AMEX:REI

Stock Analysis Report

Executive Summary

Ring Energy, Inc., an exploration and production company, acquires, explores for, develops, and produces oil and natural gas in Texas and New Mexico.


Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Ring Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.0%

REI

9.5%

US Oil and Gas

2.4%

US Market


1 Year Return

-89.3%

REI

-52.6%

US Oil and Gas

-10.0%

US Market

Return vs Industry: REI underperformed the US Oil and Gas industry which returned -52.6% over the past year.

Return vs Market: REI underperformed the US Market which returned -10% over the past year.


Shareholder returns

REIIndustryMarket
7 Day12.0%9.5%2.4%
30 Day-6.6%-18.5%-11.0%
90 Day-79.6%-46.8%-19.4%
1 Year-89.3%-89.3%-50.7%-52.6%-8.1%-10.0%
3 Year-95.0%-95.0%-47.6%-52.7%17.3%9.6%
5 Year-94.9%-94.9%-52.0%-59.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is Ring Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ring Energy undervalued compared to its fair value and its price relative to the market?

1.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate REI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate REI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: REI is good value based on its PE Ratio (1.4x) compared to the Oil and Gas industry average (7.9x).

PE vs Market: REI is good value based on its PE Ratio (1.4x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: REI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: REI is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Ring Energy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-94.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REI's earnings are forecast to decline over the next 3 years (-94.2% per year).

Earnings vs Market: REI's earnings are forecast to decline over the next 3 years (-94.2% per year).

High Growth Earnings: REI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: REI's revenue is expected to decline over the next 3 years (-21.1% per year).

High Growth Revenue: REI's revenue is forecast to decline over the next 3 years (-21.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if REI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ring Energy performed over the past 5 years?

44.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REI has high quality earnings.

Growing Profit Margin: REI's current net profit margins (15.8%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: REI has become profitable over the past 5 years, growing earnings by 44.5% per year.

Accelerating Growth: REI's earnings growth over the past year (227.7%) exceeds its 5-year average (44.5% per year).

Earnings vs Industry: REI earnings growth over the past year (227.7%) exceeded the Oil and Gas industry -16.2%.


Return on Equity

High ROE: REI's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Ring Energy's financial position?


Financial Position Analysis

Short Term Liabilities: REI's short term assets ($38.7M) do not cover its short term liabilities ($59.1M).

Long Term Liabilities: REI's short term assets ($38.7M) do not cover its long term liabilities ($390.4M).


Debt to Equity History and Analysis

Debt Level: REI's debt to equity ratio (70%) is considered high.

Reducing Debt: REI's debt to equity ratio has increased from 0.08% to 70% over the past 5 years.

Debt Coverage: REI's debt is well covered by operating cash flow (29.1%).

Interest Coverage: REI's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Ring Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate REI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate REI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if REI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Kelly Hoffman (61yo)

7.25s

Tenure

US$533,010

Compensation

Mr. Kelly W. Hoffman has been the Chief Executive Officer of Ring Energy, Inc. since January 1, 2013. Mr. Hoffman served as the Chief Executive Director and President of VPR Corp. from April 2009 to Decemb ...


CEO Compensation Analysis

Compensation vs Market: Kelly's total compensation ($USD533.01K) is about average for companies of similar size in the US market ($USD615.59K).

Compensation vs Earnings: Kelly's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lloyd Rochford
Co-Founder & Chairman of the Board8.25yrsUS$427.76k2.06% $852.2k
Kelly Hoffman
CEO & Director7.25yrsUS$533.01k0.42% $173.7k
David Fowler
President & Director7.25yrsUS$422.45k0.26% $106.8k
Stanley McCabe
Co-Founder & Independent Director7.83yrsUS$201.95k2.52% $1.0m
William Broaddrick
CFO, VP7.75yrsUS$363.32k0.11% $44.4k
Daniel Wilson
Executive VP & COO7.25yrsUS$388.45k0.11% $44.7k

7.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: REI's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lloyd Rochford
Co-Founder & Chairman of the Board8.25yrsUS$427.76k2.06% $852.2k
Kelly Hoffman
CEO & Director7.25yrsUS$533.01k0.42% $173.7k
David Fowler
President & Director7.25yrsUS$422.45k0.26% $106.8k
Stanley McCabe
Co-Founder & Independent Director7.83yrsUS$201.95k2.52% $1.0m
Anthony Petrelli
Independent Director7.25yrsUS$186.95k0.20% $83.8k
Clayton Woodrum
Independent Director7.25yrsUS$186.95k0.075% $30.9k
Regina Roesener
Independent Director0.58yrUS$156.95k0.024% $9.7k

7.3yrs

Average Tenure

66yo

Average Age

Experienced Board: REI's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: REI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.8%.


Top Shareholders

Company Information

Ring Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ring Energy, Inc.
  • Ticker: REI
  • Exchange: AMEX
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$41.272m
  • Shares outstanding: 67.99m
  • Website: https://www.ringenergy.com

Number of Employees


Location

  • Ring Energy, Inc.
  • 901 West Wall Street
  • 3rd Floor
  • Midland
  • Texas
  • 79701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REIAMEX (NYSE MKT LLC)YesCommon StockUSUSDJun 2012

Biography

Ring Energy, Inc., an exploration and production company, acquires, explores for, develops, and produces oil and natural gas in Texas and New Mexico. As of December 31, 2019, the company's proved reserves consisted of approximately 81.1 million barrel of oil equivalent. It also had interests in 18,372 net developed acres and 47,427 net undeveloped acres in Andrews and Gaines counties, Texas; 19,138 net developed acres and 860 net undeveloped acres in Culberson and Reeves counties, Texas; and 8,085 net developed acres and 28,514 net undeveloped acres in Gaines, Yoakum, Runnels, and Coke Counties, Texas and Lea County, New Mexico. It 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 founded in 2004 and is headquartered in Midland, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 09:12
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.