McKinney, Chairman of the Board and Chief Executive Officer, commented, “We are pleased to announce our agreement to acquire Founders’ conventional oil and gas assets in Ector County, Texas. Existing infrastructure provides takeaway capacity and opportunities to reduce costs and improve efficiencies.Low-risk inventory provides significant economic returns with potential upside from targeted downspacing, including approximately 50 low-cost, high rate-of-return undeveloped drilling locations and.Total Proved SEC year-end 2022 reserves as calculated by Ring management of 9.2 million barrels of oil equivalent (“MMBoe”) (80% oil), characterized by shallow declines and long lives.Margin enhancing ownership with approximately 99% working interest and high net revenue interest of approximately 87%.Second quarter 2023 production was approximately 2,500 net barrels of oil equivalent per day (“Boe/d”) (86% oil).The Transaction is expected to close in the third quarter of 2023 with an effective date of April 1, 2023.Strategically expands core operating area capturing operating and G&A cost synergies and.Further increases inventory of low-risk, high rate-of-return drilling locations and improves capital allocation flexibility.Strengthens balance sheet by lowering the Company’s leverage ratio (2) and accelerates Ring’s ability to pay down debt.Total consideration is approximately 2.3x the assets’ next twelve months’ (“NTM”) Adjusted EBITDA (1) beginning Ap.
#NET CASH FLOW DEFINITION FREE#
Immediately accretive to Ring’s shareholders, including production, reserves, Adjusted Free Cash Flow ( 1 ) and other key metrics.The Transaction will be funded with cash on hand and borrowings under Ring’s recently reaffirmed senior revolving credit facility. Total consideration of $75 million, subject to customary closing adjustments, consists of $60 million in cash at closing and $15 million deferred cash payment due four months after closing. Founders’ CBP operations are located in the Permian Basin in Ector County, Texas and are focused on the development of approximately 3,600 net acres that are similar to Ring’s CBP assets acquired in 2022 from Stronghold Energy Operating II, LLC and its affiliate (“Stronghold”).
(NYSE American: REI) (“Ring” or the “Company”) today announced it has entered into an agreement to acquire the Central Basin Platform (“CBP”) assets of Founders Oil & Gas IV, LLC (“Founders”) for $75 million in cash (the “Transaction”).
THE WOODLANDS, Texas, J(GLOBE NEWSWIRE) - Ring Energy, Inc.
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