Following the company’s updates and increased guidance announcement, Ring Energy Inc. (REI) stock became bullish in the after hours. Hence, the stock gained 5.66% at $2.24 in the after-hours on December 16.
In regular trading, the stock traded in the red, losing 1.40% at the closing value of $2.12 with 1.19M shares. Following the new announcement, REI stock gained $0.12 in the after-hours.
Currently, the oil and gas exploration company has a market capitalization of $214.23 million. Moreover, REI has 99.64 million shares outstanding in the market as of now.
REI’s Updates
On December 16, the company provided the updates of its 2021 drilling program with the outlook for the 2022 drilling program. As per the report, REI successfully completed the 2021 development campaign. The company drilled 11 wells which include Northwest Shelf (NWS)’s eight wells and Central Basin Platform (CBP)’S three. Furthermore, 13 wells were completed (NWS 10 and CBP 3). According to CEO, Paul D. McKinney, the 2021 drilling generated a free cash flow of $11 million. Moreover, it also helped to pay down the debt of $18 million in the first nine months of 2021.
In addition, the company will commence a continuous one-rig drilling program in the first quarter of 2022. Moreover, this drilling program will continue throughout 2022.
Increased Guidance for Q4
Due to the robust production performance of Phase III & IV programs, REI increased its fourth-quarter 2021, guidance. The four wells in Phase III and two included in Phase IV showed strong performance in October and November of this year. As per the increased sales guidance, the company expects 9,000 to 9,300 barrels of oil equivalent per day (Boepd).
Moreover, the company expects to capitalize on the continued strong oil pricing in 2022, based on the success of Phase III and IV programs.
Q3 2021 Earnings
On November 09, REI declared its third-quarter financial results for 2021 which ended on September 30, 2021. As per the third quarter of 2021, the company generated an adjusted net income of $6.8 million. Consequently, the adjusted net income per diluted share was $0.07 in the Q3 of 2021.
Moreover, the adjusted EBITDA for the third quarter of 2021, was $19.7 million.
Further, in the third quarter of 2021, the net cash from operating activities was $17.5 million and the free cash flow was $2.6 million.
