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what it is
Ring Energy drills for oil, gas, and natural gas liquids in Texas’s Permian Basin and sells what comes out.
how it gets paid
Last year Rei made $307M in revenue. Oil was the main engine at $184.2M, or 60% of sales.
why growth slowed
Revenue fell 16.1% last year. $240M matters because scale came back fast, but with conflicting EPS prints across sources, you should trust cash generation more than headline profit.
what just happened
The latest reported quarter showed revenue of $240M, but profit stayed weak and outside data on EPS is messy.
At a glance
C balance sheet — red flag territory — real financial stress
30/100 earnings predictability — expect surprises
4.4x trailing p/e — the market's not buying it — or you found a deal
7.2% return on capital — nothing to write home about
$0.34 fy2024 eps est
xvary composite: 20/100 — weak
What they do
Ring Energy drills for oil, gas, and natural gas liquids in Texas’s Permian Basin and sells what comes out.
This is a one-basin operator with 97,599 gross acres, 935 gross wells, and 134.2 million Boe of proved reserves. Proved reserves → oil and gas already booked on paper → you are not betting on a science project. The edge is focus: 99% of reserves are operated by Ring itself, so your fate depends more on execution than on partners.
How they make money
$307M
annual revenue · their business grew -16.1% last year
Oil
$184.2M
Natural Gas
$58.3M
NGLs
$64.5M
The products that matter
drills and sells crude oil
oil sales
$~260M · about 85% of breakout revenue
this is the business. Roughly $~260M of the breakout comes from oil, so small pricing moves do real damage or real repair.
main driver
sells gas and ngls
natural gas & ngls
$~47M · about 15% of breakout revenue
this smaller bucket helps, but it does not rescue the model when crude weakens. It is support, not the thesis.
secondary mix
protects near-term cash flow
hedging program
$322M 2026 revenue outlook still depends on execution
the hedge book is the seatbelt, not the engine. With a $322M 2026 revenue projection, $100M–$130M of planned capital spending, and $430M of debt, you want protection and discipline at the same time.
cash-flow seatbelt
Key numbers
11.2%
operating margin
Operating margin → money left after running the wells → Ring lost 11.2 cents for each $1 of sales before interest and taxes.
4.4x
trailing p/e
P/E → how many dollars you pay for $1 of earnings → the stock looks cheap, but cheap is normal when the business quality is shaky.
$430M
long-term debt
Debt → money the company owes lenders → Ring owes more than its roughly $314M market value, which leaves very little room for mistakes.
7.2%
return on capital
Return on capital → profit earned on money put into the business → 7.2% is fine for survival, not enough for bragging rights.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- long-term debt $430M (58% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for REI right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest reported quarter showed revenue of $240M, but profit stayed weak and outside data on EPS is messy.
EDGAR-backed data in the prompt shows latest-quarter EPS of -$0.11 on $240M of revenue. shows December 2024 quarterly EPS of $0.03, while Yahoo lists the last earnings at -$0.25, so the clean takeaway is revenue bounced but earnings quality is still noisy.
$240M
revenue
$0.11
eps
+206%
revenue vs. last year
the number that mattered
$240M matters because scale came back fast, but with conflicting EPS prints across sources, you should trust cash generation more than headline profit.
source: company earnings report, 2026
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What could go wrong
the main risk is simple: oil-price weakness hits a balance sheet that still does not have much room. REI already showed you the pattern. An 11% drop in realized oil prices helped push the quarter off target while the company still carried $430M of long-term debt.
high
oil price volatility
realized oil prices fell 11% in the latest quarter. With oil making up roughly 85% of the revenue breakout shown here, that kind of move shows up fast.
the latest quarter already told the story at $66.88M of revenue. If crude weakens again, the income statement will tell on the business quickly.
high
debt load still dominates the equity case
long-term debt stands at $430M, or 58% of capital. That is larger than the roughly $314M equity value at the current market cap.
if free cash flow cools, lenders matter more than common shareholders. That is the quiet part loud.
med
2026 plan needs clean execution
the company is pointing to a $322M 2026 revenue outlook while planning $100M–$130M of capital spending. Missing either side of that setup would weaken the debt-paydown narrative.
this stock needs operating follow-through, not just better sentiment around oil.
med
earnings quality is still weak
earnings predictability is 30/100, and the latest quarter missed estimates on both revenue and EPS. A 4.4x trailing p/e only helps you if the earnings base holds up.
if quarterly results keep jumping around, the low multiple is less a bargain and more a warning label.
$430M of debt against $292.87M in trailing revenue means even modest commodity pressure can flow straight into balance-sheet stress.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
whether $430M starts moving down fast enough
record $50.1M adjusted free cash flow was the good news. Here's the thing: you need to see that cash actually shrinking the debt stack quarter by quarter, not just producing a nicer talking point.
calendar
q1 2026 earnings report
expected around may 7, 2026. Watch production volumes, realized pricing, and whether the $100M–$130M capital spending plan still looks manageable against cash generation.
trend
realized oil prices, not just headline WTI
the latest quarter already showed an 11% drop in realized oil price. If that line keeps sliding, the stock's low multiple will not save you.
risk
whether revenue stabilizes above the current $292.87M trailing base
another quarter like the recent 20.0% drop from a year ago would make the valuation look less like value and more like distress with better branding.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not view these earnings as steady or easy to forecast. You are buying variability and hoping commodity prices are kind.
risk rank
5
that means this screens as riskier than about 95% of stocks in the dataset. The market is offering you cheapness because the ride is rough.
source: institutional data
Institutional activity
institutional ownership data for REI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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