Cannell Capital LLC Plans to Vote “No” at Ring Energy, Inc. Annual Meeting

By , in PR on .

ALTA, WYOMING – 12-06-2018 (PRDistribution.com) — Following a loss of confidence in the board of directors of Ring Energy, Inc. (“REI”), Cannell Capital LLC has voted against all incumbent directors. Cannell encourages other shareholders to do the same by December 10 before REI’s annual meeting which meeting is scheduled to occur in Midland, Texas at 10 AM on December 11th.

Factors contributing loss of confidence by Cannell include: 

I. Lack of scale – it is hard to grow a dairy with only two cows (or rigs) – REI needs to merge up or into another company or companies. There are several private companies in or around the Permian Basin with better assets, a more modern and iterative approach to completion and superior well-by-well estimated ultimate recoveries and resulting net present values; 

II. Lack of understanding of what being a public company means today. Low knowledge of capital structure return on assets, equity and the deployment of debt. Recent mismatch between the expectations set by management and her results suggest more naiveté; and

III. An unwillingness by REI to buy back shares paired with nonsensical answer as to why not. We prefer management and directors who eat what they bake. REI’s good to great internal rates of return are also not consistent with insider selling. Were things as rosy as management professes, then one would expect buying not selling – the sundry excuses of management and the board of directors notwithstanding.

Cannell Capital LLC believes that REI has value – perhaps great value. It does not believe, however, that shareholders’ current stewards are necessarily the best management for this stage in the company’s development.

Informed REI shareholders should vote “no” at next week’s annual meeting.

Contact:Stephen W. Wagstaff

[email protected]

Media Contacts:

Company Name: Cannell Capital LLC
Full Name: Stephen Wagstaff
Phone: 4158358300
Email Address: Send Email
Website: www.cannellcapital.com

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Brad Bennett

Brad Bennett

Brad grew up in a small town in northern Iowa. He studied chemistry in college, graduated, and married his wife one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children.
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