Shawn Young
RING ENERGYAbout Shawn Young
Shawn Young is Senior Vice President, Operations at Ring Energy (REI). He joined Ring in September 2022 as Production Engineering Manager, was promoted to Vice President of Operations effective July 17, 2024, and to Senior Vice President, Operations in March 2025; he is 57 and holds a B.S. in Petroleum Engineering from the Colorado School of Mines . Company performance in 2024 included Net Income of $67.5MM, Adjusted EBITDA of $233.3MM, Adjusted Free Cash Flow of $43.6MM, 19,648 BOE/d, LOE of $10.89/BOE, 8% production growth, 43 wells drilled, and $40MM of debt paydown, underpinning a 136% AIP payout for the year .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Ring Energy, Inc. | Production Engineering Manager; VP Operations; SVP Operations | 2022–2025 | Promoted to VP Ops (Jul 17, 2024) and SVP Ops (Mar 2025) to lead operations after leadership transitions . |
| Legacy Reserves Inc./Revenir Energy | VP – East Texas & Rockies BU Lead; joined as Engineering Manager | 2013–2022 | Led multi-basin operations and engineering across East Texas and Rockies . |
| Legado Resources, LLC (EnCap-backed) | Operations engineering/management roles | 2008–2013 | Operations leadership at a PE-backed E&P platform . |
| Henry Petroleum | Engineering and operations management roles | 2005–2008 | Permian-focused engineering and ops execution . |
| Anadarko Petroleum Corporation | Engineering and engineering/operations management roles | ~1990–2005 (15 years) | Broad U.S. onshore engineering and operations management experience . |
Fixed Compensation
| Metric | 2024 |
|---|---|
| Base salary paid ($) | $311,305 |
| Base salary rate (Jan 1–Feb 29, 2024) | $285,600 |
| Base salary rate (Mar 1–Dec 31, 2024) | $330,000 |
| % change in base salary | 16% |
| All other compensation (401k match) | $18,794 |
Performance Compensation
Annual Incentive Plan (AIP) – Structure and 2024 Results
| AIP Performance Measures for 2024 | Weighting | Threshold | Target | Max | Actual Results | Performance Factor | Funding Level |
|---|---|---|---|---|---|---|---|
| Net Boe Production (Sales) | 50% | 5,950,336 | 6,611,484 | 7,933,781 | 7,191,054 | 144% | 72% |
| IRR (%) | 25% | 24% | 47% | 71% | 60% | 155% | 39% |
| Net Lifting Costs ($/BOE) | 25% | $12.05 | $10.95 | $8.76 | $10.89 | 103% | 25% |
| Total Funding | 100% | — | — | — | — | — | 136% |
| HSE Objectives Modifier | 100% | N/A | 100% | 200% | 100% | — | 100% |
| Total % of AIP Target Earned | — | — | — | — | — | — | 136% |
| Shawn Young – AIP Payout Detail (2024) | Value |
|---|---|
| AIP target ($) | $202,348 |
| AIP maximum ($) | $404,697 |
| AIP actual ($) | $275,194 |
Notes:
- AIP metrics for 2024: Net Boe Production (Sales), IRR, and Net Lifting Costs; payouts vary 0–200% of target; HSE modifier could adjust pool but was neutral in 2024 .
Long-Term Incentives (LTI)
| Award type | Grant date | Shares/Units | Grant date fair value ($) | Vesting |
|---|---|---|---|---|
| RSU | Feb 13, 2024 | 96,486 | $125,432 | 3 equal annual installments beginning first anniversary of grant |
| PSU | 2024 | — | — | No 2024 PSU grant to Young (max award opportunity for Young “—”) |
| Options | 2024 | — | — | No option awards disclosed for 2024 |
Vesting/settlement activity:
- RSUs vested in 2024: 48,081 shares; value realized $73,074 .
- A Form 5 shows 4,030 shares withheld to cover taxes upon RSU settlement on Sep 19, 2024 at $1.71 (code “F”) .
Equity Ownership & Alignment
| Ownership and alignment | Detail |
|---|---|
| Beneficial ownership (as of Apr 4, 2025) | 49,046 shares; <1% of outstanding |
| Unvested RSUs outstanding (12/31/2024) | 176,097 units; est. market value $239,492 at $1.36/share |
| Unvested PSUs (12/31/2024) | None |
| RSU vesting schedule (unvested as of 12/31/2024) | Feb 13, 2025: 32,162; Feb 16, 2025: 31,531; Sep 19, 2025: 16,548; Feb 13, 2026: 32,162; Feb 16, 2026: 31,532; Feb 13, 2027: 32,162 |
| Hedging/pledging | Company prohibits hedging and pledging by employees and directors |
| Ownership guidelines | CEO 5x salary; other NEOs 3x salary; three years to reach; must hold two-thirds of net shares until compliant |
| Related-party transactions | None involving Mr. Young reportable under Item 404(a) |
RSU Vesting Schedule Detail (Unvested at 12/31/2024)
| Vesting date | Shares |
|---|---|
| Feb 13, 2025 | 32,162 |
| Feb 16, 2025 | 31,531 |
| Sep 19, 2025 | 16,548 |
| Feb 13, 2026 | 32,162 |
| Feb 16, 2026 | 31,532 |
| Feb 13, 2027 | 32,162 |
Employment Terms
- Appointment and role changes: Appointed Vice President of Operations effective July 17, 2024 (age 56 at appointment); designated as a Tier 2 officer under Ring’s Change in Control and Severance Benefit Plan (CIC Plan). Promoted to Senior Vice President, Operations in March 2025 .
- CIC Plan replaced prior employment agreements on March 6, 2024; participation agreements signed; severance now governed by CIC Plan .
- CIC Plan terms (Tier 2): If terminated without cause or resigns for CIC Good Reason during the 6 months before to 24 months after a change in control (double-trigger), cash severance equals 200% of annual base salary plus 200% of most recent target AIP amount, pro-rated AIP for year of termination, full acceleration/vesting of equity awards, and 18 months of company-paid health benefits; outside this protection period, 100% multiples apply with 18 months of health benefits; death/disability provide equity acceleration and 12 months health benefits .
- Clawback: Company maintains a compensation clawback policy .
Potential Payments Upon Termination or Change in Control – Shawn Young (Tier 2; as of 12/31/2024)
| Scenario | Cash Severance | Pro-Rated Target Bonus | Accelerated Equity | Company-Paid COBRA | Total |
|---|---|---|---|---|---|
| Termination by Company without Cause or by Employee for Good Reason | $544,500 | $— (2024 AIP paid) | $239,492 | $20,788 | $804,780 |
| Termination without Cause/Good Reason in 6 months prior to or 24 months after a CIC | $1,089,000 | $— (2024 AIP paid) | $239,492 | $20,788 | $1,349,280 |
| Death | $— | $— (2024 AIP paid) | $239,492 | $13,859 | $253,351 |
| Disability | $— | $— (2024 AIP paid) | $239,492 | $13,859 | $253,351 |
Notes:
- “Accelerated Equity” valued at $1.36 per share as of Dec 31, 2024; RSUs/PSUs subject to double-trigger acceleration upon qualifying CIC-related termination .
- Tier 2 COBRA reimbursement is 18 months for termination without cause/for good reason (with or without CIC) and 12 months for death/disability .
Governance, Policies, and Trading Activity
- Policies: Prohibit hedging and pledging; no excise tax gross-ups for CIC-related termination; independent comp consultant supports pay benchmarking; clawback policy in place .
- Insider filings: DEF 14A notes one late Form 4 for Mr. Young in 2024; Form 5 filed for fiscal 2024 shows withholding of 4,030 shares at $1.71 on Sep 19, 2024 for tax obligations upon RSU settlement (transaction code “F”) .
Investment Implications
- Pay-for-performance alignment: Young’s 2024 annual bonus tied to production, returns (IRR), and cost discipline (Net Lifting Costs); company outperformance on these metrics yielded a 136% of target payout, reinforcing operating discipline incentives relevant to an E&P business model . LTI for Young in 2024 was service-based RSUs (no PSUs), implying lower direct performance linkage for his LTI relative to peers who received PSUs; however, unvested RSUs create meaningful retention incentives through 2027 .
- Vesting and potential selling pressure: A stacked vesting calendar (Feb 2025, Feb 2026, Sep 2025, Feb 2027) and tax withholding activity (Form 5) suggest near-term mechanical selling (withholding) around vest dates rather than discretionary selling; no open-market sales were disclosed in 2024 Section 16 data provided .
- Alignment and risk: Beneficial ownership is modest (<1%), but stock ownership guidelines (3x salary for NEOs), hold-until-compliant rules, and anti-hedging/anti-pledging policies reduce misalignment and financing risk from pledging . Tier 2 CIC protections (200% salary+bonus multiple in CIC termination, double-trigger equity acceleration) mitigate retention risk in strategic scenarios . Operational track record across Anadarko, Henry, Legado, and Legacy/Revenir underpins execution capability for Permian-focused operations .