The assets cover around 17,700 net acres in the Permian Basin in Andrews County, Texas.
The transaction includes a cash payment of $63.6 million at closing, funded by cash reserves and borrowings from Ring’s senior revolving credit facility, plus a $10 million deferred payment due by December 31, 2025. The acquisition enhances Ring’s standing as a key player in conventional Permian Basin assets, boosting its operational and financial foundation. The assets produce 2,300 barrels of oil equivalent per day from 101 gross wells, with Ring projecting $34 million in adjusted earnings for 2025 before interest, taxes, depreciation, and amortization.
The 17,700 net acres are largely adjacent to Ring’s current holdings, enabling smooth integration and cost-saving potential. Over 40 gross locations are ready for immediate development. Ring Chairman and CEO Paul McKinney stated: “We are pleased to announce the closing of our acquisition of Lime Rock’s CBP assets in the Permian Basin. The majority of these assets are similar to the conventional-focused CBP assets in our core Shafter Lake operations, which will allow us to quickly integrate the assets into our operations. The acquisition further consolidates assets in core counties in the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital, and provide for near-term opportunities for field level synergies and cost savings. As in the past, we will continue to execute our value-focused and proven strategy that we believe best positions the company for long-term success.”
In January 2025, Ring launched its development program, starting with one rig drilling horizontal wells and adding another for vertical wells. The company plans a flexible, phased capital approach to optimize cash flow and adapt to market shifts. For 2025, Ring has budgeted $138 million to $170 million for capital spending, covering 15 to 22 vertical wells, well recompletions, workovers, infrastructure upgrades, reactivations, leasing, environmental improvements, and three saltwater disposal wells.
This acquisition strengthens Ring’s position in the Permian Basin, enhancing production and development prospects while maintaining a focus on efficiency and sustainability.
