Ring Energy, Inc. (NYSE American: REI) reported second-quarter 2026 net income of $64.8 million, or $0.27 per diluted share, which included a $42.2 million unrealized mark-to-market gain on commodity derivative contracts. Adjusted net income, a non-GAAP measure, was $24.0 million, or $0.10 per diluted share, according to a company press release.

Second-quarter revenues rose 42% from the prior quarter to $104.7 million, driven by a 38% increase in the realized crude oil price to $95.45 per barrel. Average daily production was 19,990 barrels of oil equivalent per day, with oil output at 12,683 barrels per day, both within guidance. Adjusted EBITDA rose 42% quarter-over-quarter to $54.5 million.

The company reduced revolving credit facility borrowings by $66 million during the quarter, bringing the outstanding balance to $360 million against a $585 million borrowing base. Total liquidity stood at approximately $226.1 million as of June 30, 2026. The leverage ratio was 2.02x, below the 3.00x maximum permitted under its credit facility.

Capital expenditures totaled $43.2 million in the quarter, which included three approximately 2-mile horizontal wells drilled in Crane County, Texas — the first laterals of that length the company has drilled in an area historically developed with vertical wells. Those three wells are expected to be completed in the third quarter of 2026.

Ring updated its second-half 2026 oil production guidance to a range of 13,000 to 13,950 barrels per day, a midpoint approximately 2% above prior guidance. Second-half capital spending is guided at $80 million to $100 million.

The company also issued its initial 2027 guidance, targeting production growth of approximately 10% over full-year 2026, lease operating expense per barrel of oil equivalent approximately 1% lower than full-year 2026, and capital expenditures approximately 10% below full-year 2026 levels.

Ring stated it plans to fund its expanded drilling program primarily through operating cash flow while continuing to reduce its leverage ratio toward a 1.25x target.