Ring Energy announces sale of non-core Delaware Basin assets

Ring Energy announced a $25M net reduction of borrowings during the second quarter on its senior revolving credit facility with a current borrowing base of $600M. The Company also announced the sale of its non-core asset position in the West Texas’ Delaware Basin to an unaffiliated private buyer. Ring ended the second quarter of 2023 with $397M of borrowings outstanding on its recently reaffirmed $600M borrowing base on its $1B Credit Facility. During the second quarter, the Company paid down debt by $25M from its first quarter 2023 balance of $422M. Ring is targeting further debt reduction during the second half of 2023, with the level and timing dependent on hydrocarbon price levels and market conditions, the timing of the Company’s capital spending, and other considerations. The Delaware Transaction was completed in the second quarter of 2023 and included a gross sales price of $8.25M. With an effective date of March 1, 2023 and considering standard purchase price adjustments and transaction costs, Ring received net proceeds of approximately $7.8M, which was used to pay down debt on the Company’s Credit Facility. Recent production from the Delaware asset averaged approximately net 240 barrels of oil equivalent per day. Ring is not revising its full year 2023 production guidance as a result of this sale.