Benzinga | Feb 22, 2021 06:37AM EST

Ring Energy Says it Exceeded Q4 Production Guidance, Sets 2021 Production and Capex Guidance

* Key pillars of Ring's new strategic vision include: Continue to generate free cash flow to improve and build a sustainable financial foundation; Maintain operational excellence with a strong commitment to safety, the environment, Ring's employees, and the communities in which we work and operate; Pursue rigorous capital discipline focused on Ring's highest returning opportunities; Improve margins and drive value by targeting additional operating cost reductions and capital efficiencies; Strengthen the balance sheet by steadily paying down debt, divesting non-core assets and becoming a peer leader in Debt/EBITDA metrics;

* Plans to drill six to eight wells and complete eight to ten wells in 2021;

* Estimates total 2021 capital spending to be between $44 to $48 million;

* Expects all 2021 capital expenditures to be fully funded by cash on hand and cash from operations, with excess free cash flow planned to be used for debt reduction;

* Forecasting full year ("FY") 2021 average production growth to be 3% to 8% over FY 2020 average of 8,790 Boepd;

* Expects FY 2021 lifting cost1 to average $10.00/Boe to $10.50/Boe, a decrease compared to FY 2020 lifting cost of $10.58/Boe;

* Launch Delaware Basin Asset sales process during 2Q 2021, subject to market conditions.