Ring Energy, Inc. (NYSE American:REI), a player in the crude petroleum and natural gas industry, announced the retirement of Stephen D. Brooks, the company's Executive Vice President of Land, Legal, Human Resources, and Marketing. The departure, effective as of Monday, was disclosed in a recent SEC filing.
Following his retirement, Brooks entered into a consulting agreement with Ring Energy, effective Tuesday. Under this agreement, Brooks is tasked with providing general advisory services to assist with the transition of legal and regulatory responsibilities.
The initial term of the consulting arrangement is set to last until March 31, 2025, with the option to continue on a month-to-month basis, subject to a thirty-day notice period for termination by either party.
Brooks' consultancy compensation is structured on an hourly rate of $200. Moreover, he is entitled to reimbursement for reasonable expenses incurred in the course of his consultancy work.
A notable aspect of the consulting agreement pertains to Brooks' restricted stock unit awards. These awards, granted during his tenure and scheduled to vest before the end of March 2025, will continue to vest on schedule as long as he remains a consultant for the company.
The consulting agreement includes standard provisions and restrictive covenants, such as those related to confidentiality and non-solicitation, ensuring the protection of company interests. The specifics of the agreement, as referenced in the SEC filing, indicate a commitment to maintaining continuity and leveraging Brooks' expertise post-retirement.
Ring Energy's SEC filing also clarifies the ongoing relationship between the company and Brooks, providing transparency to investors about the terms of his departure and subsequent consultancy role. The information for this article is based on statements from the SEC filing.
In other recent news, Ring Energy reported significant company developments. The oil and gas company announced an executive reshuffle with the retirement of Stephen D. Brooks and the departure of Marinos Baghdati in 2024. Ring Energy is actively seeking a new executive for legal and human resources, while promoting Shawn Young to Vice President of Operations.
In financial news, Ring Energy exceeded Q1 expectations, reporting an adjusted net income of $20.3 million and adjusted EBITDA of $62 million. The company's sales volumes surpassed guidance, reaching 13,394 barrels of oil per day and 19,034 barrels of oil equivalent per day. Moreover, Ring Energy successfully drilled 11 new wells in Q1, contributing to a $3 million debt reduction and improving its liquidity position to $179.3 million.
Looking ahead, the company projects Q2 production 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 potential M&A opportunities in the Central Basin Platform and the Northwest shelf. Furthermore, Ring Energy plans to continue its ESG improvements, having already invested $1.5 million in Q1.
InvestingPro Insights
As Ring Energy, Inc. (NYSE American:REI) navigates through executive transitions, investors might be interested in the company’s recent stock performance. Over the past week, REI has experienced a price total return of 1.03%, showing a slight upward trend.
Looking at a broader timeframe, the 1-month and 3-month price total returns were 1.07% and 0.44%, respectively. However, a longer-term perspective reveals a 6-month price total return of -3.49% and a year-to-date decline of -4.72%, with a modest 1-year price total return of -0.23%. The previous close price stood at 376.51 USD, reflecting the current market valuation of the company.
InvestingPro Tips suggest that investors closely monitor executive changes and their potential impact on company operations and stock performance. In the context of Ring Energy, the continuity provided by Stephen D. Brooks' consulting role could be a stabilizing factor for the company.
For those looking to delve deeper into the company's performance and strategic moves, InvestingPro offers additional tips. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, granting access to a comprehensive array of insights and data to inform investment decisions.
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