THE WOODLANDS, Texas – Ring Energy, Inc. (NYSE American: REI) has disclosed changes to its executive team, including the upcoming retirement and departure of two senior leaders. Stephen D. Brooks, the Executive Vice President of Land, Legal, Human Resources, and Marketing, is set to retire effective July 1, 2024. Concurrently, Executive Vice President of Operations, Marinos Baghdati, will leave on July 17, 2024, to pursue personal interests.
The company is actively seeking a new executive to oversee legal and human resources initiatives, while the responsibilities of land and marketing will remain under the current management. To fill the impending vacancy in operations, Ring Energy is promoting Shawn Young from Production Engineering Manager to Vice President of Operations, entrusting him with Baghdati’s previous duties.
Young, who joined Ring in 2022, is a petroleum engineer bringing over three decades of experience from various roles in the energy industry. His extensive background includes positions at Legacy Reserves Inc./Revenir Energy, Legado Resources, Henry Petroleum, and Anadarko Petroleum (NYSE:APC) Corporation.
Paul D. McKinney, Chairman of the Board and CEO of Ring Energy, expressed gratitude for the contributions of both Brooks and Baghdati, noting their instrumental roles in the company's growth and culture since joining in 2020. McKinney also acknowledged Young's proven value to the team and his history of working together with him.
Ring Energy is undertaking a search for a new legal head and anticipates announcing in the coming weeks. These roles are considered crucial for the execution of the company’s long-term strategy.
Ring Energy, Inc. is an oil and gas exploration, development, and production company primarily operating in the Permian Basin.
This news article is based on a press release statement from Ring Energy, Inc.
In other recent news, Ring Energy has outperformed in its Q1 results, with a focus on growth and financial discipline. The company reported an adjusted net income of $20.3 million and adjusted EBITDA of $62 million, surpassing sales volume expectations and maintaining operational costs under budget. Ring Energy's strategy of drilling new wells and paying down debt has improved its balance sheet and liquidity position, with a $3 million debt reduction and $179.3 million available in liquidity.
The company's sales volumes exceeded guidance, with 13,394 barrels of oil per day and 19,034 barrels of oil equivalent per day. Notably, the company successfully drilled 11 producing wells in Q1, aligning with the high end of their guidance. Looking ahead, Ring Energy's Q2 production is projected to be between 18,500 and 19,100 BOE per day, with expected crude oil sales of 12,500 to 13,300 barrels per day for the full year 2024.
CEO Paul McKinney has highlighted M&A opportunities in the Central Basin Platform and the Northwest shelf, expressing anticipation over potential acquisitions. In addition, the company plans to continue its ESG improvements, having spent $1.5 million on such efforts in Q1.
InvestingPro Insights
As Ring Energy, Inc. (NYSE American: REI) navigates through executive transitions, the company's stock performance reflects a mixed landscape in the recent months. The 1-week price total return shows a modest uptick of 0.3%, suggesting short-term investor optimism amidst the announced changes. Over a 1-month period, the company has experienced a 2.59% return, reinforcing a positive outlook in the near term.
However, a broader perspective reveals that the 3-month and 6-month price total returns have dipped by -0.7% and -4.61% respectively, indicating potential investor concerns or market adjustments. Year-to-date, the price total return stands at -5.01%, which may reflect initial reactions to the executive team's restructuring or broader market conditions.
Investors and stakeholders can also note the previous close price of 374.37 USD, which serves as a benchmark for future performance as the company moves forward with its strategic plans and executive search.
One InvestingPro Tip to consider is the importance of monitoring executive team transitions, as changes in leadership can often lead to shifts in company strategy and investor confidence. With two senior leaders departing, Ring Energy's direction and momentum may be influenced by the new appointees' visions and capabilities.
For those looking to delve deeper into Ring Energy's performance and potential, InvestingPro offers additional insights and tips. Subscribers can access a comprehensive list of tips, including those related to executive changes and their impact on stock performance. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that can help in making informed investment decisions.
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