Ring Energy Inc. EnerCom Denver – The Energy Investment Conference

Paul? Thank you, Jim. Thank you very much.

Thanks to all of you for being here. I also want to take a little bit of time to talk about Jim, Kevin, the rest of the EnerCom crew. This is a great event, and I do not know if you guys can see it, but from my perspective, since I have been here multiple times in the past, it has just gotten better and better. More and more investors are coming here to meet the companies that are presenting, and it is a great venue. Thank you for the time. Let us get started here. See how this works. There we go. I joined Ring in October of 2020. At the time, our balance sheet was pretty heavily levered, and our production was less than 9,000 barrels a day.

We are going to talk about the growth of this company, but more importantly, we are going to talk to you about this latest chapter. Where are we today? What is different about what we are doing in 2026, and what does that mean for shareholders in 2027 and 2028? My general counsel will be upset with me if I did not remind you to read our forward-looking statements and our supplemental non-GAAP financial measures. Those are important, so please do that. Before I talk about Ring, I want to put forward our thesis, so to speak. We believe that we are in the heart of the Permian. The Central Basin Platform and the Northwest Shelf and the rest of the shelf area was the Permian Basin before the advent of horizontal drilling, multi-stage fracs.

The Delaware Basin to the west and the Midland Basin to the east, on either side of the Central Basin Platform you see, those were the source rocks that sourced all of those formations, the conventional rock in the Central Basin Platform and also those shelf areas. That is really, really significant. If you look at the amount of production the Central Basin Platform and the shelf areas have produced, it is close to 20 billion barrels of oil, which is considerably more than what the Delaware Basin and the Midland Basin did. The Midland Basin has produced about 12.5 billion barrels, and the Delaware Basin is just short of 10 billion barrels.

We believe the reason why we are so focused on the Central Basin Platform and the southern part of the shelf, number 1, you have really, really low entry costs because everybody's still focused on those shales. There's a huge amount of recoverable resource that's still left to be recovered. There's, in our estimation, over 15 billion barrels of oil left to be recovered in the conventional reservoirs in the Central Basin Platform. That's more than what either the Delaware or the Midland Basins have produced up to now. We believe that we are a significant operator. We're going to go through that. We are positioned to benefit from all of this.

When you look at conventional reservoirs, the thing that's unique about conventional reservoirs versus the shales is that the porosities and permeabilities of the conventional reservoirs is considerably higher than the shale. So we have shallower declines, longer lives that really feed into and really substantiate any company that's pursuing those. To us, all of that upside is we're not yet seeing any real competition for it. So I'm not going to tell you that we have infinite growth, but we do have a significant opportunity out here. So let's talk about Ring Energy. Again, I started in 2020, the fourth quarter of 2020. We were producing less than 9,000 barrels back then. Today, we're over 20,000 barrels. At the bottom of the chart, you can see the progression. Up to now, most people know us as a San Andres horizontal oil driller.

That's where we got our start. We've concentrated on developing the San Andres Formation in Yoakum County, Gaines County, and Andrews County. Since that time, through the acquisition that we made in 2022, the Stronghold Energy acquisition, we gained a big position in Crane County. That is an area that has seen explosive growth, and we'll talk about that. If you look at the progression of our company, we went from a company that was really burdened and challenged with our balance sheet, to now a company where our balance sheet is continuing to get stronger and will get even stronger at a more accelerated rate because of where we are. At the same time, we've demonstrated the ability to evaluate assets out here and make strategic acquisitions that delivered real value to the shareholder. I'm talking about accretive per share that adjusted per share value.

We've been able to do that over 2022 and 2023, and then in 2025, we landed the Lime Rock acquisition. So we've demonstrated a tremendous amount of growth. The company is stronger today than it has ever been. Matter of fact, almost in every regard stronger than we were as early as just January of this year. So we'll talk about that. Our core acreage is in the center of all the horizontal activity. The map that you see is a heat map of the Central Basin Platform, the southern part of the shelf, where all of the horizontal wells have been drilled. It's not an accident that our acreage is there as well. We've been focused on this strategy now for a long period of time.

If you look at what happened since 2020, you've seen the greater Permian horizontal percentage of total wells drilled increase from 29% to over 73% by 2025. The Central Basin Platform is awakening to this technology. If you look at the horizontal turn in lines by county, the counties that we're in have the most of those. If you look at our program itself, just as late as 2024, 50% of the wells we drilled were vertical. Today, over 70% are vertical. There's even a better story as we continue from there. We believe our acreage, due to the stacked pays of the Central Basin Platform, presents an incredible runway of high return opportunities to pursue.

If you look at what's happened in the two basins on either side, the Midland Basin and the Delaware Basin, those companies that pursued those unconventional resources developed new technologies that allowed them to put in manufacturing processes that really significantly improved the capital efficiency. They were able to bring on more barrels a day of production and more barrels of reserves per dollar spent. It's only been recently that that technology development has been something we can apply to what we do on the Central Basin Platform. Many of our reservoirs were considerably shallower, so we didn't have the weight of the drill string to push out to those longer laterals. We were drilling 1 mile and 1.5 mile laterals when they were drilling 3-mile laterals in these basins.

Today, we can drill 2 miles, and we believe that we can even go beyond 2 miles as a result of the advances in drilling technology. But when you compare that to this opportunity set, and you can look at all of the benches that we've shown there in that geological type log there, you can see all of the zones that have historically been produced vertically. A lot of those are being produced horizontally, and we believe that with co-development, where you get on a location and you drill multiple horizontals in all of these different pays, co-development brings a whole new set of economics to allow us to recover resource that otherwise may not ever have been able to be recovered unless you did that. I know some of you may be thinking, "Well, prove it.

Show us what you've done." It's not only what we've done, it's what other people have done. Here we have a map that shows how repeatable and how scalable this is. On your far left side there in the dark blue, that's Yoakum County. We're comparing pre-2015 horizontal drilling activity to where we are today. Before 2015, there were 32 horizontal wells. Today, there's over 576, and you can see where that activity laid. That was all west and northwest of the Wasson field. The geological reservoirs are the same, but Wasson was historically defined by the economics of the vertical wells that were drilled at the time that they defined the edges of the reservoir. When horizontal drilling came along and multi-stage frac technology came along, we opened up a whole new avenue of areas.

On the production plot to the lower right, in the dark blue, you can see what happened over those years. We were up over 50,000 BOE a day in a development that was historically considered uneconomic, and that's what this technology unlocked. As you can see in the blue section there for Andrews County, there's been a steady number of wells drilled there over this time period, and so horizontal technology was proven in Andrews County as well and continues to this day. We are one of those. Then if you really look at what's going on in Crane County, in the green boxes, if you look at pre-2015, 257 horizontal wells were drilled, and now over 658. Look at the activity. The yellow acreage is our acreage, and if you look at pre-2015, the horizontal wells were on our acreage.