Alexander Dyes
RING ENERGYAbout Alexander Dyes
Alexander Dyes, age 40, is Executive Vice President and Chief Operations Officer at Ring Energy (REI). He joined REI in October 2020 and has been an executive officer since December 2020; his title changed from EVP of Engineering & Corporate Strategy to EVP, COO in March 2025, with continuing responsibility for production operations, engineering, drilling, business development, corporate reserves, IT, and subsurface engineering, and membership on the Management Cybersecurity Committee . He holds a B.S. in Petroleum Engineering from the University of Texas at Austin with a minor in Business Foundations, and is a Hart Energy “Forty under 40” honoree (2022); his 18+ years span oilfield operations, reservoir engineering, capital allocation, and strategy across major U.S. basins . Company performance metrics relevant to pay-for-performance include TSR and CROCE; in 2024, REI’s TSR value of a $100 investment was $51.52 versus peer group $141.49, with net income of $67.47M and CROCE of 15.9% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Apache Corporation | Various roles, last as Lead Asset Senior Reservoir Engineer (Permian) | 2007–2014 | Led multi-disciplinary teams optimizing development programs and operational efficiency |
| Yuma Energy, Inc. | VP of A&D/Engineering | Late 2014–Early 2019 | Drove A&D and engineering initiatives to uncover growth and improve returns |
| SandRidge Energy | VP – A&D | May 2019–June 2020 | Led acquisitions/divestitures with capital discipline focus |
| Ring Energy | EVP Engineering & Corporate Strategy; EVP, COO | Dec 2020–Feb 2025; Mar 2025–Present | Oversees operations, engineering, drilling, reserves, IT; key role in corporate planning and strategy |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $315,000 | $345,000 | $366,667 |
| Bonus ($) | $32,900 | $0 | $0 |
| Equity Awards ($) | $592,474 | $566,215 | $592,477 |
| Non-Equity Incentive (AIP) ($) | $302,100 | $258,750 | $374,000 |
| All Other Compensation ($) | $15,760 | $19,800 | $22,087 |
| Total ($) | $1,258,234 | $1,189,765 | $1,355,231 |
| 2024 Base Salary Rate ($) | Effective 01/01–02/29/2024 | Effective 03/01–12/31/2024 | % Change |
|---|---|---|---|
| Alexander Dyes | $350,000 | $370,000 | 6% |
| 401(k) Company Match ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Alexander Dyes | $15,760 | $19,800 | $22,087 |
Performance Compensation
| AIP (Annual Incentive Plan) – 2024 | Target ($) | Maximum ($) | Actual Payout ($) | Notes |
|---|---|---|---|---|
| Alexander Dyes | $275,000 | $550,001 | $374,000 | Company funded AIP at 136% of target based on KPIs; metrics: Net Boe Production (Sales), IRR, Net Lifting Costs; HSE modifier applied |
| LTIP Awards – 2024 | Grant Date | Type | Shares | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| Alexander Dyes | Feb 13, 2024 | RSU | 126,126 | $163,964 | 3 equal annual installments from first anniversary |
| Alexander Dyes | Apr 30, 2024 | PSU (Target) | 189,189 | $428,513 | Cliff vest Dec 31, 2026; payout 0–200% based on TSR & CROCE |
| PSU Metric Payout Framework (2024 grants) | Below Threshold | Threshold | Target | Stretch | Maximum |
|---|---|---|---|---|---|
| CROCE (final % performance) | ≤5% | 10% | 15% | 18% | 20% |
| CROCE PSU % Earned | 0% | 50% | 100% | 150% | 200% |
| TSR PSU Payout Matrix (50% of PSU award) | <0% Absolute TSR | 0% Absolute TSR | 10% Absolute TSR | ≥25% Absolute TSR |
|---|---|---|---|---|
| Relative TSR <25th Percentile | 0% | 0% | 0% | 0% |
| Relative TSR ≥25th Percentile | 25% | 50% | 75% | 100% |
| Relative TSR ≥50th Percentile | 50% | 75% | 100% | 125% |
| Relative TSR ≥75th Percentile | 75% | 100% | 125% | 150% |
| Relative TSR ≥90th Percentile | 100% | 125% | 175% | 200% |
| 2022 PSU Outcomes (Vested in 2024) | TSR Component Payout | CROCE Component Payout |
|---|---|---|
| NEOs (incl. Dyes) | 0% | 177% |
| 2024 Equity Vesting Activity (Realized) | RSUs – Shares | RSUs – Value ($) | PSUs – Shares | PSUs – Value ($) |
|---|---|---|---|---|
| Alexander Dyes | 77,820 | $112,177 | 95,221 | $129,501 |
Equity Ownership & Alignment
| Beneficial Ownership (as of Apr 4, 2025) | Shares | Approximate % of Outstanding |
|---|---|---|
| Alexander Dyes | 520,282 | <1% (based on 206,509,126 shares outstanding) |
| Unvested/Unearned Equity (12/31/2024) | RSUs – Units | RSUs – Market Value ($) | PSUs – Units | PSUs – Market Value ($) |
|---|---|---|---|---|
| Alexander Dyes | 210,081 | $285,710 | 324,324 | $441,081 |
| Upcoming RSU Vesting Schedule (Units) | Feb 9, 2025 | Feb 13, 2025 | Feb 16, 2025 | Feb 13, 2026 | Feb 16, 2026 | Feb 13, 2027 |
|---|---|---|---|---|---|---|
| Alexander Dyes | 23,895 | 42,042 | 30,030 | 42,042 | 30,030 | 42,042 |
| PSU Vesting Schedule (Units) | Dec 31, 2025 | Dec 31, 2026 | Notes |
|---|---|---|---|
| Alexander Dyes | 135,135 | 189,189 | PSU payout can range 0–200% based on TSR & CROCE |
- Stock Ownership Guidelines: NEOs required to hold 3x base salary; three years to reach target; until compliant, must retain two-thirds of net shares from vesting .
- Hedging & Pledging: Company prohibits hedging/monetization transactions and pledging/margin accounts for executives and directors .
- Burn Rate/Overhang Context: Three-year average annual burn rate 1.73% (2022–2024); overhang 4% as of Mar 10, 2025; share reserve increased by 11.5M in 2025 to support LTIP competitiveness .
Employment Terms
| Scenario (Tier 2 under CIC Plan, effective Mar 6, 2024) | Cash Severance | Pro‑Rated Target Bonus | Accelerated Equity Vesting | Company-Paid COBRA Premiums | Total |
|---|---|---|---|---|---|
| Termination by Employee for Good Reason, or by Company without Cause | $647,500 | $— | $726,791 | $10,343 | $1,384,634 |
| Termination without Cause/Resignation for Good Reason in 6 months prior to or 24 months following a Change in Control | $1,295,000 | $— | $726,791 | $10,343 | $2,032,134 |
| Death | $— | $— | $726,791 | $6,895 | $733,686 |
| Disability | $— | $— | $726,791 | $6,895 | $733,686 |
- Double‑Trigger Vesting: RSU/PSU acceleration requires termination without cause or for good reason in the 6 months prior to or 24 months following a change in control; single trigger not permitted .
- Employment Agreements: Prior agreements (with non‑compete, confidentiality, non‑solicit covenants) terminated and replaced by CIC Plan on Mar 6, 2024 .
- Clawback Policy: Company maintains clawback policy; incentives capped; independent comp consultant (Meridian) engaged .
Performance & Track Record
| Company Pay‑Versus‑Performance Metrics | 2022 | 2023 | 2024 |
|---|---|---|---|
| REI TSR – $100 Initial Investment (Value) | $93.18 | $55.30 | $51.52 |
| Peer Group TSR – $100 Initial Investment (Value) | $144.89 | $146.23 | $141.49 |
| Net Income ($) | $138,635,025 | $104,864,641 | $67,470,314 |
| CROCE (%) | 20.7% | 17.2% | 15.9% |
- AIP Metrics (2024): Net Boe Production (Sales), IRR, Net Lifting Costs; funding modified by HSE objectives; NEO cash bonuses awarded at 136% of target .
- LTIP: 60% PSUs, 40% RSUs; 2022 PSU awards yielded 0% on TSR and 177% on CROCE components, reinforcing capital efficiency focus amid share price underperformance .
- Governance & Shareholder Feedback: Say‑on‑pay support ~75% (2023) and ~81% (2024); institutional investors expressed alignment of pay and performance; continued engagement planned .
Compensation Structure Analysis
- Mix Shift & Risk: Majority of Dyes’ opportunity is at‑risk via AIP and PSUs/RSUs; 2024 equity quantum reduced by using above‑market grant price, cutting NEO/director equity by ~41% to align with TSR and preserve plan shares .
- Performance Metrics Rigor: PSU program balances TSR (absolute/relative) with CROCE three‑year performance; linear interpolation between thresholds reduces discretionary outcomes .
- Severance Economics: Tier 2 multiples (1x salary+target AIP; 2x under CIC window) plus equity acceleration and COBRA, with double‑trigger vesting, mitigate windfalls while providing retention .
- Policy Safeguards: Prohibitions on hedging/pledging and clawback policy strengthen alignment and reduce red‑flag risk .
Investment Implications
- Alignment: Strong emphasis on CROCE and multi‑year PSUs supports capital‑efficient execution; hedging/pledging bans and ownership guidelines (3x salary) improve skin‑in‑the‑game, though individual compliance status is not disclosed .
- Near‑Term Selling Pressure: RSU vesting tranches in February 2026 and 2027 (42,042 and 30,030 units per date) plus PSU cliffs in 2025/2026 could create periodic liquidity events; 2024 vestings show realized values consistent with schedule .
- Retention vs. Cost: CIC Plan double‑trigger terms are market‑standard; Dyes’ severance totals ($1.38M without CIC; $2.03M with CIC) suggest balanced retention economics without single‑trigger accelerations .
- Execution Risk: TSR underperformance vs peers contrasts with strong CROCE outcomes; pay program explicitly reduced equity quantum in 2024 to reflect TSR, signaling committee responsiveness—monitor whether TSR improves alongside operational goals tied to AIP (Sales, IRR, lifting costs) .