History
Ring Energy went from a failed first well in 2011 to a Permian Basin consolidator, growing through acquisitions funded by share sales and a credit line that grew to $1 billion.
2009-2012: A failed start and a new foothold
Ring Energy began as a mining shell. In May 2009, newly renamed, it left mining behind and took a 25% working interest in a single Howard County, Texas prospect operated by Big Star Oil and Gas, paying a $35,750 fee plus its share of a well expected to cost $300-400K. In February 2011 that first well came up dry in both zones it tried and was fully written off, and Ring declined to fund more drilling there.
It looked for a bigger foothold. In October 2011 it signed a non-binding letter of intent to buy Stanford Energy, with Andrews County, Texas interests, for $8 million cash plus 2 million shares. It also sold shares privately at $4.00 in December 2011 and January 2012: about 1.17 million shares for $4.67 million from 27 investors, then about 1.07 million shares for $4.28 million from 36 investors. The deal was revised in February 2012 to an all-stock exchange of 3.44 million shares, and Ring advanced Stanford loans, which reached $1.5 million by May. That month it also placed 823,524 shares at $4.25 for about $3.5 million.
The Stanford purchase closed in July 2012. Its two owners ended up with about 34% of Ring, and a $10 million bank credit line came with the deal. One owner, Tim Rochford, was CEO Steve Owens' brother-in-law, so it was a related-party change of control. Headquarters moved to Tulsa. In November 2012 Ring added roughly 11,000 net acres of Kansas leases, paying about $2.28 million cash and issuing 625,000 shares.
2013-2015: Listing and building the Permian position
The New York Stock Exchange certified Ring's securities for listing in August 2013. In October it brought in Torchlight Energy Resources to fund drilling on its roughly 17,000-acre Kansas leasehold: Torchlight would pay all drilling costs until it matched Ring's roughly $6.2 million spent, then costs and production would be split 50/50 on an initial ten wells, which avoided new dilution.
Now based in Midland, Ring bought more Andrews County assets from Raw Oil & Gas, JDH Raw Energy and Smith Energy, closing in March 2014 for about $6.45 million and adding roughly 1,567 net acres, with production over 92% oil. In June 2014 it closed a $30 million private placement of 2,000,001 shares at $15.00, far above the earlier $4.00 raises. In July it entered a SunTrust-led $150 million credit facility with a $40 million initial borrowing base, and repaid the $10 million line inherited from Stanford.
In 2015 came its largest deal yet: about $75 million for Finley Production's Ford West Field and Ford Geraldine Unit in Reeves and Culberson Counties, Texas. Ring sold 4.5 million shares at $11.50, raising about $49 million, and expanded the credit facility to a $500 million maximum to complete it in June.
2016-2018: Downturn and equity-funded growth
In the 2016 oil downturn Ring raised about $61 million by selling 11.5 million shares at $5.60, roughly half the 2015 price, to start a pilot horizontal drilling program and pay down its credit line. In May SunTrust cut the borrowing base to $60 million. As prices recovered Ring sold 6.525 million shares at $11.50 in December 2016 (about $71 million), about 5 million at $12.50 in July 2017 (about $59.2 million), and about 6.16 million at $14.00 in February 2018 (about $82 million), its highest offering price yet. By June 2018 the borrowing base had risen to $175 million. Shares on issue grew from 30.4 million at the end of 2015 to 63.2 million at the end of 2018, as growth was funded mainly by equity.
2019-2025: Big deals, a crisis and consolidation
In 2019 Ring agreed to its biggest deal yet: Wishbone Energy Partners' roughly 37,000 net acres in Yoakum County, Texas and Lea County, New Mexico. It closed in April for about $291 million, including $264 million cash and 4.58 million shares, funded by borrowings under a credit facility expanded to a $1 billion maximum and $425 million borrowing base. Ring said the assets doubled its production, proved reserves and future EBITDA.
The 2020 oil crash was the low point. In June Truist, SunTrust's successor, cut the borrowing base to $375 million, tightened covenants and cleared the way to sell the Delaware Basin assets. In October Ring raised only about $18-20 million selling stock and warrants at $0.70 a share. In December the base fell to $350 million, though Ring paid down an extra $45 million of debt and hedged 2021-2022 oil. Shares rose from 67.9 million at the end of 2019 to 85.9 million at the end of 2020.
Ring recovered. In September 2022 it closed the Stronghold Energy II purchase in the Central Basin Platform for about $183 million cash plus 21.3 million shares and convertible preferred stock, with the credit line expanded to $600 million. Warburg Pincus, Stronghold's owner, became the largest shareholder with two board seats, as the board grew from seven to nine. In April 2023 Ring induced holders to exercise nearly all the 2020 warrants early by cutting the strike price from $0.80 to $0.62, raising about $9 million. It had also sold the Delaware Basin assets earlier in 2023, and in August closed the Founders Oil & Gas purchase in Ector County for about $65 million cash.
On 25 February 2025 Ring agreed to buy Lime Rock Resources' Andrews County assets. It closed on March 31, 2025, for roughly $68.6 million cash at closing, a $10 million deferred payment and 6.45 million new shares. In June 2025 Ring refinanced its credit facility with Bank of America replacing Truist as lead bank, extending maturity to 2029 and cutting the interest margin. The borrowing base stood at $585 million, down from $600 million.
Written from the 37 story beats below (2009 to 23 June 2025), which come from the company's own announcements and filings.