Ring Energy Inc. managed to pull a rabbit from its hat in mid-April, agreeing to sell its Delaware Basin assets despite historic oversupply due to a global pandemic and the aftershocks of an oil price war.

In the first announced Permian deal since Valentine’s Day, Ring’s sale of nearly 20,000 acres in Culberson and Reeves counties, Texas, comes as the oil market prices continue to plummet. The deal, by an undisclosed buyer, is expected to bring in cash for Ring, which like all operators will need capital to survive the coming months.

Richard Tullis, an analyst at Capital One Securities, estimated that Ring Energy’s sale—for about $31.5 million—would improve year-end liquidity for the company to $110 million from $62 million.

Already have an account? Log In

Thanks for reading Hart Energy.

Sign Up now to get unmatched coverage of the oil and gas industry’s entire landscape.

Free Access