What's In The Offing For Ring Energy (REI) Q4 Earnings?
Zacks Investment Research | Mar 10, 2020 09:33PM ET
Ring Energy, Inc. (NYSE:REI) is set to release fourth-quarter 2019 results on Monday Mar 16, after the closing bell.
The current Zacks Consensus Estimate for the to-be-reported quarter is pegged at earnings of 15 cents per share on expected revenues of $51.57 million. There has been no change in the bottom-line estimates over the past 30 days.
Let’s delve into the factors that are likely to have impacted the company’s December-quarter performance.
Factors Likely to Impact Q4 Results
Last year’s acquisition of Wishbone Energy’s North Central Basin assets is likely to have bumped up Ring Energy’s output. Notably, management recently provided an update on fourth-quarter operations wherein it stated that net production is around 1,049,200 barrels of oil equivalent (BOE). This implies a surge of 68.4% from the year-ago reported output of 623,000 BOE. Precisely, Ring Energy’s average daily production is estimated at 11,405 BOE per day. While the Zacks Consensus Estimate for the same is pegged at 11,403 BOE per day.
However, realized commodity prices are expected to have been affected by the rising fuel inventories and slowdown of global economy, thereby hurting the upcoming results. The company projects its fourth-quarter average realized oil price at $54.9 per barrel. The Zacks Consensus Estimate for the same stands at $55. Meanwhile, the company predicts fourth-quarter natural gas price to be $1.85 per mcf, indicative of matching the Zacks Consensus Estimate.
While significant output growth is expected to have boosted Ring Energy’s fourth-quarter 2019 earnings, weaker commodity prices might dent its overall results.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Ring Energy this time around. The right combination of a positive Zacks Investment Research
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