Q2 2024 Ring Energy Inc Earnings Call Transcript
Key Points
- Ring Energy Inc (REI) posted record sales volumes and cash generation for the second quarter and year-to-date.
- The company used excess cash to pay down $15 million of debt and plans to continue reducing debt in the coming quarters.
- Second-quarter sales volumes exceeded initial guidance, and operating expenses and capital spending were below guidance ranges.
- Record adjusted EBITDA of $66.4 million for the second quarter, with year-to-date growth of 15%.
- Ring Energy Inc (REI) reported record adjusted free cash flow of $21.4 million for the second quarter, a 70% increase from the same quarter last year.
- The company continues to face negative realized pricing for natural gas, impacting overall revenue.
- Lease operating expenses (LOE) increased slightly in the second quarter to $10.72 per BOE from $10.60 per BOE in the first quarter.
- Despite improvements, the company still faces product takeaway constraints in the basin, affecting natural gas pricing.
- Ring Energy Inc (REI) has a limited inventory compared to competitors, lacking a long-term inventory of 15-20 years.
- The company acknowledges a disconnect between its operational and financial performance and its stock price performance, indicating potential market perception issues.
Good morning, and welcome to the Ring Energy second-quarter 2024 earnings conference call. (Operator Instructions)
Please note this event is being recorded.
I would now like to turn the conference over to Al Petrie, Investor Relations for Ring Energy. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate your interest in Ring Energy. We'll begin our call with comments from Paul McKinney, our Chairman of the Board and CEO, who will provide an overview of key matters for the second quarter of 2024 as well as our updated outlook; who will then turn the call over to Travis Thomas, Ring's Executive VP and Chief Financial Officer, who will review our financial results. Paul will then return with some closing comments before we open the call for questions.
Also joining us on the call today and available for the Q&A session are Alex Dyes, Executive VP of Engineering and Corporate Strategy; and Shawn Young, VP of Operations.
During the Q&A
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