Rocky Kwon
RING ENERGYAbout Rocky Kwon
Rocky Kwon, age 45, is Interim Chief Financial Officer and Principal Financial Officer of Ring Energy, appointed on September 12, 2025; he previously served as Vice President of Accounting and Assistant Treasurer since March 2025 and as Controller since July 2021 . He holds a BBA in Accounting from the University of Texas at San Antonio and is a CPA and CGMA; he signed the Company’s November 2025 Form 8‑K in his capacity as Interim CFO . Company operating performance context includes 2024 net income of $67.5 million, Adjusted EBITDA of $233.3 million, Adjusted Free Cash Flow of $43.6 million, Net Cash Provided by Operating Activities of $194.4 million, average net sales of 19,648 Boe/d, and LOE of $10.89 per Boe; the 2024 AIP funded at 136% of target, CROCE was 15.9%, and the value of a $100 TSR over the 2019–2024 measurement window was $51.52 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ring Energy, Inc. | Interim Chief Financial Officer and Principal Financial Officer | Sep 12, 2025 – Present | Interim CFO overseeing finance, reporting; signatory for SEC filings |
| Ring Energy, Inc. | Vice President of Accounting & Assistant Treasurer | Mar 2025 – Sep 12, 2025 | Led accounting and treasury support leveraging institutional knowledge |
| Ring Energy, Inc. | Controller | Jul 2021 – Mar 2025 | Directed controllership, internal controls, and financial reporting |
| Earthstone Energy, Inc. | Assistant Controller | Pre–Jul 2021 (not disclosed) | Upstream E&P finance and controls experience |
| The AES Corporation | Financial leadership positions | Not disclosed | Broader corporate finance and management expertise |
External Roles
- None disclosed in Company filings; no arrangements or family relationships tied to the appointment and no related party transactions reportable under Item 404(a) .
Fixed Compensation
- Specific base salary, target bonus, and award sizes for Rocky Kwon have not been disclosed in 8‑K filings or the 2025 proxy (he was not a 2024 NEO) .
- Program architecture for officers emphasizes base salary, an Annual Incentive Plan (AIP) with a 0–200% payout range against preset financial/operational metrics, and long-term equity (RSUs and PSUs) with substantial at‑risk mix and three-year vesting/performance cycles .
Performance Compensation
| AIP Performance Measure (2024) | Weighting | Threshold | Target | Max | Actual | Performance Factor | Funding Level |
|---|---|---|---|---|---|---|---|
| Net Boe Production (Sales) | 50% | 5,950,336 | 6,611,484 | 7,933,781 | 7,191,054 | 144% | 72% |
| IRR (%) | 25% | 24% | 47% | 71% | 60% | 155% | 39% |
| Net Lifting Costs ($/BOE) | 25% | $12.05 | $10.95 | $8.76 | $10.89 | 103% | 25% |
| HSE Objectives Modifier | 100% | N/A | 100% | 200% | 100% | — | 100% |
| Total AIP Payout vs Target | — | — | — | — | — | — | 136% |
- LTIP structure: 60% PSUs and 40% RSUs, with RSUs vesting ratably over 3 years and PSUs cliff vesting after a 3-year performance period; PSU metrics split between TSR (absolute and relative vs peer group) and CROCE, each 0–200% payout via linear interpolation .
- TSR payout grid (illustrative design for 2024 grants): absolute TSR bands combined with relative TSR percentiles vs peer group (up to 200% at ≥25% absolute TSR and ≥90th percentile) .
- CROCE payout grid: threshold/target/stretch at 10%/15%/18% for 2024 grants with 50%/100%/150% payout levels; 0–200% overall range .
Equity Ownership & Alignment
- Insider Trading Policy prohibits hedging and pledging of Company securities and margin transactions for directors and executive officers .
- Management Stock Ownership Guidelines: CEO 5x base salary; Named Executive Officers 3x base salary; three years to reach compliance and two‑thirds of net shares from vesting held until met .
- Clawback Policy adopted November 2023, requiring recovery of incentive-based compensation after certain accounting restatements for a three-year lookback, applied to current/former executive officers .
- Double‑trigger vesting required upon change in control for equity awards; acceleration applies if termination without cause/for good reason occurs within six months before or 24 months after a change in control .
Employment Terms
| Element | Tier 1 (CEO) | Tier 2 (Other officers) |
|---|---|---|
| Severance multiple (base + most recent AIP) – CIC protection period termination | 300% | 200% |
| Severance multiple (base + most recent AIP) – non‑CIC termination | 200% | 100% |
| Pro‑rated AIP for year of termination | 100% of pro‑rated AIP | 100% of pro‑rated AIP |
| Equity acceleration | Accelerated vesting | Accelerated vesting |
| COBRA reimbursement | 24 months (CIC/non‑CIC); 12 months (death/disability) | 18 months (CIC/non‑CIC); 12 months (death/disability) |
- 2025 8‑K noted no special arrangements or related party transactions in connection with Kwon’s appointment, and no family relationships with directors or executive officers .
Investment Implications
- Leadership continuity: As a long‑tenured controller/VPA/assistant treasurer elevated to Interim CFO, Kwon provides operational continuity and institutional knowledge while the permanent CFO search proceeds—reducing execution risk in finance and reporting .
- Alignment safeguards: Prohibitions on hedging/pledging, clawbacks, stock ownership guidelines, and double‑trigger vesting collectively strengthen pay‑for‑performance alignment and reduce misaligned risk-taking or selling pressure due to margin calls .
- Performance linkage: The AIP and PSU frameworks tie compensation to volume growth, cost efficiency, IRR, TSR, and CROCE, with demonstrated 2024 AIP outcomes at 136% of target—implying tighter linkage of pay to operational delivery and returns metrics during cyclic commodity conditions .
- Retention risk: Interim status creates near‑term retention/transition uncertainty; however, the CIC Plan’s market‑standard severance features and equity acceleration mechanics may mitigate turnover risk and support stability during potential strategic transactions .