M&A
confidence high
sentiment positive
materiality 0.75
Ring Energy closes $65M acquisition of Founders Oil & Gas Permian Basin assets
RING ENERGY, INC.
- Total cash consideration ~$65M: $7.5M deposit, $42.5M at closing, $15M deferred due Dec 15, 2023.
- Acquired ~3,600 net acres in Ector County, Texas, Central Basin Platform, similar to prior Stronghold assets.
- Transaction funded with borrowings under Ring's senior revolving credit facility.
- Immediately accretive to production, reserves, and adjusted free cash flow; accelerates debt reduction.
- Adds low-risk, high-return drilling locations, increasing capital allocation flexibility.