Business Context and Reporting Period
Company: Ring Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: November 27, 2019 (Signed December 9, 2019)
Reporting Period: Event-based report regarding a material definitive agreement entered into on November 27, 2019.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. The primary financial metric disclosed is related to debt capacity:
- Borrowing Base: Reaffirmed at $425,000,000 under the Credit Facility.
- Credit Facility: Amended agreement with SunTrust Bank (administrative agent) and other lenders.
Material Changes
The Company entered into an amendment to its credit agreement dated April 9, 2019. The material change is the reaffirmation of the borrowing base at $425 million until the next scheduled redetermination or adjustment. Additionally, the Company disclosed entering into new hedge positions in connection with this amendment, as detailed in a press release issued on December 2, 2019.
Guidance, Outlook, and Risks
Management Commentary: The filing references a press release (Exhibit 99.1) regarding the amendment and new hedge positions but does not provide specific forward-looking guidance or management commentary within the text of this 8-K.
Risks and Contingencies: The filing notes that the description of the amendment is a summary and is qualified in its entirety by reference to the complete text of the Amendment (Exhibit 10.1). No specific new risks or contingencies are detailed in the body of this report.
Investor Verification Checklist
- Review Exhibit 10.1 (First Amendment to Amended and Restated Credit Agreement) for full terms, covenants, and conditions of the reaffirmed $425 million borrowing base.
- Review Exhibit 99.1 (Press Release dated December 2, 2019) for details on the new hedge positions entered into in connection with the amendment.
- Verify the impact of the reaffirmed borrowing base on the Company's current liquidity and leverage ratios using the most recent 10-Q or 10-K.