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Ring Energy (NYSEAMERICAN:REI) Chairman and Chief Executive Officer Paul McKinney outlined the company's strategy to expand oil production and improve capital efficiency through longer horizontal drilling programs in the Central Basin Platform and southern shelf areas of the Permian Basin. Speaking at an EnerCom event, McKinney said the company has grown from producing less than

Ring Energy NYSEAMERICAN: REI Chairman and Chief Executive Officer Paul McKinney outlined the company's strategy to expand oil production and improve capital efficiency through longer horizontal drilling programs in the Central Basin Platform and southern shelf areas of the Permian Basin.

Ring increased its 2026 capex budget to $168 million from its initial $115 million budget. This allows it to drill more horizontal wells, with the impact mostly benefitting 2027 production. Ring's initial 2027 outlook involves 10% production growth with a $150 million capex budget.

Ring Energy is prioritizing debt repayment and accelerated capital expenditures to capitalize on higher commodity prices. REI's recent equity raise reduces hedging requirements in the future. That increases exposure of production to favorable market prices. Adjusted net income, which includes realized hedging losses but excludes unrealized ones, provides a clearer picture of REI's operational profitability.

Ring Energy NYSEAMERICAN: REI reported higher second-quarter production, improved unit operating costs and stronger realized pricing, while outlining a larger capital program intended to support longer lateral wells, multi-zone development and infrastructure expansion.