Ring Energy, Inc. (AMEX:REI) Q1 2024 Earnings Call Transcript

Jeff Grampp: Yes. Yes. No, that’s perfect. I appreciate it. My follow-up on the CapEx side, obviously, really nice quarter coming in below the guide. And I know you guys have talked about some cost efficiencies, particularly with the Founders’ assets early on. I noticed the guide for Q2 is kind of consistent with Q1, even though you guys did have some better performance. Is there – is that just kind of some general conservatism? Are there some other things related to maybe capitalized workovers or other things beyond new drills explaining that variance? Or just, I guess, maybe looking for a little more context Q1 versus Q2 on CapEx?

Marinos Baghdati: We may add additional SWD wells in Q2. It hasn’t been decided yet. So that would increase CapEx over Q1. I know we drilled 1 in Q1, we may do two in Q2 and this for the Penwell area. In addition to that, we spent about $1.5 million on ESG infrastructure improvements in the first quarter. We think that may accelerate in the second quarter. We’re trying to go as fast as we can but at the same time, be efficient. And then first quarter, we talked about our operational efficiency. All our AFEs have contingency costs. That’s normal to have. We didn’t have any contingency issues with any of our work in the first quarter. We may have a couple of operational hiccups with second quarter wells. So we’re – we still kept those contingency dollars in there and that’s why the capital seems to not have changed very much.

But we’ll see as the quarter goes, so far, in the second quarter, we haven’t had any issues. So we feel pretty good about that, too.

Jeff Grampp: Perfect. That’s makes lot of sense. Appreciate the details guys.

Paul McKinney: Thanks, Jeff.

Operator: And ladies and gentlemen, at this point I’m showing no additional questions. I’d like to turn the floor back over to Paul McKinney for closing comments.

Paul McKinney: Thank you, Jamie. On behalf of the management team and Board of Directors, I want to thank everyone for listening and participating in today’s call. We appreciate your continued support of the company. We look forward to keeping everyone appraised of our progress. Thank you again for your interest in Ring and have a great day.

Operator: Ladies and gentlemen, that will conclude today’s conference call and presentation. We thank you for joining. You may now disconnect your lines.