Ring Energy Inc. (NYSEMKT: REI) is up nearly 80 percent over the last twelve months, and 16 percent over the last 30 days. Between June and September of 2013, the company rallied from a low of $7 per share to a high of nearly $16 per share, more than doubling its share price in the space of three months. Between October and December, the company experienced a gradual decline to trade at about $11 per share.
However, it seems to have picked up another uptrend as it now trades north of $14. Many investors will be wondering where the current rally is likely to take the company's stock price following a halt over the last few days, but the company seems to have the required momentum to take it beyond its current 52-week high.
Ring Energy engages in the exploration, development, and production of oil and gas in Texas and Kansas. The company is headquartered in Midlands, Texas and was founded in 2004. The majority of its assets are located in Kansas, holding 16,517 in gross acres. It also holds 9,980 acres in Texas, making about 26,470 acres in total.
The company has recently shown great improvement in revenues following increased production over the last one twelve months. During the September quarter, Ring Energy generated $2.8 million worth of revenue from its oil and gas operations, compared to $374 thousand generated in 2012. For the first nine months of 2013 revenues came at $5.2 million, compared to last year's $1.04 million. This improvement is specifically due to increased production volume in oil and gas resulting from the development of leases.
Ring Energy oil sales volume came at 26,609 barrels for the three months ended September 30, compared to 4,386 barrels produced in the same period in 2012. Gas volumes were also up, increasing to 9,591 metric cubic feet [MCF] compared to just 169 MCF in 2012. For the first nine months, oil production stood at 55,116 barrels, while gas was at 22,440 MCF, compared to 11,653 barrels and 3,319 MCF in 2012, respectively.
The company recently generated $54.3 million worth of cash via a public offering, and its balance sheet still reads $0.00 in terms of debt obligations. Ring is investing well in expanding its production capacity. In a recent press release, it revealed that during the last three months the company drilled 17 development wells, 15 of which were completed and placed in production by year-end.
Ring reported that production for the three month period was at 64,000 barrels, and its daily production in December 2013 increased to 806 barrels, compared to December 2012's 114 barrels. This is likely to boost the company's revenues in the next few years as it continues increasing production. This is great momentum for continuous growth in 2014, which I believe will help rally the stock throughout the year.
Ring Energy turns 10 this year and it seems to have a lot to celebrate. Its recent capital funding should go a long way in supporting sustainable growth and exploring more opportunities. There is good momentum to maintain the current rally.