HOUSTON, TEXAS (Editors at Energy Analytics Institute, 1.Apr.2025) — Ring Energy, Inc. completed its previously-announced acquisition of the Central Basin Platform (CBP) assets of Lime Rock Resources IV, LP on 31 Mar. 2025.
“The majority of these assets are similar to the conventional-focused CBP assets in our core Shafter Lake operations, which will allow us to quickly integrate the assets into our operations,” Ring Energy chairman of the Board and CEO Paul D. McKinney said on 1 Apr. 2025 in an official company statement.
“The acquisition further consolidates assets in core counties in the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital, and provide for near-term opportunities for field level synergies and cost savings,” McKinney said.
After taking into account preliminary purchase price adjustments, consideration for the transaction consisted of: 1) a cash payment of $63.6mn net of the $5mn deposit payment made in Feb. 2025, 2) $10mn deferred cash payment due on or about 31 Dec. 2025, and 3) the issuance of 6.5 million shares of common stock. The cash payment at closing was funded with cash on hand and borrowings under Ring’s senior revolving credit facility, the company said.
Greenhill, a Mizuho affiliate, acted as sole financial advisor to Ring in connection with the acquisition and Jones & Keller, P.C. served as legal counsel. Truist Securities served as financial advisor to Lime Rock and Kirkland & Ellis LLP served as legal counsel.
Lime Rock’s CBP operations are located in the Permian Basin in Andrews County, Texas, and focused on the development of 17,700 net acres where the majority are similar to Ring’s existing CBP assets in the Shafter Lake area, and the remaining acreage exposes the company to new active plays.
Key highlights of the Lime Rock deal
— Highly accretive: 2,300 barrels of oil equivalent per day (boe/d) (>80% oil) of low-decline net production from ~101 gross wells driving $34mn of 2025E adjusted EBITDA. Accretive to key Ring per share financial and operating metrics, and attractively valued at <85% of proved developed (PD) PV-101,2;
— Increased scale and operational synergies: ~17,700 net acres (100% HBP) mostly contiguous to Ring’s existing footprint. Expands legacy CBP footprint with seamless integration and identified cost reduction opportunities;
— Meaningful adjusted free cash flow generation: Supported by $120mn of oil-weighted PD PV-101,2 reserves. Higher adjusted free cash flow, shallow decline and reduced reinvestment rate accelerates debt reduction;
— Strengthens high-return inventory portfolio: >40 gross locations that immediately compete for capital. Improves inventory of proven drilling locations with superior economics in active development areas; and
— Creates a stronger and more resilient company: Solidifies position as a leading conventional Permian consolidator while strengthening the operational and financial base.
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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
