THE WOODLANDS, Texas, Sept. 1, 2022 (GLOBE NEWSWIRE) — Ring Energy, Inc. REI (“Ring” or the “Company”) announced today that it has completed its previously announced acquisition (the “Transaction”) of the assets of privately held Stronghold Energy II Operating, LLC and Stronghold Energy II Royalties, LP (collectively “Stronghold ” Stronghold’s operations are primarily located in Crane County, Texas and are focused on developing approximately 37,000 acres in the Central Basin Platform (“CBP”) of the Permian Basin.
KEY HIGHLIGHTS
- Immediate increase in key metrics and significant increase in Adjusted EBITDA(1) and Free Cash Flow (“FCF”)(1) power generation and lower operating and general administrative costs per barrel;
- Strengthens the balance sheet and accelerates the company’s ability to pay down debt
- Improves the expected leverage ratio at the end of 2022(2) to below 1.5x the previous target of below 2.0x;
- Acquired a high quality, conventional, Proved Developed Producing (“PDP”) asset base with high margins and low decline rates in the most active county in the CBP;
- Improves size and scope through substantial growth in proven reserves, sales volume, acreage and premium, high yield inventory; and
- Better positions for future potential transactions or other equity return opportunities for shareholders while continuing the company’s commitment to ESG and sustainability.
Mr. Paul D. McKinney, Chairman and Chief Executive Officer, commented, “We are pleased to inform our shareholders that we have completed our previously announced acquisition of Stronghold’s Permian Basin assets on August 31, 2022. This transaction complements our convention of truly -focused asset positions on the Central Basin Platform and Northwest Shelf in the Permian Basin. The combination further diversifies our commodity mix, significantly improves our scale and reach, lowers our operating costs per barrel, provides significant synergies and increases …
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