Ring Energy, Inc. (REI) saw its loss narrow to $0.48 million, or $0.01 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $7.47 million, or $0.25 a share.
Revenue during the quarter surged 33.53 percent to $9.83 million from $7.36 million in the previous year period. Gross margin for the quarter expanded 1133 basis points over the previous year period to 71.03 percent.
Operating income for the quarter was $1.44 million, compared with an operating loss of $11.31 million in the previous year period.
Mr. Kelly Hoffman, the Company's chief executive officer, commented, "2016 started slowly as a year of patience and perseverance, and finished as one of pursuit and productivity. With low commodity prices continuing in early 2016, our staff did an excellent job of improving efficiencies by lowering operating costs while increasing production. In November, we announced a preliminary capital expenditure budget of $70 million for 2017, which includes the drilling of twenty-two new horizontal wells, six new vertical development wells and continued upgrading of existing infrastructure on our CBP. In addition, it includes drilling eight new vertical wells, remedial work on twelve existing wells and upgrading current infrastructure on our Delaware Basin asset. We are positioned for sustained growth and continue to aggressively look for opportunities that would complement our core assets and fuel that growth."
Operating cash flow improves
Ring Energy, Inc. has generated cash of $11.21 million from operating activities during the year, up 19.33 percent or $1.82 million, when compared with the last year.
The company has spent $38.34 million cash to meet investing activities during the year as against cash outgo of $109.66 million in the last year.
Cash flow from financing activities was $93.78 million for the year, down 2.39 percent or $2.29 million, when compared with the last year.
Cash and cash equivalents stood at $71.09 million as on Dec. 31, 2016, up 1,504.17 percent or $66.66 million from $4.43 million on Dec. 31, 2015.
Working capital turns positive
Working capital of Ring Energy, Inc. has turned positive to $66.12 million on Dec. 31, 2016 from negative $2.62 million on Dec. 31, 2015. Current ratio was at 8.27 as on Dec. 31, 2016, up from 0.77 on Dec. 31, 2015.
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