analyses made by the Company and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities, particularly in the winter; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; changes in U.S. energy, environmental, monetary, tax and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; cost and availability of transportation and storage capacity as a result of oversupply, government regulation or other factors; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including its Form 10-K for the fiscal year ended December 31, 2025, and its other SEC filings. The Company undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact Information

Al Petrie Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com

RING ENERGY, INC. Condensed Statements of Operations

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024

Oil, Natural Gas, and Natural Gas Liquids Revenues	$	66,882,770		$	78,601,336		$	83,440,546		$	307,178,072		$	366,327,414

Costs and Operating Expenses
Lease operating expenses		18,911,801			20,518,472			20,326,216			79,353,806			78,310,949
Gathering, transportation and processing costs		121,097			126,569			130,230			585,087			506,333
Ad valorem taxes		2,279,266			2,446,565			2,421,595			7,906,586			8,069,064
Oil and natural gas production taxes		3,224,183			3,670,987			3,857,147			14,312,232			16,116,565
Depreciation, depletion and amortization		23,002,908			25,225,345			24,548,849			96,414,150			98,702,843
Ceiling test impairment		35,913,116			72,912,330			—			108,825,446			—
Asset retirement obligation accretion		390,892			390,563			323,085			1,490,255			1,380,298
Operating lease expense		175,090			175,091			175,090			700,362			700,362
General and administrative expense		8,030,310			8,139,771			8,035,977			31,928,576			29,640,300

Total Costs and Operating Expenses		92,048,663			133,605,693			59,818,189			341,516,500			233,426,714

Income (Loss) from Operations		(25,165,893	)		(55,004,357	)		23,622,357			(34,338,428	)		132,900,700

Other Income (Expense)
Interest income		56,910			74,253			124,765			290,879			491,946
Interest (expense)		(9,122,419	)		(10,052,320	)		(10,112,496	)		(40,430,929	)		(43,311,810	)
Gain (loss) on derivative contracts		17,495,270			444,305			(6,254,448	)		31,658,839			(2,365,917	)
Gain (loss) on disposal of assets		60,855			105,642			—			446,400			89,693
Other income		29,582			—			80,970			189,294			106,656
Net Other Income (Expense)		8,520,198			(9,428,120	)		(16,161,209	)		(7,845,517	)		(44,989,432	)

Income (Loss) Before Benefit from (Provision for) Income Taxes		(16,645,695	)		(64,432,477	)		7,461,148			(42,183,945	)		87,911,268

Benefit from (Provision for) Income Taxes		3,800,401			12,800,947			(1,803,629	)		7,452,746			(20,440,954	)

Net Income (Loss)	$	(12,845,294	)	$	(51,631,530	)	$	5,657,519		$	(34,731,199	)	$	67,470,314

Basic Earnings (Loss) per Share	$	(0.06	)	$	(0.25	)	$	0.03		$	(0.17	)	$	0.34
Diluted Earnings (Loss) per Share	$	(0.06	)	$	(0.25	)	$	0.03		$	(0.17	)	$	0.34

Basic Weighted-Average Shares Outstanding		207,233,067			206,688,003			198,166,543			204,984,223			197,937,683
Diluted Weighted-Average Shares Outstanding		207,233,067			206,688,003			200,886,010			204,984,223			200,277,380

RING ENERGY, INC. Condensed Operating Data (Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024

Net sales volumes:
Oil (Bbls)		1,207,425			1,226,537			1,188,272			4,841,164			4,861,628
Natural gas (Mcf)		1,808,355			1,853,599			1,683,793			6,980,958			6,423,674
Natural gas liquids (Bbls)		377,937			377,141			339,589			1,387,818			1,258,814
Total oil, natural gas and natural gas liquids (Boe)⁽¹⁾		1,886,755			1,912,611			1,808,493			7,392,476			7,191,054

% Oil		64	%		64	%		66	%		65	%		68	%
% Natural gas		16	%		16	%		15	%		16	%		15	%
% Natural gas liquids		20	%		20	%		19	%		19	%		17	%

Average daily sales volumes:
Oil (Bbls/d)		13,124			13,332			12,916			13,263			13,283
Natural gas (Mcf/d)		19,656			20,148			18,302			19,126			17,551
Natural gas liquids (Bbls/d)		4,108			4,099			3,691			3,802			3,439
Average daily equivalent sales (Boe/d)		20,508			20,789			19,658			20,253			19,648

Average realized sales prices:
Oil ($/Bbl)	$	57.47		$	64.32		$	68.98		$	63.53		$	74.87
Natural gas ($/Mcf)		(2.49	)		(1.22	)		(0.96	)		(1.33	)		(1.44	)
Natural gas liquids ($/Bbls)		5.29			5.22			9.08			6.43			9.23
Barrel of oil equivalent ($/Boe)	$	35.45		$	41.10		$	46.14		$	41.55		$	50.94

Average costs and expenses per Boe ($/Boe):
Lease operating expenses	$	10.02		$	10.73		$	11.24		$	10.73		$	10.89
Gathering, transportation and processing costs	$	0.06		$	0.07		$	0.07		$	0.08		$	0.07
Ad valorem taxes	$	1.21		$	1.28		$	1.34		$	1.07		$	1.12
Oil and natural gas production taxes	$	1.71		$	1.92		$	2.13		$	1.94		$	2.24
Depreciation, depletion and amortization	$	12.19		$	13.19		$	13.57		$	13.04		$	13.73
Ceiling test impairment	$	19.03		$	38.12		$	—		$	14.72		$	—
Asset retirement obligation accretion	$	0.21		$	0.20		$	0.18		$	0.20		$	0.19
Operating lease expense	$	0.09		$	0.09		$	0.10		$	0.09		$	0.10
G&A (including share-based compensation)	$	4.26		$	4.26		$	4.44		$	4.32		$	4.12
G&A (excluding share-based compensation)	$	3.47		$	3.41		$	3.52		$	3.49		$	3.36
G&A (excluding share-based compensation and transaction costs)	$	3.46		$	3.41		$	3.51		$	3.49		$	3.35

(1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, natural gas, and natural gas liquids may differ significantly.

RING ENERGY, INC. Condensed Balance Sheets

As of December 31,		2025			2024
ASSETS
Current Assets
Cash and cash equivalents	$	902,913		$	1,866,395
Accounts receivable		30,938,908			36,172,316
Joint interest billing receivables, net		1,623,991			1,083,164
Derivative assets		21,468,134			5,497,057
Inventory		5,312,715			4,047,819
Prepaid expenses and other assets		1,822,751			1,781,341
Total Current Assets		62,069,412			50,448,092
Properties and Equipment
Oil and natural gas properties, full cost method		1,891,510,431			1,809,309,848
Financing lease asset subject to depreciation		3,633,586			4,634,556
Fixed assets subject to depreciation		3,504,788			3,389,907
Total Properties and Equipment		1,898,648,805			1,817,334,311
Accumulated depreciation, depletion and amortization		(569,180,901	)		(475,212,325	)
Net Properties and Equipment		1,329,467,904			1,342,121,986
Operating lease asset		1,285,159			1,906,264
Derivative assets		9,739,430			5,473,375
Deferred financing costs		9,337,344			8,149,757
Total Assets	$	1,411,899,249		$	1,408,099,474

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	97,522,809		$	95,729,261
Income tax liability		356,436			328,985
Financing lease liability		730,564			906,119
Operating lease liability		586,614			648,204
Derivative liabilities		841,193			6,410,547
Notes payable		505,752			496,397
Asset retirement obligations		418,526			517,674
Total Current Liabilities		100,961,894			105,037,187

Non-current Liabilities
Deferred income taxes		20,764,119			28,591,802
Revolving line of credit		420,000,000			385,000,000
Financing lease liability, less current portion		593,146			647,078
Operating lease liability, less current portion		819,223			1,405,837
Derivative liabilities		2,512,692			2,912,745
Asset retirement obligations		29,972,429			25,864,843
Total Liabilities		575,623,503			549,459,492
Commitments and contingencies
Stockholders' Equity
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock - $0.001 par value; 450,000,000 shares authorized; 207,656,929 shares and 198,561,378 shares issued and outstanding, respectively		207,657			198,561
Additional paid-in capital		812,777,586			800,419,719
Retained earnings (Accumulated deficit)		23,290,503			58,021,702
Total Stockholders’ Equity		836,275,746			858,639,982
Total Liabilities and Stockholders' Equity	$	1,411,899,249		$	1,408,099,474

RING ENERGY, INC. Condensed Statements of Cash Flows
(Unaudited)

	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024
Cash Flows From Operating Activities
Net income (loss)	$	(12,845,294	)	$	(51,631,530	)	$	5,657,519		$	(34,731,199	)	$	67,470,314
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		23,002,908			25,225,345			24,548,849			96,414,150			98,702,843
Ceiling test impairment		35,913,116			72,912,330			—			108,825,446			—
Asset retirement obligation accretion		390,892			390,563			323,085			1,490,255			1,380,298
Amortization of deferred financing costs		691,228			693,625			1,299,078			4,459,520			4,969,174
Share-based compensation		1,474,560			1,618,600			1,672,320			6,135,957			5,506,017
Credit loss expense		—			907			(26,747	)		19,029			160,847
(Gain) loss on disposal of assets		(60,855	)		(105,642	)		—			(446,400	)		(89,693	)
Deferred income tax expense (benefit)		(3,650,179	)		(12,964,252	)		1,723,338			(7,858,446	)		19,935,413
Excess tax expense (benefit) related to share-based compensation		(201,533	)		123,533			9,011			30,763			104,344
(Gain) loss on derivative contracts		(17,495,270	)		(444,305	)		6,254,448			(31,658,839	)		2,365,917
Cash received (paid) for derivative settlements, net		2,741,821			2,586,230			745,104			5,452,300			(5,193,673	)
Changes in operating assets and liabilities:
Accounts receivable		2,153,443			4,672,943			349,474			4,452,926			3,594,504
Inventory		(327,355	)		399,193			580,161			(1,264,896	)		2,089,116
Prepaid expenses and other assets		454,986			439,087			295,555			(41,410	)		93,509
Accounts payable		12,513,783			841,492			4,462,089			474,744			(5,076,738	)
Settlement of asset retirement obligation		(67,428	)		(265,794	)		(613,603	)		(904,493	)		(1,588,480	)
Net Cash Provided by Operating Activities		44,688,823			44,492,325			47,279,681			150,849,407			194,423,712

Cash Flows From Investing Activities
Payments for the Lime Rock Acquisition		(9,293,884	)		(1,709,776	)		—			(81,863,429	)		—
Payments to purchase oil and natural gas properties		(1,016,517	)		(715,126	)		(1,423,483	)		(2,528,932	)		(2,210,826	)
Payments to develop oil and natural gas properties		(24,955,052	)		(20,995,094	)		(36,386,055	)		(95,207,027	)		(153,945,456	)
Payments to acquire or improve fixed assets subject to depreciation		(4,402	)		(5,708	)		—			(179,771	)		(185,524	)
Proceeds from sale of fixed assets subject to depreciation		—			—			—			17,360			10,605
Proceeds from divestiture of oil and natural gas properties		—			100			121,232			100			121,232
Proceeds from sale of New Mexico properties		—			—			—			—			(144,398	)
Proceeds from sale of CBP vertical wells		—			—			—			—			5,500,000
Insurance proceeds received for damage to oil and natural gas properties		—			160,533			—			260,446			—
Net Cash Used in Investing Activities		(35,269,855	)		(23,265,071	)		(37,688,306	)		(179,501,253	)		(150,854,367	)

Cash Flows From Financing Activities
Proceeds from revolving line of credit		30,500,000			31,000,000			22,000,000			231,822,997			130,000,000
Payments on revolving line of credit		(38,500,000	)		(51,000,000	)		(29,000,000	)		(196,822,997	)		(170,000,000	)
Payments for taxes withheld on vested restricted shares, net		(228,359	)		(8,000	)		—			(1,189,805	)		(919,249	)
Proceeds from notes payable		—			—			58,774			1,648,539			1,560,281
Payments on notes payable		(496,077	)		(486,590	)		(475,196	)		(1,639,184	)		(1,597,618	)
Payment of deferred financing costs		66,871			(332,376	)		(42,746	)		(5,647,107	)		(88,450	)
Reduction of financing lease liabilities		(145,397	)		(113,381	)		(265,812	)		(484,079	)		(954,298	)
Net Cash Provided by (Used in) Financing Activities		(8,802,962	)		(20,940,347	)		(7,724,980	)		27,688,364			(41,999,334	)

Net Increase (Decrease) in Cash		616,006			286,907			1,866,395			(963,482	)		1,570,011
Cash at Beginning of Period		286,907			—			—			1,866,395			296,384
Cash at End of Period	$	902,913		$	286,907		$	1,866,395		$	902,913		$	1,866,395

RING ENERGY, INC.
Financial Commodity Derivative Positions
As of December 31, 2025

The following tables reflect the details of current derivative contracts as of December 31, 2025 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts).


Oil Hedges (WTI)	Q1 2026		Q2 2026		Q3 2026		Q4 2026		Q1 2027		Q2 2027		Q3 2027		Q4 2027

Swaps:
Hedged volume (Bbl)		608,350		577,101		171,400		529,000		509,500		492,000		432,000		412,963
Weighted average swap price	$	67.95	$	66.50	$	62.26	$	65.34	$	62.82	$	60.45	$	61.80	$	57.59

Two-way collars:
Hedged volume (Bbl)		—		—		379,685		—		—		—		—		—
Weighted average put price	$	—	$	—	$	60.00	$	—	$	—	$	—	$	—	$	—
Weighted average call price	$	—	$	—	$	72.50	$	—	$	—	$	—	$	—	$	—


Gas Hedges (Henry Hub)	Q1 2026		Q2 2026		Q3 2026		Q4 2026		Q1 2027		Q2 2027		Q3 2027		Q4 2027

NYMEX Swaps:
Hedged volume (MMBtu)		448,854		1,165,628		600,016		1,072,305		439,678		423,035		1,079,906		1,046,151
Weighted average swap price	$	4.19	$	3.82	$	4.19	$	3.99	$	4.02	$	4.02	$	3.86	$	4.02

Two-way collars:
Hedged volume (MMBtu)		456,850		139,000		648,728		128,000		717,000		694,000		—		—
Weighted average put price	$	3.50	$	3.50	$	3.10	$	3.50	$	3.99	$	3.00	$	—	$	—
Weighted average call price	$	5.11	$	5.42	$	4.24	$	5.42	$	5.21	$	4.32	$	—	$	—

Gas Hedges (Henry Hub)	Q1 2028		Q2 2028		Q3 2028		Q4 2028		Q1 2029		Q2 2029		Q3 2029		Q4 2029

NYMEX Swaps:
Hedged volume (MMBtu)		1,012,567		984,322		956,865		931,539		908,117		886,933		866,585		846,134
Weighted average swap price	$	3.77	$	3.77	$	3.77	$	3.77	$	3.67	$	3.67	$	3.67	$	3.67

Gas Hedges (basis differential)	Q1 2026		Q2 2026		Q3 2026		Q4 2026		Q1 2027		Q2 2027		Q3 2027		Q4 2027

El Paso Permian Basin basis swaps:
Hedged volume (MMBtu)		—		—		—		—		960,307		636,710		615,547		596,306
Weighted average spread price⁽¹⁾	$	—	$	—	$	—	$	—	$	0.72	$	0.67	$	0.67	$	0.67

Waha basis swaps:
Hedged volume (MMBtu)		—		—		—		—		196,372		480,325		464,360		449,846
Weighted average spread price⁽¹⁾	$	—	$	—	$	—	$	—	$	0.78	$	0.78	$	0.78	$	0.78

Gas Hedges (basis differential)	Q1 2028		Q2 2028		Q3 2028		Q4 2028		Q1 2029		Q2 2029		Q3 2029		Q4 2029

El Paso Permian Basin basis swaps:
Hedged volume (MMBtu)		577,163		561,064		545,413		530,977		517,628		505,552		493,953		482,296
Weighted average spread price⁽¹⁾	$	0.60	$	0.60	$	0.60	$	0.60	$	0.57	$	0.57	$	0.57	$	0.57

Waha basis swaps:
Hedged volume (MMBtu)		435,403		423,259		411,453		400,562		390,490		381,381		372,632		363,837
Weighted average spread price⁽¹⁾	$	0.68	$	0.68	$	0.68	$	0.68	$	0.63	$	0.63	$	0.63	$	0.63

⁽¹⁾ The gas basis swap hedges are calculated as the Henry Hub natural gas price less the fixed amount specified as the weighted average spread price above.

RING ENERGY, INC.

Non-GAAP Financial Information

Certain financial information included in this release are not measures of financial performance recognized by accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are “Adjusted Net Income,” “Adjusted EBITDA,” “Adjusted Free Cash Flow” or “AFCF,” “Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding Share-Based Compensation,” “G&A Excluding Share-Based Compensation and Transaction Costs,” “Leverage Ratio,” “Current Ratio,” “Cash Return on Capital Employed” or “CROCE,” “All-In Cash Operating Costs,” and “Cash Operating Margin.” Management uses these non-GAAP financial measures in its analysis of performance. In addition, Adjusted EBITDA is a key metric used to determine a portion of the Company’s incentive compensation awards. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

“Adjusted Net Income (Loss)” is calculated as net income (loss) minus the estimated after-tax impact of share-based compensation, ceiling test impairment, unrealized gains and losses on changes in the fair value of derivatives, and transaction costs for acquisitions and divestitures (“A&D”). Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current period to prior periods. The Company believes that the presentation of Adjusted Net Income provides useful information to investors as it is one of the metrics management uses to assess the Company’s ongoing operating and financial performance, and also is a useful metric for investors to compare the Company’s results with its peers.

	(Unaudited for All Periods)
	Three Months Ended																		Twelve Months Ended
	December 31,						September 30,						December 31,						December 31,						December 31,
		2025						2025						2024						2025						2024
	Total			Per share - diluted			Total			Per share - diluted			Total			Per share - diluted			Total			Per share - diluted			Total			Per share - diluted
Net Income (Loss)	$	(12,845,294	)	$	(0.06	)	$	(51,631,530	)	$	(0.25	)	$	5,657,519		$	0.03		$	(34,731,199	)	$	(0.17	)	$	67,470,314		$	0.34

Share-based compensation		1,474,560			0.01			1,618,600			0.01			1,672,320			0.01			6,135,957			0.03			5,506,017			0.03
Ceiling test impairment		35,913,116			0.17			72,912,330			0.35			—			—			108,825,446			0.54			—			—
Unrealized loss (gain) on change in fair value of derivatives		(14,753,449	)		(0.07	)		2,141,925			0.01			6,999,552			0.03			(26,206,539	)		(0.13	)		(2,827,756	)		(0.02	)
Transaction costs - A&D		25,000			—			10			—			21,017			—			27,786			—			24,556			—
Tax impact on adjusted items		(6,213,517	)		(0.03	)		(11,920,971	)		(0.06	)		(2,008,740	)		(0.01	)		(15,670,138	)		(0.08	)		(628,405	)		—

Adjusted Net Income (Loss)	$	3,600,416		$	0.02		$	13,120,364		$	0.06		$	12,341,668		$	0.06		$	38,381,313		$	0.19		$	69,544,726		$	0.35

Diluted Weighted-Average Shares Outstanding		207,233,067						206,688,003						200,886,010						204,984,223						200,277,380

Adjusted Net Income per Diluted Share	$	0.02					$	0.06					$	0.06					$	0.19					$	0.35

Reconciliation of Net Income (Loss) to Adjusted EBITDA

The Company defines “Adjusted EBITDA” as net income (loss) plus net interest expense (including interest income and expense), unrealized loss (gain) on change in fair value of derivatives, ceiling test impairment, income tax (benefit) expense, depreciation, depletion and amortization, asset retirement obligation accretion, transaction costs for acquisitions and divestitures (A&D), share-based compensation, loss (gain) on disposal of assets, and backing out the effect of other income. Company management believes Adjusted EBITDA is relevant and useful because it helps investors understand Ring’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024

Net Income (Loss)	$	(12,845,294	)	$	(51,631,530	)	$	5,657,519		$	(34,731,199	)	$	67,470,314

Interest expense, net		9,065,509			9,978,067			9,987,731			40,140,050			42,819,864
Unrealized (gain) loss on change in fair value of derivatives		(14,753,449	)		2,141,925			6,999,552			(26,206,539	)		(2,827,756	)
Ceiling test impairment		35,913,116			72,912,330			—			108,825,446			—
Income tax (benefit) expense		(3,800,401	)		(12,800,947	)		1,803,629			(7,452,746	)		20,440,954
Depreciation, depletion and amortization		23,002,908			25,225,345			24,548,849			96,414,150			98,702,843
Asset retirement obligation accretion		390,892			390,563			323,085			1,490,255			1,380,298
Transaction costs - A&D		25,000			10			21,017			27,786			24,556
Share-based compensation		1,474,560			1,618,600			1,672,320			6,135,957			5,506,017
(Gain) loss on disposal of assets		(60,855	)		(105,642	)		—			(446,400	)		(89,693	)
Other income		(29,582	)		—			(80,970	)		(189,294	)		(106,656	)

Adjusted EBITDA	$	38,382,404		$	47,728,721		$	50,932,732		$	184,007,466		$	233,320,741

Adjusted EBITDA Margin		57	%		61	%		61	%		60	%		64	%

Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA to Adjusted Free Cash Flow

The Company defines “Adjusted Free Cash Flow” or “AFCF” as Net Cash Provided by Operating Activities (as reflected on the Company’s Condensed Statements of Cash Flows) less changes in operating assets and liabilities, and plus transaction costs for acquisitions and divestitures (“A&D”), current income tax expense (benefit), proceeds from divestitures of equipment for oil and natural gas properties, loss (gain) on disposal of assets, and less capital expenditures, credit loss expense, and other income. For this purpose, the Company’s definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and lease maintenance costs) but excludes acquisition costs of oil and gas properties from third parties that are not included in the Company’s capital expenditures guidance provided to investors. Management believes that Adjusted Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of the Company’s current operating activities after the impact of capital expenditures and net interest expense (including interest income and expense, excluding amortization of deferred financing costs) and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. Other companies may use different definitions of Adjusted Free Cash Flow.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024

Net Cash Provided by Operating Activities	$	44,688,823		$	44,492,325		$	47,279,681		$	150,849,407		$	194,423,712
Adjustments - Condensed Statements of Cash Flows
Changes in operating assets and liabilities		(14,727,429	)		(6,086,921	)		(5,073,676	)		(2,716,871	)		888,089
Transaction costs - A&D		25,000			10			21,017			27,786			24,556
Income tax expense (benefit) - current		51,311			39,772			71,280			374,937			401,197
Capital expenditures		(24,343,200	)		(24,589,282	)		(37,633,168	)		(98,211,527	)		(151,946,171	)
Proceeds from divestiture of equipment for oil and natural gas properties		—			100			121,232			100			121,232
Credit loss expense		—			(907	)		26,747			(19,029	)		(160,847	)
Other income		(29,582	)		—			(80,970	)		(189,294	)		(106,656	)

Adjusted Free Cash Flow	$	5,664,923		$	13,855,097		$	4,732,143		$	50,115,509		$	43,645,112

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024

Adjusted EBITDA	$	38,382,404		$	47,728,721		$	50,932,732		$	184,007,466		$	233,320,741

Net interest expense (excluding amortization of deferred financing costs)		(8,374,281	)		(9,284,442	)		(8,688,653	)		(35,680,530	)		(37,850,690	)
Capital expenditures		(24,343,200	)		(24,589,282	)		(37,633,168	)		(98,211,527	)		(151,946,171	)
Proceeds from divestiture of equipment for oil and natural gas properties		—			100			121,232			100			121,232

Adjusted Free Cash Flow	$	5,664,923		$	13,855,097		$	4,732,143		$	50,115,509		$	43,645,112

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Cash Flow from Operations

The Company defines “Adjusted Cash Flow from Operations” or “ACFFO” as Net Cash Provided by Operating Activities, as reflected in the Company’s Condensed Statements of Cash Flows, less the changes in operating assets and liabilities, which includes accounts receivable, inventory, prepaid expenses and other assets, accounts payable, and settlement of asset retirement obligations, which are subject to variation due to the nature of the Company’s operations. Accordingly, the Company believes this financial performance measure is useful to investors because it is used often in its industry and allows investors to compare this metric to other companies in its peer group as well as the E&P sector.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2025			2025			2024			2025			2024

Net Cash Provided by Operating Activities	$	44,688,823		$	44,492,325		$	47,279,681		$	150,849,407		$	194,423,712

Changes in operating assets and liabilities		(14,727,429	)		(6,086,921	)		(5,073,676	)		(2,716,871	)		888,089

Adjusted Cash Flow from Operations	$	29,961,394		$	38,405,404		$	42,206,005		$	148,132,536		$	195,311,801

Reconciliation of General and Administrative Expense (G&A) to G&A Excluding Share-Based Compensation and Transaction Costs

The following table presents a reconciliation of General and Administrative Expense (“G&A”), a GAAP measure, to G&A excluding share-based compensation, and G&A excluding share-based compensation and transaction costs for acquisitions and divestitures (A&D).

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2025		2025		2024		2025		2024

General and administrative expense (G&A)	$	8,030,310	$	8,139,771	$	8,035,977	$	31,928,576	$	29,640,300
Shared-based compensation		1,474,560		1,618,600		1,672,320		6,135,957		5,506,017
G&A excluding share-based compensation		6,555,750		6,521,171		6,363,657		25,792,619		24,134,283
Transaction costs - A&D		25,000		10		21,017		27,786		24,556
G&A excluding share-based compensation and transaction costs	$	6,530,750	$	6,521,161	$	6,342,640	$	25,764,833	$	24,109,727

Calculation of Leverage Ratio

“Leverage” or the “Leverage Ratio” is calculated pursuant to the Company’s existing senior revolving credit facility and means as of any date, the ratio of (i) Consolidated Total Debt as of such date to (ii) Consolidated EBITDAX for the four consecutive fiscal quarters ending on or immediately prior to such date for which financial statements are required to have been delivered under the credit facility.

The Company defines “Consolidated Total Debt” in accordance with its existing senior revolving credit facility and means, as of any date, all Indebtedness of the Company on a consolidated basis as of such date, but excluding hedging obligations.

The Company defines “Indebtedness” in accordance with its existing senior revolving credit facility and generally means (i) all obligations of the Company for borrowed money, (ii) all obligations of the Company evidenced by notes or other similar instruments, (iii) all obligations of the Company in respect of the deferred purchase price of property or services, (iv) all obligations of the Company under any conditional sale relating to property acquired the Company, (v) all capital lease obligations of the Company, (vi) all obligations, contingent or otherwise, of the Company in respect of letters of credit or similar extensions of credit, (vii) all guarantees of the Company of the type of Indebtedness described in clauses (i) through (vi) above, (viii) all Indebtedness of a third party secured by any lien on property owned by the Company, whether or not such Indebtedness has been assumed by the Company, (ix) all off-balance sheet liabilities, (x) all hedging obligations and (xi) the undischarged balance of any production payment created by the Company or for the creation of which the Company directly or indirectly received payment.

The Company defines “Consolidated EBITDAX” in accordance with its existing senior revolving credit facility and means for any period an amount equal to the sum of (i) consolidated net income (loss) for such period plus (ii) to the extent deducted in determining consolidated net income (loss) for such period, and without duplication, (A) consolidated interest expense, (B) income tax expense (benefit) determined on a consolidated basis, (C) depreciation, depletion and amortization determined on a consolidated basis, (D) exploration expenses determined on a consolidated basis, and (E) all other non-cash charges reasonably acceptable to the administrative agent, in each case for such period minus (iii) all noncash income added to consolidated net income (loss) for such period; provided that, for purposes of calculating compliance with the financial covenants under the credit facility, to the extent that during such period the Company has consummated an acquisition permitted by the credit facility or any sale, transfer or other disposition of any property or assets permitted by the credit facility, Consolidated EBITDAX will be calculated on a pro forma basis with respect to the property or assets acquired or disposed of.

The maximum permitted Leverage Ratio under the senior revolving credit facility is 3.00. The following tables show the leverage ratio calculations for the quarters ended December 31, 2025 and December 31, 2024.

	(Unaudited)
	Three Months Ended
	March 31,		June 30,			September 30,			December 31,			Last Four Quarters
		2025		2025			2025			2025		Last Four Quarters
Consolidated EBITDAX Calculation:
Net Income (Loss)	$	9,110,738	$	20,634,887		$	(51,631,530	)	$	(12,845,294	)	$	(34,731,199	)
Plus: Consolidated interest expense		9,408,728		11,687,746			9,978,067			9,065,509			40,140,050
Plus: Income tax provision (benefit)		3,041,177		6,107,425			(12,800,947	)		(3,800,401	)		(7,452,746	)
Plus: Depreciation, depletion and amortization		22,615,983		25,569,914			25,225,345			23,002,908			96,414,150
Plus: non-cash charges reasonably acceptable to Administrative Agent		2,392,703		(12,236,121	)		77,063,418			23,025,119			90,245,119
Consolidated EBITDAX	$	46,569,329	$	51,763,851		$	47,834,353		$	38,447,841		$	184,615,374
Plus: Pro Forma Acquired Consolidated EBITDAX	$	7,392,359	$	—		$	—		$	—		$	7,392,359
Less: Pro Forma Divested Consolidated EBITDAX		8,855		—			—			—			8,855
Pro Forma Consolidated EBITDAX	$	53,970,543	$	51,763,851		$	47,834,353		$	38,447,841		$	192,016,588

Non-cash charges reasonably acceptable to Administrative Agent:
Asset retirement obligation accretion	$	326,549	$	382,251		$	390,563		$	390,892
Unrealized loss (gain) on derivative assets		375,196		(13,970,211	)		2,141,925			(14,753,449	)
Ceiling test impairment		—		—			72,912,330			35,913,116
Share-based compensation		1,690,958		1,351,839			1,618,600			1,474,560
Total non-cash charges reasonably acceptable to Administrative Agent	$	2,392,703	$	(12,236,121	)	$	77,063,418		$	23,025,119

	As of
	December 31,		Corresponding
		2025	Leverage Ratio
Leverage Ratio Covenant:
Revolving line of credit	$	420,000,000		2.19
Notes payable		505,752		—
Capital lease obligations		1,323,710		0.01
Consolidated Total Debt	$	421,829,462		2.20
Pro Forma Consolidated EBITDAX		192,016,588
Leverage Ratio		2.20
Maximum Allowed	≤ 3.00x

	(Unaudited)
	Three Months Ended
	March 31,			June 30,			September 30,			December 31,		Last Four Quarters
		2024			2024			2024			2024	Last Four Quarters
Consolidated EBITDAX Calculation:
Net Income (Loss)	$	5,515,377		$	22,418,994		$	33,878,424		$	5,657,519	$	67,470,314
Plus: Consolidated interest expense		11,420,400			10,801,194			10,610,539			9,987,731		42,819,864
Plus: Income tax provision (benefit)		1,728,886			6,820,485			10,087,954			1,803,629		20,440,954
Plus: Depreciation, depletion and amortization		23,792,450			24,699,421			25,662,123			24,548,849		98,702,843
Plus: non-cash charges acceptable to Administrative Agent		19,627,646			1,664,064			(26,228,108	)		8,994,957		4,058,559
Consolidated EBITDAX	$	62,084,759		$	66,404,158		$	54,010,932		$	50,992,685	$	233,492,534
Plus: Pro Forma Acquired Consolidated EBITDAX	$	—		$	—		$	—		$	—	$	—
Less: Pro Forma Divested Consolidated EBITDAX		(124,084	)		(469,376	)		(600,460	)		77,819		(1,116,101	)
Pro Forma Consolidated EBITDAX	$	61,960,675		$	65,934,782		$	53,410,472		$	51,070,504	$	232,376,433

Non-cash charges acceptable to Administrative Agent:
Asset retirement obligation accretion	$	350,834		$	352,184		$	354,195		$	323,085
Unrealized loss (gain) on derivative assets		17,552,980			(765,898	)		(26,614,390	)		6,999,552
Ceiling test impairment		—			—			—			—
Share-based compensation		1,723,832			2,077,778			32,087			1,672,320
Total non-cash charges acceptable to Administrative Agent	$	19,627,646		$	1,664,064		$	(26,228,108	)	$	8,994,957

	As of
	December 31,
		2024
Leverage Ratio Covenant:
Revolving line of credit	$	385,000,000
Pro Forma Consolidated EBITDAX		232,376,433
Leverage Ratio		1.66
Maximum Allowed	≤ 3.00x

Calculation of Current Ratio

The “Current Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our Current Assets as of such date to (ii) our Current Liabilities as of such date. Based on its credit agreement, the Company defines Current Assets as all current assets, excluding non-cash assets under Accounting Standards Codification (“ASC”) 815, plus the unused line of credit. The Company’s non-cash current assets include the derivative asset marked to market value. Based on its credit agreement, the Company defines Current Liabilities as all liabilities, in accordance with GAAP, which are classified as current liabilities, including all indebtedness payable on demand or within one year, all accruals for federal or other taxes payable within such year, but excluding current portion of long-term debt required to be paid within one year, the aggregate outstanding principal balance and non-cash obligations under ASC 815.

Also set forth in our existing senior revolving credit facility is the minimum permitted Current Ratio of 1.00. The following table shows the Current Ratio calculation for the Company’s most recent fiscal quarter.

		As of
		December 31,
		2025
Current assets		62,069,412
Less: Current derivative assets		21,468,134
Current assets less Current derivative assets		40,601,278
Revolver Availability (Facility less debt less LCs)		164,965,000
Current Assets per Covenant		205,566,278

Current liabilities		100,961,894
Less: Current derivative liabilities		841,193
Current Liabilities per Covenant		100,120,701

Current Ratio		2.05
Minimum Allowed		> or = 1.00x

Calculation of Cash Return on Capital Employed

The Company defines “Return on Capital Employed” or “CROCE” as Adjusted Cash Flow from Operations divided by average debt and stockholder equity for the period. Management believes that CROCE is useful to investors as a performance measure when comparing our profitability and the efficiency with which management has employed capital over time relative to other companies. CROCE is not considered to be an alternative to net income reported in accordance with GAAP.

CROCE (Cash Return on Capital Employed):	As of and for the
	twelve months ended
	December 31,			December 31,			December 31,
		2025			2024			2023

Total long term debt (i.e. revolving line of credit)	$	420,000,000		$	385,000,000		$	425,000,000
Total stockholders' equity	$	836,275,746		$	858,639,982		$	786,582,900

Average debt	$	402,500,000		$	405,000,000		$	420,000,000
Average stockholders' equity		847,457,864			822,611,441			723,843,146
Average debt and stockholders' equity		1,249,957,864			1,227,611,441			1,143,843,146

Net Cash Provided by Operating Activities	$	150,849,407		$	194,423,712		$	198,170,459
Less change in WC (Working Capital)		2,716,871			(888,089	)		1,180,748
Adjusted Cash Flows From Operations (ACFFO)	$	148,132,536		$	195,311,801		$	196,989,711

CROCE (ACFFO)/(Average D+E)		11.9	%		15.9	%		17.2	%

All-In Cash Operating Costs

The Company defines All-In Cash Operating Costs, a non-GAAP financial measure, as “all in cash” costs which includes lease operating expenses, G&A costs excluding share-based compensation, net interest expense (including interest income and expense, excluding amortization of deferred financing costs), workovers and other operating expenses, production taxes, ad valorem taxes, and gathering/transportation costs. Management believes that this metric provides useful additional information to investors to assess the Company’s operating costs in comparison to its peers, which may vary from company to company.

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2025		2025		2024		2025		2024
All-In Cash Operating Costs:
Lease operating expenses (including workovers)		18,911,801		20,518,472		20,326,216		79,353,806		78,310,949
G&A excluding share-based compensation		6,555,750		6,521,171		6,363,657		25,792,619		24,134,283
Net interest expense (excluding amortization of deferred financing costs)		8,374,281		9,284,442		8,688,653		35,680,530		37,850,690
Operating lease expense		175,090		175,091		175,090		700,362		700,362
Oil and natural gas production taxes		3,224,183		3,670,987		3,857,147		14,312,232		16,116,565
Ad valorem taxes		2,279,266		2,446,565		2,421,595		7,906,586		8,069,064
Gathering, transportation and processing costs		121,097		126,569		130,230		585,087		506,333
All-in cash operating costs		39,641,468		42,743,297		41,962,588		164,331,222		165,688,246

Boe		1,886,755		1,912,611		1,808,493		7,392,476		7,191,054

All-in cash operating costs per Boe	$	21.01	$	22.35	$	23.20	$	22.23	$	23.04

Cash Operating Margin

The Company defines Cash Operating Margin, a non-GAAP financial measure, as realized revenues per Boe less “all-in cash operating costs” per Boe. Management believes that this metric provides useful additional information to investors to assess the Company’s operating margins in comparison to its peers, which may vary from company to company.

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2025		2025		2024		2025		2024
Cash Operating Margin
Realized revenues per Boe	$	35.45	$	41.10	$	46.14	$	41.55	$	50.94
All-in cash operating costs per Boe		21.01		22.35		23.20		22.23		23.04
Cash Operating Margin per Boe	$	14.44	$	18.75	$	22.94	$	19.32	$	27.90