Ring Energy, Inc. (NYSEAM: REI), which holds Permian Basin assets in Texas and New Mexico, reported Monday that it has relocated its corporate headquarters from Midland to The Woodlands, Texas, effective Jan. 19, 2021.
In addition, Ring noted in a written statement that it has closed its Andrews, Texas, field office, downsized its Midland office, and will close its Tulsa, Okla., office at the end of this quarter.
“We are implementing a new strategic vision for Ring and relocating our headquarters to The Woodlands is one of the key first steps in this process,” Ring CEO and Chairman of the Board Paul D. McKinney commented. “We wanted to reduce our fixed G&A (general and administrative) costs, while increasing our accessibility to the diverse and experienced energy workforce in the greater Houston area, and this move accomplishes both objectives.”
Ring stated that its new headquarters address is 1725 Hughes Landing Blvd., Suite 900, The Woodlands, Texas 77380.
“In addition, we are consolidating all of our executive management team and relocating all accounting functions into our new Woodlands headquarters,” McKinney continued. “The combination of these actions is expected to result in a 15-percent annualized office-related G&A cost savings. We look forward to continuing to lower our break-even costs while increasing our free cash flow generation with our long-lived conventional assets in the heart of the Permian Basin.”
According to Ring’s website, the company’s three core areas of operation in the Permian include the Central Basin Platform, the Northwest Shelf, and the Delaware Basin. The firm notes that it suspended its 2020 drilling program starting in the second quarter of last year and has since focused on remaining cash-flow positive quarter-over-quarter.
Ring’s website also states the company anticipates resuming its horizontal drilling program in the San Andres formation on the Central Basin Platform – where it has drilled roughly 1,400 wells over 35 years – in early 2021 out of cash flow once oil prices stabilize above $40 per barrel.
To contact the author, email mveazey@rigzone.com.
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