Ring Energy Inc REI

Informative Seeking Alpha REI Article from Feb 7th-22

[ditchdigger251]

This is a good informative article that summarizes the situation that REI came from, what they're doing to dramatically improve that situation and what the outcome will be if they're successful:

Ring Energy Stock: Large Price Increase (NYSE:REI) | Seeking Alpha 
     
Here's a quote from the end of the article: "This company appears to be one of very few that can "drill its way out of the current debt situation". There are a lot of companies that stated they could do a strategy like this and failed. Here the numbers point towards a successful strategy as long as strong commodity prices remain in place. Should prices weaken, then management may be forced to abandon their strategy before it is successful. That would mean the struggle to survive would continue.  Should management succeed, then this stock could soar, as the company has very cheap acreage (as demonstrated by the location cost in the breakeven calculation on the slides). The worry here has always been the finances. But the coming fiscal year appears to be the year that the worry disappears."

Given the Global oil shortage and rising demand worries as expressed by many large banks and investment houses high commodity prices are with us for at least 2 to 3 more years.  That is the only real risk to REI and in my opinion it's not a big one.