2024-04-02 14:01:17 ET
Summary
- Ring Energy, Inc. is increasing free cash flow to meet stock market demands and debt market demands.
- Management can now grow crude oil production without needing overall production growth for profitability.
- Despite lower commodity prices, management has maintained a steady debt ratio and is making progress on free cash flow.
- The low price-earnings ratio will resolve itself as the debt ratio continues to decline.
- The Founders acquisition, despite being all debt, has considerably aided the debt ratio decline goal.
Ring Energy, Inc. ( REI ) is managing to increase free cash flow to meet stock market and debt market demands (as covered previously ) to get that debt ratio down while demonstrating the ability to repay debt at a perceived reasonable pace. As long as progress keeps going, this stock will eventually recover. The news has not really changed. But market patience keeps wearing thin. Nonetheless, management has a few more improvement avenues than was the case before the recent acquisitions. The difference is that management can now grow crude oil production as a percentage of product mix....
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For further details see:
Ring Energy: The Transition Continues