MeritValue

RING ENERGY, INC.

REIdata completeness 75%16 fiscal years on file
The thesis, from the filings

RING ENERGY, INC. earns about 11% on invested capital, but has diluted owners by 69% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $3.41 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$196.3M1$347.2M2$361.1M3$366.3M3$307.2M3
Net income$3.32M4$138.6M5$104.9M6$67.5M6−$34.7M6
Operating cash flow$72.7M7$197M8$198.2M9$194.4M9$150.8M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$2.41M10$3.71M11$296,38412$1.87M13$902,91313
Diluted shares121.2M141.8M195.4M200.3M205.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$40.8
your share of equity
Profit it earned you last year
−$1.69
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $40.8 of net worth that earned you −$1.69 last year.

iii. Is this a good business?
Moat signal · return on invested capital
11% avg · 5y
FY21 6%FY22 24%FY23 19%FY24 8%FY25 -4%

It earned an average 11% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+69% shares · 5y

Share count is up 69% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$3.41
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$67.5M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001628280-24-009691 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-010585 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001384195-26-000050 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001628280-24-009691 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-010585 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001384195-26-000050 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001628280-24-009691 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-010585 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001384195-26-000050 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001628280-23-007323 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-24-009691 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2023-12-31 · accession 0001628280-25-010585 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2024-12-31 · accession 0001384195-26-000050 (CashAndCashEquivalentsAtCarryingValue)