Ring Energy, Inc.

Good day, and welcome to the Ring Energy's first quarter 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Al Petrie, Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. We appreciate your interest in Ring Energy. We will begin our call with comments from Paul McKinney, our Chairman of the Board and CEO who will provide an overview of key matters for the first quarter of 2025, as well as our updated outlook. We'll then turn the call over to Travis Thomas, RING's Executive VP and Chief Financial Officer, who will review our financial results. Paul will then return with some closing comments before we open the call up for questions. Also joining us on the call today and available for the Q&A session are Alex Diaz, Executive VP and Chief Operations Officer, James Parr, Executive VP and Chief Exploration Officer, and Sean Young, Senior VP of Operations. During the Q&A session, we asked you to limit your questions to one and a follow-up. You are welcome to re-enter the queue later with additional questions. I would also note that we have posted an updated corporate presentation on our website. During the course of this conference call, the company was making forward-looking statements within the meaning of federal securities law. Investors are cautioned that forward-looking statements are not guarantees of future performance, and those actual results or developments may differ materially from those projected in the forward-looking statements. Finally, the company can give no assurance that such forward-looking statements will prove to be correct. Ring Energy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. These and other risks are described in yesterday's press release and our followings with the SEC. These documents can be found in the Investors section of our website located at www.ringenergy.com. Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially. This conference call also includes references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in yesterday's earnings release. Finally, as a reminder, this conference call is being recorded. I would now like to turn the call over to Paul McKinney, our Chairman and CEO.

Thanks, Al. We appreciate everyone for joining us today and for your interest in Ring Energy. We began 2025 with a strong first quarter where we met or exceeded all guidance targets. Driving our outperformance was exceptional oil sales volumes from newly drilled wells and our legacy assets through the outstanding efforts of our operations team, maintaining our PDP production. During the quarter, we sold 18,392 barrels of oil equivalent per day, which was above the midpoint of our previously announced guidance range. And more importantly, We sold 12,074 barrels of oil per day, exceeding the high end of our guidance range, despite the impact of weather-related downtime in January. We drilled, completed, and placed on production seven wells in the first quarter, including four horizontal wells in the northwest shelf and three vertical wells in the Central Basin platform. Not only have those wells all exceeded initial pre-drill production estimates, another highlight is we improved our capital efficiency again this quarter with average well cost coming in around 7% less than budget. We also closed the highly accretive acquisition of Lime Rock CBP assets that continue to exceed the forecast originally used to value them. Similar to what we did to prepare for the founders acquisition closing, we strategically adjusted the timing of our drilling program and capital spending initiatives during the first quarter to reduce the capital spent to optimize our financial position and better position the balance sheet. Like our founder CBP asset acquisition that closed in the third quarter of 2023, the accretive LimeRock transaction checks all the right boxes. As a reminder, we purchased a little over 100 wells with approximately a 75% oil cut. with low decline production, enhancing the company's metrics for both measures. The transaction also modestly increased scale and captures operating synergies through reductions in the number of field personnel required to operate the assets, benefits from integrating saltwater disposal systems, and lower costs from a variety of changes being made in the field. We also gained approximately 17,700 net acres all held by production with the majority of that acreage being contiguous with our legacy operations in the Shafter Lake area. The non-contiguous acreage to the south exposes ring to additional active plays on the platform providing additional opportunities when oil prices improve. With this transaction, over 40 gross drilling locations have been added to our existing high-return drilling inventory that immediately competes for capital. Last but not least, production from these assets during April, our first month of operations, averaged over 2,500 barrels of oil equivalent per day, representing a 9% increase over the estimates used to value the assets. The result is an expected meaningful increase in adjusted free cash flow supported by $120 million of oil-weighted proved developed reserves and ultimately a stronger and more resilient company. Regarding our guidance for the remainder of 2025, consistent with the revised second quarter outlook we provided last month, we are updating our outlook for the second half of the year to reflect a reduction in capital spending in response to the weakened price environment. As a result, for the final three quarters of 2025, Ring intends to reduce total capital spending by more than 47% or 36% for the full year, with only a modest reduction in production during the last half of the year, guiding to approximately 2% annual production growth over 2024. This is only made possible by the production outperformance for the new wells drilled in the first and second quarter and higher than expected production from the existing and newly acquired assets. All of this leads to projected higher adjusted free cash flow levels. For more details on the adjusted free cash flow levels, please refer to our investor presentation. With that, I will turn this over to Travis to provide financial details for the quarter, more details associated with our guidance ranges, and then return to share more about our plans to not only survive the potential for extended lower oil prices, but thrive and emerge even stronger. Travis.