Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Ring Energy Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note today's event is being recorded.

the Energy. to turn Relations Petrie, now Ring for would call Al over Investor I

Al Petrie

operator, good call events. and you, Board of Ring Paul Thank key and our and Energy. interest appreciate McKinney, the provide We'll in CEO, your matters who begin an of for subsequent our Chairman with will from morning, comments the everyone. overview We quarter second

financial Thomas, before who plans then will turn our Paul We will EVP Officer, questions. Chief Financial and the over return Travis the then for and Ring's to future review to we results. will our call call discuss open outlook

Also joining VP and Human Steve Executive and Dyes, VP Marketing. for us of of Resources Brooks, Engineering and Executive of the Operations; VP Strategy; today Land, Executive available Q&A and Legal, session Baghdati, Alex the on are Corporate call Marinos

ask we a limit session, follow-up. Q&A questions and the you to one to During your

welcome questions. queue to later You the additional with re-enter are

I presentation a would also note XXXX our on earnings posted quarter second website. that we have corporate

the or call, statements this the future actual are not such will company developments materially those of projected will differ prove in statements forward-looking that results and give no Federal those correct. of forward-looking from forward-looking the and company that conference Laws. cautioned Securities guarantees the statements, of may can the meaning forward-looking statements assurance within to performance, making be are be During course Investors

materialize of found Investors our These or the may in should SEC. prove Should on events update otherwise. forward-looking reliance obligation actual risks other of intention to any assumptions more documents any result results not with new disclaims Energy in are Ring differ section should described and These can place www.ringenergy.com. Accordingly, in a be or revise incorrect, whether yesterday's future risks forward-looking website, or or statements. or these materially. one press underlying statements, of you information, release undue and the our as filings

may of comparable call release. include measures non-GAAP measures. certain contained Reconciliations most conference directly under This in earnings measure financial are financial non-GAAP the also these GAAP to references to yesterday's

as Finally, this is recorded. being a reminder, conference

me over call our now, to So Paul Chairman the and let McKinney, CEO. turn

Paul McKinney

Welcome, Al. Ring and interest us today. Energy joining for for you in and your Thanks, thank everyone,

$XX Our cash combination was prices spending, when and lower early credit of we and highlighted our of capital sale by warrants; from Through our lower from XXXX second generation the our the of outstanding assets, paid proceeds quarter. compared million despite lower our the down quarter cash production flow Basin non-core the borrowings exercise strong lower credit in first over reduced remainder commodity expense, of to Delaware proceeds facility. G&A the under substantial -- LOE, levels

unpack to here, lot a into details. so the let's is There get

the which earlier and per Founders of barrels of non-core quarter, During incremental to day, the XX,XXX equivalent acquisition. funding expectations, oil The and we Delaware second to short and due benefits lower of the assets of our projects due drilling deferral announced workover of two sale our the anticipated certain Basin things. commodity primarily prices and sold fell previously

and lower quarter. over posting However, the than efforts business. ongoing metrics, Boe, efficiencies was year-end drive first of of the lower lower lease grew the Impacting at of mid-point cost volumes to in the year. when further This which X% per X% sales included quarter quarter our year's guidance looking XX% last second was expense we $XX.XX this or year-over-year than operating second our

expense. in We also saw G&A sequential quarterly a reduction

his comments. and a decrease in year. of the sale share Delaware quarter in costs for transaction a $X.XX will last first XX% from Boe, from and recorded details XX% per Basin assets, of the compensation quarter share-based more of quarter G&A Excluding was Travis second we our expense this which decrease regard second

drilled During horizontal with in working completed Northwest second the X-mile quarter, the interest. and each we XX.X% wells Shelf two

We two in of XXX% working Northwest the a horizontal and interest with the of a one Shelf, working X.X-mile wells interest also XX.X%. drilled other with

vertical CBP have and a three South Additionally, recompletions and completed of wells of which our all in two acreage, performed working XXX%. we drilled interest

In quarter of per net of $X.XX $XX.X diluted million the or second reported share. XXXX, we income

generated of than quarter, also We adjusted X% second $XX.X XX% million the quarter. was that than but higher year's EBITDA first lower last

$XX was basis, accrual our to due to projects, million our which drilling $XX spent million an On range workover and below capital certain decision $XX.X defer to on of million, guidance projects. we primarily

was first cash that quarter the In cash flow and free adjusted XX% the second of our strong adjusted $XX.X than marked free consecutive generated flow of quarter quarter, million higher generation. also we XXth

the quarter, to Basin stockholders. positions in for generate During the returns to complete Delaware and focus continue significant $X a Platform second million. our sale building assets sale emphasizes our core net developing we were Shelf proceeds our non-core Basin pleased The of the our on Central that of in for the Northwest

in know, may which you will core of our are Mexico assets, we potential development As hope our the consolidate Texas. efforts pursuing New we us help sale

At remained April, second only entered XX,XXX the end of shares warrants net early for proceeds of warrants resulted with of As that the outstanding. to the quarter, in agreements outstanding announced stock exercise cash common into we million in XX.X purchase company's previously of the of $X.X our certain warrants holders million.

warrants, Strong from assets, the the pay $XX cash with sale of early worth million the net of of Delaware down the proceeds and the of our resulted generation, combined in exercise debt. Basin flow

first XXX% we quarter with the than year-over-year. and As second a result, of was which million $XXX higher liquidity, the higher ended XX% quarter

ended of a we X.XXx. ratio the Finally, leverage quarter with second

assets outlook County, development are to operations focused Ector and similar had acres Oil our Founders in of over X,XXX month, I'd this that agreement are Last discuss the four of the remainder closing of Platform this and acquired announced total are we of Gas. quarter on & acquire of we Travis, deferred that year. into Founders months Basin located million our million recently expected effective after later for Central Texas, Founders the August like announced to approximately $XX to Acquisition this closing we that April turning million an and due close The Before month, consideration cash at The transaction date third hopefully cash adjustments $XX assets an has to last of to of CBP a the it subject consists in is $XX X. XX, year. customary in and closing. the entered payment to

opportunities our cash immediately Ring's locations flow, The rate down by capital improves strengthens high including our of acquired low operating The risk, our assets ability are similar to proven accretive Founders to Acquisition having of leverage to pay we to our strategically that transaction and other increases assets flexibility. our core rock captures with reduce expands stacked with return accelerates costs, and synergies provides metrics. sheet efficiencies, production, and improve CBP The expanding pay a adjusted ratio, area. associated key takeaway performance. debt, the reserves, existing is drilling capacity, free last balance the transaction stockholders, our lowering zones with inventory infrastructure core further allocation These area quality operating year high

the expertise transaction. and assets, our unconventional successfully leverage technologies optimally inventory drilling As the develop we of extensive by our with to done afforded the conventional undeveloped locations applying intend other newest we to have

our for assets the of as pending the the pro Basin of the transaction, fourth transaction we reflect second announcement In impact the to provided and as sale completed Delaware quarter quarter. forma guidance well third during the XXXX

than to are million spending XXXX million to the $XXX.X program $XX in $XXX.X half $XX less spending our to million, That forma brings to total full-year announcement. pro is prior We of million targeting the capital acquisition guidance capital million which $XX mid-point of the XXXX. second at our

Our legacy to acreage vertical horizontal and efficient combination wells and second on a recompletions acreage. our the program a includes half capital CBP four development to XXXX drilling wells and few of X South in XX balanced six

targeted and drilling and price $XX capital our spending and completion infrastructure per workovers. estimates oil and on program WTI based workovers funds includes -- an leasing upgrades, Additionally, assumed $XX projects of costs, non-operated between capital barrel. All capital are for

XX,XXX prices to per barrels changes equivalent guidance, per of our day equivalent other with respect respect in those fourth of XX% sales being barrels commodity the volumes third flexibility conditions. oil. in oil oil of market volumes we XX,XXX barrels expect those As program continue of with spending XX,XXX to designed production the XXXX barrels to of to With oil have day to past, and oil to and quarter XX,XXX of to we respond being equivalent equivalent of the XX% per oil. With quarter, day day, of we expect per volumes

of for XX% and X% respectively and year's second this third mid-point the this Assuming fourth represents the a quarter quarter. guidance, from increase

discuss our So call over with in guidance to that, and the turn more results detail. financial Travis Travis? to I'll

Travis Thomas

everyone. morning, good and Thanks, Paul,

flow warrant from the we for facility so sum Basin credit able were to quarter, net CapEx million LOE of proceeds and on was from oil supported this gas our lower To and down early cash we to combined up operations. our helped pay reduced lower assets, exercise G&A; the second pullback also in program This the the our by resulted preserve Further accordingly. a adjusted our Acquisition. with production, Delaware sale prepare there pending $XX in but prices, Founders

X.X a XXXX million NGLs or of barrels and more X.X gas, Boe of Looking detail, natural day. X.X in Boe at we quarter for approximately the oil, second XXX,XXX Bcf sold barrels of per XX,XXX of million total

the per $XX.XX of crude was was of for basis processing barrel see the $XX.XX the quarter negative per for exceeded barrel or Boe. Please negative details. more natural pricing Mcf This than the natural Boe. oil, XXXX of Driving was a Hub quarter first of $XX.XX of per and Realized XX-Q costs second gas lower differentials. NGLs, pricing per realized per $XX.XX $X.XX gas that of X% price less Henry

was Argus price quarter $X.XX on barrel per a first versus per WTI $X.XX average to oil increased role that WTS, from $X.XX and quarter. pricing $X.XX the CMA Argus futures the barrel quarter. differential was due per for that WTI average barrel second negative This negative a per NYMEX increased the the from barrel Our first

price a $X.XX second pricing quarter. negative $X.XX natural a per average compared Our for gas was negative the Mcf NYMEX differential first to per Mcf the futures from for quarter

which the down price XX% result was first realized revenue compared second from combined XXXX realized million, first hedges. down XX% the quarter. $XX.X after of $X.X the but for averaged million NGL Our $X.X The second for of only to quarter, million quarter quarter was for WTI

guidance. first per quarter volumes. to variable LOE the decrease sale second basis, and $XX.XX absolute of for On was costs LOE and mid-point the quarter the the million for assets LOE million reduced of per our lower than was the X% sales below the or lower Contributing first was versus $XX.XX, Delaware the our Boe $XX.X with quarter. for $XX.X X% in a associated Boe

Boe versus per Boe tax million with per rate $X.XX Production the taxes or $X.X or steady were first quarter, $X at million remaining for the $X.XX X%. approximately

DD&A DD&A million per million quarter. a basis, compared $XX.XX the $XX.XX. $XX.X to to increased for from was $XX.X first On Boe

compensation share-based excludes which the was $X.X G&A, $X.X million Cash quarter. million versus first for

was second for the In of versus included cost the Boe, $XXX,XXX quarter for the in transaction the received per XX% per Year-over-year, was cost, sequential decrease. decrease a $XXX,XXX credit our Adjusting saw addition, $X.XX $X.XX of Boe employee sale Contributing assets. for approximately a G&A about Boe to the G&A Delaware transaction basis. cash decrease on we second in the a cash quarter. XX% retention tax

day versus per the would additional due non-cash month of to that interest quarter I in the million $XXX,XXX expense about in with $XX.X was higher note interest rate expense includes increase a amortization. substantially also million period. the for the slight one first Interest $XX.X

derivative first million $X.X the gain million to for $X.X was Our contracts quarter. on compared

million tax release in million of quarter, allowance. valuation income our $X.X quarter income an of primarily benefit second the benefit non-cash $X versus a a partial recorded tax driving We first was the of provision

As company is a position. in cumulative June of income the three-year XXXX,

allowance considered forecasted million of with in a future item projections. result, by expectation positive benefit valuation was as release current a evidence the in a of end income of of discrete recording quarter the second the on released assessing As the allowance. as a $X.X the pre-tax full based valuation We XXXX allowance portion of the tax book a

reported quarter, $XX.X of second we the During diluted share. net million or $X.XX income per

quarter gain million or quarter on million $XX.X Excluding estimated unrealized diluted share. after-tax million share. diluted costs, our is non-cash $X.X $XX second impact was $X.XX income pre-tax XXXX to net first the items expense, adjusted for share-based in per net our $X.X transaction income compensation of including approximately compared $X.XX This or per hedges, $XXX,XXX and million XXXX for of

adjusted for on impact $X.X million million net compensation share-based non-cash first income after-tax or estimated including the of Excluding per expense, million our items pre-tax was $XX.X $X.XX quarter share. unrealized for hedges and gain diluted $XX

million quarter. the $XX.X million We in generated first versus $XX.X adjusted of EBITDA

pricing, Second quarter decrease million in same a legacy field More EBITDA reported Boe on direct the further XXXX a a $XX.X adjusted in efforts realized increased last targeted development assets, offsetting EBITDA and the basis. higher than drive in materially year-over-year was the pricing result year's cost adjusted decrease ongoing efficiencies. XX% our of to period in XX% additional despite acquisition as we of CBP than initiatives,

flow for $XX.X million, cash quarter. increase second of million from the free quarter the in XXXX was first a $XX.X Adjusted XX% the

free our saw quarter me and associated discipline This and let cash We a adjusted So program. flow despite pricing repeat optionality lower increase lower spending that. production. with demonstrates XX% in capital the second

the of remaining $X.X of discuss aggregate exercise helped I'll in us received outstanding. warrants we in debt April, reduction. accelerate with that resulted only of count, share our holders all executed million XX.X XX,XXX proceeds had agreements our which We million, early that net June at of warrants. certain At XX, an warrants nearly of we outstanding Looking

Additionally, from sale during non-core million the from with of proceeds of the operations net Delaware sale received of in early our $XX flow resulted the the second of from our down second million $X assets. debt quarter. cash pay assets quarter, and combined in Strong generation Delaware during the net we the warrants outstanding of the exercise proceeds

credit. had million ratio As had with we of result, leverage X.XXx. million, a and the net at we had on with XX, in $XXX.X current a million approximately base a letters $X.X cash, million of facility credit Combined million of the $XXX of liquidity $XXX available June we borrowing $XXX drawn of

will more we in Founders acquisition. believe, the be we As Paul we balance once discussed, to near-term, debt the quickly will sheet down while the Acquisition positioned add to debt better our close pay

and debt realize the quarterly the considerations of down. beyond prices, transaction, reduction, for commodity paid debt remain timing look of spending focused other we we further and will level impact As the commitments the funding on capital cadence

release our to press and quarters. Turning details. earnings outlook and Please the for presentation fourth for third see our

We are second Founders million forma to $XX reaffirming of pro $XX million our target XXXX. half spending the of for in for capital the transaction

day XX,XXX to volume at for continue to and the day, volumes quarter. including XX% sales Looking XX% expect to per for we fourth our third guidance, sales Boe the oil oil of per quarter Boes including XX,XXX XX,XXX XX,XXX

the for X% mid-point the a Looking fourth quarters of quarter. at represents the guidance, second this third and and XX% from respectively increase

operating third for to For pro Acquisition, expenses, to of Founders LOE the forma $XX.XX per continue we target and fourth Boe. quarter $XX

about talk Now, let's hedge position. our

XXXX, For hedge estimated of barrels the have of remainder currently approximately on guidance. sales X.X the of our based million or approximately we oil mid-point XX% of oil

gas of our Bcf based XX% of estimated X.X have also natural We gas mid-point. on or hedged, sales natural approximately

price our our of which breakout position, earnings type. quarterly please a contract presentation, release see the For includes average hedge and each for

it turn that, back Paul? I to will his with for So closing comments. Paul

Paul McKinney

Thank you, Travis.

size per share and scale, progress year, and we made improving Over increasing our financial metrics, position. strengthening our substantial past the have our

key near-term, the closing our look assets Gas with & priority to into transaction Founders those As of and the pending Oil integrating operations. a we

us on to immediately before. core As and locations, Ring I sheet, our I talked capture strategically accelerates to down highly balance operating cost our of our operating G&A allowing debt, accretive emphasized earlier, ability and multiple to it area, further our drilling It synergies economic metrics. is inventory increases expands pay and it about those stockholders strengthens

the on XXXX With our on reducing the on and the year, operating pay capital In execution to of stockholders. another program, our spending continuing long-term cash flow respect to debt. for generation maximizing focus our of transaction costs our remains short, deliver step relentless efficient our free we to this view as goals down position focus rest to our company

our accelerated and sale As additional by us believe past, that will our to cash debt allowed in on have simplifying are strategy of on our flow for projects, examples the prioritizing positions exercise non-core down free high These accelerate spending stockholders. warrants assets we'll support drilling remain capital value initiatives our disciplined to long-term return focusing our our The we debt structure. Delaware pay capital asset targeting repayment. rate our drive core Basin and excess recompletion of outstanding in

our generate I've to consistently competitive our for course sense our returns value-focused of and with we proven strategy, In urgency, and staying said the stockholders. as the a the our sustainable our resolve short, with uncertainties in past, as prepare manage believe commitment to better industry should risks and company the and associated

we call that, turn Operator? with And will over questions. operator the this to for

Operator

Thank question-and-answer you. We'll the Instructions]. begin session. [Operator now

ahead. comes question Truist. Neal first Today's Dingmann with go Please from

Neal Dingmann

versus might Thanks be know of how like I'm guys. but car time. I know you now, horse are want little there team legacy economics before on Good you acreage just quickly for sort maybe quickly that. how to to how might Paul, just they and plan get looking Founders, on, the a the the after and curious get but morning, well here, you the premature, at

Paul McKinney

morning, for Yes. the just Neal. Founders XX have question, assets and little completed and team their assets The economics, Founders about not The really let's acre good spacing. down the Good talk bit. a

year, that for the If of to back my compare, and opinion. you example acquired Stronghold considered mature area less go assets in this we last is some

also have there have the spacing acre not to complete, XX down program XX only the down spacing. you but So out acre you

our anything So to these really portfolio. have economically competitive in we are very

on These the very you cycle opportunities investment short have so your times, the return drilling get quickly.

that competitive as are have. in the your and economic to best of portfolio very way the we investment they I so that equally opportunities our And many as question is answer very, best think that

at onto drill not get wells to this projects? we this will planned We And point so these quickly year. how have

-- the to this first around sum say disposal can that, to there to little more Marinos, there share out there? going then operations, systems systems to but won't operating change it some once turn But the especially on have arms how we've And over spending we'll to water to our we want believe identified him question to and we of a with Now wells. more is thing we're that do costs flush -- out you the we that's reduce Marinos I'm bit detail. not move capital program are going opportunities drilling managed. salt We forward a get to up,

Marinos Baghdati

an arms terms around -- restraints in as lowering see that. then in was wrapped optimize that's one side we production opportunity kind much infrastructure before costs around our as get operating area terms pivot of optimize current talk right. also always that drilling about and We That sir. it actually and production that And No, can exactly of the before new to and all it the -- we of to start next of able increasing it being we flexibility with adds wells. from to to

excited we're So really assets. about the

Alex Dyes

more thing, One Neal,

Neal Dingmann

Oh, go ahead.

Sorry.

Alex Dyes

Yes, Page pretty you over investments. is about CBP -- sorry. oil. This these our on how competitive. On Paul's see extensive; other XX nine more investments new some vertical Alex. Good can compare And talking morning, They're they're our of they're little Neal. of deck, actually to earnings bit what however, a XX%

a that's compelling really makes what So it investment.

disc and nice as to see get drill we recomplete, us here other operations some combination once a horizontal well vertically. capital some handled, the So as some drill wells, you'll it'll be deploy vertical

Neal Dingmann

maybe maybe talk, question, just and acreage, with I was just guys opportunities. potentially talk existing on guys, on So Paul, going to for and Thank on opportunities. on type refrac your or the rework just that pretty trying Alex, you -- or opportunities existing, not talked new I'm either the again, on Marinos, where that about on other much you have about wondering the or you. was about rework new the [indiscernible] next refrac counter, but acreage so legacy get the

Paul McKinney

opportunities that even not initially we've our it through specifically that identify that then do that we're similar efforts have acquisition we'll very assets undeveloped superior only have take to focused I'll our points into is but opportunities own fit to Part identifying operating core on bring areas with of what our economics, all maybe okay. Okay. to acquisition make. or tried

very present. So assets in of terms choosy we're that we're the

very It's that not PDP to to it production do I'd compelling say a that. a to value get wouldn't buy I at but have

so And that focused acquiring right economics. assets we're very competitive have now on

the once these assets legacy then the way is investment And we complete so have be the are of also opportunities with areas. the this situated and Stronghold way that transaction, very now, in right and company situated the competitive we that we'll assets, all

flexibility. might one next so be. a us it or gives move constraints system can on the investment of it whatever depending And project from capital to lot We

just so points that's Marinos and question, response And like so I'll that over both to your would I them. some think Alex make, to my to have that they it and turn

Alex Dyes

Neal. Yes,

jobs, your this or we kind recomplete? So question more of of In portfolio our small like blocking maintain far that forward both call that these do like, is workovers as takes as again. -- we going always base. handle assets to and/or we some we of how Alex moving quarter-to-quarter, will to continuously are asset Yes, just do tackling what cap it workover cap part do to production our regards as bring think or recomplete it whatever I we

blocking And we call always tackling. so what and

anything you'd to So like Marinos, add?

Marinos Baghdati

no. -- guys you No,

Paul McKinney

your Neal? that question, Did answer

Neal Dingmann

Thanks, It did. guys. Fantastic.

Paul McKinney

You're welcome.

Operator

Instructions]. [Operator you. Thank

John from comes go Capital. with Roth ahead. Please question next Today's White

John White

morning, Thanks for Good gentlemen. taking -- my

Paul McKinney

morning, Good John.

John White

Hey, good morning.

is Founders transaction the for a closing? set on there Following-up date

Paul McKinney

based inspections all targeted have assets and We that, inspecting looking going all we've verifying made to environmental along of everything title, very terms associated for progress on in well. with XX the the be appears the August issues

that can't we're I guarantee XX, but so XX. still August August on targeting And we'll close

John White

wells? with Thanks [Technical good And and asset, luck activity the be on your Difficulty] wells or would that. or much first recompletions vertical very horizontal

Paul McKinney

the do reduce really significantly to -- to on We change efficiencies. ideas improve and operating their there have going systems operations we operations get work. and we're to into how believe is the the thing understand costs first The how

doing. that's so of And first we're what to going time spend amount the

quite next We've as think a drilling arms few thing spacings. doing on completing as around the But associated work start get the is we with -- acre capital, XX to acre down once be be taking and get arms to evaluating very spacing around wells I just our our we a well. the can you targeting so we'll the got program geological we'll see little XX wells. going that, us that's soon of at yes, So be We'll as yes, operations. down to drill but

Marinos Baghdati

to that also more the South will multi-stage wells. part too, the foot be really And assets do answer we'll vertical X,XXX pay It's to question vertical in a or like that. of do the vertical we CBP foot stacked is stack than analogous these X,XXX completions on, just our

time, this wells, vertical at at really discussing we're so later, up for may it that but not internally horizontal And contemplating looking now new but we're we are drills. pop and

Paul McKinney

And oil these more, are deeper, content such but little in economics have little a bit they will wells the production, the because wells so cost very a the higher robust. a so since are

John White

reservoirs? space, Okay. involve those and different And down down the the XX XX acre space do acre

Paul McKinney

same. actually are the No, they

John White

Thank for me operator. Okay. it Thanks. to you. it I'll do and pass That'll back the

Paul McKinney

John. you, Thank

Operator

And next today Tuohy question go Please you. Brothers. Thank our with Noel Parks ahead. comes from

Noel Parks

know a say see of you Any sense improvement or less $XX on we incremental you at was stay if comfortably maybe favorable. the better you this bit for but this on extended working if and might apologize little So at if in oil you that touched were trigger on with pricing you the assuming on I rally Founders time already, return period? and -- had pulling sort

Paul McKinney

Yes.

our we what terms we year, said we the this mean, were When in -- there's as could that remember we price we originally were negotiating in deal guiding experiencing were to of $XX had lows earlier there. a below oil when I originally what So $XX, guided first lot this to in we budget. be

good below a So quarter $XX quarter. last part for of the were we and

-- faced finalizing And on things. We so negotiations so about we the were that a was with this that and the time couple were deal. the really

effectively With production felt some the our so but goal maintain back and then yes, of and there, the capital are. but is is -- grow prices opportunity to now compelled debt on where of our basically course, down production lower we on that's of but rebound to with our to our we pull kind spending cost and the paying focus and to --

Noel Parks

it. hadn't do developed the properties. Got -- and what And you a be on densely able as asset? I'm Founders as some do down you you the practically opportunity might sense other been have the to actually, spacing the And just tightest talked for is about of wondering,

Paul McKinney

again is slightly deeper in picked up McKnight have Well, that area a to very we acquisition. it's rock similar, although it's this very depths; we our Stronghold similar what with

I these it it's not think in classified right spacing industry many proven though proven Even well XX acre is more regards. in pretty as the now. probable on assets, down -- would be it'd be

still XX now. pretty of is them acres Some safe I but would probably be proven, think

we'll or the acre XX would Now, of next locations year finish as combination drill into I'll after. probable have have than more wait so year right basically when wells recall XX our announcement, now, if be you and we'll until and the is this actually we're done, well hope analysis actually and the know the in we said more point locations, and we that, that and my acres. that XX of that we but benefit engineers approximately It at the XX the that drilling

Marinos Baghdati

areas the offset our there right our acre is up of space area. possibility now, well. the that operators McKnight all tighter some a But in may gone acre. not XX in we're have end over right down And we to it for there to planning that's spacing come as but They've even than XX

Noel Parks

you geologically assuming sort to had but Okay. wondering, I'm brought see I'm the And or there there, just current they with are completion? may lot the feel penetrations with in drilling surprises -- of their do in Great. you're years legacy over that expecting be day could -- of technology like bear guess Founders I aren't everything to a

Marinos Baghdati

we things an we -- we arms and the point. didn't plan job. do on the familiar our the improving on with dig now. there we that and possibilities Yes, or right need But some excellent and we feel They've at can them. details may We -- we're but improvements haven't done them we do believe be for into around get of a we it lot this around of get to bank not get our as capital expenditures, there's them assets arms

Paul McKinney

Noel, And you add kind industry's I'll kind happen then the what foreshadow the And a and is Yes. bit give gas technology to might just as friend. to an draw in a -- of future. of and know, I'll that of example oil

the our vertical developments look Stronghold at in areas as we looked assets, developments. at If you those strictly

now there into now, gotten may like details of few those be drilling that that. the opportunities and a right horizontal technologies to we've things so apply And developments,

the benefit intervals lot that resource pays there's area multiple out when an stack a have here of that's so a mature just has thick there. you area And or over

And recover to of friend to more technology newer extract finding terms in and be ways more and and has our proven oil gas.

goes, continuously see assets how it's coming County I'm are we with we've that up I've optimistic, things the not with where lot simply only and evaluated like the Crane maturing just And a new in ideas. we'll seen how now Stronghold team South the cautiously because Founders, that but so in what the have is

verticals. into surprised be next just that originally if some sometime these thought don't horizontal we year of here we drilling be going assets And on would try so some

Marinos Baghdati

And long-term. we We're making for us so. decision one, these long-term things; have that right time studying decision the not we're that the taking may mind. benefit sure in properties making a operating rushing the every into the of our is affect with We're

Operator

conference this remarks. session. concludes over I'd and And turn the our to ladies like for question-and-answer Paul back McKinney gentlemen, closing to

Paul McKinney

call in of management participating thank for appreciate much. you your today. I on company Board team you again We to you to and the on Thank apprised our very behalf listening support the and want we continued great your And keeping Thank Directors, our of everyone in have of weekend. and look Ring, progress. great the and forward a for and interest day a

Operator

today's thank sir. for This call. Thank We attending you presentation. all today's you, concludes conference

and have wonderful your now a lines may You disconnect day.

Ring Energy (REI) 4 Aug 232023 Q2 Earnings call transcript