Ring Energy, Inc.

Good morning and welcome to the Ring Energy second quarter and full year 2025 earnings conference call. At this time all participants are in a listen-only mode. A question and answer session will follow the formal presentation. To ask a question you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I will now turn the call over to Al Petrie, Investor Relations for Ring Energy.

Thank you, Operator, and good morning everyone. We appreciate your interest in Ring Energy. We'll 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 second quarter of 2025, as well as our updated outlook. We'll then turn the call over to Travis Thomas, Ring Energy's Executive VP and CFO who will review our financial results. Paul will then return with some closing comments before we open the call 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 ask you to limit your questions to one and a follow-up. You're welcome to re-enter the queue later with additional questions. We'd also note that we have posted an updated corporate presentation on our website. During the course of this conference call, the company will be making forward-looking statements within the meaning of federal securities laws. 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 findings with the SEC. These documents can be found in the Investors section of our website, located at .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. Reconciliation of these non-GAAP financial measures to the most directly comparable measure on the 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, and thank you everyone for joining us today and for your continued interest in Ring Energy. We enjoyed another strong quarter, a quarter where we not only set new records for oil and BOE sales, but we also set a record for adjusted free cash flow, despite considerably lower oil prices. Our operational performance during the second quarter of 2025 was largely due to the continuing success we enjoyed in the first quarter, namely that our PDP production base, the new wells drill so far this year, and the newly acquired limerock assets continued to perform at the higher end of our forecast. Also contributing to our success was the progress our operating team made by reducing operating costs. There are several highlights to point out in this regard. First was the quick and efficient integration of the limerock assets into our operations, where we not only reduce LOE costs of the acquired assets, but realized cost savings with our existing assets in the Shafter Lake operating area as well. These cost reductions were due to the reduction of the required field staff by approximately 50 percent due to the proximity of our existing assets and the ability of Ring's field management to reorganize operational responsibilities, resulting in the combined operations being more efficient. We have been able to arrest the decline rates by reducing the downtime associated with well failures, with more responsive repairs and getting the wells back online sooner. We're also able to incorporate existing vendor services such as roustabout crews, work over rigs, haul trucks, etc. that resulted in more efficient use and reduced expenses for these services in our combined operations. Other highlights are related to LOE reductions across other areas of our operating base. Our operations team continues to drive costs out of our operations where we realized about $400,000 in savings per month during the second quarter. We have significantly reduced the number of roustabout gangs and expenses around supplies and materials due to more efficient management from our field construction group. We are continuing to see reductions in field staffing related costs from optimizing field responsibilities and lease operator routes. Our production performance, cost savings, and the acquisition of the Lime Rock assets had an important impact on our performance in the second quarter and the benefits to our stockholders are depicted on slide 10 in our corporate presentation posted this morning. Our production per share increased 13 percent over the prior quarter because of the Lime Rock acquisition and the strong performance and improved metrics reported this quarter. Our all-in cash operating costs dropped almost $3.00 for BOE or 12 percent during our cost savings initiatives. Finally, and because of our strong performance this quarter, our adjusted free cash flow on a dollar per BOE basis is up over 250 percent. But we are not stopping there. We believe we have additional gains to make reducing our operating costs. One change we are making worth pointing out is that we are currently expanding the scope of operations of one of the chemical vendors used in the south into our northern assets. We expect this important change to drive future incremental savings already seen in our southern operations by reducing direct chemical treating costs, by eliminating hot oil treatments, by lowering well failure frequencies, and reducing associated work over costs. This transition should be completed in the third quarter of this year. So let's review some of the specific results of the second quarter. We sold 14,511 barrels of oil per day, which was near the high end of guidance, and 21,295 barrels of oil equivalent per day, which was just below the midpoint of guidance. When combining our record setting quarterly production with below the low end of guidance lease operating expenses of $10.45 per BOE and a 48 percent reduction in capital spending over the prior quarter, we achieved record free cash flow of $24.8 million, marking the 23rd consecutive quarter of generating free cash flow. With respect to our drilling and completion activities during the quarter, we drilled, completed, and placed on production two wells in the central basin platform. This included one one-mile horizontal well in Andrews County and one vertical well in Crane County, both with a working interest of 100 percent. Like the wells drilled and completed in the first quarter of 2025, both wells are meeting or exceeding our pre-drilled expectations associated with initial production results. Regarding our financial success for the second quarter, it was largely due to our quick response to the drop in oil prices experienced early in the quarter and the operational outperformance we just described. I will now turn this call over to Travis to share the highlights and details of our second quarter financial position. Travis?