Ring Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of contracts on the balance sheet


	As of
	March 31, 2022		December 31, 2021
Commodity derivative instruments	$	42,722,228	$	29,241,588
Derivative liabilities, current	$	42,722,228	$	29,241,588

Schedule of components of (Loss) on derivative contracts


	Three Months Ended
	March 31,
	2022		2021
(Loss) on oil derivative	$	(27,596,141)	$	(31,389,950)
(Loss) on natural gas derivatives		—		(198,689)
(Loss) on derivative contracts	$	(27,596,141)	$	(31,588,639)

Schedule of components of Cash (paid) received for commodity derivative settlements


	Three Months Ended
	March 31,
	2022		2021
Cash flows from operating activites:
Cash (paid) on oil derivatives	$	(14,115,501)	$	(6,663,969)
Cash received on natural gas derivatives		—		743,178
Cash (paid) for derivative settlements, net	$	(14,115,501)	$	(5,920,791)

Schedule of put and call prices of those contracts

During 2020, 2021, and early 2022, the Company entered into additional derivative contracts in the form of swaps for the 2022 calendar period for oil. The following tables reflect the details of current contracts as of March 31, 2022:


Date entered into	Period covered	Barrels per day		Swap price

Oil derivative contracts: 2022 swaps

12/4/2020	Calendar year 2022	500		$	44.22
12/7/2020	Calendar year 2022	500			44.75
12/10/2020	Calendar year 2022	500			44.97
12/17/2020	Calendar year 2022	250			45.98
1/4/2021	Calendar year 2022	250			47.00
2/4/2021	Calendar year 2022	250			50.05
5/11/2021	Calendar year 2022	879	⁽¹⁾		49.03
2/1/2022	Balance of calendar year 2022	1,000			83.47

(1)	The notional quantity per the swap contract entered into on May 11, 2021 is for 26,750 barrels of oil per month. The 879 represents the daily amount on an annual basis.