Ring Energy CFO Steps Down

Ring Energy, Inc. said its chief financial officer Travis Thomas, has resigned effective immediately to pursue other opportunities.

Thomas’ resignation was not the result of any disagreement on any financial or other matter related to the operations, policies, or practices of Ring Energy, the company said in a news release.

Ring Energy Vice President of Accounting, Controller and Assistant Treasurer Rocky Kwon, has been appointed interim chief financial officer while the company conducts a search for a new CFO, according to the release.

Kwon, who has been with Ring since 2021, previously held financial leadership positions at Earthstone Energy, Inc. and The AES Corporation, the release said.

Ring Energy Chairman and CEO Paul McKinney said, “Ring is positioned for financial success with the skilled leadership of Rocky. I want to personally thank Travis for his five years of dedication and service to the Company and the executive management team, and I wish him great success in his future endeavors. With this leadership transition plan in place, Ring remains firmly committed to delivering shareholder value and advancing its strategic objectives, including its continued focus on debt reduction”.

Meanwhile, Ring Energy said it established a debt reduction target of approximately $18 million for the third quarter.

The company said it expects to have approximately $430 million in borrowings outstanding on its credit facility as of Sept. 30, down from $448 million in borrowings outstanding as of June 30.

Ring Energy also noted that Warburg Pincus has recently exited its full common equity position in the company.

McKinney said, “In response to the drop in oil prices experienced earlier this year, the Company responded by adjusting capital spending and other operational alternatives within our control to focus on maximizing free cash flow generation and paying down debt. We believe our debt reduction target for the third quarter of $18 million further demonstrates our commitment to strengthening our balance sheet during these volatile times. We want to thank Warburg Pincus for our past partnership and the key role they played in helping Ring increase its size and scale significantly in mid-2022 with our Stronghold acquisition”.

Second Quarter Results

In the second quarter, Ring Energy reported that it sold a record 14,511 barrels of oil per day, exceeding the midpoint of its guidance, and 21,295 barrels of oil equivalent per day, which was near the midpoint of its guidance.

The company reported second-quarter net income of $20.6 million, or $0.10 per diluted share, and adjusted net income of $11.0 million, or $0.05 per diluted share, according to its most recent earnings release.

McKinney said, “This quarter underscores a key strength of our value-focused, proven strategy, the ability to swiftly adapt to changing market conditions while delivering consistent shareholder value, even in low-price environments. Our focus on oil-rich assets with shallow declines, long lifespans, and low operating costs ensures resilience against commodity price volatility. Through a disciplined capital program that prioritizes high-return wells with low breakeven costs, we are more able to sustain production and liquidity. In higher-price markets, we balanced growth with improving the balance sheet; in today’s lower-price landscape, we are prioritizing debt reduction. For the second half of 2025, we will seek to maximize cash flow, control costs, and further strengthen our financial position”.

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