Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 26, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | RING ENERGY, INC. | ||
Entity Central Index Key | 1,384,195 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 715,824,081 | ||
Trading Symbol | REI | ||
Entity Common Stock, Shares Outstanding | 63,229,710 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 3,363,726 | $ 15,006,581 |
Accounts receivable | 12,643,478 | 12,833,883 |
Joint interest billing receivable | 578,144 | 1,054,022 |
Prepaid expenses and retainers | 258,909 | 229,438 |
Total Current Assets | 16,844,257 | 29,123,924 |
Properties and Equipment | ||
Oil and natural gas properties subject to amortization | 641,121,398 | 433,591,134 |
Fixed assets subject to depreciation | 1,465,551 | 1,884,818 |
Total Properties and Equipment | 642,586,949 | 435,475,952 |
Accumulated depreciation, depletion and amortization | (100,576,087) | (61,864,932) |
Net Properties and Equipment | 542,010,862 | 373,611,020 |
Deferred Income Taxes | 7,786,479 | 11,232,200 |
Deferred Financing Costs | 424,061 | 135,342 |
Total Assets | 567,065,659 | 414,102,486 |
Current Liabilities | ||
Accounts payable | 51,910,432 | 44,475,163 |
Derivative liabilities | 0 | 3,968,286 |
Total Current Liabilities | 51,910,432 | 48,443,449 |
Revolving line of credit | 39,500,000 | |
Asset retirement obligations | 13,055,797 | 9,055,697 |
Total Liabilities | 104,466,229 | 57,499,146 |
Stockholders' Equity | ||
Preferred stock - $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 150,000,000 shares authorized; 63,229,710 shares and 54,224,029 shares issued and outstanding, respectively | 63,230 | 54,224 |
Additional paid-in capital | 494,892,093 | 397,904,769 |
Accumulated deficit | (32,355,893) | (41,355,653) |
Total Stockholders' Equity | 462,599,430 | 356,603,340 |
Total Liabilities and Stockholders' Equity | $ 567,065,659 | $ 414,102,486 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, par value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued | 63,229,710 | 54,224,029 |
Common Stock, Shares, Outstanding | 63,229,710 | 54,224,029 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Oil and Natural Gas Revenues | $ 120,065,361 | $ 66,699,700 | $ 30,850,248 |
Costs and Operating Expenses | |||
Oil and natural gas production costs | 27,801,989 | 15,978,362 | 9,867,800 |
Oil and natural gas production taxes | 5,631,093 | 3,152,562 | 1,504,620 |
Depreciation, depletion and amortization | 39,024,886 | 20,517,780 | 11,483,314 |
Ceiling test impairment | 14,172,309 | 0 | 56,513,016 |
Asset retirement obligation accretion | 606,459 | 567,968 | 487,182 |
General and administrative expense | 12,867,686 | 10,515,887 | 8,027,077 |
Total Costs and Operating Expenses | 100,104,422 | 50,732,559 | 87,883,009 |
Income (Loss) from Operations | 19,960,939 | 15,967,141 | (57,032,761) |
Other Income (Expense) | |||
Interest income | 97,855 | 291,083 | 56,498 |
Interest expense | (427,898) | 0 | (649,009) |
Realized (loss) on derivatives | (11,153,702) | (119,897) | 0 |
Unrealized gain (loss) on change in fair value of derivatives | 3,968,287 | (3,968,287) | 0 |
Net Other (Expense) | (7,515,458) | (3,797,101) | (592,511) |
Income (Loss) Before Provision for Income Taxes | 12,445,481 | 12,170,040 | (57,625,272) |
(Provision for) Benefit from Income Taxes | (3,445,721) | (10,416,171) | 19,987,585 |
Net Income (Loss) | $ 8,999,760 | $ 1,753,869 | $ (37,637,687) |
Basic Earnings (Loss) per share | $ 0.15 | $ 0.03 | $ (0.97) |
Diluted Earnings (Loss) per share | $ 0.15 | $ 0.03 | $ (0.97) |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (AccumulatedDeficit) [Member] |
Balance at Dec. 31, 2015 | $ 186,231,128 | $ 30,392 | $ 193,269,034 | $ (7,068,298) |
Balance (in shares) at Dec. 31, 2015 | 30,391,342 | |||
Share-based compensation | 2,267,053 | $ 0 | 2,267,053 | 0 |
Options exercised (cashless exercise) | 0 | $ 0 | 0 | 0 |
Options exercised (cashless exercise) (in shares) | 734 | |||
Options exercised | 112,500 | $ 26 | 112,474 | 0 |
Options exercised (in shares) | 25,600 | |||
Common stock issued for cash, net | 139,567,979 | $ 18,695 | 139,549,284 | 0 |
Common stock issued for cash, net (in shares) | 18,695,387 | |||
Net income (loss) | (37,637,687) | $ 0 | 0 | (37,637,687) |
Balance at Dec. 31, 2016 | 290,540,973 | $ 49,113 | 335,197,845 | (44,705,985) |
Balance (in shares) at Dec. 31, 2016 | 49,113,063 | |||
Modified Retrospective adjustment | 1,596,463 | 1,596,463 | ||
Share-based compensation | 3,685,079 | $ 0 | 3,685,079 | 0 |
Options exercised (cashless exercise) | 0 | $ 133 | (133) | 0 |
Options exercised (cashless exercise) (in shares) | 133,308 | |||
Options exercised | 0 | $ 0 | 0 | 0 |
Common stock issued for cash, net | 59,026,956 | $ 4,978 | 59,021,978 | 0 |
Common stock issued for cash, net (in shares) | 4,977,658 | |||
Net income (loss) | 1,753,869 | $ 0 | 0 | 1,753,869 |
Balance at Dec. 31, 2017 | 356,603,340 | $ 54,224 | 397,904,769 | (41,355,653) |
Balance (in shares) at Dec. 31, 2017 | 54,224,029 | |||
Share-based compensation | 3,870,934 | $ 0 | 3,870,934 | 0 |
Options exercised (cashless exercise) | 0 | $ 103 | (103) | 0 |
Options exercised (cashless exercise) (in shares) | 103,113 | |||
Options exercised | 100,000 | $ 50 | 99,950 | 0 |
Options exercised (in shares) | 50,000 | |||
Restricted stock vested | 0 | $ 65 | (65) | |
Restricted stock vested (in shares) | 64,620 | |||
Common stock issued for cash, net | 81,821,138 | $ 6,164 | 81,814,974 | 0 |
Common stock issued for cash, net (in shares) | 6,164,000 | |||
Common stock issued in property acquisition | 11,204,258 | $ 2,624 | 11,201,634 | 0 |
Common stock issued in property acquisition (in shares) | 2,623,948 | |||
Net income (loss) | 8,999,760 | $ 0 | 0 | 8,999,760 |
Balance at Dec. 31, 2018 | $ 462,599,430 | $ 63,230 | $ 494,892,093 | $ (32,355,893) |
Balance (in shares) at Dec. 31, 2018 | 63,229,710 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash Flows From Operating Activities | ||||
Net income (loss) | $ 8,999,760 | $ 1,753,869 | $ (37,637,687) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation, depletion and amortization | 39,024,886 | 20,517,780 | 11,483,314 | |
Ceiling test impairment | 14,172,309 | 0 | 56,513,016 | |
Accretion expense | 606,459 | 567,968 | 487,182 | |
Share-based compensation | 3,870,934 | 3,685,079 | 2,267,053 | |
Deferred income tax expense (benefit) | 2,537,837 | 3,862,827 | (19,987,585) | |
Excess tax benefit related to share-based compensation | 907,884 | (49,896) | 0 | |
Adjustment to deferred tax asset for change in effective tax rate | 0 | 6,603,240 | ||
Change in fair value of derivative instruments | (3,968,286) | 3,968,286 | 0 | |
Changes in assets and liabilities: | ||||
Accounts receivable | 666,283 | (9,980,206) | 229,324 | |
Prepaid expenses and retainers | (318,190) | 268,080 | 334,162 | |
Accounts payable | 4,435,269 | 12,375,772 | (2,233,776) | |
Settlement of asset retirement obligation | (577,824) | (766,595) | (240,606) | |
Net Cash Provided by Operating Activities | 70,357,321 | 42,806,204 | 11,214,397 | |
Cash Flows From Investing Activities | ||||
Payments to purchase oil and natural gas properties | (4,656,484) | (28,682,298) | (10,193,927) | |
Payments to develop oil and natural gas properties | (198,870,366) | (124,680,469) | (26,554,171) | |
Proceeds from disposal of fixed assets subject to depreciation | 105,536 | 0 | 0 | |
Purchase of fixed assets subject to depreciation | 0 | (335,507) | (9,320) | |
Purchase of inventory for development | 0 | (4,214,686) | (1,582,427) | |
Net Cash Used in Investing Activities | (203,421,314) | (157,912,960) | (38,339,845) | |
Cash Flows From Financing Activities | ||||
Proceeds from revolving line of credit | 39,500,000 | 0 | 7,000,000 | |
Proceeds from issuance of common stock | 81,821,138 | 59,026,956 | 139,567,979 | |
Proceeds from option exercise | 100,000 | 0 | 112,500 | |
Principal payments on revolving line of credit | 0 | 0 | (52,900,000) | |
Net Cash Provided by Financing Activities | 121,421,138 | 59,026,956 | 93,780,479 | |
Net Increase (Decrease) in Cash | (11,642,855) | (56,079,800) | 66,655,031 | |
Cash at Beginning of Period | 15,006,581 | 71,086,381 | 4,431,350 | |
Cash at End of Period | 3,363,726 | 15,006,581 | 71,086,381 | |
Supplemental Cash Flow Information | ||||
Cash paid for interest | 323,916 | 0 | 649,010 | |
Noncash Investing and Financing Activities | ||||
Asset retirement obligation incurred during development | 1,311,956 | 1,297,289 | 308,509 | |
Asset retirement obligation acquired | 2,571,549 | 0 | 0 | |
Asset retirement obligation revision of estimate | [1] | 87,960 | ||
Oil and natural gas assets and properties acquired through stock issuance | 11,204,258 | 0 | 0 | |
Capitalized expenditures attributable to drilling projects financed through current liabilities | 26,000,000 | 23,000,000 | 0 | |
Use of inventory in property development | $ 0 | $ 5,797,113 | $ 0 | |
[1] | Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, and estimated remaining useful life of the assets. The 2018 revision of estimates reflect decreases in the estimated remaining useful life of certain assets. |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations – Ring Energy, Inc. is a Nevada corporation. Ring Energy, Inc. is referred to herein as the “Company.” The Company owns interests in oil and natural gas properties located in Texas and is engaged primarily in the acquisition, exploration and development of oil and natural gas properties and the production and sale of oil and natural gas. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in the future estimated oil and natural gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analysis could have a significant impact on the future results of operations. Fair Values of Financial Instruments – The carrying amounts reported for the revolving line of credit approximates fair value because the underlying instruments are at interest rates which approximate current market rates. The carrying amounts of receivables and accounts payable and other current assets and liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. Fair Value of Non-financial Assets and Liabilities – The Company also applies fair value accounting guidance to initially, or as events dictate, measure non-financial assets and liabilities such as those obtained through business acquisitions, property and equipment and asset retirement obligations. These assets and liabilities are subject to fair value adjustments only in certain circumstances and are not subject to recurring revaluations. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two as considered appropriate based on the circumstances. Under the discounted cash flow method, estimated future cash flows are based on managements’ expectations for the future and include estimates of future oil and natural gas production or other applicable sales estimates, operational costs and a risk-adjusted discount rate. The Company may use the present value of estimated future cash inflows and/or outflows or third-party offers or prices of comparable assets with consideration of current market conditions to value its non-financial assets and liabilities when circumstances dictate determining fair value is necessary. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy. Concentration of Credit Risk and Accounts Receivable – Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and accounts receivable. The Company has cash in excess of federally insured limits of $14,756,581 and $3,281,893 at December 31, 2017 and 2018, respectively. The Company places its cash with a high credit quality financial institution. Substantially all of the Company’s accounts receivable is from purchasers of oil and natural gas. Oil and natural gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at December 31, 2018 and 2017. The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Cash – The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Oil and Natural Gas Properties The Company records a liability in the period in which an asset retirement obligation (“ARO”) is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter this liability is accreted up to the final retirement cost. An ARO is a future expenditure related to the disposal or other retirement of certain assets. The Company’s ARO relates to future plugging and abandonment expenses of its oil and natural gas properties and related facilities disposal. All capitalized costs of oil and natural gas properties, including the estimated future costs to develop proved reserves and estimated future costs to plug and abandon wells and costs of site restoration, less the estimated salvage value of equipment associated with the oil and natural gas properties, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent engineers. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is offset to the capitalized costs to be amortized. The following table shows total depletion and depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2018, 2017 and 2016. For the Years Ended December 31, 2018 2017 2016 Depletion $ 38,810,864 $ 20,197,690 $ 11,179,858 Depletion rate, per barrel-of-oil-equivalent (BOE) $ 17.38 $ 13.92 $ 12.73 In addition, capitalized costs less accumulated amortization and related deferred income taxes shall not exceed an amount (the full cost ceiling) equal to the sum of: 1) the present value of estimated future net revenues discounted ten percent computed in compliance with SEC guidelines; 2) plus the cost of properties not being amortized; 3) plus the lower of cost or estimated fair value of unproven properties included in the costs being amortized; 4) . For the years ended December 31, 2018 and 2016, the Company took write downs on oil and natural gas properties as a result of the ceiling test in the amount of $14,172,309 and $56,513,016, respectively. No impairment was recorded for the year ended December 31, 2017. Land, Buildings, Equipment and Leasehold Improvements – Land, buildings, equipment and leasehold improvements are valued at historical cost, adjusted for impairment loss less accumulated depreciation. Historical costs include all direct costs associated with the acquisition of land, buildings, equipment and leasehold improvements and placing them in service. Depreciation of buildings and equipment is calculated using the straight-line method based upon the following estimated useful lives: Leasehold improvements 3-10 years Office equipment and software 3-7 years Machinery and equipment 5-10 years Depreciation expense was $214,022, $320,090 and $303,456 for the years ended December 31, 2018, 2017 and 2016, respectively. Revenue Recognition – In January 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”). The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09. The Company predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser and the Company receives payment from one to three months after delivery. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials. The new guidance regarding ASU 2014-09 does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and Ring engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. See Note 2 for additional information. Income Taxes – Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) The Company used the modified retrospective method to account for unrecognized excess tax benefits from prior periods, resulting in an adjustment to our beginning balances of Deferred Income Taxes and Retained Loss of $1,596,463 and uses the prospective method to account for current period and future excess tax benefit. For th e y ears ended December 31, 2018 2017, we recorded a decrease of $49,896, respectively, to our income tax provision. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The SEC subsequently issued a Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. Among other changes, the Tax Act lowered the corporate tax rate to 21%. Accounting for Uncertainty in Income Taxes – In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company has identified its federal income tax return and its franchise tax return in Texas in which it operates as “major” tax jurisdictions. The Company’s federal income tax returns for the years ended December 31, 2014 through 2017 remain subject to examination. The Company’s franchise tax returns in Texas remain subject to examination for 2013 through 2017. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has no significant reserves for uncertain tax positions and no adjustments to such reserves were required by generally accepted accounting principles. No interest or penalties have been levied against the Company and none are anticipated; therefore, no interest or penalty has been included in our provision for income taxes in the statements of operations. Earnings (Loss) Per Share – Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per share are calculated to give effect to potentially issuable dilutive common shares. Major Customers – During the year ended December 31, 2018, sales to two customers represented 85% and 11%, respectively, of total oil and natural gas sales . At December 31, 2018, sales to one customer made up 90% of accounts receivable. During the year ended December 31, 2017, sales to two customers represented 76% and 18%, respectively, or total oil and natural gas revenues. At December 31, 2017, sales to two of our customers made up 88% and 10%, respectively, of accounts receivable. During the year ended December 31, 2016, sales to two customers represented 50% and 42%, respectively of total oil and natural gas revenues. At December 31, 2016, these two customers made up 59% and 32%, respectively, of accounts receivable. The loss of any of our customers would not have a material adverse effect on the Company as there is an available market for its crude oil and natural gas production from other purchasers. Stock-Based Employee and Non-Employee Compensation – The Company has outstanding stock options to directors, employees and contract employees, which are described more fully in Note 10. The Company accounts for its stock options grants in accordance with generally accepted accounting principles. Generally accepted accounting principles require the recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. Generally accepted accounting principles also requires stock option compensation expense to be recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period). Stock-based employee compensation incurred for the years ended December 31, 2018, 2017 and 2016 was $3,870,934, $3,685,079 and $2,267,053, respectively. Recently Adopted Accounting Pronouncements – In August 2016, 2016-15, Statement of Cash Flows In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a joint revenue recognition standard, ASU 2014-09. The new standard removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The codification was amended through additional ASUs and, as amended, requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. Ring adopted ASU 2014-09 as of January 1, 2018. The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09 and accordingly, the Company has not recorded any cumulative adjustment to retained earnings under the modified retrospective approach. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. A five-step model is utilized to achieve the core principle: (1) identify the customer contract; (2) identify the contract’s performance obligation; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation; and (5) recognize revenue when or as a performance obligation is satisfied. Ring predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser, and the Company receives payment from one to three months after delivery. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials. The new guidance does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and Ring engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . Recent Accounting Pronouncements Leases In August 2017, the FASB issued ASU 2017-12 , Derivatives and Hedging (Topic 815), In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 2 – REVENUE RECOGNITION Oil sales Under the Company’s oil sales contracts, the Company sells oil production at the point of delivery and collects an agreed upon index price, net of pricing differentials. The Company recognizes revenue when control transfers to the purchaser at the point of delivery at the net price received. Natural gas sales Under the Company’s natural gas sales processing contracts, the Company delivers unprocessed natural gas to a midstream processing entity at the wellhead. The midstream processing entity obtains control of the natural gas at the wellhead. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sale of natural gas. Under these processing agreements, the Company recognizes revenue when control transfers to the purchaser at the point of delivery. As such, the Company accounts for any fees and deductions as a reduction of the transaction price. Disaggregation of Revenue. The following table presents revenues disaggregated by product: For the years ended December 31, 2018 2017 2016 Operating revenues Oil $ 116,678,375 $ 64,236,490 $ 28,599,140 Natural gas 3,386,986 2,463,210 2,251,108 Total operating revenues $ 120,065,361 $ 66,699,700 $ 30,850,248 All revenues, both oil and gas, are from production from the Permian Basin in Texas. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 3 – ACQUISITIONS In December 2018, Ring completed the acquisition of oil and natural gas assets and properties in assets in Andrews County. The acquired properties consist of 4,854 gross (4,788 net) acres and include a 100% working interest and a 75% net revenue interest. Consideration given by the Company consisted of 2,623,948 shares valued at $5.80 per share for an aggregate value of $11,204,258 and liabilities assumed of $2,571,549. The Company incurred approximately $23,321 in acquisition related costs, which were recognized in general and administrative expense during the year ended December 31, 2018. The acquisition was recognized as a business combination whereby Ring recorded the assets acquired and the liabilities assumed at their fair values as of November 1, 2018, which is the date the Company obtained control of the properties and was the acquisition date for financial reporting purposes. The estimated fair value of the acquired properties approximated the consideration paid, which the Company concluded approximated the fair value that would be paid by a typical market participant. The following table summarizes the fair values of the assets acquired and the liabilities assumed: Assets acquired Proved oil and natural gas properties $ 13,775,807 Liabilities assumed Asset retirement obligations (2,571,549 ) Total Identifiable Net Assets $ 11,204,258 |
EARNINGS (LOSS) PER SHARE INFOR
EARNINGS (LOSS) PER SHARE INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 4 – EARNINGS (LOSS) PER SHARE INFORMATION For the years ended December 31, 2018 2017 2016 Net Income (Loss) $ 8,999,760 $ 1,753,869 $ (37,637,687 ) Basic Weighted-Average Shares Outstanding 59,531,200 51,383,008 38,710,626 Effect of dilutive securities: Stock options 1,238,786 1,413,932 - Restricted stock 78,191 9,772 - Diluted Weighted-Average Shares Outstanding 60,848,177 52,806,712 38,710,626 Basic Earnings (Loss) per Share $ 0.15 $ 0.03 $ (0.97 ) Diluted Earnings (Loss) per Share $ 0.15 $ 0.03 $ (0.97 ) Stock options to purchase 574,500, 603,500 and 3,358,250 shares of common stock were excluded from the computation of diluted earnings per share during the years ended December 31, 2018, 2017 and 2016, respectively, as their effect would have been anti-dilutive. 2,500 shares of unvested restricted stock were excluded from the computation of diluted earnings per share during the year ended December 31, 2018 as their effect would have been anti-dilutive. |
OIL AND NATURAL GAS PRODUCING A
OIL AND NATURAL GAS PRODUCING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | NOTE 5 – OIL AND NATURAL GAS PRODUCING ACTIVITIES Set forth below is certain information regarding the aggregate capitalized costs of oil and natural gas properties and costs incurred by the Company for its oil and natural gas property acquisitions, development and exploration activities: Capitalized Costs Relating to Oil and Natural Gas Producing Activities As of December 31, 2018 2017 Proved oil and natural gas properties $ 641,121,398 $ 433,591,134 Fixed assets subject to depreciation 1,465,551 1,884,818 Total capitalized costs 642,586,949 435,475,952 Accumulated depletion, depreciation and amortization (100,576,087 ) (61,698,044 ) Net Capitalized Costs $ 542,010,862 $ 373,777,908 Net Costs Incurred in Oil and Natural Gas Producing Activities For the years Ended December 31, 2018 2017 Acquisition of proved properties $ 18,432,291 $ 28,682,298 Development costs 200,182,322 125,977,758 Total Net Costs Incurred $ 218,614,613 $ 154,660,056 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to fluctuations in crude oil and natural gas prices on its production. We can utilize derivative strategies that consist of either a single derivative instrument or a combination of instruments to manage the variability in cash flows associated with the forecasted sale of our future domestic oil and natural gas production. While the use of derivative instruments may limit or partially reduce the downside risk of adverse commodity price movements, their use also may limit future income from favorable commodity price movements. On September 25, 2017, the Company entered into new derivative contracts in the form of costless collars of WTI Crude Oil prices in order to protect the Company’s cash flow from price fluctuation and maintain its capital programs. “Costless collars” are the combination of two options, a put option (floor) and call option (ceiling) with the options structured so that the premium paid for the put option will be offset by the premium received from selling the call option. The two trades were for each 1,000 barrels of oil per day. For the period of October 1, 2017 through December 31, 2017, the put price is $49.00 and the call price is $55.35. For the period of January 1, 2018 through December 31, 2018, the put price is $49.00 and the call price is $54.60. On October 27, 2017, the Company entered in additional costless collars of WTI Crude Oil. This trade is for the period January 1, 2018 through December 31, 2018 for 1,000 barrels of oil per day with a put price of $51.00 and a call price of $54.80. On August 27, 2018, the Company entered into additional costless collars of WTI Crude Oil. This trade is for the period January 1, 2019 through December 31, 2019 for 2,000 barrels of oil per day with a put price of $60.00 and a call price of $70.05. On October 10, 2018, the Company terminated these costless collars for calendar year 2019 through the payment of $3,438,300. As of December 31, 2018, all derivative contracts have either expired or been terminated and the Company does not currently have any derivative contracts in place. Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying balance sheets. Any gains or losses resulting from changes in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included as a component of other income in the accompanying statements of operations. The use of derivative transactions involves the risk that the counterparties, which generally are financial institutions, will be unable to meet the financial terms of such transactions. All previous derivative contracts have been with lenders under our credit facility. |
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 7 – REVOLVING LINE OF CREDIT On July 1, 2014, the Company entered into a Credit Agreement with SunTrust Bank, as lender, issuing bank and administrative agent for several banks and other financial institutions and lenders (“Administrative Agent”), which was amended on June 14, 2018, May 18, 2016, June 26, 2015 and July 24, 2014 (as amended, the “Credit Facility”). The Credit Facility provides for a senior secured revolving credit facility with a maximum borrowing amount of $500 million. The Credit Facility matures on June 26, 2020, and is secured by substantially all of the Company’s assets. In June 2018, the borrowing base (the “Borrowing Base”) was increased from the initial $60 million to $175 million. The Borrowing Base is subject to periodic redeterminations, mandatory reductions and further adjustments from time to time. The Borrowing Base will be redetermined semi-annually on each May 1 and November 1, beginning November 1, 2015. The Borrowing Base will also be reduced in certain circumstances such as the sale or disposition of certain oil and natural gas properties of the Company or its subsidiaries and cancellation of certain hedging positions. The Credit Facility allows for Eurodollar Loans and Base Rate Loans (each as defined in the Credit Facility). The interest rate on each Eurodollar Loan will be the adjusted LIBOR for the applicable interest period plus a margin between 1.75% and 2.75% (depending on the then-current level of borrowing base usage). The annual interest rate on each Base Rate Loan is (a) the greatest of (i) the Administrative Agent’s prime lending rate, (ii) the federal funds rate plus 0.5% per annum or the (iii) adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum, plus (b) a margin between 2.75% and 3.75% (depending on the then-current level of borrowing base usage). The Credit Facility contains certain covenants, which, among other things, require the maintenance of (i) a total leverage ratio of not more than 4.0 to 1.0 and (ii) a minimum current ratio of 1.0 to 1.0. The Credit Facility also contains other customary affirmative and negative covenants and events of default. As of December 31, 2018, the Company was in compliance with all covenants contained in the Credit Facility, and $39.5 million was outstanding on the Credit Facility. |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 8 – ASSET RETIREMENT OBLIGATION A reconciliation of the asset retirement obligation for the years ended December 31, 2016, 2017 and 2018 is as follows: Balance, December 31, 2015 $ 7,401,950 Liabilities incurred 308,509 Liabilities settled (240,606 ) Accretion expense 487,182 Balance, December 31, 2016 $ 7,957,035 Liabilities incurred 1,297,289 Liabilities settled (766,595 ) Accretion expense 567,968 Balance, December 31, 2017 $ 9,055,697 Liabilities acquired 2,571,549 Liabilities incurred 1,311,956 Liabilities settled (577,824 ) Revision of estimate (1) 87,960 Accretion expense 606,459 Balance, December 31, 2018 $ 13,055,797 (1) Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, and estimated remaining useful life of the assets. The 2018 revision of estimates reflect decreases in the estimated remaining useful life of certain assets. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9 – STOCKHOLDERS’ EQUITY The Company is authorized to issue 150,000,000 common shares, with a par value of $0.001 per share and 50,000,000 shares of Preferred Stock. Common Stock Issued in Public Offering – In April 2016, the Company closed on an underwritten public offering of 11,500,000 shares of its common stock, including 1,500,000 shares sold pursuant to the full exercise of an over-allotment option, at $5.60 per share for gross proceeds of $64,400,000. Total net proceeds from the offering were $61,063,497, after deducting underwriting commissions and offering expenses payable by the Company of $3,336,503. In December 2016, the Company closed on an underwritten public offering of 7,195,387 shares of its common stock, including 670,387 shares sold pursuant to the partial exercise of an over-allotment option, at $11.50 per share for gross proceeds of $82,746,951. Total net proceeds from the offering were $78,485,787, after deducting underwriting commissions and offering expenses payable by the Company of $4,261,164. In July 2017, the Company closed on an underwritten public offering of 4,977,658 shares of its common stock, including 477,658 shares sold pursuant to the partial exercise of an over-allotment option, at $12.50 per share for gross proceeds of $62,220,725. Total net proceeds from the offering were $59,026,956, after deducting underwriting commissions and offering expenses payable by the Company of $3,193,769. In February 2018, the Company closed on an underwritten public offering of 6,164,000 shares of its common stock, including 804,000 shares sold pursuant to the full exercise of an over-allotment option, at $14.00 per share for gross proceeds of $86,296,000. Total net proceeds from the offering were $81,821,138, after deducting underwriting commissions and offering expenses payable by the Company of $4,474,862. Common stock issued in property acquisition – Common Stock Issued for option exercises – During the years ended December 31, 2016, 2017 and 2018, the Company issued 25,734, 133,308 and 153,113 shares of common stock as a result of option exercises, respectively. The following tables present the details of those exercises: Options Exercise Shares Shares Cash paid at Stock price on date of exercise Aggregate value of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2016 5,000 $ 4.50 5,000 - $ 22,500 $ 4.72 $ - 20,000 4.50 20,000 - 90,000 7.29 - 150 2.00 119 31 - 9.72 300 350 2.00 276 74 - 9.46 700 400 2.00 339 61 - 13.05 800 2016 Totals 25,900 25,734 166 $ 112,500 $ 1,800 2016 Weighted Averages $ 4.41 $ 6.93 Stock price on Aggregate value Options Exercise Shares Shares Cash paid at date of exercise of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2017 4,100 $ 2.00 3,491 609 $ - $ 13.47 $ 8,200 60,000 2.00 50,156 9,844 - 12.19 120,000 200 8.00 116 84 - 13.75 1,600 1,500 10.89 1,188 312 - 13.75 16,335 600 5.25 229 371 - 13.75 3,150 20,000 5.50 11,953 8,047 - 13.67 110,000 2,000 8.00 830 1,170 - 13.67 16,000 2,000 5.25 1,232 768 - 13.67 10,500 15,000 2.00 12,875 2,125 - 14.12 30,000 60,000 2.00 51,238 8,762 - 13.70 120,000 2017 Totals 165,400 133,308 32,092 $ - $ 435,785 2017 Weighted Averages $ 2.63 $ 13.18 Stock price on Aggregate value Options Exercise Shares Shares Cash paid at date of exercise of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2018 110,000 $ 2.00 90,375 19,625 $ - $ 11.21 $ 220,000 50,000 2.00 50,000 - 100,000 8.00 - 25,000 7.50 9,829 15,171 - 12.36 $ 187,500 3,000 8.00 1,059 1,941 - 12.36 $ 24,000 3,000 5.25 1,750 1,250 - 12.36 $ 15,750 2,000 11.75 100 1,900 - 12.36 $ 23,500 2018 Totals 193,000 153,113 39,887 $ 100,000 $ 470,750 2018 Weighted Averages $ 2.96 $ 10.58 |
EMPLOYEE STOCK OPTIONS AND REST
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 10 – EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN In 2011, the Company’s Board of Directors approved and adopted a long term incentive plan, which was subsequently approved and amended by the shareholders. There were 677,120 shares eligible for grant, either as options or as restricted stock, at December 31, 2018. Employee Stock Options Grant date # of options Exercise price January 13, 2016 (1) 241,000 $ 5.25 May 3, 2016 15,000 6.42 December 13, 2016 582,500 11.75 April 20, 2017 7,500 $ 11.70 846,000 (1) On December 9, 2015, Ring issued option awards to its Named Executive Officers and directors. On January 13, 2016, the Board ratified the Compensation Committee decision to rescind the option awards granted to its employees and directors (other than Messrs. McCabe and Rochford, who are the members of the Compensation Committee) as the result of a significant decline in the stock price and re-issued the option awards as of that date to meet the goals and objectives of the Company’s equity based compensation program. The amounts shown as Option Awards include the additional fair value of the new options over the original grant. On December 26, 2018, the Compensation Committee rescinded the options granted in 2016. No adjustment has been made to account for the reduction in compensation. All granted options vest at the rate of 20% each year over five years beginning one year from the date granted and expire ten years from the grant date. A summary of the status of the stock options as of December 31, 2018, 2017 and 2016 and changes during the years ended December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Options Weighted- Options Weighted- Options Weighted- Outstanding at beginning of the year 3,193,000 $ 5.90 3,362,350 $ 5.90 2,881,750 $ 5.07 Issued - - 7,500 11.70 838,500 9.79 Forfeited or rescinded (249,000 ) 6.09 (11,450 ) 10.12 (331,400 ) 8.62 Exercised (193,000 ) 2.96 (165,400 ) 2.63 (26,500 ) 4.41 Outstanding at end of year 2,751,000 $ 6.28 3,193,000 $ 6.07 3,362,350 $ 5.90 Exercisable at end of year 2,323,900 $ 5.42 2,091,900 $ 4.85 1,722,850 $ 4.01 Weighted average fair value of options granted during the year $ - $ 9.14 $ 9.72 The Company uses the Black-Scholes option pricing model to calculate the fair-value of each option grant. The expected volatility is based on the historical price volatility of the Company’s common stock. We elected to use the simplified method for estimating the expected term as allowed by generally accepted accounting principles for options granted during the years ended December 31, 2018, 2017 and 2016. Under the simplified method, the expected term is equal to the midpoint between the vesting period and the contractual term of the stock option. The risk-free interest rate represents the U.S. Treasury bill rate for the expected life of the related stock options. The dividend yield represents the Company’s anticipated cash dividend over the expected life of the stock options. The following are the Black-Scholes weighted-average assumptions used for options granted during the periods ended December 31, 2017 and 2016: Risk free interest rate Expected life (years) Dividend yield Volatility January 13, 2016 1.51 % 6.5 - 100 % May 3, 2016 1.25 % 6.5 - 99 % December 13, 2016 1.92 % 6.5 - 96 % April 20, 2017 1.78 % 6.5 - 94 % No options were granted during 2018. For the years ended December 31, 2018, 2017 and 2016, the Company incurred stock based compensation expense related to stock options of $1,853,913, $3,618,309 and $2,267,053, respectively. As of December 31, 2018, there was $1,650,573 of unrecognized compensation cost related to stock options that will be recognized over a weighted average period of 1.9 years. The aggregate intrinsic value of options vested and expected to vest at December 31, 2018 was $1,993,800. The aggregate intrinsic value of options exercisable at December 31, 2018 was $1,993,800. The year-end intrinsic values are based on a December 31, 2018 closing price of $5.08. Options exercised of 193,000 in 2018, 165,400 in 2017 and 25,900 in 2016 had an aggregate intrinsic value on the date of exercise of $1,470,230, $1,744,047 and $65,089, respectively. The following table summarizes information related to the Company’s stock options outstanding at December 31, 2018: Options Outstanding Exercise price Number Weighted- Number 2.00 395,000 2.92 395,000 4.50 1,340,000 3.62 1,340,000 5.50 5,000 4.00 5,000 7.50 4,000 4.20 4,000 10.00 90,000 4.48 90,000 14.54 10,000 4.96 8,000 8.00 277,500 5.73 221,600 8.25 50,000 6.94 30,000 6.42 15,000 7.34 6,000 11.75 557,000 7.95 222,800 11.70 7,500 8.30 1,500 2,751,000 4.96 2,323,900 Restricted stock grants Grant date # of shares of December 19, 2017 330,900 April 4, 2018 2,000 September 27, 2018 2,500 December 26, 2018 615,380 All restricted stock grants vest at the rate of 20% each year over five years beginning one year from the date granted. A summary of the status of restricted stock grants as of December 31, 2018 and 2017 and changes during the years ended December 31, 2018 and 2017 is as follows: 2018 2017 Restricted stock Weighted- Restricted stock Weighted- Outstanding at beginning of the year 330,900 $ 13.44 - $ - Granted 619,880 4.82 330,900 13.44 Forfeited or rescinded (7,800 ) 13.44 - - Vested (64,620 ) - - - Outstanding at end of year 878,360 $ 13.44 330,900 $ 13.44 No restricted stock was granted prior to 2017. For the years ended December 31, 2018 and 2017, the Company incurred stock based compensation expense related to restricted stock grants of 2,017,021 and $66,770. No such expense was incurred during 2016. As of December 31, 2018, there was $5,182,221 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 1.0 years. No restricted stock vested during 2017. During 2018, 64,620 shares of restricted stock vested. At the date of vesting those shares were had an aggregate intrinsic value of $304,360. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 11 – RELATED PARTY TRANSACTIONS The Company is leasing office space from Arenaco, LLC, a company that is owned by two stockholders’ of the Company, Mr. Rochford, Chairman of the Board of the Company, and Mr. McCabe, a Director of the Company. During the years ended December 31, 2018, 2017 and 2016, the Company paid $60,000, $60,000 and $60,000, respectively, to this company. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 – COMMITMENTS AND CONTINGENT LIABILITIES Standby Letters of Credit – A commercial bank has issued a standby letter of credit on behalf of the Company to the state of Texas for $250,000 to allow the Company to do business in that state. The Company intends to renew the standby letter of credit for as long as the Company does business in that state. No amounts have been drawn under the standby letters of credit. Operating leases Year Lease Obligation 2019 $ 539,675 2020 125,325 $ 665,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 13 – INCOME TAXES For the years ended December 31, 2018, 2017 and 2016, components of our provision for income taxes are as follows: Provision for Income Taxes 2018 2017 2016 Deferred taxes $ 3,445,721 $ 10,416,171 $ (19,987,585 ) Provision for (Benefit from) Income Taxes $ 3,445,721 $ 10,416,171 $ (19,987,585 ) The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes: Rate Reconciliation 2018 2017 2016 Tax at federal statutory rate $ 2,613,551 $ 4,194,556 $ (19,592,592 ) Non-deductible expenses 3,197 6,158 2,558 Excess tax benefit from stock option exercises 828,973 (453,217 ) 15,055 Adjust prior estimates to tax return - (58,766 ) 167,526 States taxes, net of Federal benefit - 124,200 (580,132 ) Effect of departure from State of Kansas - (350,059 ) - Adjustment for change in future effective tax rate (1) - 6,953,299 - Provision for (Benefit from) Income Taxes $ 3,445,721 $ 10,416,171 $ (19,987,585 ) (1) The enactment of the Tax Cuts and Jobs Act provided for a decrease in the corporate tax rate to 21% from 35%, resulting in a net $6.95 million reduction to our net deferred tax asset as of December 31, 2017. The net deferred taxes consisted of the following at December 31, 2018 and 2017: Deferred Taxes: 2018 2017 Deferred tax liabilities Property and equipment $ 33,888,806 $ 27,563,290 Deferred tax assets Stock-based compensation 3,734,911 6,667,643 Operating loss and IDC carryforwards 37,940,374 32,127,847 Deferred tax assets 41,675,285 38,795,490 Net deferred income tax asset $ (7,786,479 ) $ (11,232,200 ) As of December 31, 2018, the Company had net operating loss carry forwards for federal income tax reporting purposes of approximately $180.7 million which, if unused, will begin to expire in 2027 and fully expire in 2038. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | NOTE 14 – QUARTERLY FINANCIAL DATA (UNAUDITED) 2016 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 6,092,388 $ 7,104,609 $ 7,822,543 $ 9,830,708 Operating Income (Loss) (23,833,480 ) (25,516,087 ) (9,121,201 ) 1,438,007 Net Loss (15,275,044 ) (15,941,500 ) (5,944,137 ) (477,006 ) Basic Net Loss Per Share $ (0.50 ) $ (0.41 ) $ (0.14 ) $ (0.01 ) Diluted Net Loss Per Share (0.50 ) (0.41 ) (0.14 ) (0.01 ) 2017 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 12,243,793 $ 14,503,309 $ 16,643,930 $ 23,308,668 Operating Income 2,502,852 2,621,612 4,292,081 6,550,596 Net Income (Loss) 1,279,281 1,910,763 3,073,760 (4,509,935 ) Basic Net Income (Loss) Per Share $ 0.03 $ 0.04 $ 0.06 $ (0.08 ) Diluted Net Income (Loss) Per Share 0.03 0.04 0.06 (0.08 ) 2018 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 29,891,391 $ 29,924,883 $ 32,687,179 $ 27,561,908 Operating Income (Loss) 10,935,120 9,397,559 9,615,030 (9,986,770 ) Net Income (Loss) 5,665,634 4,719,806 5,693,628 (7,079,308 ) Basic Net Income (Loss) Per Share $ 0.10 $ 0.08 $ 0.09 $ (0.12 ) Diluted Net Income (Loss) Per Share 0.10 0.08 0.09 $ (0.12 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 15 – SUBSEQUENT EVENTS Subsequent to December 31, 2018, the Company drew $45 million dollars on the Company’s Credit Facility On February 25, 2019, Ring Energy, Inc. (the “Company” or “Buyer”) entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Wishbone Energy Partners, LLC (“WEP”), Wishbone Texas Operating Company LLC (“WTOC”) and WB WaterWorks, LLC (“WBWW,” and together with WEP and WTOC, “Sellers”), to acquire Sellers’ North Central Basin Platform assets consisting of approximately 37,206 net acres located primarily in southwest Yoakum County, Texas and eastern Lea County, New Mexico (the “Assets”) for aggregate consideration of $300 million, comprised of $270 million cash and $30 million of common stock of the Company (the “Acquisition”), subject to customary adjustments, including adjustments based on title and environmental due diligence, under the Purchase Agreement. The Acquisition is expected to close early in the second quarter of 2019 and will have an effective date of November 1, 2018. The Company intends to finance the Acquisition with borrowings under an Amended and Restated Senior Secured Revolving Credit Facility (“Amended and Restated Senior Credit Facility”) that amends and restates the Company’s existing Senior Secured Revolving Credit Facility (“Existing Senior Credit Facility”). Concurrent with the signing of the Purchase Agreement, the Company signed a commitment letter with SunTrust Bank and SunTrust Robinson Humphrey (the “Lead Arranger” and, together with SunTrust Bank, “SunTrust”) relating to the Amended and Restated Senior Credit Facility, pursuant to which SunTrust Bank has committed to increase the maximum facility amount to $1 billion, increase the borrowing base to $425 million, extend the maturity date and make other modifications to the terms of the Existing Senior Credit Facility (the “Commitment Letter”). The Commitment Letter provides that the financing would be funded at the closing of the Acquisition and secured by a first lien with substantially the same collateral requirements as the Existing Senior Credit Facility. Management expects the financing to have substantially the same covenants as the Existing Senior Credit Facility and a five-year term. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization And Nature Of Operations [Policy Text Block] | Organization and Nature of Operations – Ring Energy, Inc. is a Nevada corporation. Ring Energy, Inc. is referred to herein as the “Company.” The Company owns interests in oil and natural gas properties located in Texas and is engaged primarily in the acquisition, exploration and development of oil and natural gas properties and the production and sale of oil and natural gas. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in the future estimated oil and natural gas reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analysis could have a significant impact on the future results of operations. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Values of Financial Instruments – The carrying amounts reported for the revolving line of credit approximates fair value because the underlying instruments are at interest rates which approximate current market rates. The carrying amounts of receivables and accounts payable and other current assets and liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Non-financial Assets and Liabilities – The Company also applies fair value accounting guidance to initially, or as events dictate, measure non-financial assets and liabilities such as those obtained through business acquisitions, property and equipment and asset retirement obligations. These assets and liabilities are subject to fair value adjustments only in certain circumstances and are not subject to recurring revaluations. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two as considered appropriate based on the circumstances. Under the discounted cash flow method, estimated future cash flows are based on managements’ expectations for the future and include estimates of future oil and natural gas production or other applicable sales estimates, operational costs and a risk-adjusted discount rate. The Company may use the present value of estimated future cash inflows and/or outflows or third-party offers or prices of comparable assets with consideration of current market conditions to value its non-financial assets and liabilities when circumstances dictate determining fair value is necessary. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Accounts Receivable – Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and accounts receivable. The Company has cash in excess of federally insured limits of $14,756,581 and $3,281,893 at December 31, 2017 and 2018, respectively. The Company places its cash with a high credit quality financial institution. Substantially all of the Company’s accounts receivable is from purchasers of oil and natural gas. Oil and natural gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at December 31, 2018 and 2017. The Company also has a joint interest billing receivable. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash – The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Oil and Gas Properties Policy [Policy Text Block] | Oil and Natural Gas Properties The Company records a liability in the period in which an asset retirement obligation (“ARO”) is incurred, in an amount equal to the discounted estimated fair value of the obligation that is capitalized. Thereafter this liability is accreted up to the final retirement cost. An ARO is a future expenditure related to the disposal or other retirement of certain assets. The Company’s ARO relates to future plugging and abandonment expenses of its oil and natural gas properties and related facilities disposal. All capitalized costs of oil and natural gas properties, including the estimated future costs to develop proved reserves and estimated future costs to plug and abandon wells and costs of site restoration, less the estimated salvage value of equipment associated with the oil and natural gas properties, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent engineers. If the results of an assessment indicate that the properties are impaired, the amount of the impairment is offset to the capitalized costs to be amortized. The following table shows total depletion and depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2018, 2017 and 2016. For the Years Ended December 31, 2018 2017 2016 Depletion $ 38,810,864 $ 20,197,690 $ 11,179,858 Depletion rate, per barrel-of-oil-equivalent (BOE) $ 17.38 $ 13.92 $ 12.73 In addition, capitalized costs less accumulated amortization and related deferred income taxes shall not exceed an amount (the full cost ceiling) equal to the sum of: 1) the present value of estimated future net revenues discounted ten percent computed in compliance with SEC guidelines; 2) plus the cost of properties not being amortized; 3) plus the lower of cost or estimated fair value of unproven properties included in the costs being amortized; 4) . For the years ended December 31, 2018 and 2016, the Company took write downs on oil and natural gas properties as a result of the ceiling test in the amount of $14,172,309 and $56,513,016, respectively. No impairment was recorded for the year ended December 31, 2017. |
Property, Plant and Equipment, Policy [Policy Text Block] | Land, Buildings, Equipment and Leasehold Improvements – Land, buildings, equipment and leasehold improvements are valued at historical cost, adjusted for impairment loss less accumulated depreciation. Historical costs include all direct costs associated with the acquisition of land, buildings, equipment and leasehold improvements and placing them in service. Depreciation of buildings and equipment is calculated using the straight-line method based upon the following estimated useful lives: Leasehold improvements 3-10 years Office equipment and software 3-7 years Machinery and equipment 5-10 years Depreciation expense was $214,022, $320,090 and $303,456 for the years ended December 31, 2018, 2017 and 2016, respectively. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition – In January 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”). The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09. The Company predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser and the Company receives payment from one to three months after delivery. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials. The new guidance regarding ASU 2014-09 does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and Ring engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. See Note 2 for additional information. |
Income Tax, Policy [Policy Text Block] | Income Taxes – Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carry forwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) The Company used the modified retrospective method to account for unrecognized excess tax benefits from prior periods, resulting in an adjustment to our beginning balances of Deferred Income Taxes and Retained Loss of $1,596,463 and uses the prospective method to account for current period and future excess tax benefit. For th e y ears ended December 31, 2018 2017, we recorded a decrease of $49,896, respectively, to our income tax provision. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The SEC subsequently issued a Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act. Among other changes, the Tax Act lowered the corporate tax rate to 21%. |
Accounting for Uncertainty in Income Taxes [Policy Text Block] | Accounting for Uncertainty in Income Taxes – In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company has identified its federal income tax return and its franchise tax return in Texas in which it operates as “major” tax jurisdictions. The Company’s federal income tax returns for the years ended December 31, 2014 through 2017 remain subject to examination. The Company’s franchise tax returns in Texas remain subject to examination for 2013 through 2017. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has no significant reserves for uncertain tax positions and no adjustments to such reserves were required by generally accepted accounting principles. No interest or penalties have been levied against the Company and none are anticipated; therefore, no interest or penalty has been included in our provision for income taxes in the statements of operations. |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Share – Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares outstanding during the year. Diluted earnings (loss) per share are calculated to give effect to potentially issuable dilutive common shares. |
Major Customers, Policy [Policy Text Block] | Major Customers – During the year ended December 31, 2018, sales to two customers represented 85% and 11%, respectively, of total oil and natural gas sales . At December 31, 2018, sales to one customer made up 90% of accounts receivable. During the year ended December 31, 2017, sales to two customers represented 76% and 18%, respectively, or total oil and natural gas revenues. At December 31, 2017, sales to two of our customers made up 88% and 10%, respectively, of accounts receivable. During the year ended December 31, 2016, sales to two customers represented 50% and 42%, respectively of total oil and natural gas revenues. At December 31, 2016, these two customers made up 59% and 32%, respectively, of accounts receivable. The loss of any of our customers would not have a material adverse effect on the Company as there is an available market for its crude oil and natural gas production from other purchasers. |
Stock-Based Employee And Non-Employee Compensation [Policy Text Block] | Stock-Based Employee and Non-Employee Compensation – The Company has outstanding stock options to directors, employees and contract employees, which are described more fully in Note 10. The Company accounts for its stock options grants in accordance with generally accepted accounting principles. Generally accepted accounting principles require the recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. Generally accepted accounting principles also requires stock option compensation expense to be recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period). Stock-based employee compensation incurred for the years ended December 31, 2018, 2017 and 2016 was $3,870,934, $3,685,079 and $2,267,053, respectively. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements – In August 2016, 2016-15, Statement of Cash Flows In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a joint revenue recognition standard, ASU 2014-09. The new standard removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The codification was amended through additional ASUs and, as amended, requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. Ring adopted ASU 2014-09 as of January 1, 2018. The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09 and accordingly, the Company has not recorded any cumulative adjustment to retained earnings under the modified retrospective approach. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. A five-step model is utilized to achieve the core principle: (1) identify the customer contract; (2) identify the contract’s performance obligation; (3) determine the transaction price; (4) allocate the transaction price to the performance obligation; and (5) recognize revenue when or as a performance obligation is satisfied. Ring predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the customer. Revenue is recorded in the month the product is delivered to the purchaser, and the Company receives payment from one to three months after delivery. The transaction price includes variable consideration as product pricing is based on published market prices and reduced for contract specified differentials. The new guidance does not require that the transaction price be fixed or stated in the contract. Estimating the variable consideration does not require significant judgment and Ring engages third party sources to validate the estimates. Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . Recent Accounting Pronouncements Leases In August 2017, the FASB issued ASU 2017-12 , Derivatives and Hedging (Topic 815), In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule Of Depletion and Depletion Rate Per Barrel Of Oil Equivalents [Table Text Block] | The following table shows total depletion and depletion per barrel-of-oil-equivalent rate, for the years ended December 31, 2018, 2017 and 2016. For the Years Ended December 31, 2018 2017 2016 Depletion $ 38,810,864 $ 20,197,690 $ 11,179,858 Depletion rate, per barrel-of-oil-equivalent (BOE) $ 17.38 $ 13.92 $ 12.73 |
Schedule Of Property Plant And Equipment Estimated Useful Lives [Table Text Block] | Depreciation of buildings and equipment is calculated using the straight-line method based upon the following estimated useful lives: Leasehold improvements 3-10 years Office equipment and software 3-7 years Machinery and equipment 5-10 years |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue. The following table presents revenues disaggregated by product: For the years ended December 31, 2018 2017 2016 Operating revenues Oil $ 116,678,375 $ 64,236,490 $ 28,599,140 Natural gas 3,386,986 2,463,210 2,251,108 Total operating revenues $ 120,065,361 $ 66,699,700 $ 30,850,248 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the fair values of the assets acquired and the liabilities assumed: Assets acquired Proved oil and natural gas properties $ 13,775,807 Liabilities assumed Asset retirement obligations (2,571,549 ) Total Identifiable Net Assets $ 11,204,258 |
EARNINGS (LOSS) PER SHARE INF_2
EARNINGS (LOSS) PER SHARE INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the years ended December 31, 2018 2017 2016 Net Income (Loss) $ 8,999,760 $ 1,753,869 $ (37,637,687 ) Basic Weighted-Average Shares Outstanding 59,531,200 51,383,008 38,710,626 Effect of dilutive securities: Stock options 1,238,786 1,413,932 - Restricted stock 78,191 9,772 - Diluted Weighted-Average Shares Outstanding 60,848,177 52,806,712 38,710,626 Basic Earnings (Loss) per Share $ 0.15 $ 0.03 $ (0.97 ) Diluted Earnings (Loss) per Share $ 0.15 $ 0.03 $ (0.97 ) |
OIL AND NATURAL GAS PRODUCING_2
OIL AND NATURAL GAS PRODUCING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Table Text Block] | Capitalized Costs Relating to Oil and Natural Gas Producing Activities As of December 31, 2018 2017 Proved oil and natural gas properties $ 641,121,398 $ 433,591,134 Fixed assets subject to depreciation 1,465,551 1,884,818 Total capitalized costs 642,586,949 435,475,952 Accumulated depletion, depreciation and amortization (100,576,087 ) (61,698,044 ) Net Capitalized Costs $ 542,010,862 $ 373,777,908 |
Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure [Table Text Block] | Net Costs Incurred in Oil and Natural Gas Producing Activities For the years Ended December 31, 2018 2017 Acquisition of proved properties $ 18,432,291 $ 28,682,298 Development costs 200,182,322 125,977,758 Total Net Costs Incurred $ 218,614,613 $ 154,660,056 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | A reconciliation of the asset retirement obligation for the years ended December 31, 2016, 2017 and 2018 is as follows: Balance, December 31, 2015 $ 7,401,950 Liabilities incurred 308,509 Liabilities settled (240,606 ) Accretion expense 487,182 Balance, December 31, 2016 $ 7,957,035 Liabilities incurred 1,297,289 Liabilities settled (766,595 ) Accretion expense 567,968 Balance, December 31, 2017 $ 9,055,697 Liabilities acquired 2,571,549 Liabilities incurred 1,311,956 Liabilities settled (577,824 ) Revision of estimate (1) 87,960 Accretion expense 606,459 Balance, December 31, 2018 $ 13,055,797 (1) Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, and estimated remaining useful life of the assets. The 2018 revision of estimates reflect decreases in the estimated remaining useful life of certain assets. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following tables present the details of those exercises: Options Exercise Shares Shares Cash paid at Stock price on date of exercise Aggregate value of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2016 5,000 $ 4.50 5,000 - $ 22,500 $ 4.72 $ - 20,000 4.50 20,000 - 90,000 7.29 - 150 2.00 119 31 - 9.72 300 350 2.00 276 74 - 9.46 700 400 2.00 339 61 - 13.05 800 2016 Totals 25,900 25,734 166 $ 112,500 $ 1,800 2016 Weighted Averages $ 4.41 $ 6.93 Stock price on Aggregate value Options Exercise Shares Shares Cash paid at date of exercise of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2017 4,100 $ 2.00 3,491 609 $ - $ 13.47 $ 8,200 60,000 2.00 50,156 9,844 - 12.19 120,000 200 8.00 116 84 - 13.75 1,600 1,500 10.89 1,188 312 - 13.75 16,335 600 5.25 229 371 - 13.75 3,150 20,000 5.50 11,953 8,047 - 13.67 110,000 2,000 8.00 830 1,170 - 13.67 16,000 2,000 5.25 1,232 768 - 13.67 10,500 15,000 2.00 12,875 2,125 - 14.12 30,000 60,000 2.00 51,238 8,762 - 13.70 120,000 2017 Totals 165,400 133,308 32,092 $ - $ 435,785 2017 Weighted Averages $ 2.63 $ 13.18 Stock price on Aggregate value Options Exercise Shares Shares Cash paid at date of exercise of shares retained exercised price ($) issued retained exercise ($) ($) ($) 2018 110,000 $ 2.00 90,375 19,625 $ - $ 11.21 $ 220,000 50,000 2.00 50,000 - 100,000 8.00 - 25,000 7.50 9,829 15,171 - 12.36 $ 187,500 3,000 8.00 1,059 1,941 - 12.36 $ 24,000 3,000 5.25 1,750 1,250 - 12.36 $ 15,750 2,000 11.75 100 1,900 - 12.36 $ 23,500 2018 Totals 193,000 153,113 39,887 $ 100,000 $ 470,750 2018 Weighted Averages $ 2.96 $ 10.58 |
EMPLOYEE STOCK OPTIONS AND RE_2
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | Following is a table reflecting the issuances during 2016 and 2017 and their related exercise prices (No options were granted in 2018): Grant date # of options Exercise price January 13, 2016 (1) 241,000 $ 5.25 May 3, 2016 15,000 6.42 December 13, 2016 582,500 11.75 April 20, 2017 7,500 $ 11.70 846,000 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the status of the stock options as of December 31, 2018, 2017 and 2016 and changes during the years ended December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Options Weighted- Options Weighted- Options Weighted- Outstanding at beginning of the year 3,193,000 $ 5.90 3,362,350 $ 5.90 2,881,750 $ 5.07 Issued - - 7,500 11.70 838,500 9.79 Forfeited or rescinded (249,000 ) 6.09 (11,450 ) 10.12 (331,400 ) 8.62 Exercised (193,000 ) 2.96 (165,400 ) 2.63 (26,500 ) 4.41 Outstanding at end of year 2,751,000 $ 6.28 3,193,000 $ 6.07 3,362,350 $ 5.90 Exercisable at end of year 2,323,900 $ 5.42 2,091,900 $ 4.85 1,722,850 $ 4.01 Weighted average fair value of options granted during the year $ - $ 9.14 $ 9.72 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following are the Black-Scholes weighted-average assumptions used for options granted during the periods ended December 31, 2017 and 2016: Risk free interest rate Expected life (years) Dividend yield Volatility January 13, 2016 1.51 % 6.5 - 100 % May 3, 2016 1.25 % 6.5 - 99 % December 13, 2016 1.92 % 6.5 - 96 % April 20, 2017 1.78 % 6.5 - 94 % |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table summarizes information related to the Company’s stock options outstanding at December 31, 2018: Options Outstanding Exercise price Number Weighted- Number 2.00 395,000 2.92 395,000 4.50 1,340,000 3.62 1,340,000 5.50 5,000 4.00 5,000 7.50 4,000 4.20 4,000 10.00 90,000 4.48 90,000 14.54 10,000 4.96 8,000 8.00 277,500 5.73 221,600 8.25 50,000 6.94 30,000 6.42 15,000 7.34 6,000 11.75 557,000 7.95 222,800 11.70 7,500 8.30 1,500 2,751,000 4.96 2,323,900 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Following is a table reflecting the restricted stock grants during 2017 and 2018. No restricted stock was granted during 2016 or outstanding as of December 31, 2016. Grant date # of shares of December 19, 2017 330,900 April 4, 2018 2,000 September 27, 2018 2,500 December 26, 2018 615,380 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | A summary of the status of restricted stock grants as of December 31, 2018 and 2017 and changes during the years ended December 31, 2018 and 2017 is as follows: 2018 2017 Restricted stock Weighted- Restricted stock Weighted- Outstanding at beginning of the year 330,900 $ 13.44 - $ - Granted 619,880 4.82 330,900 13.44 Forfeited or rescinded (7,800 ) 13.44 - - Vested (64,620 ) - - - Outstanding at end of year 878,360 $ 13.44 330,900 $ 13.44 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table reflects the future minimum lease payments under the operating leases as of December 31, 2018. Year Lease Obligation 2019 $ 539,675 2020 125,325 $ 665,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the years ended December 31, 2018, 2017 and 2016, components of our provision for income taxes are as follows: Provision for Income Taxes 2018 2017 2016 Deferred taxes $ 3,445,721 $ 10,416,171 $ (19,987,585 ) Provision for (Benefit from) Income Taxes $ 3,445,721 $ 10,416,171 $ (19,987,585 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes: Rate Reconciliation 2018 2017 2016 Tax at federal statutory rate $ 2,613,551 $ 4,194,556 $ (19,592,592 ) Non-deductible expenses 3,197 6,158 2,558 Excess tax benefit from stock option exercises 828,973 (453,217 ) 15,055 Adjust prior estimates to tax return - (58,766 ) 167,526 States taxes, net of Federal benefit - 124,200 (580,132 ) Effect of departure from State of Kansas - (350,059 ) - Adjustment for change in future effective tax rate (1) - 6,953,299 - Provision for (Benefit from) Income Taxes $ 3,445,721 $ 10,416,171 $ (19,987,585 ) (1) The enactment of the Tax Cuts and Jobs Act provided for a decrease in the corporate tax rate to 21% from 35%, resulting in a net $6.95 million reduction to our net deferred tax asset as of December 31, 2017. |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The net deferred taxes consisted of the following at December 31, 2018 and 2017: Deferred Taxes: 2018 2017 Deferred tax liabilities Property and equipment $ 33,888,806 $ 27,563,290 Deferred tax assets Stock-based compensation 3,734,911 6,667,643 Operating loss and IDC carryforwards 37,940,374 32,127,847 Deferred tax assets 41,675,285 38,795,490 Net deferred income tax asset $ (7,786,479 ) $ (11,232,200 ) |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | 2016 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 6,092,388 $ 7,104,609 $ 7,822,543 $ 9,830,708 Operating Income (Loss) (23,833,480 ) (25,516,087 ) (9,121,201 ) 1,438,007 Net Loss (15,275,044 ) (15,941,500 ) (5,944,137 ) (477,006 ) Basic Net Loss Per Share $ (0.50 ) $ (0.41 ) $ (0.14 ) $ (0.01 ) Diluted Net Loss Per Share (0.50 ) (0.41 ) (0.14 ) (0.01 ) 2017 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 12,243,793 $ 14,503,309 $ 16,643,930 $ 23,308,668 Operating Income 2,502,852 2,621,612 4,292,081 6,550,596 Net Income (Loss) 1,279,281 1,910,763 3,073,760 (4,509,935 ) Basic Net Income (Loss) Per Share $ 0.03 $ 0.04 $ 0.06 $ (0.08 ) Diluted Net Income (Loss) Per Share 0.03 0.04 0.06 (0.08 ) 2018 Three Months Ended March 31 June 30 September 30 December 31 Revenues $ 29,891,391 $ 29,924,883 $ 32,687,179 $ 27,561,908 Operating Income (Loss) 10,935,120 9,397,559 9,615,030 (9,986,770 ) Net Income (Loss) 5,665,634 4,719,806 5,693,628 (7,079,308 ) Basic Net Income (Loss) Per Share $ 0.10 $ 0.08 $ 0.09 $ (0.12 ) Diluted Net Income (Loss) Per Share 0.10 0.08 0.09 $ (0.12 ) |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / BarrelofOilEquivalent | Dec. 31, 2017USD ($)$ / BarrelofOilEquivalent | Dec. 31, 2016USD ($)$ / BarrelofOilEquivalent | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Depletion | $ | $ 38,810,864 | $ 20,197,690 | $ 11,179,858 |
Depletion rate, per barrel-of-oil-equivalent (BOE) | $ / BarrelofOilEquivalent | 17.38 | 13.92 | 12.73 |
ORGANIZATION AND SUMMARY OF S_5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Office Equipment And Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment And Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
ORGANIZATION AND SUMMARY OF S_6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Fair Value, Concentration of Risk, Cash and Cash Equivalents | $ 3,281,893 | $ 14,756,581 | |
Depreciation | 214,022 | 320,090 | $ 303,456 |
Share-based Compensation | 3,870,934 | 3,685,079 | 2,267,053 |
Impairment of Oil and Gas Properties | $ 14,172,309 | $ 0 | 56,513,016 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 1,596,463 | ||
Excess tax benefit related to share-based compensation | $ 907,884 | $ (49,896) | $ 0 |
Sales Revenue, Net [Member] | Customer One [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 85.00% | 76.00% | 50.00% |
Sales Revenue, Net [Member] | Customer Two [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 18.00% | 42.00% |
Accounts Receivable [Member] | Customer One [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 90.00% | 88.00% | 59.00% |
Accounts Receivable [Member] | Customer Two [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 32.00% |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Oil | $ 116,678,375 | $ 64,236,490 | $ 28,599,140 |
Natural gas | 3,386,986 | 2,463,210 | 2,251,108 |
Total operating revenues | $ 120,065,361 | $ 66,699,700 | $ 30,850,248 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) | Dec. 31, 2018USD ($) |
Assets acquired | |
Proved oil and natural gas properties | $ 13,775,807 |
Liabilities assumed | |
Asset retirement obligations | (2,571,549) |
Total Identifiable Net Assets | $ 11,204,258 |
ACQUISITIONS (Details Textual)
ACQUISITIONS (Details Textual) | 1 Months Ended | 12 Months Ended |
Dec. 31, 2018USD ($)a$ / sharesshares | Dec. 31, 2018USD ($)a$ / shares | |
Business Acquisition [Line Items] | ||
Gas and Oil Area, Developed, Net | a | 4,788 | 4,788 |
Gas and Oil Area, Developed, Gross | a | 4,854 | 4,854 |
Business Combination, Acquisition Related Costs | $ 23,321 | |
Oil and Natural Gas Assets in Andrews County [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,623,948 | |
Business Acquisition, Share Price | $ / shares | $ 5.80 | $ 5.80 |
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 11,204,258 | $ 11,204,258 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2,571,549 | $ 2,571,549 |
Average Working Interest [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% |
Average Net Revenue Interest [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 75.00% | 75.00% |
EARNINGS (LOSS) PER SHARE INF_3
EARNINGS (LOSS) PER SHARE INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Net Income (Loss) | $ (7,079,308) | $ 5,693,628 | $ 4,719,806 | $ 5,665,634 | $ (4,509,935) | $ 3,073,760 | $ 1,910,763 | $ 1,279,281 | $ (477,006) | $ (5,944,137) | $ (15,941,500) | $ (15,275,044) | $ 8,999,760 | $ 1,753,869 | $ (37,637,687) |
Basic Weighted-Average Shares Outstanding | 59,531,200 | 51,383,008 | 38,710,626 | ||||||||||||
Effect of dilutive securities: | |||||||||||||||
Diluted Weighted-Average Shares Outstanding | 60,848,177 | 52,806,712 | 38,710,626 | ||||||||||||
Basic Earnings (Loss) per Share | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ (0.08) | $ 0.06 | $ 0.04 | $ 0.03 | $ (0.01) | $ (0.14) | $ (0.41) | $ (0.50) | $ 0.15 | $ 0.03 | $ (0.97) |
Diluted Earnings (Loss) per Share | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ (0.08) | $ 0.06 | $ 0.04 | $ 0.03 | $ (0.01) | $ (0.14) | $ (0.41) | $ (0.50) | $ 0.15 | $ 0.03 | $ (0.97) |
Employee Stock Option [Member] | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,238,786 | 1,413,932 | 0 | ||||||||||||
Restricted Stock [Member] | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 78,191 | 9,772 | 0 |
EARNINGS (LOSS) PER SHARE INF_4
EARNINGS (LOSS) PER SHARE INFORMATION (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,500 | ||
Common Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 574,500 | 603,500 | 3,358,250 |
OIL AND NATURAL GAS PRODUCING_3
OIL AND NATURAL GAS PRODUCING ACTIVITIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Capitalized Costs Relating to Oil and Gas Producing Activities, by Geographic Area [Line Items] | ||
Proved oil and natural gas properties | $ 641,121,398 | $ 433,591,134 |
Fixed assets subject to depreciation | 1,465,551 | 1,884,818 |
Total capitalized costs | 642,586,949 | 435,475,952 |
Accumulated depletion, depreciation and amortization | (100,576,087) | (61,698,044) |
Net Capitalized Costs | $ 542,010,862 | $ 373,777,908 |
OIL AND NATURAL GAS PRODUCING_4
OIL AND NATURAL GAS PRODUCING ACTIVITIES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | ||
Acquisition of proved properties | $ 18,432,291 | $ 28,682,298 |
Development costs | 200,182,322 | 125,977,758 |
Total Net Costs Incurred | $ 218,614,613 | $ 154,660,056 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Details Textual) | Oct. 10, 2018USD ($) | Dec. 31, 2019$ / BarrelofOilEquivalent | Dec. 31, 2018$ / BarrelofOilEquivalent | Dec. 31, 2017$ / BarrelofOilEquivalent | Sep. 25, 2017 |
Number Of Barrels Per Day | 1,000 | ||||
Payments For Termination Of Derivative Contracts | $ | $ 3,438,300 | ||||
Addititional Derivative Contracts [Member] | |||||
Number Of Barrels Per Day | 1,000 | ||||
Addititional Derivative Contracts [Member] | Scenario, Forecast [Member] | |||||
Number Of Barrels Per Day | 2,000 | ||||
Call Option [Member] | |||||
Derivative, Price Risk Option Strike Price | 54.60 | 55.35 | |||
Call Option [Member] | Addititional Derivative Contracts [Member] | |||||
Derivative, Price Risk Option Strike Price | 54.80 | ||||
Call Option [Member] | Addititional Derivative Contracts [Member] | Scenario, Forecast [Member] | |||||
Derivative, Price Risk Option Strike Price | 70.05 | ||||
Put Option [Member] | |||||
Derivative, Price Risk Option Strike Price | 49 | 49 | |||
Put Option [Member] | Addititional Derivative Contracts [Member] | |||||
Derivative, Price Risk Option Strike Price | 51 | ||||
Put Option [Member] | Addititional Derivative Contracts [Member] | Scenario, Forecast [Member] | |||||
Derivative, Price Risk Option Strike Price | 60 |
REVOLVING LINE OF CREDIT (Detai
REVOLVING LINE OF CREDIT (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2018 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate Description | The annual interest rate on each Base Rate Loan is (a) the greatest of (i) the Administrative Agent’s prime lending rate, (ii) the federal funds rate plus 0.5% per annum or the (iii) adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum, plus (b) a margin between 2.75% and 3.75% (depending on the then-current level of borrowing base usage). | |
Leverage Ratio, Total | 4.0 to 1.0 | |
Minimum Leverage Ratio Current | 1.0 to 1.0 | |
Debt Instrument, Redemption, Description | The Borrowing Base will be redetermined semi-annually on each May 1 and November 1, beginning November 1, 2015. | |
Long-term Line of Credit | $ 39,500,000 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | |
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | |
Line of Credit Facility, Expiration Date | Jun. 26, 2020 |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Asset Retirement Obligation [Line Items] | ||||
Balance | $ 9,055,697 | $ 7,957,035 | $ 7,401,950 | |
Liabilities acquired | 2,571,549 | |||
Liabilities incurred | 1,311,956 | 1,297,289 | 308,509 | |
Liabilities settled | (577,824) | (766,595) | (240,606) | |
Revision of estimate | [1] | 87,960 | ||
Accretion expense | 606,459 | 567,968 | 487,182 | |
Balance | $ 13,055,797 | $ 9,055,697 | $ 7,957,035 | |
[1] | Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, and estimated remaining useful life of the assets. The 2018 revision of estimates reflect decreases in the estimated remaining useful life of certain assets. |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Options exercised | 193,000 | 165,400 | 25,900 |
Exercise price | $ 2.96 | $ 2.63 | $ 4.41 |
Shares issued | 153,113 | 133,308 | 25,734 |
Shares retained | 39,887 | 32,092 | 166 |
Cash paid at exercise | $ 100,000 | $ 0 | $ 112,500 |
Stock price on date of exercise | $ 10.58 | $ 13.18 | $ 6.93 |
Aggregate value of shares retained | $ 470,750 | $ 435,785 | $ 1,800 |
Exercised Option 1 [Member] | |||
Options exercised | 110,000 | 4,100 | 5,000 |
Exercise price | $ 2 | $ 2 | $ 4.50 |
Shares issued | 90,375 | 3,491 | 5,000 |
Shares retained | 19,625 | 609 | 0 |
Cash paid at exercise | $ 0 | $ 0 | $ 22,500 |
Stock price on date of exercise | $ 11.21 | $ 13.47 | $ 4.72 |
Aggregate value of shares retained | $ 220,000 | $ 8,200 | $ 0 |
Exercised Option 2 [Member] | |||
Options exercised | 50,000 | 60,000 | 20,000 |
Exercise price | $ 2 | $ 2 | $ 4.50 |
Shares issued | 50,000 | 50,156 | 20,000 |
Shares retained | 0 | 9,844 | 0 |
Cash paid at exercise | $ 100,000 | $ 0 | $ 90,000 |
Stock price on date of exercise | $ 8 | $ 12.19 | $ 7.29 |
Aggregate value of shares retained | $ 0 | $ 120,000 | $ 0 |
Exercised Option 3 [Member] | |||
Options exercised | 25,000 | 200 | 150 |
Exercise price | $ 7.50 | $ 8 | $ 2 |
Shares issued | 9,829 | 116 | 119 |
Shares retained | 15,171 | 84 | 31 |
Cash paid at exercise | $ 0 | $ 0 | $ 0 |
Stock price on date of exercise | $ 12.36 | $ 13.75 | $ 9.72 |
Aggregate value of shares retained | $ 187,500 | $ 1,600 | $ 300 |
Exercised Option 4 [Member] | |||
Options exercised | 3,000 | 1,500 | 350 |
Exercise price | $ 8 | $ 10.89 | $ 2 |
Shares issued | 1,059 | 1,188 | 276 |
Shares retained | 1,941 | 312 | 74 |
Cash paid at exercise | $ 0 | $ 0 | $ 0 |
Stock price on date of exercise | $ 12.36 | $ 13.75 | $ 9.46 |
Aggregate value of shares retained | $ 24,000 | $ 16,335 | $ 700 |
Exercised Option 5 [Member] | |||
Options exercised | 3,000 | 600 | 400 |
Exercise price | $ 5.25 | $ 5.25 | $ 2 |
Shares issued | 1,750 | 229 | 339 |
Shares retained | 1,250 | 371 | 61 |
Cash paid at exercise | $ 0 | $ 0 | $ 0 |
Stock price on date of exercise | $ 12.36 | $ 13.75 | $ 13.05 |
Aggregate value of shares retained | $ 15,750 | $ 3,150 | $ 800 |
Exercised Option 6 [Member] | |||
Options exercised | 2,000 | 20,000 | |
Exercise price | $ 11.75 | $ 5.50 | |
Shares issued | 100 | 11,953 | |
Shares retained | 1,900 | 8,047 | |
Cash paid at exercise | $ 0 | $ 0 | |
Stock price on date of exercise | $ 12.36 | $ 13.67 | |
Aggregate value of shares retained | $ 23,500 | $ 110,000 | |
Exercised Option 7 [Member] | |||
Options exercised | 2,000 | ||
Exercise price | $ 8 | ||
Shares issued | 830 | ||
Shares retained | 1,170 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 13.67 | ||
Aggregate value of shares retained | $ 16,000 | ||
Exercised Option 8 [Member] | |||
Options exercised | 2,000 | ||
Exercise price | $ 5.25 | ||
Shares issued | 1,232 | ||
Shares retained | 768 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 13.67 | ||
Aggregate value of shares retained | $ 10,500 | ||
Exercised Option 9 [Member] | |||
Options exercised | 15,000 | ||
Exercise price | $ 2 | ||
Shares issued | 12,875 | ||
Shares retained | 2,125 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 14.12 | ||
Aggregate value of shares retained | $ 30,000 | ||
Exercised Option 10 [Member] | |||
Options exercised | 60,000 | ||
Exercise price | $ 2 | ||
Shares issued | 51,238 | ||
Shares retained | 8,762 | ||
Cash paid at exercise | $ 0 | ||
Stock price on date of exercise | $ 13.70 | ||
Aggregate value of shares retained | $ 120,000 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Feb. 28, 2018 | Jul. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Share Price | $ 10.58 | $ 6.93 | $ 10.58 | $ 13.18 | $ 6.93 | |||
Proceeds from issuance of common stock | $ 81,821,138 | $ 59,026,956 | $ 139,567,979 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 153,113 | 133,308 | 25,734 | |||||
Oil and Natural Gas Assets in Andrews County [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,623,948 | |||||||
Business Acquisition, Share Price | $ 5.80 | $ 5.80 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 11,204,258 | $ 11,204,258 | ||||||
Underwritten Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 6,164,000 | 4,977,658 | 7,195,387 | 11,500,000 | ||||
Share Price | $ 14 | $ 12.50 | $ 11.50 | $ 5.60 | $ 11.50 | |||
Proceeds from issuance of common stock | $ 81,821,138 | $ 59,026,956 | $ 78,485,787 | $ 61,063,497 | ||||
Payments of Stock Issuance Costs | 4,474,862 | 3,193,769 | 4,261,164 | 3,336,503 | ||||
Proceeds From Issuance Of Common Stock Gross | $ 86,296,000 | $ 62,220,725 | $ 82,746,951 | $ 64,400,000 | ||||
Over-Allotment Option [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 804,000 | 477,658 | 670,387 | 1,500,000 |
EMPLOYEE STOCK OPTIONS AND RE_3
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details) | 12 Months Ended | |
Dec. 31, 2018$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuances of options | 846,000 | |
January 13, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuances of options | 241,000 | [1] |
Exercise price of options | $ / shares | $ 5.25 | [1] |
May 3, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuances of options | 15,000 | |
Exercise price of options | $ / shares | $ 6.42 | |
December 13, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuances of options | 582,500 | |
Exercise price of options | $ / shares | $ 11.75 | |
April 20, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuances of options | 7,500 | |
Exercise price of options | $ / shares | $ 11.70 | |
[1] | (1) On December 9, 2015, Ring issued option awards to its Named Executive Officers and directors. On January 13, 2016, the Board ratified the Compensation Committee decision to rescind the option awards granted to its employees and directors (other than Messrs. McCabe and Rochford, who are the members of the Compensation Committee) as the result of a significant decline in the stock price and re-issued the option awards as of that date to meet the goals and objectives of the Company’s equity based compensation program. The amounts shown as Option Awards include the additional fair value of the new options over the original grant. On December 26, 2018, the Compensation Committee rescinded the options granted in 2016. No adjustment has been made to account for the reduction in compensation. |
EMPLOYEE STOCK OPTIONS AND RE_4
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details 1) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Issued | 846,000 | ||
Options Outstanding at end of year | 2,751,000 | ||
Options Exercisable at end of year | 2,323,900 | ||
Weighted Average Exercise Price, Exercised | $ 2.96 | $ 2.63 | $ 4.41 |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding at beginning of the year | 3,193,000 | 3,362,350 | 2,881,750 |
Options Issued | 0 | 7,500 | 838,500 |
Forfeited or rescinded | (249,000) | (11,450) | (331,400) |
Options Exercised | (193,000) | (165,400) | (26,500) |
Options Outstanding at end of year | 2,751,000 | 3,193,000 | 3,362,350 |
Options Exercisable at end of year | 2,323,900 | 2,091,900 | 1,722,850 |
Weighted Average Exercise Price, Outstanding at beginning of the year | $ 5.90 | $ 5.90 | $ 5.07 |
Weighted Average Exercise Price, Issued | 0 | 11.70 | 9.79 |
Weighted Average Exercise Price, Forfeited or rescinded | 6.09 | 10.12 | 8.62 |
Weighted Average Exercise Price, Exercised | 2.96 | 2.63 | 4.41 |
Weighted Average Exercise Price, Outstanding at end of year | 6.28 | 5.90 | 5.90 |
Weighted Average Exercise Price, Exercisable at end of year | 5.42 | 4.85 | 4.01 |
Weighted average fair value of options granted during the year | $ 0 | $ 9.14 | $ 9.72 |
EMPLOYEE STOCK OPTIONS AND RE_5
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details 2) | 12 Months Ended |
Dec. 31, 2018 | |
January 13, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 1.51% |
Expected life (years) | 6 years 6 months |
Dividend yield | 0.00% |
Volatility | 100.00% |
May 3, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 1.25% |
Expected life (years) | 6 years 6 months |
Dividend yield | 0.00% |
Volatility | 99.00% |
December 13, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 1.92% |
Expected life (years) | 6 years 6 months |
Dividend yield | 0.00% |
Volatility | 96.00% |
April 20, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free interest rate | 1.78% |
Expected life (years) | 6 years 6 months |
Dividend yield | 0.00% |
Volatility | 94.00% |
EMPLOYEE STOCK OPTIONS AND RE_6
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details 3) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Number Outstanding | 2,751,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 4 years 11 months 16 days |
Options Outstanding - Number Exercisable | 2,323,900 |
Exercise Price One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 2 |
Options Outstanding - Number Outstanding | 395,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 2 years 11 months 1 day |
Options Outstanding - Number Exercisable | 395,000 |
Exercise Price Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 4.50 |
Options Outstanding - Number Outstanding | 1,340,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 3 years 7 months 13 days |
Options Outstanding - Number Exercisable | 1,340,000 |
Exercise Price Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 5.50 |
Options Outstanding - Number Outstanding | 5,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 4 years |
Options Outstanding - Number Exercisable | 5,000 |
Exercise Price Four [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 7.50 |
Options Outstanding - Number Outstanding | 4,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 4 years 2 months 12 days |
Options Outstanding - Number Exercisable | 4,000 |
Exercise Price Five [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 10 |
Options Outstanding - Number Outstanding | 90,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 4 years 5 months 23 days |
Options Outstanding - Number Exercisable | 90,000 |
Exercise Price Six [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 14.54 |
Options Outstanding - Number Outstanding | 10,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 4 years 11 months 16 days |
Options Outstanding - Number Exercisable | 8,000 |
Exercise Price Seven [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 8 |
Options Outstanding - Number Outstanding | 277,500 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 5 years 8 months 23 days |
Options Outstanding - Number Exercisable | 221,600 |
Exercise Price Eight [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 8.25 |
Options Outstanding - Number Outstanding | 50,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 6 years 11 months 8 days |
Options Outstanding - Number Exercisable | 30,000 |
Exercise Price Nine [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 6.42 |
Options Outstanding - Number Outstanding | 15,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 7 years 4 months 2 days |
Options Outstanding - Number Exercisable | 6,000 |
Exercise Price Ten [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 11.75 |
Options Outstanding - Number Outstanding | 557,000 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 7 years 11 months 12 days |
Options Outstanding - Number Exercisable | 222,800 |
Exercise Price Eleven [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding - Exercise price | $ / shares | $ 11.70 |
Options Outstanding - Number Outstanding | 7,500 |
Options Outstanding - Weighted-Average Remaining Contractual Life (in years) | 8 years 3 months 18 days |
Options Outstanding - Number Exercisable | 1,500 |
EMPLOYEE STOCK OPTIONS AND RE_7
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details 4) | 12 Months Ended |
Dec. 31, 2018shares | |
19-Dec-17 [Member] | |
of shares of restricted stock | 330,900 |
4-Apr-18 [Member] | |
of shares of restricted stock | 2,000 |
27-Sep-18 [Member] | |
of shares of restricted stock | 2,500 |
26-Dec-18 [Member] | |
of shares of restricted stock | 615,380 |
EMPLOYEE STOCK OPTIONS AND RE_8
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details 5) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock, Outstanding at beginning of the year | 330,900 | 0 |
Restricted stock, Granted | 619,880 | 330,900 |
Restricted stock, Forfeited or rescinded | (7,800) | 0 |
Restricted stock, Vested | (64,620) | 0 |
Restricted stock, Outstanding at end of year | 878,360 | 330,900 |
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ 13.44 | $ 0 |
Weighted-Average Grant Date Fair Value, Granted | 4.82 | 13.44 |
Weighted-Average Grant Date Fair Value, Forfeited or rescinded | 13.44 | 0 |
Weighted-Average Grant Date Fair Value, Vested | 0 | 0 |
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ 13.44 | $ 13.44 |
EMPLOYEE STOCK OPTIONS AND RE_9
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 677,120 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,650,573 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,993,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 1,993,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 5.08 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 1,470,230 | $ 1,744,047 | $ 65,089 |
Share-based Compensation | $ 3,870,934 | $ 3,685,079 | $ 2,267,053 |
number of options granted | 846,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 193,000 | 165,400 | 25,900 |
Share-based Compensation | $ 1,853,913 | $ 3,618,309 | $ 2,267,053 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 5,182,221 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||
Share-based Compensation | $ 2,017,021 | $ 66,770 | |
number of restricted stock vested | 64,620 | 0 | |
aggregate intrinsic value of vested restricted stock | $ 304,360 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 60,000 | $ 60,000 | $ 60,000 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |
2,019 | $ 539,675 |
2,020 | 125,325 |
Total | $ 665,000 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | $ | $ 60,000 | $ 60,000 | $ 60,000 |
Corporate Headquarters In Midland, Texas [Member] | |||
Loss Contingencies [Line Items] | |||
Area of Land | ft² | 15,000 | ||
Former Corporate Headquarters In Midland, Texas [Member] | |||
Loss Contingencies [Line Items] | |||
Area of Land | ft² | 3,700 | ||
Field Office In Andrews, Texas [Member] | |||
Loss Contingencies [Line Items] | |||
Area of Land | ft² | 2,000 | ||
Standby Letters of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 250,000 | ||
Capital Lease Obligations [Member] | |||
Loss Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | $ | $ 524,060 | $ 543,770 | $ 527,582 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Provision for Income Taxes | |||
Deferred taxes | $ 3,445,721 | $ 10,416,171 | $ (19,987,585) |
Provision for (Benefit from) Income Taxes | $ 3,445,721 | $ 10,416,171 | $ (19,987,585) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Rate Reconciliation | ||||
Tax at federal statutory rate | $ 2,613,551 | $ 4,194,556 | $ (19,592,592) | |
Non-deductible expenses | 3,197 | 6,158 | 2,558 | |
Excess tax benefit from stock option exercises | 828,973 | (453,217) | 15,055 | |
Adjust prior estimates to tax return | 0 | (58,766) | 167,526 | |
States taxes, net of Federal benefit | 0 | 124,200 | (580,132) | |
Effect of departure from State of Kansas | 0 | (350,059) | 0 | |
Adjustment for change in future effective tax rate | [1] | 0 | 6,953,299 | 0 |
Provision for (Benefit from) Income Taxes | $ 3,445,721 | $ 10,416,171 | $ (19,987,585) | |
[1] | The enactment of the Tax Cuts and Jobs Act provided for a decrease in the corporate tax rate to 21% from 35%, resulting in a net $6.95 million reduction to our net deferred tax asset as of December 31, 2017. |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax liabilities | ||
Property and equipment | $ 33,888,806 | $ 27,563,290 |
Deferred tax assets | ||
Stock-based compensation | 3,734,911 | 6,667,643 |
Operating loss and IDC carryforwards | 37,940,374 | 32,127,847 |
Deferred tax assets | 41,675,285 | 38,795,490 |
Net deferred income tax asset | $ (7,786,479) | $ (11,232,200) |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||
Company Had Net Operating Loss Carry Forwards For Federal Income Tax Reporting Purposes Of Approximately In Millions | $ 180,700,000 | |||
Operating Loss Carry Forwards Expiration Starting Year | 2,027 | |||
Operating Loss Carry Forwards Expiration Ending Year | 2,038 | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | [1] | $ 0 | $ 6,953,299 | $ 0 |
[1] | The enactment of the Tax Cuts and Jobs Act provided for a decrease in the corporate tax rate to 21% from 35%, resulting in a net $6.95 million reduction to our net deferred tax asset as of December 31, 2017. |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||
Revenues | $ 120,065,361 | $ 66,699,700 | $ 30,850,248 | ||||||||||||
Operating Income (Loss) | $ (9,986,770) | $ 9,615,030 | $ 9,397,559 | $ 10,935,120 | $ 6,550,596 | $ 4,292,081 | $ 2,621,612 | $ 2,502,852 | $ 1,438,007 | $ (9,121,201) | $ (25,516,087) | $ (23,833,480) | 19,960,939 | 15,967,141 | (57,032,761) |
Net Income (Loss) | $ (7,079,308) | $ 5,693,628 | $ 4,719,806 | $ 5,665,634 | $ (4,509,935) | $ 3,073,760 | $ 1,910,763 | $ 1,279,281 | $ (477,006) | $ (5,944,137) | $ (15,941,500) | $ (15,275,044) | $ 8,999,760 | $ 1,753,869 | $ (37,637,687) |
Basic Net Income (Loss) Per Share | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ (0.08) | $ 0.06 | $ 0.04 | $ 0.03 | $ (0.01) | $ (0.14) | $ (0.41) | $ (0.50) | $ 0.15 | $ 0.03 | $ (0.97) |
Diluted Net Income (Loss) Per Share | $ (0.12) | $ 0.09 | $ 0.08 | $ 0.10 | $ (0.08) | $ 0.06 | $ 0.04 | $ 0.03 | $ (0.01) | $ (0.14) | $ (0.41) | $ (0.50) | $ 0.15 | $ 0.03 | $ (0.97) |
Oil and Gas [Member] | |||||||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||||||
Revenues | $ 27,561,908 | $ 32,687,179 | $ 29,924,883 | $ 29,891,391 | $ 23,308,668 | $ 16,643,930 | $ 14,503,309 | $ 12,243,793 | $ 9,830,708 | $ 7,822,543 | $ 7,104,609 | $ 6,092,388 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | Feb. 25, 2019USD ($)a | Mar. 15, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) |
Subsequent Event [Line Items] | ||||||
Proceeds from Lines of Credit | $ 45,000,000 | $ 39,500,000 | $ 0 | $ 7,000,000 | ||
Line of Credit Facility, Expiration Period | 5 years | |||||
Maximum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | |||||
Minimum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | |||||
Revolving Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Area of Land | a | 37,206 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 30,000,000 | |||||
Payments to Acquire Businesses, Gross | 270,000,000 | |||||
Business Combination, Consideration Transferred | 300,000,000 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | |||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Borrowing Base [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 425,000,000 |