Ring Energy Prices $60 Million Public Offering to Reduce Debt

Ring Energy, Inc. (NYSE American: REI) has priced its underwritten public offering of 44,444,445 shares of common stock at $1.35 per share, expecting gross proceeds of approximately $60 million, the company announced Tuesday. The offering is designed to reduce the company’s debt, with net proceeds primarily used to repay outstanding borrowings under its senior secured revolving credit facility. Any remaining funds will be allocated to general corporate purposes.

The move comes as Ring Energy, an independent oil and natural gas exploration and production company focused on the Permian Basin in Texas, seeks to strengthen its financial position. The company’s drilling operations target oil and liquids-rich producing formations in the Northwest Shelf and the Central Basin Platform of the Permian Basin. By reducing its debt load, Ring Energy aims to improve its balance sheet flexibility in a volatile commodity price environment.

Mizuho, BofA Securities, and Raymond James are serving as joint book-running managers for the offering. The underwriters have a 30-day option to purchase up to an additional 6,666,666 shares to cover over-allotments, if any. The offering is expected to close on or about the date specified in the underwriting agreement, subject to customary closing conditions.

This capital raise is significant for Ring Energy as it navigates the challenges of the oil and gas sector. The company’s decision to use proceeds for debt repayment signals a focus on deleveraging, which could enhance its financial stability and potentially reduce interest expenses. For investors, the offering dilutes existing shareholders but may be viewed positively if it leads to a stronger balance sheet and long-term value creation.

Ring Energy, based in The Woodlands, Texas, is growth-oriented and engaged in oil and natural gas development, production, acquisition, and exploration activities. The company’s operations are currently concentrated in the Permian Basin, one of the most prolific oil-producing regions in the United States. By reducing debt, Ring Energy may be better positioned to capitalize on future opportunities in the basin.

The full press release is available at https://ibn.fm/txeqj. More information about Ring Energy can be found at https://www.ringenergy.com/.

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