Ring Energy to reduce spending in 2Q by more than 50 percent

The Woodlands-based Ring Energy said recently it is reducing spending in 2025 second quarter by more than 50 percent to a midpoint of $18 million from a midpoint of $38 million in its original guidance for 2Q capital spending.  Ring said spending “was lowered in response to the recent decline in oil prices.”

Despite the spending cut, Ring said it will maintain its second quarter production guidance of 14,200 barrels of oil per day (21,500 boed).  The exploration, development and production company is focused in Permian Basin.

Paul D. McKinney, chairman and CEO, said April 24, “The better-than-expected performance of our first quarter drilling program, underlying PDP assets and recently acquired Lime Rock assets provided us the opportunity to quickly respond to lower oil prices by reducing our second quarter capital spending by more than 50 percent while maintaining our sales volumes guidance.  Although our breakeven costs are well below the current price of oil, we believe emphasizing debt reduction during this time better positions the company to manage the potential risks of an extended period of low oil prices.”