8 High Growth Penny Stocks That Are Profitable in 2024

3. Ring Energy, Inc. (NYSE:REI)

Share Price: $1.65

5-Year Net Income Growth: 38.04%

5-Year Revenue Growth: 20.39%

TTM Net Income: $71.29 Million

Number of Hedge Fund Holders: 11 

Ring Energy, Inc. (NYSE:REI) plays a vital role in bringing energy resources to market through exploration and production in some of the oil richest areas of the United States. The company controls around 96,127 acres of land in the Permian Basin and has interests in approximately 1,043 producing wells. The reserves they hold are mainly oil-based with around 63% of reserves having oil. The company has around 129.8 million barrels of oil equivalent in proved reserves making them a significant energy contributor in the country.

Since 2018, Ring Energy, Inc. (NYSE:REI) has grown its production at a compound annual growth rate of 22%. Moreover, management has been successfully acquiring new wells thereby adding more cash flow streams to its portfolio. During the second quarter of 2024, it produced and sold 13,623 Bo/d which was up from 11,86 Bo/d in Q2 2023. Overall, sales of natural gas and oil were also up from 17,271 Boe/d in Q2 2023 to 19,786 Boe/d in the most recent quarter. Oil comprised around 69% of the total sales.

Management has been successful in reducing the operating cost over the year from $22.61 per Boe to $22.09 per Boe, thereby adding more adjusted free cash flow to its books. The adjusted free cash flow for the quarter came in at $21.4 million up more than 70% year-over-year.

Ring Energy, Inc. (NYSE:REI) was held by 11 hedge funds in Q2 2024 and has maintained a healthy net income growth rate of 38% over the past 5 years making it one of the high-growth penny stocks that are profitable in 2024.