Northland Securities analyst Jeff Grampp maintained a Buy rating on Ring Energy (REI) today and set a price target of $9. The company’s shares opened today at $6.30.
Grampp observed:
“We reiterate our OP and $9 PT. Terms: REI is acquiring Wishbone Energy Partners, LLC (Private) for $300MM ($270MM in cash and $30MM in common stock). The company has secured an increased borrowing base from $175MM to $425MM to cover the cash component of the transaction. Wishbone Assets: Wishbone owns 49,754 gross (37,206 net) acres primarily in southwest Yoakum County and eastern Lea County with current production of 6,000 BOEPD. REI estimates Wishbone holds 363 gross horizontal San Andres drilling locations. Additionally, Wishbone has built out sufficient infrastructure including owned surface rights, SWD wells and water sourcing wells.”
According to TipRanks.com, Grampp has currently no stars on a ranking scale of 0-5 stars, with an average return of -11.8% and a 29.5% success rate. Grampp covers the Basic Materials sector, focusing on stocks such as Penn Virginia Corporation, Goodrich Petroleum Corp, and Lonestar Resources US.
Currently, the analyst consensus on Ring Energy is a Strong Buy with an average price target of $9.32.
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Ring Energy’s market cap is currently $371.4M and has a P/E ratio of 32.89. The company has a Price to Book ratio of 0.81.
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Ring Energy, Inc. is an oil and gas exploration company which engages in oil and natural gas acquisition, exploration, development and production activities in the Permian and Mid-Continent regions of the United States. The company was founded by Lloyd T. Rochford and Stanley M. McCabe on July 30, 2004 and is headquartered in Midland, TX.
