Ring Energy to acquire the Permian Basin assets from Warburg Pincus-backed Stronghold Energy II for $465m.

Ring Energy, an oil and gas exploration and production company, agreed to acquire the Permian Basin assets from Warburg Pincus-backed Stronghold Energy II, an operator of an oil and gas exploration and production company, for $465m. “Once we complete the transaction, we will have materially increased our inventory of high rate-of-return drilling, recompletion and workover projects, and fully expect to increase our activity across our expanded footprint. The combination of lower operating costs and a substantially expanded inventory of high-margin, capital efficient development opportunities is expected to increase free cash flow and our ability to rapidly pay down debt. This will allow us to expand even further through potential acquisitions or enhance stockholder returns through other potential return of capital opportunities," Paul D. McKinney, Ring Energy Chairman and CEO.