Free cash flow has deteriorated into a $9.4 million deficit in 2026Q1, reflecting a failure to self-fund operations despite capital intensity ratios frequently exceeding 40%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Sep'08 | Sep'07 | Sep'06 |
|---|
| Cash from Operations | 148.37M | 150.85M | 194.42M | 198.17M | 196.98M | 72.73M | 72.16M | 106.62M | 70.36M | 42.81M | 11.21M | 9.84M | 33.75M | 8.12M | -31.85K | -322.36K | -62.76K | -9.96K | -181.72K | -119.9K | -21.24K |
| Operating CF Margin % | - | 49.11% | 53.07% | 54.89% | 56.72% | 37.05% | 63.84% | 54.48% | 58.6% | 64.18% | 36.35% | 31.74% | 88.6% | 78.68% | -1.81% | -12284.87% | -758.94% | - | - | - | - |
| Operating CF Growth % | -61.76% | -22.41% | -1.89% | 0.61% | 170.83% | 0.79% | -32.32% | 51.54% | 64.36% | 281.71% | 13.92% | -70.83% | 315.8% | 25582.43% | 90.12% | -413.66% | -529.9% | 94.52% | -51.56% | -464.46% | - |
| Net Income | -264.43M | 0 | 67.47M | 104.86M | 138.64M | 3.32M | -253.41M | 29.5M | 9M | 1.75M | -37.64M | -9.05M | 8.42M | -452.21K | -1.67M | -320.25K | -78.42K | -334.06K | -124.08K | -127.08K | -28.27K |
| Depreciation & Amortization | -25.37M | 0 | 100.08M | 88.61M | 55.74K | 114.85M | 43.01M | 63.06M | 39.02M | 20.52M | 11.48M | 15.18M | 11.81M | 2.28M | 506.79K | 1.2K | 2.66K | 1.1K | 0 | 0 | 0 |
| Stock-Based Compensation | -339.12K | 0 | 5.51M | 8.83M | 7.16M | 2.42M | 5.36M | 3.08M | 3.87M | 3.69M | 2.27M | 2.57M | 2.52M | 3.49M | 944.68K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -9.24M | 0 | 19.94M | -425.27K | 8.72M | 265.48K | -3.98M | 9.93M | 2.54M | 10.47M | -19.99M | -5M | 4.24M | 77.7K | -300.32K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 383.76M | 148.13M | 2.32M | -4.89M | 15.57M | -53.55M | 278.07M | 639.05K | 11.14M | 3.72M | 56.76M | 9.73M | 242.02K | 153.68K | -255.83K | 0 | 22.66K | 242.25K | 1.46K | 11.68K | 0 |
| Working Capital Changes | 8.64M | 2.72M | -888.09K | 1.18M | 26.83M | 5.42M | 3.1M | 405.99K | 4.78M | 2.66M | -1.67M | -3.57M | 6.52M | 2.56M | 742.12K | -3.31K | -9.65K | 80.75K | -59.09K | -4.5K | 7.03K |
| Change in Receivables | -9.05M | 4.45M | 3.59M | 1.15M | -17.21M | -9.48M | 7.9M | -10.04M | 666.28K | -9.98M | 229.32K | 2.16M | -2.41M | -3.47M | -326.94K | 0 | 5.62K | 0 | 0 | 0 | 0 |
| Change in Inventory | -2.85M | -1.26M | 2.09M | 3.11M | -5.6M | 0 | 0 | -582.7K | 259.63K | 1.03M | 574.77K | 0 | 0 | 0 | 87.84K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 21.08M | 474.74K | -5.08M | -1.45M | 50.81M | 15.45M | -8.38M | 12.32M | 4.44M | 12.38M | -2.23M | -4.93M | 9.03M | 6.04M | 1.08M | 225 | -2.1K | -805 | -1.86K | -4.5K | 0 |
| Cash from Investing | -107.92M | -179.5M | -150.85M | -222.57M | -308.88M | -51.24M | -43.83M | -423.04M | -203.42M | -157.91M | -38.34M | -110.11M | -106.21M | -34.44M | -10.38M | -850K | 0 | 973.58K | -1.25M | -7.92K | 0 |
| Capital Expenditures | -131.21M | -97.92M | -156.49M | -155.21M | -131.22M | -53.24M | -43.83M | -155.53M | -203.53M | -157.91M | -38.34M | -109.66M | -106.17M | -34.38M | -10.38M | 0 | 0 | -276.03K | 0 | -7.92K | 0 |
| CapEx % of Revenue | 57.52% | 31.88% | 42.72% | 42.99% | 37.79% | 27.12% | 38.78% | 79.47% | 169.51% | 236.75% | 124.28% | 353.59% | 278.73% | 333.27% | 590.49% | - | - | - | - | - | - |
| Acquisitions | -5.03M | -81.85M | 0 | -80.74M | -177.82M | 2M | 0 | -276.06M | 105.54K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 28.32M | 260.45K | 5.63M | 13.38M | 158.3K | 0 | 0 | 8.55M | 105.54K | 0 | 0 | -446.19K | -39.32K | -60.54K | -10.38B | -850K | 0 | -276.03K | 1.25M | -7.92K | 0 |
| Cash from Financing | -40.52M | 27.69M | -42M | 20.99M | 113.21M | -22.66M | -34.75M | 323.06M | 121.42M | 59.03M | 93.78M | 96.07M | 28.73M | 73.27M | 15.8M | 4.67M | 0 | 0 | 1.52M | 106.7K | 43.09K |
| Debt Issued (Net) | -34.51M | 28.88M | -40.99M | 9.26M | 124.42M | -22.74M | -53.78M | 326.85M | 39.5M | 0 | -45.9M | 45.9M | 0 | 0 | -8.09M | 0 | 0 | 0 | 18.28K | 46.7K | 10.1K |
| Equity Issued (Net) | -57.02K | 0 | -919.25K | 12.3M | 8.2M | 367.51K | 19.38M | 0 | 81.82M | 59.03M | 139.57M | 50.04M | 28.51M | 73.2M | 23.9M | 4.67M | 0 | 0 | 1.5M | 0 | 32.99K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -57.02K | 0 | -919.25K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -5.95M | -1.19M | -88.45K | -572.38K | -19.41M | -290.15K | -355.05K | -3.78M | 100K | 0 | 112.5K | 134.8K | 215K | 67.5K | 0 | 0 | 0 | 0 | 0 | 60K | 0 |
| Net Change in Cash | -60.22K | -963.48K | 1.57M | -3.42M | 1.3M | -1.17M | -6.43M | 6.64M | -11.64M | -56.08M | 66.66M | -4.19M | -43.73M | 46.95M | 5.39M | 3.49M | -62.76K | 963.62K | 86.56K | -21.11K | 21.85K |
| Free Cash Flow | -25.64M | 52.93M | 38.08M | 42.96M | 65.76M | 19.49M | 28.33M | -48.91M | -133.17M | -115.11M | -27.13M | -99.82M | -72.42M | -26.26M | -10.41M | -322.36K | -62.76K | -286K | -181.72K | -127.81K | -21.24K |
| FCF Margin % | -11.24% | 17.23% | 10.4% | 11.9% | 18.94% | 9.93% | 25.06% | -24.99% | -110.91% | -172.57% | -87.93% | -321.85% | -190.13% | -254.59% | -592.3% | -12284.87% | -758.94% | - | - | - | - |
| FCF Growth % | -188.39% | 39% | -11.35% | -34.68% | 237.38% | -31.19% | 157.92% | 63.27% | -15.69% | -324.35% | 72.83% | -37.84% | -175.75% | -152.29% | -3129.17% | -413.66% | 78.06% | -57.39% | -42.17% | -501.74% | - |
| FCF per Share | -0.12 | 0.26 | 0.19 | 0.22 | 0.46 | 0.16 | 0.39 | -0.73 | -2.19 | -2.18 | -0.70 | -3.54 | -2.80 | -1.60 | -1.29 | -0.04 | -0.02 | -0.08 | -0.06 | -0.04 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.10x | -4.34x | 2.88x | 1.89x | 1.42x | 21.89x | -0.28x | 3.61x | 7.82x | 24.41x | -0.30x | -1.09x | 4.01x | -17.95x | 0.02x | 1.01x | 0.80x | 0.03x | 1.46x | 0.94x | 0.75x |
| Interest Paid | 12.6M | 32.36M | 39.2M | 38.01M | 0 | 0 | 16.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 347.49K | 72.21K | 72.21K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and commodity volatility
As reported in recent financial statements, the relationship between net income and operating cash flow has become increasingly erratic, with the OCF/NI ratio reaching a volatile -0.12 in 2026Q1, suggesting that accounting earnings are failing to capture the underlying cash-generating reality of the business.
The persistent divergence between net income and operating cash flow indicates that non-cash charges, likely related to asset impairments or derivative adjustments, are significantly distorting the company's reported profitability. Investors should monitor whether this gap reflects structural accounting issues or merely the cyclical nature of the company's conventional Permian assets.
Based on the provided quarterly data, Ring Energy's free cash flow trajectory has shifted from positive territory in 2025Q3 to a negative $9.4 million in 2026Q1, highlighting a precarious inability to sustain self-funded growth amidst fluctuating commodity prices and rising operational demands.
The inability to maintain consistent positive free cash flow suggests that the company's capital reinvestment requirements are currently outpacing its operational cash generation. This trend warrants further investigation into whether the company can maintain production levels without further straining its already limited liquidity position.
According to historical cash flow filings, the company's capital intensity has remained elevated, with CapEx/Revenue ratios frequently exceeding 40%, which indicates that the cost of maintaining production in mature conventional reservoirs is consuming a disproportionate share of the company's total revenue inflows.
The high capital intensity suggests that Ring Energy is locked into a cycle of constant reinvestment just to offset natural production declines. This capital-heavy model appears to leave little room for error, especially when commodity price realizations are under pressure.
As indicated by recent quarterly cash flow reports, working capital changes have been highly inconsistent, swinging from a $14.7 million inflow in 2025Q4 to a $4.5 million outflow in 2026Q1, which complicates the company's ability to manage its extremely tight cash position.
These erratic working capital movements suggest potential inefficiencies in inventory management or collection cycles that are exacerbating the company's liquidity constraints. The lack of stability in these flows may indicate that the company is struggling to optimize its cash conversion cycle in a volatile pricing environment.
Based on the reported cash flow data, capital deployment has been largely dormant, with minimal share repurchases and no dividends paid, reflecting a strategic pivot toward preserving cash in the face of a sub-$1 million cash balance and ongoing operational losses.
The absence of meaningful capital returns to shareholders appears to be a direct consequence of the company's need to prioritize debt service and operational survival. This defensive posture suggests that management is currently unable to pursue growth or shareholder-friendly initiatives until cash flow stability is restored.
Quick answers to the most common questions about buying REI stock.
Ring Energy, Inc. (REI) generated $150.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ring Energy, Inc. (REI) generated $52.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Ring Energy, Inc. (REI) spent $97.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.