Ring Energy, Inc. Announces Inducement Equity Grants to New CFO; Details of Awards and Vesting Schedules

The Woodlands, TX – March 6, 2026 – Ring Energy, Inc. (NYSE American: REI) has announced the grant of significant inducement equity awards to Sonu Johl, the Company’s newly appointed Executive Vice President, Chief Financial Officer, and Treasurer, effective March 5, 2026. The awards are intended as an inducement for Ms. Johl’s employment and are issued outside of Ring Energy’s shareholder-approved equity incentive plan.

Key Points of the Report

• Inducement Grants:
  • 317,460 restricted stock units (“RSUs”)
  • 476,190 performance stock units (“PSUs”), with the potential for up to 952,380 shares to be earned under the performance award
• Vesting Schedules:
  • RSUs: Will vest in three equal annual installments beginning March 5, 2027, contingent upon continued service with the Company through the applicable vesting dates.
  • PSUs: Have a performance period from January 1, 2026, to December 31, 2028. Vesting is subject to the achievement of specified performance goals and continued service through December 31, 2028.
  • 50% of PSUs vest based on the Company’s total shareholder return (“TSR”) relative to a peer group; 50% vest based on annual cash returns on capital employed, subject to defined performance hurdles.
  • Earned PSUs will be settled in shares of Ring Energy common stock within 3 months following the end of the performance period, subject to tax withholdings.
• Purpose and Structure: The awards are structured as “employment inducement grants” under Section 711(a) of the NYSE American Company Guide, and are issued outside of the Company’s 2021 Omnibus Incentive Plan, though they are governed as if issued under that plan. This ensures compliance while providing flexibility for attracting high-caliber executive talent.

Important Details for Shareholders

• Significance of the Appointment and Awards:
  • The equity awards represent a material inducement to attract and retain an experienced financial executive. Such grants are substantial and align the new CFO’s interests with those of shareholders, focusing on long-term performance metrics directly linked to shareholder value creation.
  • Up to 1,269,840 shares could potentially be issued if all RSUs and PSUs vest at maximum, which could impact the Company’s share count and future dilution.
• Performance Metrics and Shareholder Value:
  • The performance criteria for the PSUs are designed to incentivize superior relative TSR and capital returns, which are key metrics closely watched by investors and could influence future stock price appreciation.
  • Should the Company outperform its peer group or meet/exceed capital return targets, a significant number of shares could be issued to the CFO, potentially impacting future earnings-per-share calculations.
• Regulatory and Compliance Notes:
  • The inducement awards are not subject to shareholder approval but are required to be disclosed in accordance with NYSE American rules and the Securities Exchange Act of 1934. The Company has attached the full RSU and PSU agreements as exhibits to the Form 8-K and issued a press release to ensure transparency.
  • Settlement of shares upon vesting is subject to tax withholding and compliance with applicable securities laws, including restrictions for affiliates under Rule 144 and the Company’s insider trading policy.
• Potential Share Price Impact:
  • The appointment of a CFO and the awarding of a significant equity package may be viewed positively by the market, as it signals a commitment to driving performance and aligning executive compensation with shareholder interests.
  • Conversely, investors should also monitor the potential for future dilution if performance targets are met and all shares are issued. The ultimate impact will depend on the Company’s actual performance over the next three years and market perception of the new CFO’s ability to deliver on strategic goals.

Additional Notes

• The awards include standard provisions for tax withholding (including “same-day-sale” broker arrangements or surrender of shares for taxes), transfer restrictions, compliance requirements, and data protection clauses aligned with Company policy and regulatory requirements.
• All grant terms, vesting, and settlement mechanics are detailed in the RSU and PSU agreements filed with the SEC, and shareholders are encouraged to review these documents for full information.

Conclusion

This announcement signals Ring Energy’s commitment to strengthening its executive team and incentivizing long-term performance. The structure and scale of the awards—contingent on rigorous performance criteria—are likely to be closely watched by investors and may influence both short- and long-term share price movements, depending on Company performance and management execution over the coming years.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult the Company’s filings and their own financial advisors before making investment decisions. The Company’s future performance and actual results may differ materially from those indicated by forward-looking statements or performance targets referenced herein.

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