Ring Energy (REI) 10-Q 7 Aug 19 2019 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 07, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	RING ENERGY, INC.
Entity File Number	001-36057
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	90-0406406
Entity Address, Address Line One	901 West Wall St. 3rd Floor
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	(432)
Local Phone Number	682-7464
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	REI
Security Exchange Name	NYSE
Entity Central Index Key	0001384195
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		67,811,111
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Current Assets
Cash	$ 10,578,982	$ 3,363,726
Accounts receivable	21,777,491	12,643,478
Joint interest billing receivable	1,291,817	578,144
Operating lease asset	294,095	0
Derivative asset	1,189,545	0
Prepaid expenses and retainers	3,479,218	258,909
Total Current Assets	38,611,148	16,844,257
Properties and Equipment
Oil and natural gas properties subject to depletion and amortization	1,037,871,094	641,121,398
Financing lease asset	637,757
Fixed assets subject to depreciation	1,465,551	1,465,551
Total Properties and Equipment	1,039,974,402	642,586,949
Accumulated depreciation, depletion and amortization	(128,120,411)	(100,576,087)
Net Properties and Equipment	911,853,991	542,010,862
Deferred Income Taxes	7,209,160	7,786,479
Deferred Financing Costs	3,592,575	424,061
Total Assets	961,266,874	567,065,659
Current Liabilities
Accounts payable	67,258,467	51,910,432
Financing lease liability	204,047
Operating lease liability	294,095
Total Current Liabilities	67,756,609	51,910,432
Revolving line of credit	360,500,000	39,500,000
Financing lease liability	409,634
Asset retirement obligations	16,536,909	13,055,797
Total Liabilities	445,203,152	104,466,229
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; 67,811,111 shares and 63,229,710 shares issued and outstanding, respectively	67,811	63,230
Additional paid-in capital	524,887,107	494,892,093
Accumulated deficit	(8,891,196)	(32,355,893)
Total Stockholders' Equity	516,063,722	462,599,430
Total Liabilities and Stockholders' Equity	$ 961,266,874	$ 567,065,659

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
CONDENSED BALANCE SHEETS
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	67,811,111	63,229,710
Common Stock, Shares, Outstanding	63,229,710	63,229,710

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONDENSED STATEMENTS OF OPERATIONS
Oil and Gas Revenues	$ 51,334,225	$ 29,924,883	$ 93,132,540	$ 59,816,274
Costs and Operating Expenses
Oil and gas production costs	11,569,107	6,638,313	20,977,873	12,420,223
Oil and gas production taxes	2,412,895	1,428,995	4,495,770	2,854,877
Depreciation, depletion and amortization	14,615,270	9,144,115	27,544,324	17,645,494
Asset retirement obligation accretion	229,234	164,670	445,179	325,790
Operating lease expense	128,175		256,350	0
General and administrative expense	4,743,127	3,151,231	11,541,144	6,237,211
Total Costs and Operating Expenses	33,697,808	20,527,324	65,260,640	39,483,595
Income from Operations	17,636,417	9,397,559	27,871,900	20,332,679
Other Income (Expense)
Interest income	1,260	82,991	13,496	91,944
Interest expense	(4,259,908)		(5,032,925)	(44,483)
Realized Loss on derivatives	0	(2,402,426)	0	(3,877,452)
Unrealized gain (loss) on change in fair value of derivatives	1,530,230	(1,099,273)	1,189,545	(1,889,974)
Net Other Income (Expense)	(2,728,418)	(3,418,708)	(3,829,884)	(5,719,965)
Income before Tax Provision	14,907,999	5,978,851	24,042,016	14,612,714
Provision for Income Taxes	(2,532,743)	(1,259,045)	(577,319)	(4,227,274)
Net Income	$ 12,375,256	$ 4,719,806	$ 23,464,697	$ 10,385,440
Basic Earnings per Share	$ 0.18	$ 0.08	$ 0.36	$ 0.18
Diluted Earnings per Share	$ 0.18	$ 0.08	$ 0.36	$ 0.17

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Total
Balance at Dec. 31, 2017	$ 54,224	$ 397,904,769	$ (41,355,653)	$ 356,603,340
Balance (in shares) at Dec. 31, 2017	54,224,029
Share-based compensation	$ 0	2,083,547	0	2,083,547
Common stock issued for cash, net	$ 6,164	81,812,909	0	81,819,073
Common stock issued for cash, net (in shares)	6,164,000
Net income	$ 0	0	10,385,440	10,385,440
Balance at Jun. 30, 2018	$ 60,388	481,801,225	(30,970,213)	450,891,400
Balance (in shares) at Jun. 30, 2018	60,388,029
Balance at Dec. 31, 2018	$ 63,230	494,892,093	(32,355,893)	462,599,430
Balance (in shares) at Dec. 31, 2018	63,229,710
Common stock issued as consideration in asset acquisition	$ 4,581	28,351,815		28,356,396
Common stock issued as consideration in asset acquisition (in shares)	4,581,001
Share-based compensation	$ 0	1,643,199	0	1,643,199
Net income	0	0	23,464,697	23,464,697
Balance at Jun. 30, 2019	$ 67,811	$ 524,887,107	$ (8,891,196)	$ 516,063,722
Balance (in shares) at Jun. 30, 2019	67,810,711

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash Flows From Operating Activities
Net income	$ 12,375,256	$ 4,719,806	$ 23,464,697	$ 10,385,440
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization			27,544,324	17,645,494
Accretion expense			445,179	325,790
Share-based compensation			1,643,199	2,083,547
Deferred income tax provision			5,049,219	3,068,670
Excess tax deficiency related to share-based compensation			(4,471,900)	1,158,604
Change in fair value of derivative instruments			(1,189,545)	1,889,974
Changes in assets and liabilities:
Accounts receivable			(9,847,686)	1,211,719
Prepaid expenses and retainers			(6,388,823)	(638,368)
Accounts payable and lease liability			(451,965)	(3,587,329)
Settlement of asset retirement obligation			(384,956)	(265,728)
Net Cash Provided by Operating Activities			35,411,743	33,277,813
Cash Flows From Investing Activities
Payments to purchase oil and natural gas properties			(268,120,579)	(3,270,000)
Payments to develop oil and natural gas properties			(81,051,832)	(113,507,857)
Proceeds from disposal of fixed assets subject to depreciation			0	105,536
Net Cash Used in Investing Activities			(349,172,411)	(116,672,321)
Cash Flows From Financing Activities
Proceeds from revolving line of credit			321,000,000	0
Proceeds from issuance of common stock, net of offering costs			0	81,819,073
Reduction of financing lease liability			(24,076)	0
Net Cash Provided by Financing Activities			320,975,924	81,819,073
Net Change in Cash			7,215,256	(1,575,435)
Cash at Beginning of Period			3,363,726	15,006,581
Cash at End of Period	10,578,982	13,431,146	10,578,982	13,431,146
Supplemental Cash Flow Information
Cash paid for interest			932,896	44,483
Noncash Investing and Financing Activities
Asset retirement obligation incurred during development			441,244	700,218
Operating lease assets obtained in exchange for new operating lease liability			539,577	0
Financing lease assets obtained in exchange for new financing lease liability			637,757	0
Capitalized expenditures attributable to drilling projects financed through current liabilities			41,800,000	19,000,000
Acquisition of oil and gas properties
Assumption of joint interest billing receivable	1,464,394	0	1,464,394	0
Assumption of prepaid assets	2,864,554	0	2,864,554	0
Assumption of accounts and revenue payables	(1,234,862)	0	(1,234,862)	0
Asset retirement obligation incurred through acquisition	(2,979,645)	0	(2,979,645)	0
Common stock issued as partial consideration in asset acquisition	(28,356,396)	0	(28,356,396)	0
Oil and gas properties subject to amortization	$ 296,910,774	$ 0	$ 296,910,774	$ 0

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Condensed Financial Statements Certain notes and other disclosures have been omitted from these interim financial statements. Therefore, these financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2018. Organization and Nature of Operations – Use of Estimates Fair Measurements Fair Values of Financial Instruments Derivative Instruments and Hedging Activities When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. During the three and six months ended respectively, on derivative contracts. During the three and six months ended June 30, 2018, the change in fair value resulted in the recognition of unrealized losses of $1,099,273 and $1,889,974, respectively, on derivative contracts. During the three and six months ended June 30, 2019, the Company had no realized gain or losses on derivatives. During the three and six months ended June 30, 2018, the Company had realized losses on derivatives of $2,402,426 and $3,877,452, respectively. Concentration of Credit Risk and Major Customer Approximately 94% of the Company’s accounts and joint interest billing receivables are from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts and joint interest billing receivables are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at June 30, 2019. 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. Oil and Gas Properties All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent petroleum engineers. The Company evaluates oil and gas properties for impairment at least annually. Depreciation, depletion and amortization expense for the three and six months ended June 30, 2019, was $14,615,270 and $27,544,324, respectively, based on depletion at the rate of $14.70 and $14.72 per barrel of oil equivalent compared to $9,144,115 and $17,645,494, respectively, based on depletion at the rate of $16.36 and $17.40 per barrel of oil equivalent for the three and six months ended June 30, 2018. These amounts include $66,277 and $107,431, respectively, of depreciation for the three and six months ended June 30, 2019, compared to $48,740 and $129,186, respectively, of depreciation for the three and six months ended June 30, 2018. Equipment, vehicles and leasehold improvements Asset Retirement Obligation Revenue Recognition Revenues from Contracts with Customers (Topic 606) 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. Share-Based Employee Compensation Share-Based Compensation to Non-Employees Income Taxes In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) 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”, 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%. Recently Adopted 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 Recent Accounting Pronouncements Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). Basic and Diluted Earnings (Loss) per Share

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2019
REVENUE RECOGNITION
REVENUE RECOGNITION	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 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 agreements, the Company recognizes revenue when control transfers to the purchaser at the point of delivery. Disaggregation of Revenue. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months For The Six Months ​ ​ Ended June 30, ​ Ended June 30, ​ ​ 2019 2018 ​ 2019 2018 Operating revenues ​ ​ ​ ​ Oil ​ $ 50,793,472 ​ $ 28,962,880 ​ $ 91,671,455 ​ $ 58,103,045 Natural gas ​ 540,753 ​ 962,003 ​ 1,461,085 ​ 1,713,229 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues ​ $ 51,334,225 ​ $ 29,924,883 ​ $ 93,132,540 ​ $ 59,816,274 ​ All revenues are from production from the Permian Basin in Texas and New Mexico.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2019
LEASES
LEASES	NOTE 3 – LEASES Effective January 1, 2019, the Company adopted ASU 2016-02, Leases The Company made accounting policy elections to not capitalize leases with a lease term of twelve months or less and to not separate lease and non-lease components for all asset classes. The Company has also elected to adopt the package of practical expedients within ASU 2016-02 that allows an entity to not reassess prior to the effective date (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases, or (iii) initial direct costs for any existing leases and the practical expedient regarding land easements that exist prior to the adoption of ASU 2016-02. The Company did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. The Company has operating leases for our offices in Midland, Texas and Tulsa, Oklahoma with terms through January 31, 2020. The office space being leased in Tulsa is owned by Arenaco, LLC, a company that is owned by Mr. Rochford, Chairman of the Board of the Company, and Mr. McCabe, a Director of the Company. The Company has financing leases for vehicles. Future lease payments associated with these operating leases as of June 30, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 2020 2021 2022 Operating lease payments (1) ​ $ 256,350 ​ $ 42,725 ​ $ — ​ $ — Financing lease payments (2) ​ ​ 115,783 ​ ​ 231,565 ​ ​ 231,565 ​ ​ 88,478 (1) The weighted average discount rate as of June 30, 2019 for operating leases was 5.01 %. Based on this rate, the future lease payments above include imputed interest of $4,980. (2) The weighted average discount rate as of June 30, 2019 for financing leases was 5.28 %. Based on this rate, the future lease payments above included imputed interest of $53,710. ​ The following table provides supplemental information regarding cash flows from operations: ​ ​ ​ ​ ​ ​ 2019 Operating lease costs ​ $ 256,350 Short term lease costs (1) ​ ​ 307,518 Financing lease costs: ​ ​ ​ Amortization of financing lease assets (2) ​ ​ 25,956 Interest on lease liabilities (3) ​ ​ 4,029 (1) Amount included in Oil and gas production costs (2) Amount included in Depreciation, depletion and amortization (3) Amount included in Interest expense

EARNINGS PER SHARE INFORMATION

EARNINGS PER SHARE INFORMATION	6 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION	NOTE 4 – EARNINGS PER SHARE INFORMATION ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months ​ For The Six Months ​ ​ Ended June 30, ​ Ended June 30, ​ 2019 2018 2019 2018 Net Income ​ $ 12,375,256 ​ $ 4,719,806 ​ $ 23,464,697 ​ $ 10,385,440 Basic Weighted-Average Shares Outstanding ​ 67,357,645 ​ 60,388,029 ​ 65,305,081 ​ 58,412,825 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ Stock options ​ 217,472 ​ 1,499,886 ​ 418,397 ​ 1,495,482 Restricted stock ​ 95,142 ​ 76,095 ​ 128,870 ​ 59,002 Diluted Weighted-Average Shares Outstanding ​ 67,670,259 ​ 61,964,010 ​ 65,852,348 ​ 59,967,309 Basic Earnings per Share ​ $ 0.18 ​ $ 0.08 ​ $ 0.36 ​ $ 0.18 Diluted Earnings per Share ​ $ 0.18 ​ $ 0.08 ​ $ 0.36 ​ $ 0.17 ​ Stock options to purchase 1,013,500 shares of common stock and 276,860 shares of unvested restricted stock were excluded from the computation of diluted earnings per share during the three months ended June 30, 2019, as their effect would have been anti-dilutive. Stock options to purchase 2,353,500 shares of common stock and 276,860 shares of unvested restricted stock were excluded from the computation of diluted earnings per share during the six months ended June 30, 2019, as their effect would have been anti-dilutive. Stock options to purchase 583,500 shares of common stock were excluded from the computation of diluted earnings per share during both the three and six months ended June 30, 2018, as their effect would have been anti-dilutive.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2019
ACQUISITIONS.
ACQUISITIONS	NOTE 5 – ACQUISITIONS On April 9, 2019, the Company completed the acquisition of oil and gas properties from Wishbone Energy Partners, LLC, Wishbone Texas Operating Company LLC and WB WaterWorks LLC on the Northwest Shelf in Gaines, Yoakum, Runnels and Coke Counties, Texas and Lea County, New Mexico (the “Acquisition”). The acquired properties consist of 49,754 gross (38,230 net) acres and include a 77% average working interest and a 58% average net revenue interest. The Company incurred approximately $4.1 million in acquisition related costs, which were recognized in general and administrative expense during the six months ended June 30, 2019. Total consideration after purchase price adjustments included a cash payment of approximately $264.1 million and the issuance of 4,581,001 shares of common stock, of which 2,538,071 shares are being held in escrow to satisfy potential indemnification claims. The full amount of the shares placed into escrow remain in escrow as of June 30, 2019. The escrow shares will be released pursuant to the terms of the Purchase and Sale Agreement. The shares were valued at the price on the date of the signing of the Purchase and Sale Agreement, February 25, 2019, of $6.19 per share. The Acquisition was recognized as a business combination whereby Ring recorded the assets acquired and the liabilities assumed at their fair values as of February 1, 2019, which is the date the Company obtained control of the properties and was the acquisition date for financial reporting purposes. Revenues and related expenses for the Acquisition are included in our condensed statement of operations beginning February 1, 2019. 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 gas properties ​ $ 296,910,774 Joint interest billing receivable ​ ​ 1,464,394 Prepaid assets ​ 2,864,554 Liabilities assumed ​ Accounts and revenues payable ​ (1,234,862) Asset retirement obligations ​ (2,979,645) Total Identifiable Net Assets ​ $ 297,025,215 ​ The Company will continue to evaluate the fair value of the assets and liabilities reflected above and will record any adjustments, if needed, in future periods. The following unaudited pro forma information for the three and six months ended June 30, 2019 and 2018, respectively, is presented to reflect the operations of the Company as if the acquisition of assets had been completed on January 1, 2019 and 2018, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months ​ For The Six Months ​ ​ Ended June 30, ​ Ended June 30, ​ 2019 2018 2019 2018 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and Gas Revenues ​ $ 57,999,639 ​ $ 48,490,870 ​ $ 99,797,954 ​ $ 91,250,272 Net Income ​ $ 12,435,698 ​ $ 12,990,504 ​ $ 23,525,139 ​ $ 24,721,646 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic Earnings per Share ​ $ 0.18 ​ $ 0.21 ​ $ 0.35 ​ $ 0.41 Diluted Earnings per Share ​ $ 0.18 ​ $ 0.21 ​ $ 0.34 ​ $ 0.40 ​

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 6 – DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to fluctuations in crude oil and natural gas prices on its production. It 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 its 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, the use also may limit future income from favorable commodity price movements. During March and April 2019, 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 a 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 trades were for a total of 5,500 barrels of oil per day for the period of April 2019 through December 2019 and 2,000 barrels of oil per day for the period of January 2020 through December 2020. The following table reflects the put and call prices of those contracts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date entered into Barrels per day Put price Call price 2019 contracts ​ ​ ​ ​ ​ ​ ​ ​ 03/12/19 1,500 ​ $ 50.00 ​ $ 66.00 03/13/19 500 ​ 50.00 ​ 67.40 03/20/19 500 ​ 50.00 ​ 67.90 03/20/19 ​ 1,000 ​ ​ 50.00 ​ ​ 68.71 04/01/19 ​ 1,000 ​ ​ 50.00 ​ ​ 69.50 04/03/19 ​ 1,000 ​ ​ 50.00 ​ ​ 70.20 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 contracts ​ ​ ​ ​ ​ ​ ​ ​ 04/01/19 ​ 1,000 ​ ​ 50.00 ​ ​ 65.83 04/01/19 1,000 ​ 50.00 ​ 65.40 ​ On September 25, 2017, the Company entered into derivative contracts in the form of costless collars for the period of January 2018 through December 2018 for 1,000 barrels per day with a put price of $49.00 and a call price of $54.60. On October 27, 2017, the Company entered into costless collars of WTI Crude Oil for the period of January 2018 through December 2018 for an additional 1,000 barrels of oil per day with a put price of $51.00 and a call price of $54.80. 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 (expense) 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. At June 30, 2019, 100% of our volumes subject to derivative instruments are with lenders under our Credit Facility (as defined in Note 8).

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2019
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 7 – FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The authoritative guidance requires disclosure of the framework for measuring fair value and requires that fair value measurements be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that we value using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy. We continue to evaluate our inputs to ensure the fair value level classification is appropriate. When transfers between levels occur, it is our policy to assume that the transfer occurred at the date of the event or change in circumstances that caused the transfer. The fair values of the Company’s derivatives are not actively quoted in the open market. The Company uses a market approach to estimate the fair values of its derivative instruments on a recurring basis, utilizing commodity futures pricing for the underlying commodities provided by a reputable third party, a Level 2 fair value measurement. The following table summarizes the valuation of our assets and liabilities that are measured at fair value on a recurring basis. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement Classification ​ ​ ​ ​ ​ Quoted prices in ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actives Markets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for Identical Assets ​ Significant Other ​ Significant ​ ​ ​ ​ ​ or (Liabilities) ​ Observable Inputs ​ Unobservable ​ ​ ​ ​ (Level 1) (Level 2) Inputs (Level 3) Total As of June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and gas derivative contracts ​ $ — ​ $ 1,189,545 ​ $ — ​ $ 1,189,545 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ — ​ $ 1,189,545 ​ $ — ​ $ 1,189,545 ​

REVOLVING LINE OF CREDIT

REVOLVING LINE OF CREDIT	6 Months Ended
	Jun. 30, 2019
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT	NOTE 8 – 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 (the “Administrative Agent”), which was amended on June 14, 2018, May 18, 2016, July 24, 2015, and June 26, 2015. In April 2019, the Company amended and restated its Credit Agreement with the Administrative Agent (as amended and restated, the “Credit Facility”). The amendment and restatement of the Credit Facility, among other things, increases the maximum borrowing amount to $1 billion, increases the borrowing base (the “Borrowing Base”) to $425 million, extends the maturity date through April 2024 and makes other modifications to the terms of the Credit Facility. The Credit Facility is secured by a first lien on substantially all of the Company’s assets. 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. The Borrowing Base will also be reduced in certain circumstances such as the sale or disposition of certain oil and 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. 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 (as defined in the Credit Facility) plus 0.5% per annum, the (iii) adjusted LIBOR determined on a daily basis for an interest period of one-month, plus 1.00% per annum and (iv) 0.00% per annum, plus (b) a margin between 0.75% and 1.75% (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 (as defined in the Credit Facility) of not more than 4.0 to 1.0 and (ii) a minimum current ratio of Current Assets to Current Liabilities (as such terms are defined in the Credit Facility) of 1.0 to 1.0. The Credit Facility also contains other customary affirmative and negative covenants and events of default. As of June 30, 2019, $360,500,000 was outstanding on the Credit Facility. We are in compliance with all covenants contained in the Credit Facility.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	6 Months Ended
	Jun. 30, 2019
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION	NOTE 9 – ASSET RETIREMENT OBLIGATION The Company provides for the obligation to plug and abandon oil and gas wells at the dates properties are either acquired or the wells are drilled. The asset retirement obligation is adjusted each quarter for any liabilities incurred or settled during the period, accretion expense and any revisions made to the estimated cash flows. The asset retirement obligation incurred at the time of drilling was computed using the annual credit-adjusted risk-free discount rate at the applicable dates. Changes in the asset retirement obligation were as follows: ​ ​ ​ ​ ​ Balance, December 31, 2018 $ 13,055,797 Liabilities acquired ​ 2,979,645 Liabilities incurred ​ 441,244 Liabilities settled ​ (384,956) Accretion expense ​ 445,179 Balance, June 30, 2019 ​ $ 16,536,909 ​

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2019
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 10 – STOCKHOLDERS’ EQUITY Common Stock Issued in Public Offering 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 $81,819,073, after deducting underwriting commissions and offering expenses payable by the Company of $4,476,927.

EMPLOYEE STOCK OPTIONS AND REST

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN	6 Months Ended
	Jun. 30, 2019
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN	NOTE 11 – EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN Compensation expense charged against income for share-based awards during the three and six months ended June 30, 2019, was $808,734 and $1,643,199, respectively, as compared to $1,081,199 and $2,083,547, respectively, for the three and six months ended June 30, 2018. These amounts are included in general and administrative expense in the accompanying financial statements. In 2011, the board of directors and stockholders approved and adopted a long-term incentive plan which allowed for the issuance of up to 2,500,000 shares of common stock through the grant of qualified stock options, non-qualified stock options and restricted stock. In 2013, the Company’s board of directors and stockholders approved an amendment to the long-term incentive plan, increasing the number of shares eligible under the plan to 5,000,000 shares. As of June 30, 2019, there were 668,340 shares remaining eligible for issuance under the plan. Stock Options A summary of the stock option activity as of June 30, 2019, and changes during the six months then ended is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ Weighted- ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ ​ ​ Exercise ​ Contractual ​ Intrinsic ​ ​ Shares ​ Price ​ Term ​ Value Outstanding, December 31, 2018 2,751,000 ​ $ 6.28 ​ Granted — ​ $ — ​ Forfeited or rescinded (2,500) ​ $ 11.70 ​ Vested — ​ $ — ​ Outstanding, June 30, 2019 2,748,500 ​ $ 6.28 4.5 Years ​ $ 493,750 Exercisable, June 30, 2019 2,327,400 ​ $ 5.42 4.0 Years ​ ​ The intrinsic value was calculated using the closing price on June 28, 2019 of $3.25. As of June 30, 2019, there was $1,239,664 of unrecognized compensation cost related to stock options that is expected be recognized over a weighted-average period of 1.7 years. Restricted Stock A summary of the restricted stock activity as of June 30, 2019, and changes during the six months then ended is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average Grant ​ ​ Restricted stock ​ Date Fair Value Outstanding, December 31, 2018 878,360 ​ $ 7.36 Granted 15,400 ​ 5.01 Forfeited or rescinded (4,120) ​ 7.13 Vested (400) ​ 13.32 Outstanding, June 30, 2018 889,240 ​ $ 7.31 ​ As of June 30, 2019, there was $4,046,963 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 1.9 years.

CONTINGENCIES AND COMMITMENTS

CONTINGENCIES AND COMMITMENTS	6 Months Ended
	Jun. 30, 2019
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS	NOTE 12 – CONTINGENCIES AND COMMITMENTS Standby Letters of Credit Surety Bonds intends to renew the surety bonds on $400,000 as long as the Company does business in the State of New Mexico. The remaining $100,438 should not require renewal after the initial one year term.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS The Company has evaluated subsequent events from June 30, 2019, through the date of filing this Form 10-Q and determined there are no other items to disclose.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Condensed Financial Statements	Condensed Financial Statements Certain notes and other disclosures have been omitted from these interim financial statements. Therefore, these financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2018.
Organization and Nature of Operations	Organization and Nature of Operations –
Use of Estimates	Use of Estimates
Fair Measurements	Fair Measurements
Fair Values of Financial Instruments	Fair Values of Financial Instruments
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities When applicable, the Company records all derivative instruments, other than those that meet the normal purchases and sales exception, on the balance sheet as either an asset or liability measured at fair value. Changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. During the three and six months ended respectively, on derivative contracts. During the three and six months ended June 30, 2018, the change in fair value resulted in the recognition of unrealized losses of $1,099,273 and $1,889,974, respectively, on derivative contracts. During the three and six months ended June 30, 2019, the Company had no realized gain or losses on derivatives. During the three and six months ended June 30, 2018, the Company had realized losses on derivatives of $2,402,426 and $3,877,452, respectively.
Concentration of Credit Risk and Major Customer	Concentration of Credit Risk and Major Customer Approximately 94% of the Company’s accounts and joint interest billing receivables are from purchasers of oil and gas. Oil and gas sales are generally unsecured. The Company has not had any significant credit losses in the past and believes its accounts and joint interest billing receivables are fully collectable. Accordingly, no allowance for doubtful accounts has been provided at June 30, 2019. 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.
Oil and Gas Properties	Oil and Gas Properties All capitalized costs of oil and gas properties, plus estimated future costs to develop proved reserves, are amortized on the unit-of-production method using estimates of proved reserves as determined by independent petroleum engineers. The Company evaluates oil and gas properties for impairment at least annually. Depreciation, depletion and amortization expense for the three and six months ended June 30, 2019, was $14,615,270 and $27,544,324, respectively, based on depletion at the rate of $14.70 and $14.72 per barrel of oil equivalent compared to $9,144,115 and $17,645,494, respectively, based on depletion at the rate of $16.36 and $17.40 per barrel of oil equivalent for the three and six months ended June 30, 2018. These amounts include $66,277 and $107,431, respectively, of depreciation for the three and six months ended June 30, 2019, compared to $48,740 and $129,186, respectively, of depreciation for the three and six months ended June 30, 2018.
Equipment, vehicles and leasehold improvements	Equipment, vehicles and leasehold improvements
Asset Retirement Obligation	Asset Retirement Obligation
Revenue Recognition	Revenue Recognition Revenues from Contracts with Customers (Topic 606) 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.
Share-Based Employee Compensation	Share-Based Employee Compensation
Share-Based Compensation to Non-Employees	Share-Based Compensation to Non-Employees
Income Taxes	Income Taxes In January 2017, the Company adopted ASU 2016-09, Compensation – Stock Compensation (Topic 718.) 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”, 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%.
Recently Adopted Accounting Pronouncements	Recently Adopted 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 Recent Accounting Pronouncements Fair Value Measurement (Topic 820): Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”).
Basic and Diluted Earnings (Loss) per Share	Basic and Diluted Earnings (Loss) per Share

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Jun. 30, 2019
REVENUE RECOGNITION
Schedule of revenues disaggregated by product	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months For The Six Months ​ ​ Ended June 30, ​ Ended June 30, ​ ​ 2019 2018 ​ 2019 2018 Operating revenues ​ ​ ​ ​ Oil ​ $ 50,793,472 ​ $ 28,962,880 ​ $ 91,671,455 ​ $ 58,103,045 Natural gas ​ 540,753 ​ 962,003 ​ 1,461,085 ​ 1,713,229 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues ​ $ 51,334,225 ​ $ 29,924,883 ​ $ 93,132,540 ​ $ 59,816,274 ​

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
LEASES
Schedule of future lease payments of operating lease and finance lease	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 2020 2021 2022 Operating lease payments (1) ​ $ 256,350 ​ $ 42,725 ​ $ — ​ $ — Financing lease payments (2) ​ ​ 115,783 ​ ​ 231,565 ​ ​ 231,565 ​ ​ 88,478 (1) The weighted average discount rate as of June 30, 2019 for operating leases was 5.01 %. Based on this rate, the future lease payments above include imputed interest of $4,980. (2) The weighted average discount rate as of June 30, 2019 for financing leases was 5.28 %. Based on this rate, the future lease payments above included imputed interest of $53,710. ​
Schedule of lease cost	​ ​ ​ ​ ​ ​ 2019 Operating lease costs ​ $ 256,350 Short term lease costs (1) ​ ​ 307,518 Financing lease costs: ​ ​ ​ Amortization of financing lease assets (2) ​ ​ 25,956 Interest on lease liabilities (3) ​ ​ 4,029 (1) Amount included in Oil and gas production costs (2) Amount included in Depreciation, depletion and amortization (3) Amount included in Interest expense

EARNINGS PER SHARE INFORMATION

EARNINGS PER SHARE INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE INFORMATION
Schedule of earnings per share, Basic and Diluted	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months ​ For The Six Months ​ ​ Ended June 30, ​ Ended June 30, ​ 2019 2018 2019 2018 Net Income ​ $ 12,375,256 ​ $ 4,719,806 ​ $ 23,464,697 ​ $ 10,385,440 Basic Weighted-Average Shares Outstanding ​ 67,357,645 ​ 60,388,029 ​ 65,305,081 ​ 58,412,825 Effect of dilutive securities: ​ ​ ​ ​ ​ ​ Stock options ​ 217,472 ​ 1,499,886 ​ 418,397 ​ 1,495,482 Restricted stock ​ 95,142 ​ 76,095 ​ 128,870 ​ 59,002 Diluted Weighted-Average Shares Outstanding ​ 67,670,259 ​ 61,964,010 ​ 65,852,348 ​ 59,967,309 Basic Earnings per Share ​ $ 0.18 ​ $ 0.08 ​ $ 0.36 ​ $ 0.18 Diluted Earnings per Share ​ $ 0.18 ​ $ 0.08 ​ $ 0.36 ​ $ 0.17

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2019
ACQUISITIONS.
Schedule of fair values of the assets acquired and the liabilities assumed	​ ​ ​ ​ ​ Assets acquired: ​ ​ Proved oil and gas properties ​ $ 296,910,774 Joint interest billing receivable ​ ​ 1,464,394 Prepaid assets ​ 2,864,554 Liabilities assumed ​ Accounts and revenues payable ​ (1,234,862) Asset retirement obligations ​ (2,979,645) Total Identifiable Net Assets ​ $ 297,025,215
Schedule of business acquisition pro forma information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months ​ For The Six Months ​ ​ Ended June 30, ​ Ended June 30, ​ 2019 2018 2019 2018 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and Gas Revenues ​ $ 57,999,639 ​ $ 48,490,870 ​ $ 99,797,954 ​ $ 91,250,272 Net Income ​ $ 12,435,698 ​ $ 12,990,504 ​ $ 23,525,139 ​ $ 24,721,646 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic Earnings per Share ​ $ 0.18 ​ $ 0.21 ​ $ 0.35 ​ $ 0.41 Diluted Earnings per Share ​ $ 0.18 ​ $ 0.21 ​ $ 0.34 ​ $ 0.40 ​

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of put and call prices of those contracts	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date entered into Barrels per day Put price Call price 2019 contracts ​ ​ ​ ​ ​ ​ ​ ​ 03/12/19 1,500 ​ $ 50.00 ​ $ 66.00 03/13/19 500 ​ 50.00 ​ 67.40 03/20/19 500 ​ 50.00 ​ 67.90 03/20/19 ​ 1,000 ​ ​ 50.00 ​ ​ 68.71 04/01/19 ​ 1,000 ​ ​ 50.00 ​ ​ 69.50 04/03/19 ​ 1,000 ​ ​ 50.00 ​ ​ 70.20 ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 contracts ​ ​ ​ ​ ​ ​ ​ ​ 04/01/19 ​ 1,000 ​ ​ 50.00 ​ ​ 65.83 04/01/19 1,000 ​ 50.00 ​ 65.40 ​

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
FAIR VALUE MEASUREMENTS
Schedule of valuation of assets and liabilities that are measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement Classification ​ ​ ​ ​ ​ Quoted prices in ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actives Markets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ for Identical Assets ​ Significant Other ​ Significant ​ ​ ​ ​ ​ or (Liabilities) ​ Observable Inputs ​ Unobservable ​ ​ ​ ​ (Level 1) (Level 2) Inputs (Level 3) Total As of June 30, 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and gas derivative contracts ​ $ — ​ $ 1,189,545 ​ $ — ​ $ 1,189,545 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ $ — ​ $ 1,189,545 ​ $ — ​ $ 1,189,545 ​

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Jun. 30, 2019
ASSET RETIREMENT OBLIGATION
Schedule of asset retirement obligation	​ ​ ​ ​ ​ Balance, December 31, 2018 $ 13,055,797 Liabilities acquired ​ 2,979,645 Liabilities incurred ​ 441,244 Liabilities settled ​ (384,956) Accretion expense ​ 445,179 Balance, June 30, 2019 ​ $ 16,536,909 ​

EMPLOYEE STOCK OPTIONS AND RE_2

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Tables)	6 Months Ended
	Jun. 30, 2019
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
Summary of the stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ ​ ​ Weighted- ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Aggregate ​ ​ ​ ​ Exercise ​ Contractual ​ Intrinsic ​ ​ Shares ​ Price ​ Term ​ Value Outstanding, December 31, 2018 2,751,000 ​ $ 6.28 ​ Granted — ​ $ — ​ Forfeited or rescinded (2,500) ​ $ 11.70 ​ Vested — ​ $ — ​ Outstanding, June 30, 2019 2,748,500 ​ $ 6.28 4.5 Years ​ $ 493,750 Exercisable, June 30, 2019 2,327,400 ​ $ 5.42 4.0 Years ​ ​
Summary of the restricted stock activity	​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Average Grant ​ ​ Restricted stock ​ Date Fair Value Outstanding, December 31, 2018 878,360 ​ $ 7.36 Granted 15,400 ​ 5.01 Forfeited or rescinded (4,120) ​ 7.13 Vested (400) ​ 13.32 Outstanding, June 30, 2018 889,240 ​ $ 7.31 ​

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019
Organization And Summary Of Significant Accounting Policies [Line Items]
Unrealized gain (loss) on change in fair value of derivatives	$ 1,530,230	$ (1,099,273)	$ 1,189,545	$ (1,889,974)
Realized loss on derivatives	$ 0	2,402,426	$ 0	3,877,452
Percentage of accounts and joint interest billing receivables	94.00%		94.00%
Amortization expense	$ 14,615,270	9,144,115	$ 27,544,324	17,645,494
Depletion At The Rate Per Barrel	14.70	16.36	14.72	17.40
Depreciation	66,277	48,740	107,431	129,186
Adjustment to deferred tax asset for change in effective tax rate	$ (598,332)	$ 0	$ (4,471,900)	$ 1,158,604
Effective tax rate			21.00%
Accounting Standards Update 2016-02
Organization And Summary Of Significant Accounting Policies [Line Items]
Operating lease, term					12 months
Maximum
Organization And Summary Of Significant Accounting Policies [Line Items]
Useful life			7 years
Minimum
Organization And Summary Of Significant Accounting Policies [Line Items]
Useful life			5 years
Sales Revenue, Net | Customer One
Organization And Summary Of Significant Accounting Policies [Line Items]
Percentage of concentration risk			45.00%
Sales Revenue, Net | Customer Two
Organization And Summary Of Significant Accounting Policies [Line Items]
Percentage of concentration risk			35.00%
Accounts Receivable | Customer One
Organization And Summary Of Significant Accounting Policies [Line Items]
Percentage of concentration risk			44.00%
Accounts Receivable | Customer Two
Organization And Summary Of Significant Accounting Policies [Line Items]
Percentage of concentration risk			30.00%

REVENUE RECOGNITION (Details)

REVENUE RECOGNITION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
REVENUE RECOGNITION
Oil	$ 50,793,472	$ 28,962,880	$ 91,671,455	$ 58,103,045
Natural gas	540,753	962,003	1,461,085	1,713,229
Total operating revenues	$ 51,334,225	$ 29,924,883	$ 93,132,540	$ 59,816,274

LEASES (Details)

LEASES (Details)	6 Months Ended
	Jun. 30, 2019USD ($)
Operating lease payments
2019	$ 256,350
2020	$ 42,725
Weighted average discount rate	5.01%
Imputed interest	$ 4,980
Financing lease payments
2019	115,783
2020	231,565
2021	231,565
2022	$ 88,478
Weighted average discount rate	5.28%
Imputed interest	$ 53,710

LEASES - Supplemental informati

LEASES - Supplemental information regarding cash flows from operations (Details)	6 Months Ended
	Jun. 30, 2019USD ($)
LEASES
Operating Lease, Cost	$ 256,350
Short-term Lease, Cost	307,518
Financing lease costs:
Amortization of financing lease assets	25,956
Interest on lease liabilities	$ 4,029

EARNINGS PER SHARE INFORMATIO_2

EARNINGS PER SHARE INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
EARNINGS PER SHARE INFORMATION, BASIC and DILUTED
Net Income	$ 12,375,256	$ 4,719,806	$ 23,464,697	$ 10,385,440
Basic Weighted-Average Shares Outstanding	67,357,645	60,388,029	65,305,081	58,412,825
Effect of dilutive securities:
Diluted Weighted-Average Shares Outstanding	67,670,259	61,964,010	65,852,348	59,967,309
Basic Earnings per Share	$ 0.18	$ 0.08	$ 0.36	$ 0.18
Diluted Earnings per Share	$ 0.18	$ 0.08	$ 0.36	$ 0.17
Employee Stock Option
Effect of dilutive securities:
Weighted Average Number Diluted Shares Outstanding Adjustment	217,472	1,499,886	418,397	1,495,482
Restricted Stock
Effect of dilutive securities:
Weighted Average Number Diluted Shares Outstanding Adjustment	95,142	76,095	128,870	59,002

EARNINGS PER SHARE INFORMATIO_3

EARNINGS PER SHARE INFORMATION - Stock options (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restricted Stock
Stock Options
Antidilutive securities	276,860		276,860
Common Stock
Stock Options
Antidilutive securities	1,013,500	583,500	2,353,500	583,500

ACQUISITIONS - Fair values of t

ACQUISITIONS - Fair values of the assets acquired and the liabilities assumed (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Assets acquired
Proved oil and gas properties	$ 296,910,774
Joint interest billing receivable	1,464,394	$ 0
Prepaid assets	2,864,554	0
Liabilities assumed
Accounts and revenues payable	(1,234,862)	0
Asset retirement obligation incurred through acquisition	(2,979,645)	$ 0
Total Identifiable Net Assets	$ 297,025,215

ACQUISITIONS - Business acquisi

ACQUISITIONS - Business acquisition pro forma information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
ACQUISITIONS.
Oil and Gas Revenues	$ 57,999,639	$ 48,490,870	$ 99,797,954	$ 91,250,272
Net Income	$ 12,435,698	$ 12,990,504	$ 23,525,139	$ 24,721,646
Basic Earnings per Share	$ 0.18	$ 0.21	$ 0.35	$ 0.41
Diluted Earnings per Share	$ 0.18	$ 0.21	$ 0.34	$ 0.40

ACQUISITIONS - Additional Infor

ACQUISITIONS - Additional Information (Details) $ / shares in Units, $ in Millions	Apr. 09, 2019USD ($)ashares	Jun. 30, 2019USD ($)	Feb. 25, 2019$ / shares
ACQUISITIONS
Gas and Oil Area, Developed, Net | a	38,230
Gas and Oil Area, Developed, Gross | a	49,754
Business Combination, Acquisition Related Costs | $		$ 4.1
Wishbone Acquisition [Member]
ACQUISITIONS
Payments to Acquire Businesses, Gross | $	$ 264.1
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	4,581,001
Common Stock Held in Escrow | shares	2,538,071
Business Acquisition, Share Price | $ / shares			$ 6.19
Average Working Interest [Member]
ACQUISITIONS
Business Acquisition, Percentage of Voting Interests Acquired	77.00%
Average Net Revenue Interest [Member]
ACQUISITIONS
Business Acquisition, Percentage of Voting Interests Acquired	58.00%

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details)	Jun. 30, 2019a$ / bbl
Commodity Contract
Barrels per day | a	1,500
Commodity Contract | Put Option
Put price	50
Commodity Contract | Call Option
Call price	66
Commodity Contract A
Barrels per day | a	500
Commodity Contract A | Put Option
Put price	50
Commodity Contract A | Call Option
Call price	67.40
Commodity Contract B
Barrels per day | a	500
Commodity Contract B | Put Option
Put price	50
Commodity Contract B | Call Option
Call price	67.90
Commodity Contract C
Barrels per day | a	1,000
Commodity Contract C | Put Option
Put price	50
Commodity Contract C | Call Option
Call price	68.71
Commodity Contract D
Barrels per day | a	1,000
Commodity Contract D | Put Option
Put price	50
Commodity Contract D | Call Option
Call price	69.50
Commodity Contract E
Barrels per day | a	1,000
Commodity Contract E | Put Option
Put price	50
Commodity Contract E | Call Option
Call price	70.20
Commodity Contract F
Barrels per day | a	1,000
Commodity Contract F | Put Option
Put price	50
Commodity Contract F | Call Option
Call price	65.83
Commodity Contract G
Barrels per day | a	1,000
Commodity Contract G | Put Option
Put price	50
Commodity Contract G | Call Option
Call price	65.40

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details)	Jun. 30, 2019bbl	Dec. 31, 2018$ / bbl	Oct. 27, 2017bbl	Sep. 25, 2017bbl
Number Of Barrels Per Day | bbl				1,000
Call Option
Derivative, Price Risk Option Strike Price | $ / bbl		54.60
Put Option
Derivative, Price Risk Option Strike Price | $ / bbl		49
April 2019 through December 2019
Number Of Barrels Per Day | bbl	5,500
January 2020 through December 2020
Number Of Barrels Per Day | bbl	2,000
Additional Derivative Contracts
Number Of Barrels Per Day | bbl			1,000
Additional Derivative Contracts | Call Option
Derivative, Price Risk Option Strike Price | $ / bbl		54.80
Additional Derivative Contracts | Put Option
Derivative, Price Risk Option Strike Price | $ / bbl		51

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring	Jun. 30, 2019USD ($)
Oil and gas derivative contracts	$ 1,189,545
Total	1,189,545
Fair Value, Inputs, Level 1
Oil and gas derivative contracts	0
Total	0
Fair Value, Inputs, Level 2
Oil and gas derivative contracts	1,189,545
Total	1,189,545
Fair Value, Inputs, Level 3
Oil and gas derivative contracts	0
Total	$ 0

REVOLVING LINE OF CREDIT (Detai

REVOLVING LINE OF CREDIT (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Apr. 30, 2019	Dec. 31, 2018
REVOLVING LINE OF CREDIT
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000,000
Borrowing Base of Credit Facility		$ 425,000,000
Debt Instrument, Basis Spread on Variable Rate	0.00%
Long-term Line of Credit	$ 360,500,000		$ 39,500,000
Minimum
REVOLVING LINE OF CREDIT
Debt Instrument, Basis Spread on Variable Rate	0.75%
Leverage Ratio	1.00%
Maximum
REVOLVING LINE OF CREDIT
Debt Instrument, Basis Spread on Variable Rate	1.75%
Leverage Ratio	4.00%
LIBOR
REVOLVING LINE OF CREDIT
Debt Instrument, Basis Spread on Variable Rate	1.00%
LIBOR | Minimum
REVOLVING LINE OF CREDIT
Debt Instrument, Basis Spread on Variable Rate	1.75%
LIBOR | Maximum
REVOLVING LINE OF CREDIT
Debt Instrument, Basis Spread on Variable Rate	2.75%
Federal Funds
REVOLVING LINE OF CREDIT
Debt Instrument, Basis Spread on Variable Rate	0.50%

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
ASSET RETIREMENT OBLIGATION
Beginning balance	$ 13,055,797
Liabilities acquired	2,979,645
Liabilities incurred	441,244
Liabilities settled	(384,956)
Accretion expense	445,179	$ 325,790
Ending balance	$ 16,536,909

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	1 Months Ended		6 Months Ended
	Apr. 30, 2019	Feb. 28, 2018	Jun. 30, 2019	Jun. 30, 2018	Feb. 25, 2019
STOCKHOLDERS' EQUITY
Proceeds from issuance of common stock, net of offering costs			$ 0	$ 81,819,073
Wishbone Partners, LLC
STOCKHOLDERS' EQUITY
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	4,581,001
Common Stock Held in Escrow	2,538,071
Business Acquisition, Share Price					$ 6.19
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned					$ 28,356,396
Underwritten Public Offering
STOCKHOLDERS' EQUITY
Stock Issued During Period, Shares, New Issues		6,164,000
Share Price		$ 14
Proceeds From Issuance Of Common Stock Gross		$ 86,296,000
Proceeds from issuance of common stock, net of offering costs		81,819,073
Payments of Stock Issuance Costs		$ 4,476,927
Over-Allotment Option
STOCKHOLDERS' EQUITY
Stock Issued During Period, Shares, New Issues		804,000

EMPLOYEE STOCK OPTIONS AND RE_3

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Stock Options (Details) - Equity Option	6 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
Options Outstanding at beginning of the year | shares	2,751,000
Granted | shares	0
Forfeited or rescinded | shares	(2,500)
Vested | shares	0
Options Outstanding at end of year | shares	2,748,500
Options Exercisable at end of year | shares	2,327,400
Weighted Average Exercise Price, Outstanding at beginning of the year | $ / shares	$ 6.28
Weighted Average Exercise Price, Granted | $ / shares	0
Weighted Average Exercise Price, Forfeited or rescinded | $ / shares	11.70
Weighted Average Exercise Price, Vested | $ / shares	0
Weighted Average Exercise Price, Outstanding at end of year | $ / shares	6.28
Weighted Average Exercise Price, Exercisable at end of year | $ / shares	$ 5.42
Options Outstanding - Weighted-Average Remaining Contractual Life (in years)	4 years 6 months
Options Exercisable - Weighted-Average Remaining Contractual Life (in years)	4 years
Aggregate Intrinsic Value | $	$ 493,750

EMPLOYEE STOCK OPTIONS AND RE_4

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Restricted Stock (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2019$ / sharesshares
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
Restricted stock, Outstanding at beginning of the year | shares	878,360
Restricted stock, Granted | shares	15,400
Restricted stock, Forfeited or rescinded | shares	(4,120)
Restricted stock, Vested | shares	(400)
Restricted stock, Outstanding at end of year | shares	889,240
Weighted-Average Grant Date Fair Value, Outstanding at beginning of the year | $ / shares	$ 7.36
Weighted-Average Grant Date Fair Value, Granted | $ / shares	5.01
Weighted-Average Grant Date Fair Value, Forfeited or rescinded | $ / shares	7.13
Weighted-Average Grant Date Fair Value, Vested | $ / shares	13.32
Weighted-Average Grant Date Fair Value, Outstanding at end of year | $ / shares	$ 7.31

EMPLOYEE STOCK OPTIONS AND RE_5

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2013	Dec. 31, 2011
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
Compensation Expenses Charged Against Income For Share Based Awards Included In General And Administrative Expenses	$ 808,734	$ 1,081,199	$ 1,643,199	$ 2,083,547
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						2,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized					5,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	668,340		668,340
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 3.25		$ 3.25
Employee Stock Option
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 1,239,664		$ 1,239,664
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 8 months 12 days
Restricted Stock
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 4,046,963		$ 4,046,963
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 10 months 24 days

CONTINGENCIES AND COMMITMENTS (

CONTINGENCIES AND COMMITMENTS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CONTINGENCIES AND COMMITMENTS
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000,000
Standby letters of credit drawn	321,000,000	$ 0
Standby Letters of Credit
CONTINGENCIES AND COMMITMENTS
Standby letters of credit drawn	0
Surety Bonds
CONTINGENCIES AND COMMITMENTS
Issued surety bonds	$ 500,438
Extended term for surety bonds (in years)	1 year
Surety bonds renewal amount	$ 400,000
Surety bonds renewal amount, not applicable	100,438
State and federal agencies | Standby Letters of Credit
CONTINGENCIES AND COMMITMENTS
Line of Credit Facility, Maximum Borrowing Capacity	$ 260,000
Extended term under letter of credit arrangement (in years)	1 year
Electric utility companies | Standby Letters of Credit
CONTINGENCIES AND COMMITMENTS
Line of Credit Facility, Maximum Borrowing Capacity	$ 741,000
Debt Term (in years)	1 year