Ring Energy Inc (REI) 2026 Q1 法說會逐字稿

Good day, and welcome to Ring Energy's first quarter 2026 earnings conference call. (Operator Instructions) Please note this event is being recorded.

各位好，歡迎參加 Ring Energy 2026 年第一季財報電話會議。（接線員指示）請注意，本活動將被錄音。

I would now like to turn the conference over to Al Petrie, Investor Relations. Please go ahead.

現在我想把會議交給投資人關係 Al Petrie。請開始。

Thank you, operator, and good morning, everyone. We appreciate your interest in Ring Energy. We'll begin our call with comments from Paul McKinney, our Chairman of the Board and CEO, who will provide an overview of key matters for the first quarter of 2026. We'll then turn the call over to Sundip Johl, Ring Energy's Executive VP and Chief Financial Officer and Treasurer, who will review our financial results. Paul will then return with some closing comments before we open up the call for questions.

謝謝接線員，各位早安。感謝各位對 Ring Energy 的關注。我們將先由董事會主席兼執行長 Paul McKinney 發表談話，概述 2026 年第一季的重點事項。接著我們會把電話交給 Ring Energy 執行副總裁、財務長兼司庫 Sundip Johl，檢視我們的財務結果。之後 Paul 會回來做一些結語，然後我們將開放提問。

Also joining us on the call today are James Parr, Executive VP and Chief Exploration Officer; Alex Dyes, Executive VP and Chief Operations Officer; and Shawn Young, Senior VP of Operations. (Event Instructions) I would also note that we have posted an updated corporate presentation on our website.

今天一同參與電話會議的還有：執行副總裁兼首席勘探長 James Parr；執行副總裁兼營運長 Alex Dyes；以及營運資深副總裁 Shawn Young。（活動指示）我也要提醒各位，我們已在網站上發布更新版的公司簡報。

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

在本次電話會議過程中，公司將在聯邦證券法的意義下作出前瞻性陳述。投資人應注意，前瞻性陳述並非未來績效的保證，實際結果或發展可能與前瞻性陳述中所預測者有重大差異。最後，公司無法保證此等前瞻性陳述將被證實為正確。

Ring Energy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in yesterday's press release and in our filings with the SEC. These documents can be found in the Investors section of our website located at www.ringenergy.com.

Ring Energy 不承擔亦不意圖因新資訊、未來事件或其他原因而更新或修訂任何前瞻性陳述之義務。因此，您不應過度依賴前瞻性陳述。這些及其他風險已在昨日的新聞稿以及我們向 SEC 提交的文件中說明。這些文件可在我們網站 www.ringenergy.com 的「投資人」專區找到。

Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially. This conference call also includes references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in yesterday's earnings release. Finally, as a reminder, this conference call is being recorded.

若上述一項或多項風險發生，或基礎假設被證明不正確，實際結果可能出現重大差異。本次電話會議亦包含對若干非 GAAP 財務衡量指標的引用。這些非 GAAP 財務衡量指標與 GAAP 下最直接可比衡量指標之調節表，已包含於昨日的財報新聞稿中。最後提醒，本次電話會議正在錄音。

I'd now like to turn the call over to Paul McKinney, our Chairman and CEO.

現在我想把電話交給我們的董事會主席兼執行長 Paul McKinney。

Good morning, everyone, and thank you for joining us. As many of you may know, Ring Energy stock has performed well year-to-date, and we believe, as do others, that Ring may qualify for inclusion in the Russell 2000 Index this year. We understand the list of companies that will be joining the index will be published later this month and become effective after market close on June 26, 2026, and we look forward to this. Because we know others are anticipating our inclusion as well and may be joining us for the first time, we intend to begin this earnings call a little differently.

各位早安，感謝各位加入我們。許多人可能知道，Ring Energy 的股價今年以來表現良好，我們相信（其他人也同樣認為）Ring 今年可能符合納入 Russell 2000 指數的資格。我們了解將加入該指數的公司名單會在本月稍晚公布，並於 2026 年 6 月 26 日收盤後生效，我們對此充滿期待。由於我們知道也有人同樣在期待我們被納入，且可能是第一次參與我們的電話會議，因此我們打算以稍微不同的方式開始本次財報電話會議。

We want to take the opportunity to introduce ourselves and point out where we operate, the distinguishing aspects of our asset base the strategy that we are pursuing that differentiates us from our peers and how the current macro and geopolitical environment impact our business.

我們希望藉此機會介紹我們自己，並說明我們的營運區域、我們資產基礎的差異化特點、我們所採取且使我們有別於同業的策略，以及目前的總體與地緣政治環境如何影響我們的業務。

So before we get into the quarterly results, we want to take a step back and introduce the company. For those of you who are existing investors and know our story, I thank you in advance for your patience. Hopefully, you too will learn something new since we are a dynamic and growing company where things change at a fast pace. To help me with this endeavor are James Parr, our Chief Exploration Officer; and Alex Dyes, our Chief Operations Officer, each brings a different perspective to the Ring story.

因此，在進入季度結果之前，我們想先退一步介紹公司。對於既有投資人、已了解我們故事的各位，我先感謝大家的耐心。希望你們也能學到一些新內容，因為我們是一家充滿活力且持續成長的公司，變化速度很快。為了協助我完成這項工作，我們的首席勘探長 James Parr 與營運長 Alex Dyes 也會加入，他們各自從不同角度詮釋 Ring 的故事。

James on the asset base and technical opportunity and Alex on the operations and execution. Afterwards, Sunu and I will cover the first quarter results and expand on our financial strategy, capital allocation and investor perspectives. So on a high level, Ring is an oil-weighted upstream energy company focused on the Texas portion of the Permian Basin. We are not built around the high decline shale model that many investors associate with our basin.

James 將談資產基礎與技術機會，Alex 將談營運與執行。之後，Sunu 和我將說明第一季結果，並進一步闡述我們的財務策略、資本配置與投資人觀點。從高層次來看，Ring 是一家以石油為主的上游能源公司，聚焦於二疊紀盆地（Permian Basin）德州區域。我們並非建立在許多投資人對本盆地所聯想到的高遞減頁岩模式之上。

Our business is built on commercializing historically overlooked once believed to be uneconomic conventional assets by applying recently developed technologies and perspectives with an exploration mindset. Distinguishing aspects of our core assets are long-life wells with shallow base declines, highly oil-weighted with high operating margins and netback interest and undeveloped opportunities with relatively low drilling and completion costs with significant returns and low breakeven costs.

我們的業務建立在將歷史上被忽視、曾被認為不具經濟性的傳統（conventional）資產商業化：以勘探思維，運用近年發展的技術與新觀點。我們核心資產的差異化特點包括：壽命長且基礎遞減率低的油井；高度偏油、具高營運利潤率與淨回收利益（netback interest）；以及未開發機會，其鑽井與完井成本相對較低，具顯著報酬與低損益兩平成本。

Our existing 10-year-plus inventory of conventional assets in the Central Basin Platform and the Northwest Shelf include a deep set of undeveloped wells, recompletion workover and optimization opportunities capable of sustainable year-over-year cash flow generation. Our asset profile is important. It gives us a durable production base, a lower maintenance capital requirement and the ability to generate free cash flow through commodity cycles.

我們在中央盆地平台（Central Basin Platform）與西北陸棚（Northwest Shelf）既有、超過 10 年的傳統資產庫存，包含大量未開發井位、再完井（recompletion）、修井（workover）與最佳化機會，可帶來可持續的逐年現金流成長。我們的資產輪廓很重要：它提供我們穩健的產量基礎、較低的維持性資本需求，並使我們能在商品價格循環中產生自由現金流。

Our strategy is not to chase production growth for its own sake. Our strategy is to protect the balance sheet, allocate capital to the highest return opportunities in the portfolio and convert our resource base into sustainable cash flow over time. This is why we believe Ring is particularly well positioned in the current environment.

我們的策略不是為了成長而追逐產量成長。我們的策略是保護資產負債表，將資本配置到投資組合中報酬最高的機會，並隨時間將資源基礎轉化為可持續的現金流。這也是我們相信 Ring 在當前環境中特別具備良好定位的原因。

With that context and before we get into the quarterly results, we want to ground everyone listening with us today with the virtues of our asset base. To understand Ring, you must understand where we operate and why those assets are unique.

在這樣的背景之下、且在進入季度結果之前，我們希望先讓今天收聽的各位理解我們資產基礎的優勢。要了解 Ring，您必須了解我們在哪裡營運，以及為何那些資產獨特。

So with that, let me turn the call over to James Parr to walk us through our asset base, why the Central Basin Platform and Northwest Shelf are so important to Ring and our shareholders and how your Ring Energy team continues to unlock value across the portfolio. James?

因此，接下來我把電話交給 James Parr，請他帶我們了解我們的資產基礎、為何中央盆地平台與西北陸棚對 Ring 及股東如此重要，以及 Ring Energy 團隊如何持續在整體投資組合中釋放價值。James？

Thanks, Paul. As you stated, to understand Ring, you really have to understand the asset base. Our core positions in the Central Basin Platform and the Northwest Shelf are long-lived, oil-weighted conventional assets. And the important thing to remember is our existing operating footprint has significant remaining potential. These two well established areas are literally at the heart of the Permian Basin petroleum system. The focal point of oil migration from the adjacent Midland and Delaware Basins into multiple stacked conventional reservoirs that the original targets of the Permian.

謝謝你，Paul。正如你所說，要了解 Ring，確實必須了解資產基礎。我們在中央盆地平台與西北陸棚的核心部位，是壽命長、偏油的傳統資產。重要的是要記住，我們既有的營運版圖仍有顯著的剩餘潛力。這兩個成熟區域可說位於二疊紀盆地石油系統的核心：油氣自相鄰的米德蘭（Midland）與德拉瓦（Delaware）盆地遷移，進入多套疊置的傳統儲層，而這些正是二疊紀最初的開發目標。

In many cases, these reservoirs were initially developed decades ago using older technology, limited subsurface data and less advanced completion and production techniques, which resulted in low recovery factors, particularly in deeper and lower quality conventional reservoirs, leaving much of the original oil in place behind. Since then, the industry has overlooked these two areas for the past several years where modern technology has developed to commercially exploit low permeability shale reservoirs.

在許多情況下，這些儲層最初於數十年前以較舊的技術、有限的地下資料，以及較不先進的完井與生產技術開發，導致採收率偏低，尤其是在較深、品質較差的傳統儲層中，使大量原始地層含油仍留在地下。此後，產業在過去數年多將焦點放在以現代技術商業化開發低滲透率頁岩儲層，因而忽略了這兩個區域。

Utilizing modern technologies and methods in these prolific conventional areas has created an attractive opportunity set for Rain that is different from the high-intensity shale plays, which have higher decline rates due to their intrinsically poorer reservoir properties. As a result, we have a promising portfolio of stacked, lower decline oil-bearing conventional reservoirs with multiple development targets in a wide range of project types from horizontal and vertical drilling to recompletions, workovers and well reactivations. That diversity gives us flexibility to allocate capital where we see the best risk-adjusted returns at any point in the cycle.

在這些高產的傳統區域運用現代技術與方法，為 Ring 創造了一組具吸引力、且不同於高強度頁岩開發的機會；頁岩開發因其儲層性質本質較差而具有較高的遞減率。因此，我們擁有一個具前景的投資組合：多套疊置、遞減率較低、含油的傳統儲層，並在多種專案類型中具備多個開發目標，從水平井與直井鑽探，到再完井、修井與油井復產。這種多樣性讓我們能在循環的任何階段，將資本靈活配置到我們認為具最佳風險調整後報酬的地方。

Our technical expertise is understanding the rocks, pores and fluids, understanding the production history and applying modern subsurface and engineering techniques to improve recovery and reduce uncertainty. We're not trying to reinvent these fields. We're trying to optimize them. As a result, we see a multiyear inventory of attractive commercial opportunities across our acreage that will support a stable production, shallow decline rates and durable cash flow. That asset base is the foundation of Ring's strategy and underpins what we do operationally and financially.

我們的技術專長在於理解岩石、孔隙與流體，理解生產歷史，並運用現代地下地質與工程技術來提升採收率、降低不確定性。我們並不是要重新發明這些領域，而是要將其最佳化。因此，我們在自有礦權範圍內看到一個跨越多年的、具吸引力的商業機會庫存，可支撐穩定產量、較低的遞減率以及持久的現金流。這個資產基礎是 Ring 策略的根基，也支撐我們在營運與財務上的作為。

With that, I'll turn it over to Alex to talk about how we're executing against that opportunity set in the field. Alex?

接下來我把時間交給 Alex，談談我們如何在現場執行這一系列機會。Alex？

Thanks, James. From an operations standpoint, our focus is simple: execute safely and consistently, keep driving structural cost reductions and convert the opportunity set James covered into reliable and sustainable results. Last quarter, I walked through the strategy we've been executing, accretive complementary acquisitions, disciplined integration, organic growth and a cost structure that keeps getting more durable. In Q1 2026, we delivered proof of these points and build momentum for the rest of 2026.

謝謝，James。從營運角度來看，我們的重點很簡單：安全且一致地執行，持續推動結構性成本下降，並把 James 剛才提到的機會組合轉化為可靠且可持續的成果。上一季我已說明我們正在執行的策略，包括具增益的互補性併購、嚴謹的整合、有機成長，以及愈來愈具韌性的成本結構。在 2026 年第一季，我們交出了這些要點的證明，並為 2026 年其餘時間建立動能。

First, costs. Q1 LOE was $18.1 million or $10.41 per BOE, below the low end of guidance for the fourth quarter in a row. This is more than $1.7 million per month lower than pro forma Q1 '25 and over $2 per BOE better. This highlights our operating team's continued focus on cost reduction and commitment to adding value and margin expansion. Second, execution. We drilled five horizontal wells and one vertical well with horizontals representing over 80% of the Q1 program.

首先是成本。第一季 LOE 為 1,810 萬美元，或每 BOE 10.41 美元，已連續第四季低於指引區間的下緣。這比 2025 年第一季的備考（pro forma）水準每月低超過 170 萬美元，且每 BOE 改善超過 2 美元。這凸顯我們營運團隊持續聚焦降本，以及致力於創造價值與擴大利潤。第二是執行。我們鑽了五口水平井與一口直井，其中水平井占第一季計畫的 80% 以上。

In the Northwest Shelf, we improved our drilling efficiency by reducing spud to TD times by 15% versus the 2025 average, with further efficiency gains expected as we shift to longer laterals and co-development opportunities going forward. Third, well performance results. Recent Crane County horizontal completions continue to outperform expectations. After successfully testing multiple horizontal benches in the historically vertical developed area, we see a clear path to improving returns through longer laterals and selective multi-bench co-development.

在 Northwest Shelf，我們透過將自開鑽（spud）至達到總深度（TD）的時間相較 2025 年平均縮短 15%，提升了鑽井效率；隨著未來轉向更長的水平段（laterals）與共同開發（co-development）機會，預期效率還會進一步提升。第三是單井表現結果。近期 Crane County 的水平完井持續優於預期。在這個歷來以直井開發的區域成功測試多個水平層位（benches）後，我們看到了透過更長水平段與選擇性多層位共同開發來提升報酬的清晰路徑。

In addition, in 2025, over 100 horizontal wells were drilled by offset operators within just a couple of miles of our core acreage, providing further evidence of the future potential we see as described by James earlier. To support that plan, we accelerated targeted infrastructure in Q1, just over $5 million or about 15% of our total capital in the quarter, included in that was work on our saltwater disposal wells, frac water infrastructure and production facilities.

此外，在 2025 年，鄰近營運商在距離我們核心礦權僅數英里內鑽了超過 100 口水平井，進一步佐證了我們如 James 先前所述所看到的未來潛力。為支援該計畫，我們在第一季加速了特定基礎設施建置，金額略高於 500 萬美元，約占當季總資本支出的 15%；其中包含我們的鹽水處置井、壓裂用水（frac water）基礎設施以及生產設施的相關工程。

These investments expand our flexibility and provide needed infrastructure to unlock longer laterals and multi-bench horizontals later this year and beyond. Our approach is relentless continuous improvement, drill faster and more efficiently, a structurally lower cost base and maintain a predictable low-decline foundation. The investor takeaway is longer laterals, multi-bench co-development, disciplined execution will keep driving capital efficiency and translate into more durable free cash flow across commodity cycles.

這些投資擴大了我們的彈性，並提供所需的基礎設施，以在今年稍晚及未來解鎖更長水平段與多層位水平井。我們的方法是持續不懈的精益求精：更快、更有效率地鑽井，建立結構性更低的成本基礎，並維持可預期的低遞減基礎。投資人應掌握的重點是：更長水平段、多層位共同開發與嚴謹執行，將持續推動資本效率，並在商品價格循環中轉化為更具韌性的自由現金流。

With that, I'll turn it over to Paul McKinney to walk through the financial results.

接下來我把時間交給 Paul McKinney，帶大家回顧財務結果。

Thank you, Alex. So now let's turn our attention to the quarter. As I said in our earnings release, we successfully delivered on our sales guidance, but the big story for the quarter is that through the continued efforts of our office and field operating teams, we handsomely beat LOE and improved the capital efficiency of our drilling program, way to go team.

謝謝你，Alex。現在讓我們把注意力轉到本季。如同我在財報新聞稿中所說，我們成功達成銷售指引；但本季最大的亮點是，在辦公室與現場營運團隊持續努力下，我們大幅優於 LOE，並提升了鑽井計畫的資本效率，團隊做得很好。

The management team and Board of Directors thank you once again for your hard work and perseverance, safely keeping our operating costs low and our production up. Another point to make is shortly after the Iranian crisis broke out, we began the process of identifying investment opportunities to accelerate because we believe the cost and competition associated with certain key investments are likely to increase very soon. This is because we believe the market has yet to acknowledge the long-standing impacts of the supply side disruptions we're experiencing in the Middle East. And that, in our view, oil prices are likely to be higher for longer than what the market is currently implying.

管理團隊與董事會再次感謝各位的辛勤付出與堅持，在確保安全的前提下，讓我們的營運成本維持低檔並提升產量。另一點是，在伊朗危機爆發後不久，我們便開始辨識可加速的投資機會，因為我們認為某些關鍵投資所伴隨的成本與競爭很可能很快上升。這是因為我們相信，市場尚未充分認知我們在中東所經歷之供給端中斷的長期影響。而在我們看來，油價很可能會在更長時間內維持較高水準，超出目前市場所隱含的預期。

We're not alone in this belief. With higher oil prices comes higher costs for goods and services and increased competition. The investments we are accelerating are focused on increasing the capital efficiency of our long-term capital program and help ensure optionality and the potential to meaningfully expand our drilling inventory. The shift in capital spending caused us to temporarily pause debt reduction this quarter, and we are steadfast in our belief that these accelerated investments are in the best interest of our stockholders.

我們並非唯一持此看法。油價走高通常伴隨商品與服務成本上升以及競爭加劇。我們正在加速的投資，重點在於提升長期資本計畫的資本效率，並協助確保選擇權（optionality），以及有機會實質擴大我們的鑽井庫存。由於資本支出配置的調整，我們本季暫時放緩了降債步伐；但我們堅信，這些加速投資符合股東的最佳利益。

We intend to resume debt reduction in the following quarters of the year and are likely to revise production guidance once the impact of these and other potential capital changes are evaluated. Regarding our operations, our oil sales were 12,276 barrels of oil per day, and our total sales were 19,351 barrels of oil equivalent per day, both essentially at the midpoint of guidance despite the challenges we faced with the winter storm and the sale of approximately 200 barrels of oil equivalent per day of nonoperated production.

我們打算在今年後續季度恢復降債，並可能在評估這些及其他潛在資本變動的影響後，修訂產量指引。就營運而言，我們的原油銷售量為每日 12,276 桶，總銷售量為每日 19,351 桶油當量（BOE），兩者基本都落在指引中位數附近，儘管我們面臨冬季風暴的挑戰，且出售了約每日 200 桶油當量的非作業（nonoperated）產量。

Production from our recently acquired Lime Rock assets as well as the new wells drilled so far this year continue to meet or perform better than expected. We deployed $34.5 million in capital spending during this quarter, which is slightly above the high end of our guidance range. As we shared earlier, the capital spending was focused on accelerating certain key projects in addition to drilling and completing the wells planned.

我們近期收購的 Lime Rock 資產以及今年迄今鑽成的新井，其產量持續符合或優於預期。本季我們投入 3,450 萬美元的資本支出，略高於指引區間上緣。如同先前分享，這些資本支出除既定的鑽井與完井外，也聚焦於加速若干關鍵專案。

Ring drilled and completed six wells during the first quarter and completed one DUC drilled previously for a total of seven completions. Five of the new wells were 1-mile horizontal wells drilled in the Northwest Shelf with an average working interest of 91%. One vertical well was drilled and completed in Crane County and the DUCs also in Crane County have 100% working interest.

Ring 在第一季鑽井並完井六口，並將先前鑽成的一口 DUC 完井，合計完成七口完井作業。其中五口新井為在 Northwest Shelf 鑽的 1 英里水平井，平均工作權益（working interest）為 91%。另有一口直井在 Crane County 鑽成並完井，而 DUC 也位於 Crane County，工作權益為 100%。

At this point, I'd like to turn the call over to our Executive Vice President and Chief Financial Officer, Sundip Johl. He will provide insight and details of our first quarter numbers and financial position.

此刻，我想把電話會議交給我們的執行副總裁兼財務長（Chief Financial Officer），Sundip Johl。他將就第一季數字與財務狀況提供洞見與細節。

Afterwards, I'll return to share more about our priorities and outlook. for the future. Sunu?

之後我會回來，分享更多我們的優先事項與未來展望。Sunu？

Thanks, Paul. In the interest of time, I'll focus my comments on the key performance drivers and notable financial items from the quarter rather than walking line by line through the income statement. Overall, first quarter results were in line with guidance and demonstrate the resilience of Ring's operating model in a quarter marked by significant weakness in natural gas and NGL pricing and oil price strength that emerged late in the quarter. From a pricing standpoint, the quarter was very much a tale of two parts.

謝謝，Paul。為了節省時間，我將把重點放在本季的關鍵績效驅動因素與重要財務項目，而不是逐行走讀損益表。整體而言，第一季結果符合指引，並展現 Ring 營運模式的韌性；本季的特徵是天然氣與 NGL（天然氣液）價格顯著疲弱，而原油價格的走強則在季末才浮現。就價格面而言，本季很像是一個「兩段式」的故事。

The year began in a weaker pricing environment, and we positioned the business accordingly. As the quarter progressed, particularly in March, oil prices strengthened meaningfully due to macro and geopolitical developments. Given where prices were for much of the quarter, our first quarter results largely reflect that earlier environment. As we move into the second quarter, our exposure to commodity pricing increases materially as our hedges roll off.

今年一開始處於較疲弱的價格環境，我們也據此調整了業務配置。隨著季度推進，特別是在 3 月，受總體經濟與地緣政治發展影響，油價明顯走強。鑑於本季大部分時間的價格水準，我們第一季的結果主要反映較早期的環境。進入第二季後，隨著避險部位到期（roll off），我們對商品價格的曝險將大幅增加。

Assuming current oil price levels persist, this creates a very different earnings and cash flow profile going forward than what is reflected in our Q1 results. Against that backdrop, overall realized pricing improved quarter over quarter to $42.30 per BOE for the first quarter, driven primarily by higher oil realizations of $68.97 per barrel. This improvement was partially offset by continued weakness in Permian natural gas and NGL markets, where processing and transportation fees resulted in a negative realized gas price of $2.54 per Mcf.

假設目前油價水準得以持續，這將使未來的獲利與現金流輪廓，與我們第一季（Q1）結果所反映的情況大不相同。在此背景下，第一季整體實現價格較前一季提升至每 BOE 42.30 美元，主要由每桶 68.97 美元的較高原油實現價格所帶動。此改善部分被二疊紀（Permian）天然氣與 NGL 市場持續疲弱所抵銷，因處理與運輸費用導致天然氣實現價格為每 Mcf 負 2.54 美元。

On the cost side, lease operating expenses averaged $10.41 per BOE, below the low end of our guidance for the fourth consecutive quarter. These results reflect continued progress on cost control initiatives and operational efficiencies, and we view these reductions as structural improvements. Reported net income for the quarter was impacted by two noncash items. First, we recorded a $77 million unrealized derivative loss driven primarily by changes in the forward oil curve during the quarter.

在成本方面，租賃營運費用平均為每 BOE 10.41 美元，連續第四季低於我們指引區間的下緣。這些結果反映我們在成本控管措施與營運效率上的持續進展，我們也將這些降低視為結構性改善。本季報告淨利受到兩項非現金項目影響。第一，我們認列 7,700 萬美元的未實現衍生性商品損失，主要由本季遠期油價曲線變動所致。

On a cash basis, hedge settlements were relatively modest with oil hedges settling at a loss of approximately $6 million, partially offset by $0.8 million of gains on natural gas hedges. Second, we recorded a $162.1 million noncash ceiling test impairment. Under the full cost accounting methodology, because this test relies on a trailing 12-month average of the first day of the month SEC prices, it can diverge meaningfully from current market conditions, particularly when commodity prices move sharply late in the quarter as they did this quarter.

以現金基礎來看，避險結算金額相對不大，原油避險結算約損失 600 萬美元，部分由天然氣避險約 80 萬美元的收益所抵銷。第二，我們認列 1.621 億美元的非現金天花板測試（ceiling test）減損。依全成本會計方法，由於該測試依賴過去 12 個月每月第一天的 SEC 價格平均值，因此可能與當前市場狀況出現顯著偏離，尤其當商品價格在季末大幅波動時——如同本季所發生的情況。

Most importantly, this impairment does not reflect the underlying performance, margin structure or cash-generating ability of our assets today. If current pricing levels persist, we would expect the trailing average price deck used in the ceiling test to increase meaningfully going forward, which would substantially reduce the risk of further write-downs.

最重要的是，這項減損並不反映我們資產目前的基本營運表現、利潤結構或創造現金的能力。若目前價格水準得以持續，我們預期用於天花板測試的追溯平均價格組合（price deck）未來將顯著上升，從而大幅降低進一步減記的風險。

Excluding these items, adjusted net income was $7.4 million and adjusted EBITDA totaled $38.3 million. Given the timing of the oil price recovery and the level of hedge protection in place during the quarter, these results are more reflective of the pricing environment earlier in the period, with the earnings impact of higher oil prices expected to become more apparent as we move into the second quarter. Capital allocation remained disciplined during the quarter. We invested $34.5 million of capital, slightly above the high end of guidance.

排除上述項目後，調整後淨利為 740 萬美元，調整後 EBITDA 合計 3,830 萬美元。鑑於油價回升的時間點以及本季既有的避險保護程度，這些結果更能反映期間較早階段的定價環境；隨著我們進入第二季，較高油價對獲利的影響預期將更為明顯。本季資本配置仍維持紀律。我們投入資本 3,450 萬美元，略高於指引上緣。

And as both Paul and Alex mentioned earlier, we accelerated certain key investments we believe are subject to price increases and increased competition. These investments were largely directed toward facility and infrastructure projects and investments designed to secure optionality and the potential to increase our long-term drilling inventory. We believe these investments are in the best interest of our stockholders. We're also proud to report our 26th consecutive quarter of positive free cash flow.

此外，正如 Paul 與 Alex 先前提到的，我們加速了若干我們認為可能面臨價格上漲與競爭加劇的關鍵投資。這些投資主要指向設施與基礎建設專案，以及旨在確保選擇權並有機會增加我們長期鑽井庫存的投資。我們相信這些投資符合股東的最佳利益。我們也很自豪地報告，我們已連續第 26 季實現正的自由現金流。

Now turning to the balance sheet. We exited the quarter with $160 million of liquidity under our credit facility. During the quarter, we intentionally paused debt paydown with borrowings increasing by approximately $6 million. Leverage ended the quarter at roughly 2.4 times, and we remained in full compliance with all bank covenants with no near-term maturities, the balance sheet is well positioned to support continued deleveraging. Our objective remains to reduce leverage to approximately 1.25 times as cash flows strengthen.

接著談資產負債表。我們在本季末於信貸額度下擁有 1.6 億美元的流動性。本季期間，我們有意暫停償還債務，使借款增加約 600 萬美元。槓桿比率在季末約為 2.4 倍；我們仍完全符合所有銀行契約條款，且短期內無到期債務，資產負債表具備良好條件以支持持續去槓桿。我們的目標仍是隨著現金流走強，將槓桿降至約 1.25 倍。

On hedging, our portfolio is intentionally structured to balance risk with upside participation. While we have 72% of oil volumes hedged at an average ceiling price of $73.27 for the remainder of 2026, a meaningful portion of production remains unhedged and fully levered to current oil prices. Our natural gas hedges at an average floor price of $3.78 per Mcf cover 73% of expected volumes and are designed to stabilize cash flow.

在避險方面，我們的組合刻意設計為在風險控管與參與上行之間取得平衡。雖然我們已對 2026 年剩餘期間 72% 的原油產量進行避險，平均上限價格為每桶 73.27 美元，但仍有相當比例的產量未避險，將完全受惠於目前油價。我們的天然氣避險以每 Mcf 3.78 美元的平均下限價格，涵蓋預期產量的 73%，旨在穩定現金流。

In summary, while reported results were impacted by noncash accounting items, the underlying fundamentals of the business remain strong, and we are reaffirming guidance for the next three quarters as disclosed in the press release. We encourage you to check out our investor presentation on our website and quarterly financials for additional details.

總結而言，雖然報告結果受到非現金會計項目影響，但公司基本面仍然強勁；我們也重申新聞稿所揭露的未來三季指引。建議各位至我們網站查看投資人簡報與季度財務資料，以取得更多細節。

And back to you, Paul.

交還給你，Paul。

Thanks, Sunu. As you've heard from James, Alex and Sunu, Ring's strategy is built around a clear set of priorities, long-life oil-weighted assets, disciplined operational execution, free cash flow generation and balance sheet flexibility. That framework, along with our ability to remain nimble and respond to market conditions is important in any commodity environment and especially in a period of elevated volatility like we're experiencing today.

謝謝你，Sunu。正如各位從 James、Alex 與 Sunu 那裡聽到的，Ring 的策略建立在一套清晰的優先事項之上：具長壽命、以原油為主的資產；具紀律的營運執行；自由現金流的創造；以及資產負債表的彈性。這個框架，加上我們保持敏捷並因應市場狀況的能力，在任何商品環境下都很重要，尤其是在像我們今天所經歷的高波動期間。

We believe we have built a company that can adapt and thrive through cycles and capitalize on opportunities as they emerge with a focus on creating long-term value for our shareholders. In 2026, the oil market has moved faster than sentiment. We entered the year with the market broadly focused on oversupply risk and the potential for prices to remain under pressure. Our response was disciplined. We protected the business, used hedges to support our development program and positioned Ring to continue executing in a low price environment, including scenarios below $60 WTI.

我們相信，我們已打造出一家能在景氣循環中調整並茁壯、並在機會浮現時把握機會的公司，重點在於為股東創造長期價值。2026 年，油市的變化速度快於市場情緒。我們在年初進入市場時，市場普遍聚焦於供給過剩風險，以及價格可能持續承壓的可能性。我們的回應是有紀律的：我們保護業務，運用避險支持開發計畫，並讓 Ring 能在低油價環境下持續執行，包括 WTI 低於 60 美元的情境。

Since then, the macro backdrop has evolved with geopolitical developments increasing focus on supply reliability, spare capacity and the security of physical barrels. We believe that dynamic is slowly being reflected in the forward curve and reinforces our view that the market is placing greater value on dependable low-decline barrels. We chose to accelerate certain key capital investments to get ahead of rising costs and competition. The benefit to shareholders is straightforward, advancing work that is expected to improve capital efficiencies and lead to stronger organic growth that is not dependent on future A&D.

此後，總體背景隨地緣政治發展而演變，市場對供應可靠性、閒置產能以及實體原油（physical barrels）安全性的關注提升。我們認為，這種動態正逐步反映在遠期曲線上，並強化我們的觀點：市場正在對可靠、低遞減的產量給予更高價值。我們選擇加速若干關鍵資本投資，以提前因應成本上升與競爭加劇。對股東而言，其效益很直接：推進預期可提升資本效率的工作，並帶來更強的內生成長，而不依賴未來的 A&D（收購與處分）。

We are using the flexibility of our asset base to improve the durability and timing of value creation without compromising capital discipline. We look forward to the results of our capital program later this year and early next that we firmly believe will lead to increased capital efficiency and organic production growth, especially as it pertains to 2027 and beyond.

我們正運用資產基礎的彈性，在不犧牲資本紀律的前提下，提升價值創造的耐久性與時點。我們期待今年稍晚及明年初資本計畫的成果；我們堅信這將帶來更高的資本效率與內生產量成長，尤其是對 2027 年及之後的表現。

And with that, we'll open up the call for questions. Operator?

接下來，我們將開放提問。接線員？

(Operator Instructions)

（接線員指示）

Poe Fratt, Alliance Global Partners.

Poe Fratt，Alliance Global Partners。

Yeah. Would you expand on the investments you made in the first quarter and just confirm that the number was about $5 million as far as the impact on the budget?

是的。你能否更詳細說明你們第一季所做的投資，並確認就預算影響而言，該數字約為 500 萬美元？

Yeah, I can do that, and I'll get a couple of other people that might have a few more details than I do. There are several things that occurred through the -- during the quarter. that led to these additional investments. We've talked about the infrastructure investments. One of the big things that we're doing right now in terms of significantly having a big impact on our ability to increase the capital efficiency of our future wells is really in providing water for our frac jobs.

可以，我可以說明；我也會請其他可能比我更了解細節的人補充。本季期間發生了幾件事，促成了這些額外投資。我們談過基礎建設投資。其中我們目前正在做、且對提升未來井的資本效率能力影響很大的一項重點，確實是在為我們的壓裂作業提供用水。

And so we've invested quite a bit of money, and we've accelerated this so that we can position our drilling program so that we can drill these longer laterals that require much, much larger volumes of water. And I think the best expert to turn this thing over to would be Alex and then Shawn, would you guys like to jump in on that?

因此我們投入了相當多資金，並加速推進，以便讓我們的鑽井計畫到位，能鑽這些需要更長水平段、也需要大幅更多用水量的井。我想最適合把這部分交給 Alex，然後 Shawn，你們兩位要不要也一起補充？

Yeah. I think the fundamental shift and thing we need to think about is that we're actually going from vertical, a lot of these fields that we're taking from vertical to horizontal. And so those are the investments we have to build in like saltwater disposal wells, we got to clean those out. We need to build infrastructure to be able to supply water for the bigger fracs. And then two, we've got to build the facilities.

是的。我認為我們需要思考的根本性轉變在於，我們實際上正從垂直開發轉向水平開發，很多我們在這些區域所做的作業正從垂直轉為水平。因此，這些就是我們必須投入建設的投資，例如鹽水處置井，我們得把那些清理乾淨。我們需要建置基礎設施，以便能為更大規模的壓裂作業供水。第二，我們還得建置相關設施。

And so those are the things that we went into the $5 million. And so that's the transition that we're going from vertical to horizontal, and we're trying to also drill longer horizontal wells.

因此，這些就是我們納入那 500 萬美元的項目。這就是我們從垂直轉向水平的過渡，同時我們也在嘗試鑽更長的水平井。

With that, I'd like to hand it over to Shawn where he can give you a little bit more detail. Go ahead Shawn.

在此，我想把時間交給 Shawn，讓他為各位提供更多細節。Shawn，請。

Yeah. So as both Paul and Alex have mentioned, we're really focusing on trying to get these assets set up for a horizontal development program. As I mentioned, I mean, all of our development up to this point has been more or less vertical development in these areas. And so there's a significant amount of money that has to be spent to get the infrastructure for supporting the completions, but also the production facilities are also needed to be upgraded and expanded. So that's where the majority of that.

是的。正如 Paul 和 Alex 都提到的，我們確實專注於讓這些資產為水平開發計畫做好配置。如我所說，到目前為止，我們在這些區域的開發或多或少都以垂直開發為主。因此，為了建置支援完井作業的基礎設施，需要投入相當可觀的資金，同時也需要升級並擴充生產設施。所以那筆資金的大部分就是用在這裡。

That's right. But in addition to that, we also had the first five wells we drilled this year in Yoakum County, we were able to acquire one of our working interest positions in those five wells. And when you -- not only do we purchase their working interest, but we also had to cover for their capital portion. So that was about a little over 30%, 30 -- almost 35% of those five wells. So we took on 35% more capital plus we had to buy them out.

沒錯。但除此之外，我們今年在 Yoakum County 鑽的前五口井，我們也得以收購其中一個工作權益（working interest）部位。當你——我們不僅買下他們的工作權益，還必須承擔他們那一部分的資本支出。因此，那大約是這五口井的 30% 多一點，30%——接近 35%。所以我們多承擔了 35% 的資本支出，另外還得把他們買出。

And then when you add all these things together, actually exceeds the amount of money that we had to borrow. And so with these accelerated investments, first of all, the five wells that we drilled in Yoakum County, we're very happy with, and we think we have a very good deal there.

然後把這些事情加總起來，實際上超過了我們需要借入的金額。因此，透過這些加速投資，首先，我們對在 Yoakum County 鑽的那五口井非常滿意，也認為那是一筆非常划算的交易。

The investments that we're making in our infrastructure for providing water for our frac jobs is going to pay out dividends as we transition. And I know it's kind of a painful transition, and many of our shareholders don't have the opportunity to really understand that yet because we're in the early phases of this, and we cannot wait to come out to start sharing some of the results of what we're doing. But that's going to be borne out here later this year and early into next year when the full benefit of all this is going to occur. But this is just something that we had to do. We know that these investments are in the best interest of our shareholders.

我們在基礎設施上的投資——用於為壓裂作業供水——在我們轉型過程中將帶來回報。我知道這是一個相當痛苦的轉型，而且我們許多股東目前還沒有機會真正理解，因為我們仍處於早期階段；我們也迫不及待想開始分享我們正在做的事情所帶來的一些成果。但這些成果將在今年稍晚以及明年年初逐步展現，屆時所有這些投入的完整效益就會出現。不過，這些是我們必須做的事。我們知道這些投資符合股東的最大利益。

And so -- and the bottom line is because we accelerated some of these investments this quarter, we're still going to pay down the same amount of debt this year that we've been saying we're going to pay down. It's just going to come out in a different profile. We're going to pay down a lot more debt as we exit this year than we are at the beginning of the year because of these accelerated investments. And so some of these accelerated investments are spilling over into the second quarter. And so that's just going to be the reality of the way it is. And I know that we have a lot of shareholders that I have an extreme amount of respect for that really want to focus on debt reduction.

因此——重點是，因為我們在本季加速了部分投資，我們今年仍會償還與我們一直所說相同金額的債務；只是償債的時間分布會呈現不同的樣貌。由於這些加速投資，我們在今年結束時償還的債務會比年初多得多。因此，其中一些加速投資會延續到第二季。這就是現實情況。我也知道，我們有許多我非常尊敬的股東，確實很希望把焦點放在降低負債上。

And we are still focused on debt reduction. But the opportunity before us in this first half of the year to prepare ourselves for what we believe is going to be a sustainably higher price environment than what we were in before the Iranian conflict occurred. And it's just -- we're confident this is the right thing for our shareholders, and we're standing by it. And the shareholders will realize a real benefit of this as we exit this year. There's no doubt in my mind.

而我們仍然專注於降低負債。但今年上半年擺在我們面前的機會，是讓我們為我們所相信的、可持續的較高價格環境做好準備——相較於伊朗衝突發生之前的環境。這——我們有信心這對股東而言是正確的事，我們也會堅持下去。當我們在今年結束時，股東將會看到實質的好處。我毫不懷疑。

Does that answer your question, Poe?

Poe，這樣有回答到你的問題嗎？

That did. That was very thorough. And then could you, Paul, just talk about the timing of the wells that you completed in the first quarter were those all online for, say, a month of the quarter? Or I mean, I'm just trying to figure out the cadence of production, what kind of benefit we should see from those wells? Have we already seen it? Or should we see it more in the second quarter?

有的。非常詳盡。接著，Paul，你能談談第一季完井的那些井的時間點嗎？它們在該季大概上線了例如一個月嗎？我的意思是，我只是想了解產量的節奏，我們應該從那些井看到什麼樣的效益？我們已經看到了嗎？還是應該在第二季看到更多？

Yeah. You'll have the full impact in the second quarter of the first quarter wells drilled for sure because we started out at the beginning of the year with a drilling rig up there in Yoakum County and we drilled those five wells. Then we went south and drilled a vertical well. But when you look at scheduling the fracs and all that kind of stuff, they were all coming on in mid-February and into March. And so we haven't seen the full impact.

是的。第一季鑽的井，你在第二季肯定會看到完整影響，因為我們在年初一開始就在 Yoakum County 那邊有一座鑽機，鑽了那五口井。然後我們往南去鑽了一口垂直井。但當你看壓裂排程以及諸如此類的事情時，它們大多是在二月中旬到三月之間陸續投產。所以我們還沒有看到完整影響。

This first quarter really, when you begin January 1, you got to drill them first, you got to frac them and it's just a delay. So -- but yes, the full impact will be in the second quarter. And it's kind of the consequence of a lumpy phase drilling program as you get surge into production when the wells come on, but there is just a typical natural delay. I don't know if there's anything more you want to say about that, Alex.

第一季其實是這樣：從 1 月 1 日開始，你得先鑽井，再壓裂，這中間就是會有延遲。所以——但沒錯，完整影響會在第二季顯現。這有點像是階段性、起伏較大的鑽井計畫所帶來的結果：當井投產時產量會出現一波衝高，但也存在典型的自然延遲。我不知道你還想補充什麼嗎，Alex？

Yeah. I'd like to add one more thing. And always this happens is that we lay down the rig towards the end of the year, so at the year-end '25. So there's always a little bit of a lag in the beginning of a new year. So by the time we pick up the rig, get the wells drilled, complete them and then they slowly start cleaning up and ramping up. So we start -- as typical year over year, you start really seeing the benefit in the second and third quarter.

是的。我想再補充一點。通常都會發生的是，我們會在年底把鑽機停下來，也就是 25 年年底。因此在新的一年開始時總會有一點落後。等到我們重新啟用鑽機、把井鑽好、完成完井作業，然後它們慢慢清理並爬升產量。所以——按典型的年度節奏來看，你會在第二季和第三季真正開始看到效益。

(Operator Instructions)

（接線員指示）

At this point, we have no more questions. I would like to turn the conference back over to Paul McKinney for any closing remarks.

目前我們沒有更多問題。我想把電話會議交回給 Paul McKinney，請他做結語。

Thank you, operator. And on behalf of the entire team and the Board of Directors, I want to once again thank everyone for listening and participating in today's call. We are pleased to have posted solid operational and financial results for the first quarter of 2026, and our outlook for the remainder of the year remains very, very strong. We will continue to keep everyone appraised of our progress, and thank you again for your interest in Ring Energy. Have a great day and a great weekend.

謝謝你，接線員。我謹代表整個團隊與董事會，再次感謝各位收聽並參與今天的電話會議。我們很高興在 2026 年第一季繳出穩健的營運與財務成果，而我們對今年剩餘期間的展望仍然非常、非常強勁。我們將持續向各位通報我們的進展，也再次感謝各位對 Ring Energy 的關注。祝各位有美好的一天與愉快的週末。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議到此結束。感謝各位出席今天的簡報。您現在可以掛線。