Ring Energy, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LEASES (Tables)

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of future lease payments of operating lease and finance lease


		2021			2022			2023			2024			2025
Operating lease payments ₍₁₎		$	909,035		$	186,127		$	178,377		$	164,527		$	164,527
Financing lease payments ₍₂₎			311,206			132,499			—			—			—

(1)	The weighted average discount rate as of December 31, 2020 for operating leases was 4.50%. Based on this rate, the future lease payments above include imputed interest of $108,195. The weighted average remaining term of operating leases was 3.0 years.

(2)	The weighted average discount rate as of December 31, 2020 for financing leases was 5.26%. Based on this rate, the future lease payments above include imputed interest of $21,538. The weighted average remaining term of financing leases was 1.42 years.

Schedule of lease cost


		2020
Operating lease costs		$	1,196,373
Short term lease costs ₍₁₎			5,337,433
Financing lease costs:
Amortization of financing lease assets ₍₂₎			287,413
Interest on lease liabilities ₍₃₎			30,237

(1)	Amount included in Oil and gas production costs

(2)	Amount included in Depreciation, depletion and amortization

(3)	Amount included in Interest expense