Ring Energy Inc (REI)
AMEXEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
$1.500.00%
Close 2026-09-04 · 1-day change
AMEXEnergyOil & Gas Exploration & ProductionSnapshot 2026-09-04
Broken: Primary pillar broken — Maintain capital expenditures near $32 million in Q2 2026: Q2 2026 CAPEX not reported; Q3 2026 guidance $27.0M-$35.0M (mid $31.0M) vs $32M target.
Ring Energy aims to keep capital spending near $32 million in Q2 2026. They plan to control operating costs at about $10.50 per Boe. Cash from operations was $25.9 million in Q1 2026, showing some cash generation. The company improved its balance sheet after an equity offering.
Ring Energy lost $220.6 million in Q1 2026, showing weak profits. Operating income fell sharply from $23.5 million to negative $141.8 million. Cash from operations dropped from $44.7 million to $25.9 million. The stock price fell 44% from its high.
The price is about 60% below our fair value near $2.69. Analysts expect 12% revenue growth. The market prices in a weak outlook and risks.
Breaks if: CAPEX exceeds $36 million or falls below $28 million in Q2 2026
Ring Energy aims to keep capital expenditures between $28 million and $36 million for the second quarter of 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the energy sector. REI is currently loss-making but is working on improving its operational efficiency and production capabilities.
The market appears to have priced in some fragility due to the turbulent sector environment, but REI is seen as relatively cheap compared to its peers. There is a notable expectations gap, indicating that the market may have low expectations for significant improvement in performance.
Management is on track with its priorities, including expanding its drilling program and controlling operating expenses. However, recent financial performance has been weak, which may pose risks in the near term.
The future of REI hinges on external factors such as inflation trends and the performance of sector leaders. Additionally, any cuts to guidance could negatively impact investor sentiment and expectations.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a more favorable outlook. Additionally, the company plans to expand its development program with longer lateral wells. This strategy aims to increase production and free cash flow generation.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: cash from operations falls below $25.9 million in Q1 2026
Breaks if: LOE rises above $11 or falls below $10 per Boe in Q2 2026
Over the next 1 to 3 years, REI's performance will depend on its ability to execute its operational plans and navigate the broader energy market dynamics. Not investment advice.