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What's in the Offing for Ring Energy (REI) Q4 Earnings?

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Ring Energy, Inc. (REI - Free Report) 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 Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Ring Energy has an Earnings ESP of 0.00%.

Zacks Rank: Ring Energy carries a Zacks Rank #3.

The above combination makes surprise prediction difficult.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, Ring Energy posted adjusted earnings per share of 12 cents, above the Zacks Consensus Estimate of 10 cents. The beat was driven by robust production. Moreover, this exploration company’s production of 906,874 barrels of oil soared 63.4% from the year-ago period and also surpassed the Zacks Consensus Estimate of 905,000 barrels of oil equivalent.

However, the bottom line was lower than the prior-year adjusted earnings of 14 cents per share as average realized commodity prices fell.

Total revenues of $50.34 million beat the Zacks Consensus Estimate of $49 million. Also, the top line improved from third-quarter 2018 revenues of $32.69 million.

As far as earnings record is concerned, this Tulsa-based company’s bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 86.86%.

Ring Energy, Inc. Price and EPS Surprise

Ring Energy, Inc. Price and EPS Surprise

Ring Energy, Inc. price-eps-surprise | Ring Energy, Inc. Quote

Stocks to Consider

Here are some stocks worth considering, which per our model have the perfect combination of elements to beat on earnings in the upcoming quarterly releases:

ProPetro Holding Corp.(PUMP - Free Report) has an Earnings ESP of +140.84% and a Zacks Rank of 1. The company is slated to announce fourth-quarter 2019 earnings on Mar 24.

Adverum Biotechnologies, Inc. (ADVM - Free Report) has an Earnings ESP of +9.68% and a Zacks Rank of 3. The company is slated to announce fourth-quarter 2019 earnings on Mar 12.

Earthstone Energy, Inc. has an Earnings ESP of +4.20% and a Zacks Rank #2. The partnership is slated to release fourth-quarter earnings on Mar 12. You can see the complete list of today’s Zacks #1 Rank stocks here.

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