COM - Ring Energy: Lowered Free Cash Flow Expectations Despite Strong Q1 Sales Volumes
2024-06-07 17:38:04 ET
Summary
- Ring Energy, Inc. reported Q1 2024 sales volumes above expectations.
- It did not change its full-year guidance, but I am assuming it will do better than the guidance midpoint.
- Despite this, Ring's 2024 free cash flow is now projected at $55 million, $12 million less than when I last looked at it.
- The reduction is mainly due to lower oil prices, with the 2024 oil strip going down by around $5.
- Continued sales volume outperformance would boost Ring's value, but it will also need to be careful with its leverage.
Ring Energy, Inc. ( REI ) reported Q1 2024 sales volumes that were above expectations, although it did not change its full-year guidance range. Due to its relatively strong Q1 results, I am now assuming that Ring's oil sales volumes will end up around 1.5% above the midpoint of its full-year guidance, though....
Ring Energy: Lowered Free Cash Flow Expectations Despite Strong Q1 Sales Volumes