REI Earnings Prediction
The chart below shows how REI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, REI sees a +1.71% change in stock price 10 days leading up to the earnings, and a +3.71% change 10 days following the report. On the earnings day itself, the stock moves by +0.23%. This data can give you a slight idea of what to expect for the next quarter's release.
REI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
89.24M
-4.74%
-9.98%
Gross Margin
41.23%
-18.08%
-18.34%
Operating Margin
33.84%
-20.60%
-20.45%
Net Margin
37.96%
571.55%
67.89%
EPS
0.17
525.00%
54.55%
No Data Available
REI Earnings Analysis
Ring Energy Inc. Corporation (REI.A) Earnings Conference Call
Positive
Record Sales Achievement: 1. Record Sales Volume: Ring Energy achieved a record sales volume of 20,108 barrels of oil equivalent per day in Q3 2024, exceeding the high end of their guidance.
Cash Flow Improvement: 2. Increased Adjusted Free Cash Flow: The company reported a 34% increase in year-to-date adjusted free cash flow, demonstrating strong cash generation capabilities.
Debt Paydown Success: 3. Debt Reduction: Ring Energy successfully paid down $15 million of debt in Q3 2024, contributing to a total debt reduction of $33 million year-to-date and $63 million since the Founders acquisition.
Solid Financial Liquidity: 4. Strong Liquidity Position: At the end of Q3 2024, the company had liquidity of $208 million and a leverage ratio of 1.59x, indicating a solid financial position.
Operational Efficiency Management: 5. Positive Operational Efficiency: The company maintained lease operating expenses at $10.98 per BOE, which was at the midpoint of their guidance range, reflecting effective cost management.
Negative
Adjusted EBITDA Decline: 1. Decreased Adjusted EBITDA: Adjusted EBITDA for Q3 2024 was $54 million, down from $66.4 million in Q2 2024, reflecting an approximately $12 million decline primarily due to lower realized pricing.
Decline in Free Cash Flow: 2. Lower Adjusted Free Cash Flow: Adjusted free cash flow decreased to $1.9 million in Q3 2024, a significant drop from $21.4 million in Q2 2024, impacted by higher capital spending and lower EBITDA.
Rising Lease Operating Expenses: 3. Increased Lease Operating Expenses: Lease operating expenses rose to $20.3 million or $10.98 per BOE in Q3 2024, compared to $19.3 million or $10.72 per BOE in Q2 2024, indicating rising operational costs.
Oil Production Decline: 4. Decline in Oil Production: Oil production decreased to 13,204 barrels per day in Q3 2024, a 3% decline from the previous quarter, despite overall sales volume increasing slightly.
Natural Gas Pricing Pressures: 5. Negative Realized Pricing for Natural Gas: The average natural gas price differential from NYMEX futures pricing was a negative $4.43 per Mcf in Q3 2024, worsening from a negative $4.31 per Mcf in Q2 2024, indicating ongoing pricing pressures.
REI FAQs
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REI Earning Call Sentiment
Ring Energy, Inc. (REI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
REI.A
-3.38%Positive
The earnings call presents a mixed picture. While the company has achieved positive free cash flow and reduced debt, challenges such as regulatory fees, competitive pressures, and lower realized pricing for natural gas offset these positives. The Q&A reveals cautious optimism about future opportunities but highlights a focus on debt reduction over growth. The production guidance reflects asset sales, indicating potential production challenges. Overall, the sentiment is neutral, with balanced positive and negative factors, leading to an expected stock price movement within the neutral range of -2% to 2%.