Ring Energy: Piece Of Cake Property Sale Then Growth Ahoy

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About: Ring Energy, Inc. (REI)
by: Long Player
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Long Player
Long/short equity, value, special situations, contrarian
Summary

This company features triple digits returned on wells drilled.

The central basin and Northwest shelf are more profitable than the Reeves County leases.

The Reeves County leases should be an easy sale to raise cash.

Cash flow should jump significantly from the doubled production and later lack of acquisition operational-based optimization expenses.

This company trades at a very cheap price compared to its low cost reserves per share.

Ring Energy (REI) announced the marketing of its Delaware Basin asset. That monetization could raise enough cash to easily bring the key ratios back to very conservative debt ratios that this management prefers.