Ring Energy Inc. relocated its corporate headquarters from Midland, Texas, to the greater Houston area, the Permian Basin operator said Jan. 25.
Effective Jan. 19, Ring Energy’s corporate headquarters will be located in The Woodlands, Texas. Additionally, the company closed its Andrews, Texas field office, downsized its Midland office and plans to close its Tulsa, Okla. office at the end of first-quarter 2021.
Paul D. McKinney, Ring’s CEO and board chairman, said the relocation of the company’s headquarters is one of the key first steps of a new strategic vision for Ring.
“We wanted to reduce our fixed G&A costs, while increasing our accessibility to the diverse and experienced energy workforce in the greater Houston area, and this move accomplishes both objectives,” McKinney said in a statement on Jan. 25. “In addition, we are consolidating all of our executive management team and relocating all accounting functions into our new Woodlands headquarters.”
The combination of the relocations and related closures is expected to result in a 15% annualized office-related G&A cost savings, according to McKinney.
“We look forward to continuing to lower our breakeven costs while increasing our free cash flow generation with our long-lived conventional assets in the heart of the Permian Basin,” he added in his statement.
McKinney joined Ring Energy in late September as CEO and board chairman in hopes of helping the company achieve its goal of increased shareholder value.
In a statement, Tim Rochford, co-founder and former chairman of Ring Energy, explained the decision behind the McKinney’s appointment was driven by the board’s discouragement toward Ring’s current stock price and the “apparent lack of understanding and appreciation for the value” that he said the company represents.
Ring Energy currently operates in the Permian Basin of West Texas and New Mexico with acreage positions in the Northwest Shelf and Central Basin Platform. The company also holds a nearly 20,000-acre position in the Delaware Basin in Culberson and Reeves counties, Texas.
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