Ring Energy, Inc.
$1.35
-0.74%Ring Energy, Inc., an exploration and production company, engages in the acquisition, exploration, development, and production of oil and natural gas in Texas and New Mexico. As of December 31, 2021, the company's proved reserves consisted of approximately 77.8 million barrel of oil equivalent. It also had interests in 18,882 net developed acres and 1,406 net undeveloped acres in Andrews and Gaines counties, Texas; 18,437 net developed acres in Culberson and Reeves counties, Texas; and 13,662 net developed acres and 11,993 net undeveloped acres in Yoakum, Runnels, and Coke Counties, Texas and Lea County, New Mexico. Ring Energy, Inc. primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was incorporated in 2004 and is headquartered in The Woodlands, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -7.9).
Valuation inputs: P/E -7.9, earnings yield N/A, momentum -0.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -4.2%, ROIC +4.3%).
Profitability stack: net margin -11.3%, ROE -4.2%, ROIC +4.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +44.7%, momentum -0.7%, net margin -11.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Ring Energy, Inc. Market vs Earnings Trajectory
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Ring Energy, Inc. Fair Value Envelope
Ring Energy, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Interest or tax burden: Strong operational performance but thin net margins indicate high interest expenses or unfavorable tax position eating into profits.
Ring Energy, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Capital-intensive growth: Heavy reinvestment limits current cash available but may drive future returns. Assess whether CapEx supports compelling growth opportunities with adequate ROI.
Ring Energy, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Negative working capital with limited cash reserves requires immediate attention—potential liquidity crisis if not addressed promptly.
Ring Energy, Inc. Street Expectations Map
Wall Street analysts project that REI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 2.50, with estimates ranging from a low of 2.50 to a high of 2.50.
The consensus 1-year price target stands at 2.50, with estimates ranging from a low of 2.50 to a high of 2.50.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Ring Energy, Inc. Insider Positioning
During the last 12 months, insiders have purchased $66K and sold $7.60M worth of REI shares, resulting in $7.53M of net selling activity.
3 Months
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3-6 Months
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6-9 Months
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9-12 Months
79.1K
65.69K
8.7M
7.60M
-7.5M
-$7.53M
Top Buyers
Mckinney Paul D.
Director, Officer: Ceo And Chairman Of The Board
$41K
Dyes Alexander
Officer: Evp Chief Operations Officer
$25K
Top Sellers
Warburg Pincus & Co Us, Llc
10 Percent Owner
$3.80M
Warburg Pincus (E&P) Xii Llc
10 Percent Owner
$3.80M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $7.53M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
2 insider buyers and 2 sellers. Equal participation suggests mixed or neutral insider views.
No Dividend Yield Data
REI has not reported any dividend yield values in the available annual periods.
rei Dividend History
Learning Layer
Related Guides
Build conviction on REI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.