REI - Ring Energy: Big Cash Flow Progress

2024-06-03 17:20:53 ET

Summary

• Ring Energy, Inc. management is working towards achieving an appropriate debt ratio which would revalue the stock considerably higher.
• The company has reported significant financial and operating improvements from recent acquisitions, which are helping to meet market and debt requirements.
• Despite natural gas price drops, Ring Energy has managed to maintain a stable debt ratio, indicating potential progress if commodity prices remain steady.
• Adjusted free cash flow took a significant jump, exceeding 40%.  The company could use a few more of those jumps.
• The transition is painfully slow.  That happens when an acquisition strategy is part of the debt ratio improvement plan.

Ring Energy, Inc. ( REI ) management has long been trying to get this company to an appropriate operating model with adequate cash flow and a market-acceptable debt ratio, as the last article (and more before it) discussed. This kind of transition can weigh on an investor's patience. However, the result should be a higher stock price valuation based upon fewer debt fears combined with an ability to return capital to shareholders that the market now demands....

For further details see: