Ring Energy, Inc. (NYSE MKT:REI) Q4 2019 Earnings Conference Call - Final Transcript

Mar 17, 2020 • 11:00 am ET

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Ring Energy, Inc. (NYSE MKT:REI) Q4 2019 Earnings Conference Call - Final Transcript

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Operator
Operator

Greetings, and welcome to the Ring Energy, Inc. 2019 Fourth Quarter and 12-Month Financial and Operating Results Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Mr. Tim Rochford, Chairman of the Board of Directors of Ring Energy. Please go ahead, sir.

Executive
Lloyd T. Rochford

Thank you, operator. And we'd like to welcome all the listeners to the 2019 fourth quarter and 12-month financial and operations conference call. Again, my name is Tim Rochford, Chairman of the Board.

Joining me on the call this morning is our CEO, Kelly Hoffman; David Fowler, our President; Randy Broaddrick, our Chief Financial Officer; Danny Wilson, Executive VP of Operations; and Hollie Lamb, Vice President of Engineering; as well as Bill Parsons, Investor Relations.

Today, we'll cover the financials and operations for the fourth quarter and 12 months ended December 31st, 2019. But because of the special circumstances and the recent events that we're experiencing right now, all of us, we feel it's necessary and it's of utmost importance to identify, discuss and summarize factors that both directly and indirectly affect the ongoing operations of the Company.

So, we plan to do that in a broad sense. And at the conclusion of the fourth quarter and 12-month review, we'll turn it back over to the operator, and we can open it up then for any questions you may have.

For now, I'm going to ask Randy Broaddrick, our Chief Financial Officer, to just give us a brief overview. Thank you, Randy.

Executive
William R. Broaddrick

Thank you, Tim. Before we begin, I would like to make reference that any forward-looking statements, which may be made during this call are within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. For a complete explanation, I would refer you to our release issued Wednesday -- sorry, Monday, March 16th, 2020. If you do not have a copy of the release, one will be posted on the website -- the Company website at www.ringenergy.com.

Revenues for the three and 12 months ended December 31st, 2019, were $52.2 million and $195.7 million. Net income for the three months ended was $5 million or $0.07 per share, and for the 12 months was $29.5 million or $0.44 per share.

For the three-month period, net income includes a pretax loss on derivatives of $6.1 million. For the 12-month period, net income includes a $3 million pretax loss on derivatives, a $3.8 million additional tax expense and acquisition-related costs of approximately $4.2 million. Net cash flow from operations was $30.1 million for the three-month period and $107.5 million for the 12-month period. This equates to $0.44 per share for the three months and $1.61 for the 12 months.

Our oil sales volume for the three months ended December 31st, 2019, was 923,384 barrels as compared to 906,874 barrels for the three months ended September 30th, 2019. Gas sales volume was 779,099 Mcf as compared to 731,627 Mcf for the three