What does business segments — ceiling test impairment mean?

Ceiling test impairment represents a non-cash charge recognized when the carrying value of oil and gas properties exceeds the present value of estimated future net cash flows from proved reserves. This metric serves as a critical indicator of asset valuation risk and the impact of declining commodity prices on the company's balance sheet.

Ring Energy REI Business Segments — Ceiling test impairment

Similar metrics at other companies

EPSNImpairment of Exploration and Production Properties

$0-100%

ARExploration And Production — Impairment Of Oil And Gas Properties

$948K-83.1%

TBNExploration Abandonment And Impairment Expense

$0—

HPKExploration Abandonment And Impairment Expense

$457K+11,325%

CHRDExploration and impairment

$2.56M+29.2%

PED

PEDImpairment Of Oil And Gas Properties

$1.61M+592%

Other financials

Income statement

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Revenue$73.7M-6.9%

Gross profit$88.1M+31.7%

Operating income-$141.8M-734%

Net income-$220.6M-2,521%

EPS (diluted)-$1.06-2,220%

Balance sheet

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Cash & equivalents$1.0M-5.5%

Total debt$3.1M-28.0%

Total equity$622.0M-29.5%

Total assets$1.3B-16.7%

Cash flow

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Operating cash flow$25.9M-8.7%

CapEx--100%

Free cash flow$25.9M-8.6%

Valuation

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Market cap$274.16M+69.4%

Enterprise value$276.22M+66.7%

P/S0.9×+0.4×

Profitability

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Gross margin99.9%+1.9pp

Operating margin-65.8%-99.3pp

Net margin-87.6%-108pp

FCF margin49.1%-1.5pp

Returns & leverage

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Return on equity-35.2%-43.7pp

Debt / equity0×0.0×

Current ratio0.4×-0.1×

Where this comes from

Reported directly by Ring Energy in its filing.

Tagged under the XBRL concept us-gaap:ImpairmentOfOilAndGasProperties.

The official record: Ring Energy’s 10-Q, filed May 6, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Ring Energy's business segments — ceiling test impairment?: Ring Energy (REI) reported business segments — ceiling test impairment of $0 in Q1 2026.
What does business segments — ceiling test impairment mean?: Ceiling test impairment represents a non-cash charge recognized when the carrying value of oil and gas properties exceeds the present value of estimated future net cash flows from proved reserves. This metric serves as a critical indicator of asset valuation risk and the impact of declining commodity prices on the company's balance sheet.