Ring Energy Announces Third Quarter 2024 Results, Provides Guidance For Fourth Quarter and Updates Full Year 2024 Outlook
~ Q3 2024 Highlighted by Record Sales, Strategic Divestiture and Meaningful Debt Reduction ~
THE WOODLANDS, Texas, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Ring Energy, Inc. (NYSE:REI) ("Ring" or the "Company") today reported operational and financial results for third quarter 2024 and provided an outlook for the fourth quarter and updated guidance for the full year.
Third Quarter 2024 Highlights
Produced record sales of 20,108 barrels of oil equivalent per day ("Boe/d") (66% oil) exceeding the high end of guidance;
Oil sales were 13,204 Bo/d which were within guidance;
Reported net income of $33.9 million, or $0.17 per diluted share, and Adjusted Net Income1 of $13.4 million, or $0.07 per diluted share;
Incurred Lease Operating Expense ("LOE") of $10.98 per Boe, near the midpoint of guidance;
Recorded Adjusted EBITDA1 of $54.0 million;
Divested non-core vertical wells and associated facilities in the Central Basin Platform for $5.5 million with a valuation of approximately 5.6 times estimated next twelve months cash flow2;
Guidance updated to reflect the impact of the divestiture;
Successful development campaign resulted in capital spending of $42.7 million (guidance was $35 million to $45 million) with 13 wells drilled and 11 wells completed and placed on production during the quarter;
Generated third quarter Adjusted Free Cash Flow1 of $1.9 million;
Remained cash flow positive for the 20th consecutive quarter;
Ended the period with $392.0 million in outstanding borrowings on the Company's credit facility, reflecting a paydown of $15.0 million during the third quarter, $33.0 million YTD; and
Increased liquidity to a record $208.0 million and Leverage Ratio3 remained at 1.59x as of September 30, 2024.
Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, "Our strong performance during the third quarter is a direct reflection of the Company's commitment to its stockholders and, more specifically, the successful execution of our drilling and completion program and continued focus on reducing our all-in cash operating costs by our team of experienced professionals. Complementing this performance was the divestiture of non-core vertical assets in the Central Basin Platform (CBP). When combined with the cash flow from operations, we were able to reduce debt by another $15 million during the period, reducing our debt to $392 million. We believe it is important to point out that our debt at the end of the third quarter was $5 million less than debt we had at the end of the quarter prior to closing the Founders acquisition last year, yet our production is higher by over 2,800 Boe/d, enhancing our ability to accelerate further debt reduction in the future."
Mr. McKinney concluded, "As we look to the remainder of the fourth quarter and into 2025, we believe we are well positioned for continued success and further debt reduction as we remain squarely focused on our strategy of maximizing cash flow generation. As you know, further debt reduction over the coming quarters will be subject to commodity prices. If future oil prices are consistently lower than recent averages, we will pull back capital to maintain production in favor of our ongoing focus on debt reduction. Regarding our guidance, we have updated our full year 2024 guidance to reflect only the recent divestiture of non-core vertical assets. Our existing assets continue to meet or exceed expectations. Regarding our capital spending program during the fourth quarter, we look forward to the results of testing new opportunities designed to unlock new producing zones on our existing acreage. These investments represent a new phase of potential inventory growth for our Company through seeking to identify and develop new hydrocarbon resources organically. Although we are adding organic inventory growth as another strategy to create value, we will continue to pursue strategic, accretive and balance sheet enhancing acquisitions as our primary source of production and reserves growth. As in the past, we will maintain the discipline associated with enhancing our balance sheet and profitably achieving the size and scale designed to drive long-term value for our stockholders. Thank you for your continued support."
Summary Results
Quarter
Year to Date
Q3 2024
Q2 2024
Q3 2024 to Q2 2024 % Change
Q3 2023
Q3 2024 to Q3 2023 % Change
YTD 2024
YTD 2023
YTD % Change
Average Daily Sales Volumes (Boe/d)
20,108
19,786
2%
17,509
15%
19,644
17,688
11%
Crude Oil (Bo/d)
13,204
13,623
(3)%
12,028
10%
13,406
12,181
10%
Net Sales (MBoe)
1,849.9
1,800.6
3%
1,610.9
15%
5,382.6
4,828.8
11%
Realized Price - All Products ($/Boe)
$48.24
$55.06
(12)%
$58.16
(17)%
$52.56
$54.07
(3)%
Realized Price - Crude Oil ($/Bo)
$74.43
$80.09
(7)%
$81.69
(9)%
$76.77
$75.79
1%
Revenues ($MM)
$89.2
$99.1
(10)%
$93.7
(5)%
$282.9
$261.1
8%
Net Income ($MM)
$33.9
$22.4
51%
$(7.5)
549%
$61.8
$54.0
15%
Adjusted Net Income1 ($MM)
$13.4
$23.4
(43)%
$26.3
(49)%
$57.2
$79.3
(28)%
Adjusted EBITDA1 ($MM)
$54.0
$66.4
(19)%
$58.6
(8)%
$182.4
$170.6
7%
Capital Expenditures ($MM)
$42.7
$35.4
21%
$42.4
1%
$114.3
$113.2
1%
Adjusted Free Cash Flow1 ($MM)
$1.9
$21.4
(91)%
$6.1
(68)%
$38.9
$29.1
34%
Adjusted Net Income, Adjusted EBITDA, and Adjusted Free Cash Flow are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under "Non-GAAP Financial Information."
Sales Volumes, Prices and Revenues: Sales volumes for the third quarter of 2024 were a record 20,108 Boe/d (66% oil, 15% natural gas and 19% NGLs), or 1,849,934 Boe. Positively impacting third quarter 2024 sales volumes was the Founders Acquisition that closed in August 2023 and incremental production brought online during the period associated with the Company's ongoing development program. Second quarter 2024 sales volumes were 19,786 Boe/d (69% oil, 14% natural gas and 17% NGLs), or 1,800,570 Boe, and third quarter of 2023 sales volumes were 17,509 Boe/d (69% oil, 16% natural gas and 15% NGLs), or 1,610,857 Boe. Third quarter 2024 sales volumes were comprised of 1,214,788 barrels ("Bbls") of oil, 1,705,027 thousand cubic feet ("Mcf") of natural gas and 350,975 Bbls of NGLs.
For the third quarter of 2024, the Company realized an average sales price of $74.43 per barrel of crude oil, $(2.26) per Mcf of natural gas, and $7.66 per barrel of NGLs. The realized natural gas and NGL prices were impacted by a fee reduction to the value received. For the third quarter of 2024, the weighted average natural gas price per Mcf was $(0.50) and the weighted average fee per Mcf was $(1.76); the weighted average NGL price per barrel was $18.45 offset by a weighted average fee per barrel of $(10.79). The weighted average natural gas price for third quarter 2024 reflects continued natural gas product takeaway constraints, which could be alleviated through additional third-party pipeline capacity. The combined average realized sales price for the period was $48.24 per Boe versus $55.06 per Boe for the second quarter of 2024 and $58.16 per Boe in the third quarter of 2023. The average oil price differential the Company experienced from NYMEX WTI futures pricing in the third quarter of 2024 was a negative $0.56 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $4.43 per Mcf.
Revenues were $89.2 million for the third quarter of 2024 compared to $99.1 million for the second quarter of 2024 and $93.7 million for the third quarter of 2023. The decrease in third quarter 2024 revenues from the second quarter of 2024 was driven by a decrease in overall realized pricing, partially offset by increased sales volumes.
Lease Operating Expense ("LOE"): LOE, which includes expensed workovers and facilities maintenance, was $20.3 million, or $10.98 per Boe, in the third quarter of 2024, which was near the midpoint of the Company's guidance of $10.50 to $11.25 per Boe. LOE was $19.3 million, or $10.72 per Boe in the second quarter of 2024 and $18.0 million, or $11.18 per Boe, for the third quarter of 2023.
Gathering, Transportation and Processing ("GTP") Costs: As previously disclosed, due to a contractual change effective May 1, 2022, the Company no longer maintains ownership and control of natural gas through processing for the majority of its gas produced. As a result, the majority of GTP costs are now reflected as a reduction to the natural gas sales price and not as an expense item. There does remain one contract in place with a natural gas processing entity where the point of control of gas dictates requiring the fees to be recorded as an expense.
Ad Valorem Taxes: Ad valorem taxes were $1.17 per Boe for the third quarter of 2024 compared to $0.74 per Boe in the second quarter of 2024 and $1.10 per Boe for the third quarter of 2023.
Production Taxes: Production taxes were $2.27 per Boe in the third quarter of 2024 compared to $2.01 per Boe in the second quarter of 2024 and $2.95 per Boe in third quarter of 2023. Production taxes ranged between 3.7% to 5.1% of revenue for all three periods.
Depreciation, Depletion and Amortization ("DD&A") and Asset Retirement Obligation Accretion: DD&A was $13.87 per Boe in the third quarter of 2024 versus $13.72 per Boe for the second quarter of 2024 and $13.65 per Boe in the third quarter of 2023. Asset retirement obligation accretion was $0.19 per Boe in the third quarter of 2024, compared to $0.20 for the second quarter of 2024 and $0.22 per Boe in the third quarter of 2023.
General and Administrative Expenses ("G&A"): G&A was $6.4 million ($3.47 per Boe) for the third quarter of 2024 versus $7.7 million ($4.28 per Boe) for the second quarter of 2024 and $7.1 million ($4.40 per Boe) for the third quarter of 2023. G&A, excluding non-cash share-based compensation, was $6.4 million ($3.45 per Boe) for the third quarter of 2024 versus $5.6 million ($3.13 per Boe) for the second quarter of 2024 and $4.9 million ($3.05 per Boe) for the third quarter of 2023. G&A, excluding non-cash share-based compensation and transaction costs, was $6.4 million ($3.45 per Boe) for the third quarter of 2024 versus $5.6 million ($3.13 per Boe) for the second quarter of 2024 and $5.1 million ($3.15 per Boe) for the third quarter of 2023.
Interest Expense: Interest expense was $10.8 million in the third quarter of 2024 versus $10.9 million for the second quarter of 2024 and $11.4 million for the third quarter of 2023.
Derivative (Loss) Gain: In the third quarter of 2024, Ring recorded a net gain of $24.7 million on its commodity derivative contracts, including a realized $1.9 million cash commodity derivative loss and an unrealized $26.6 million non-cash commodity derivative gain. This compares to a net loss of $1.8 million in the second quarter of 2024, including a realized $2.6 million cash commodity derivative loss and an unrealized $0.8 million non-cash commodity derivative gain. In the third quarter of 2023, the Company recorded a net loss on commodity derivative contracts of $39.2 million, including a realized $5.4 million cash commodity derivative loss and an unrealized $33.9 million non-cash commodity derivative loss.
A summary listing of the Company's outstanding derivative positions at September 30, 2024 is included in the tables shown later in this release.
For the remainder (October through December) of 2024, the Company has approximately 0.6 million barrels of oil (approximately 48% of oil sales guidance midpoint) hedged and approximately 0.5 billion cubic feet of natural gas (approximately 32% of natural gas sales guidance midpoint) hedged.
Income Tax: The Company recorded a non-cash income tax provision of $10.1 million in the third quarter of 2024 versus a provision of $6.8 million in the second quarter of 2024, and a benefit of $3.4 million for the third quarter of 2023.
Sale of Non-Core Properties: On September 30, 2024, the Company completed the sale of certain oil and gas properties, including vertical wells and associated facilities, within Andrews County, Texas and Gaines County, Texas to an unaffiliated party for $5.5 million. As part of the sale, the buyer assumed an asset retirement obligation balance of approximately $2.7 million.
Balance Sheet and Liquidity: Total liquidity (defined as cash and cash equivalents plus borrowing base availability under the Company's credit facility) at September 30, 2024 was $208.0 million, a 7% increase from June 30, 2024. Liquidity at September 30, 2024 consisted of $208.0 million of availability under Ring's revolving credit facility, which included a reduction of $35 thousand for letters of credit. On September 30, 2024, the Company had $392 million in borrowings outstanding on its credit facility that has a current borrowing base of $600 million. During the third quarter, Ring paid down $15 million in borrowings. Consistent with the past, the Company is targeting continued debt reduction, dependent on market conditions, the timing and level of capital spending, and other considerations.
Capital Expenditures: During the third quarter of 2024, capital expenditures were $42.7 million, which was within the Company's guidance of $35 million to $45 million, and the number of wells drilled and completed (and placed on production), 13 and 11 wells, respectively, was also within the Company's guidance range. Three horizontal ("Hz") wells were drilled and completed in the Northwest Shelf, including two 1-mile and one 1.5-mile. Four 1-mile Hz wells were drilled in the Central Basin Platform, two of which were completed in October. Finally, six vertical wells were drilled and completed in the Central Basin Platform.
Quarter
Area
Wells Drilled
Wells Completed
Drilled Uncompleted ("DUC")
1Q 2024
Northwest Shelf (Horizontal)
2
2
—
Central Basin Platform (Horizontal)
3
3
—
Central Basin Platform (Vertical)
6
6
—
Total (1)
11
11
—
2Q 2024
Northwest Shelf (Horizontal)
—
—
—
Central Basin Platform (Horizontal)
5
5
—
Central Basin Platform (Vertical)
6
6
—
Total
11
11
—
3Q 2024
Northwest Shelf (Horizontal)
3
3
—
Central Basin Platform (Horizontal)
4
2
2
Central Basin Platform (Vertical)
6
6
—
Total
13
11
2
(1) First quarter total does not include the SWD well drilled and completed in the Central Basin Platform.
Full Year and Fourth Quarter 2024 Sales Volumes, Capital Investment and Operating Expense Guidance
The Company is updating its guidance to reflect actual results through the third quarter and the previously discussed divestiture of non-core assets that was completed on September 30, 2024.
Ring's 2024 development program includes two rigs (one Hz and one vertical) focused on slightly growing oil sales volumes and maintaining year-over-year Boe sales. The Company's YTD performance has led to greater year-over-year Boe and oil sales volumes growth than originally planned.
For full year 2024, Ring now expects total capital spending of $147 million to $155 million (versus $141 million to $161 million previously), with no change to the midpoint. The updated program includes a balanced and capital efficient combination of drilling, completing and placing on production 21 to 23 Hz and 22 to 24 vertical wells across the Company's asset portfolio. Additionally, the full year capital spending program includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, and leasing costs, as well as non-operated drilling, completion, capital workovers, and ESG improvements.
All projects and estimates are based on assumed WTI oil prices of $70 to $90 per barrel and Henry Hub prices of $2.00 to $3.00 per Mcf. As in the past, Ring has designed its spending program with flexibility to respond to changes in commodity prices and other market conditions as appropriate.
Based on the $151 million midpoint of spending guidance, the Company continues to expect the following estimated allocation of capital, including:
77% for drilling, completion, and related infrastructure;
14% for recompletions and capital workovers;
5% for ESG improvements (environmental and emission reducing upgrades); and
4% for land, non-operated capital, and other.
The Company is updating its full year 2024 oil sales volumes guidance to between 13,250 and 13,450 Bo/d versus 13,200 to 13,800 Bo/d previously, which reflects a 1% reduction at the midpoint due primarily to the divestiture of non-core assets discussed above.
The Company remains focused on maximizing Adjusted Free Cash Flow. All 2024 planned capital expenditures will be fully funded by cash on hand and cash from operations, and excess Adjusted Free Cash Flow is targeted for further debt reduction.
For the fourth quarter of 2024, Ring is providing guidance for sales volumes of 12,950 to 13,550 Bo/d and 19,200 to 20,000 Boe/d (68% oil, 13% natural gas, and 19% NGLs).
The Company is targeting total capital expenditures in fourth quarter 2024 of $33 million to $41 million, primarily for drilling and completion activity. Additionally, the capital spending program includes funds for targeted capital workovers, infrastructure upgrades, well reactivations, leasing acreage; and non-operated drilling, completion, and capital workovers.
Ring expects LOE of $10.75 to $11.25 per Boe for the fourth quarter and $10.70 to $11.00 per Boe for the full year. The Company's previous guidance for full year 2024 was $10.50 to $11.25 per Boe.
The guidance in the table below represents the Company's current good faith estimate of the range of likely future results. Guidance could be affected by the factors discussed below in the "Safe Harbor Statement" section.
Q4
FY
2024
2024
Sales Volumes:
Total Oil (Bo/d)
12,950 - 13,550
13,250 - 13,450
Midpoint (Bo/d)
13,250
13,350
Total (Boe/d)
19,200 - 20,000
19,500 - 19,800
Midpoint (Boe/d)
19,600
19,650
Oil (%)
68%
68%
NGLs (%)
19%
18%
Gas (%)
13%
14%
Capital Program:
Capital spending(1) (millions)
$33 - $41
$147 - $155
Midpoint (millions)
$37
$151
New Hz wells drilled
4 - 6
21 - 23
New Vertical wells drilled
4 - 6
22 - 24
Completion of DUC wells
2
n/a
Wells completed and online
10 - 14
43 - 47
Operating Expenses:
LOE (per Boe)
$10.75 - $11.25
$10.70 - $11.00
Midpoint (per Boe)
$11.00
$10.85
(1) In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades, and well reactivations. Also included is anticipated spending for leasing acreage; and non-operated drilling, completion, capital workovers, and ESG improvements.
Conference Call Information
Ring will hold a conference call on Thursday, November 7, 2024 at 12:00 p.m. ET (11 a.m. CT) to discuss its third quarter 2024 operational and financial results. An updated investor presentation will be posted to the Company's website prior to the conference call.
To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the "Ring Energy Third Quarter 2024 Earnings Conference Call". International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring's website at www.ringenergy.com under "Investors" on the "News & Events" page. An audio replay will also be available on the Company's website following the call.
About Ring Energy, Inc.
Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitation, statements with respect to the Company's strategy and prospects. The forward-looking statements include statements about the expected future reserves, production, financial position, business strategy, revenues, earnings, costs, capital expenditures and debt levels of the Company, and plans and objectives of management for future operations. Forward-looking statements are based on current expectations and assumptions and analyses made by Ring and its management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities particularly in the winter; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company's credit facility; Ring's ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; the effects of future regulatory or legislative actions; cost and availability of transportation and storage capacity as a result of oversupply, government regulation or other factors; and Ring's ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company's reports filed with the Securities and Exchange Commission ("SEC"), including its Form 10-K for the fiscal year ended December 31, 2023, and its other SEC filings. Ring undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.
Contact Information
Al Petrie AdvisorsAl Petrie, Senior PartnerPhone: 281-975-2146 Email:
RING ENERGY, INC.Condensed Statements of Operations(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2024
2024
2023
2024
2023
Oil, Natural Gas, and Natural Gas Liquids Revenues
$
89,244,383
$
99,139,349
$
93,681,798
$
282,886,868
$
261,113,283
Costs and Operating Expenses
Lease operating expenses
20,315,282
19,309,017
18,015,348
57,984,733
51,426,145
Gathering, transportation and processing costs
102,420
107,629
(4,530
)
376,103
(6,985
)
Ad valorem taxes
2,164,562
1,337,276
1,779,163
5,647,469
5,120,119
Oil and natural gas production taxes
4,203,851
3,627,264
4,753,289
12,259,418
13,173,568
Depreciation, depletion and amortization
25,662,123
24,699,421
21,989,034
74,153,994
64,053,637
Asset retirement obligation accretion
354,195
352,184
354,175
1,057,213
1,073,900
Operating lease expense
175,091
175,090
138,220
525,272
366,711
General and administrative expense
6,421,567
7,713,534
7,083,574
21,604,323
21,023,956
Total Costs and Operating Expenses
59,399,091
57,321,415
54,108,273
173,608,525
156,231,051
Income from Operations
29,845,292
41,817,934
39,573,525
109,278,343
104,882,232
Other Income (Expense)
Interest income
143,704
144,933
80,426
367,181
160,171
Interest (expense)
(10,754,243
)
(10,946,127
)
(11,381,754
)
(33,199,314
)
(32,322,840
)
Gain (loss) on derivative contracts
24,731,625
(1,828,599
)
(39,222,755
)
3,888,531
(26,483,190
)
Gain (loss) on disposal of assets
,
51,338
,
89,693
(132,109
)
Other income
,
,
,
25,686
126,210
Net Other Income (Expense)
14,121,086
(12,578,455
)
(50,524,083
)
(28,828,223
)
(58,651,758
)
Income Before Benefit from (Provision for) Income Taxes
43,966,378
29,239,479
(10,950,558
)
80,450,120
46,230,474
Benefit from (Provision for) Income Taxes
(10,087,954
)
(6,820,485
)
3,411,336
(18,637,325
)
7,737,688
Net Income (Loss)
$
33,878,424
$
22,418,994
$
(7,539,222
)
$
61,812,795
$
53,968,162
Basic Earnings (Loss) per Share
$
0.17
$
0.11
$
(0.04
)
$
0.31
$
0.29
Diluted Earnings (Loss) per Share
$
0.17
$
0.11
$
(0.04
)
$
0.31
$
0.28
Basic Weighted-Average Shares Outstanding
198,177,046
197,976,721
195,361,476
197,850,538
188,865,752
Diluted Weighted-Average Shares Outstanding
200,723,863
200,428,813
195,361,476
200,139,478
194,583,215
RING ENERGY, INC.Condensed Operating Data(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2024
2024
2023
2024
2023
Net sales volumes:
Oil (Bbls)
1,214,788
1,239,731
1,106,531
3,673,356
3,325,323
Natural gas (Mcf)
1,705,027
1,538,347
1,567,104
4,739,881
4,726,056
Natural gas liquids (Bbls)
350,975
304,448
243,142
919,225
715,832
Total oil, natural gas and natural gas liquids (Boe)(1)
1,849,934
1,800,570
1,610,857
5,382,561
4,828,831
% Oil
66
%
69
%
69
%
68
%
69
%
% Natural Gas
15
%
14
%
16
%
15
%
16
%
% Natural Gas Liquids
19
%
17
%
15
%
17
%
15
%
Average daily sales volumes:
Oil (Bbls/d)
13,204
13,623
12,028
13,406
12,181
Natural gas (Mcf/d)
18,533
16,905
17,034
17,299
17,312
Natural gas liquids (Bbls/d)
3,815
3,346
2,643
3,355
2,622
Average daily equivalent sales (Boe/d)
20,108
19,786
17,509
19,644
17,688
Average realized sales prices:
Oil ($/Bbl)
$
74.43
$
80.09
$
81.69
$
76.77
$
75.79
Natural gas ($/Mcf)
(2.26
)
(1.93
)
0.36
(1.61
)
0.11
Natural gas liquids ($/Bbls)
7.66
9.27
11.22
9.29
11.97
Barrel of oil equivalent ($/Boe)
$
48.24
$
55.06
$
58.16
$
52.56
$
54.07
Average costs and expenses per Boe ($/Boe):
Lease operating expenses
$
10.98
$
10.72
$
11.18
$
10.77
$
10.65
Gathering, transportation and processing costs
0.06
0.06
—
0.07
—
Ad valorem taxes
1.17
0.74
1.10
1.05
1.06
Oil and natural gas production taxes
2.27
2.01
2.95
2.28
2.73
Depreciation, depletion and amortization
13.87
13.72
13.65
13.78
13.26
Asset retirement obligation accretion
