OKLAHOMA CITY, Dec. 16, 2025 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian") today announced that the Board of Directors has authorized the initiation of a share repurchase program of up to $100 million of the currently outstanding shares of the Company's common stock over a period of 24 months. The Board also authorized the Company to enter into written trading plans under the Securities Exchange Act of 1934, as amended, to facilitate the repurchase of its common st ...

OKLAHOMA CITY, Dec. 4, 2025 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian") today announced that its wholly-owned subsidiary, Riley Exploration - Permian, LLC, ("REP LLC", together with Riley Permian, hereinafter referred to as the "Company"), entered into a purchase and sale agreement (the "Purchase Agreement") with Targa Northern Delaware LLC ("Buyer" or "Targa"), pursuant to which the Company sold to Buyer all of the membership interests in Dovetail Midstream, LLC ...

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Financial Data and Key Metrics Changes - Riley Exploration Permian generated $39.4 million of upstream free cash flow in Q3 2025, representing a 73% conversion of operating cash flow before working capital [19] - Year-to-date, the company generated $100 million of upstream free cash flow, equal to the same nine-month period for 2024, despite a 14% lower realized oil price [19] - Adjusted EBITDA margin was 59%, down from 66% in the previous quarter, primarily due to increased costs associated with the Silverback acquisition [17] Business Line Data and Key Metrics Changes - Average daily net production was 18.4 thousand barrels of oil per day and 32.3 thousand barrels of oil equivalent per day for Q3 2025 [5] - Total net oil production increased from 1.38 million barrels to 1.69 million barrels quarter over quarter, a 22% increase [6] - Total equivalent production rose 34% quarter over quarter, from 2.22 million to 2.98 million barrels of oil equivalent [6] Market Data and Key Metrics Changes - The company experienced a weak natural gas market in September and October, with select operators shutting in an estimated 1.5 to 2 BCF a day of gas production [15] - Prices after hedges were roughly flat quarter over quarter, with oil representing all revenue last quarter due to negative natural gas and NGL revenues [15] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, strategic infrastructure investments, and operational excellence to create long-term value [24] - The Silverback acquisition is expected to drive down fixed costs in the field by 10-20% through synergies and cost-saving opportunities [12] - The company plans to maintain flexibility in capital allocation in response to softer oil markets while striving for growth [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about lowering the cost structure and improving margins over time, citing a successful track record in this area [18] - The company is committed to maintaining a consistent and growing dividend, having increased it to $0.40 per share, up 5% from the previous quarter [4] - Management highlighted the importance of the midstream project in New Mexico for enhancing flow assurance and enabling growth in production [33] Other Important Information - The company completed five and turned in line 10 gross operated wells in Q3 2025, with plans to drill 8-10 gross wells in Q4 [8] - The company has over 60% of 2026 oil volumes hedged at a weighted average downside price of $60, with upside optionality [23] Q&A Session Summary Question: Thoughts on capital efficiency and allocation in a below $60 per barrel environment - Management indicated that in a $55 scenario, they could maintain volumes while spending around $85 million, with the dividend well covered [29] Question: Potential improvement in NetBacks for the upstream business - Management noted that flow assurance and efficient processing would lead to economic improvements, but it would take time to realize the full benefits [31][32] Question: Capital to spend for the midstream project and its impact on free cash flow - Management stated that they could maintain free cash flow positive even after combined upstream and midstream CapEx, with potential project financing options being considered [40][41] Question: Production performance on Silverback assets and future workovers - Management confirmed that there is significant potential for further workovers and optimization on the Silverback assets, with many wells still to be addressed [49] Question: Interest in external financing and current market conditions - Management acknowledged the healthy credit markets and the appetite for capital for infrastructure projects, indicating various financing options are being explored [65][66]

Riley Permian encourages readers to consider the risks and uncertainties associated with projections and other forward-looking statements. In addition, Riley Permian assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances. Investor Presentation November 2025 Forward-Looking Statements Forward-Looking Statements This presentation contains projections and other forward-looking statements within the meaning of federal securities laws. These proj ...

Core Insights - Riley Exploration Permian, Inc. (REPX) reported quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.97 per share, and down from $1.43 per share a year ago, representing an earnings surprise of -20.62% [1] - The company posted revenues of $106.85 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.34% and up from $102.34 million year-over-year [2] - The stock has underperformed the market, losing about 20.9% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $101.2 million, and for the current fiscal year, it is $4.56 on revenues of $392.5 million [7] - The estimate revisions trend for Riley Exploration Permian was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 16% of over 250 Zacks industries, suggesting a challenging environment for companies in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $106.85 million, a 4.9% increase from $102.34 million in the same period of 2024[15] - Net income for the three months ended September 30, 2025, was $16.34 million, compared to $25.66 million in the same period of 2024, reflecting a decrease of 36.3%[15] - Net income for the nine months ended September 30, 2025, was $75,443,000, compared to $77,969,000 for the same period in 2024, reflecting a decrease of approximately 3.3%[20] - The company reported a basic net income per share of $0.77 for the three months ended September 30, 2025, down from $1.22 in the same period of 2024[15] - Segment net income for Q3 2025 was $16.3 million, down 36.4% from $25.7 million in Q3 2024[111] Revenue and Sales - Oil and natural gas sales, net, for the nine months ended September 30, 2025, totaled $294.70 million, down 4.0% from $307.11 million in the same period of 2024[15] - Total oil and natural gas sales for the three months ended September 30, 2025, were $106.852 million, compared to $102.339 million for the same period in 2024, representing a 4.9% increase[37] - Oil and natural gas sales for the nine months ended September 30, 2025, were $294.7 million, with a potential $29.5 million impact from a 10% change in realized pricing[185] Expenses and Liabilities - Lease operating expenses increased to $26.87 million for the three months ended September 30, 2025, compared to $18.53 million in the same period of 2024, representing a 45.0% increase[15] - Total liabilities increased to $624.84 million as of September 30, 2025, compared to $482.89 million at December 31, 2024, an increase of 29.4%[13] - The total interest expense for the nine months ended September 30, 2025, was $23.4 million, a decrease of 12.6% from $26.7 million in the same period of 2024[98] Assets and Equity - Total current assets rose to $79.38 million as of September 30, 2025, up from $68.13 million at December 31, 2024, marking a 16.3% increase[13] - The company’s retained earnings increased to $250.93 million as of September 30, 2025, up from $200.36 million at December 31, 2024, a growth of 25.2%[13] - Total shareholders' equity as of September 30, 2025, was $566,497,000, an increase from $507,405,000 as of September 30, 2024, representing a growth of about 11.6%[18] - Total assets as of September 30, 2025, were $1.19 billion, unchanged from the previous year[111] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $147,671,000, down from $179,896,000 in 2024, indicating a decline of approximately 17.9%[20] - The company incurred $55,230,000 in additions to oil and natural gas properties during the nine months ended September 30, 2025, compared to $76,372,000 in 2024, a decrease of about 27.7%[20] - The company made net assets acquisitions in business combinations totaling $117,827,000 during the nine months ended September 30, 2025[20] Dividends - The company declared dividends totaling $24,840,000 for the nine months ended September 30, 2025, compared to $22,839,000 in 2024, reflecting an increase of about 8.8%[20] - For the three months ended September 30, 2025, the company declared dividends totaling approximately $8.4 million, compared to $8.1 million for the same period in 2024, representing a year-over-year increase of 3.7%[101] - A cash dividend of $0.40 per share was declared on October 7, 2025, payable on November 6, 2025[121] Debt and Financing - Long-term debt increased to $347.04 million as of September 30, 2025, compared to $249.49 million at December 31, 2024, reflecting a 39.1% increase[13] - The Credit Facility outstanding borrowings increased to $225 million as of September 30, 2025, compared to $115 million as of December 31, 2024, reflecting a 95.7% increase[91] - The Company issued $200 million in senior unsecured notes at a 6% discount, with a maturity date in April 2028[92] Legal and Regulatory - The company continues to face risks related to oil and natural gas price volatility, production interruptions, and regulatory changes impacting operations[9] - The company is subject to various legal claims but does not expect any material adverse effects on its financial position[113] Acquisitions and Projects - The acquisition of Silverback Exploration II, LLC was completed for approximately $123 million, with $120 million paid in cash and $3 million for estimated earnout payments[40] - The fair value of oil and natural gas properties acquired in the Silverback Acquisition was estimated at $139.996 million[43] - The company’s total oil and natural gas properties, net, increased to $1.002617 billion as of September 30, 2025, from $860.797 million at the end of 2024, marking a 16.5% increase[51] - The company signed a long-term gas purchase agreement with a new midstream counterparty, including a monetary cap of $18.7 million for construction costs[120] Derivative Contracts - As of September 30, 2025, the net fair value of the company's derivative contracts is $10.726 million[60] - The fair value of oil and natural gas derivative contracts as of September 30, 2025, was a net asset of $11 million[185] - The company has current derivative assets of $15.656 million and non-current derivative assets of $7.429 million as of September 30, 2025[60]

Production and Operations - Total equivalent production averaged 32.3 MBoe/d, with oil production at 18.4 MBbls/d, representing a 21% increase in daily oil volumes and a 33% increase in total equivalent volumes quarter-over-quarter [4] - Net production for Q4 2025 is projected to be between 32.9 MBoe/d and 33.9 MBoe/d, with oil production between 18.7 MBbls/d and 19.7 MBbls/d [26] - The company expects to complete between 3.0 and 5.0 wells in Q4 2025 and between 16.3 and 18.3 wells for the full year [26] Financial Performance - Revenues for the third quarter totaled $107 million, with net income of $16 million, or $0.77 per diluted share [9] - Total revenues for Q3 2025 were $106,852,000, an increase of 4.9% compared to $102,339,000 in Q3 2024 [37] - Net income for Q3 2025 was $16,340,000, a decrease of 36.1% from $25,663,000 in Q3 2024 [37] - Basic net income per share for Q3 2025 was $0.77, down from $1.22 in Q3 2024 [37] Cash Flow and Expenditures - The company generated $64 million in operating cash flow and $25 million in total free cash flow during the quarter [4] - Total capital expenditures for the quarter were $29 million, with $18 million in total accrued capital expenditures [10] - Total capital expenditures for full-year 2025 are estimated to be between $119 million and $140 million, with upstream capital expenditures ranging from $89 million to $95 million [26] - Cash provided by operating activities for the nine months ended September 30, 2025, was $147,671,000, down 17.9% from $179,896,000 in the same period of 2024 [39] - Net cash used in investing activities for Q3 2025 was $142,372,000, compared to $25,669,000 in Q3 2024 [39] Debt and Equity - As of September 30, 2025, total debt increased to $375 million, primarily due to the acquisition financing [11] - The company reported a current portion of long-term debt of $20,000 thousand, unchanged from December 31, 2024 [35] - Shareholders' equity rose to $566,497 thousand as of September 30, 2025, compared to $510,615 thousand at the end of 2024 [35] Costs and Expenses - Total costs and expenses for Q3 2025 were $77,990,000, a decrease of 9.1% from $84,861,000 in Q3 2024 [37] - Lease operating expenses increased to $26,874,000 in Q3 2025, up 45.0% from $18,532,000 in Q3 2024 [37] - Operating costs for Q4 2025 include lease operating expenses projected at $8.50 to $9.50 per Boe and administrative costs at $2.75 to $3.25 per Boe [26] Acquisitions and Investments - The acquisition of Silverback Exploration II, LLC was completed for $120 million in cash, contributing to increased production and reduced costs [3] - The company plans to invest $1 million in Power JV for the full year 2025 [26] Derivatives and Risk Management - The company reported a $2 million gain on derivatives, with average realized prices of $63.94 per barrel of oil [9] - As of October 31, 2025, the company has 679,947 Bbl of WTI Oil Swaps for Q4 2025 at a weighted average price of $66.93/Bbl [40] - The company holds 480,000 Bbl of WTI Oil Collars for Q4 2025 with a floor price of $63.10/Bbl and a ceiling price of $77.07/Bbl [40] - The company has 965,000 MMBtu of NYMEX Natural Gas Swaps for Q4 2025 at a weighted average price of $3.74/MMBtu [40] - The company maintains 400,000 MMBtu of NYMEX Natural Gas Collars for Q4 2025 with a floor price of $3.30/MMBtu and a ceiling price of $4.00/MMBtu [40] - The company has open interest rate derivative positions totaling $30,000,000 at a fixed rate of 3.18% for the period October 2025 - April 2026 [42] - The company also holds $50,000,000 in interest rate derivatives at a fixed rate of 3.04% for the same period [42] - For the period October 2026 - April 2027, the company has a long position of $45,000,000 at a fixed rate of 3.90% [42] Infrastructure Development - The company is advancing its midstream infrastructure in New Mexico, with a planned 2026 in-service date for a new pipeline [14] - RPC Power served approximately 70% of the company's load for its Champions field, with plans for increased capacity in 2026 [17]

Core Insights - Riley Exploration Permian, Inc. reported solid financial and operational results for Q3 2025, highlighting disciplined execution and strategic progress, including the successful integration of the Silverback acquisition [2][5][19] - The company increased its quarterly dividend by 5% to $0.40 per share, reflecting confidence in its cash flow generation [2][10] - Average oil production during the quarter was 18.4 MBbls/d, with total equivalent production averaging 32.3 MBoe/d, marking a 21% increase in daily oil volumes and a 33% increase in total equivalent volumes quarter-over-quarter [4][6] Financial Performance - Revenues for Q3 2025 totaled $107 million, with net income of $16 million or $0.77 per diluted share [6] - Adjusted EBITDAX was reported at $64 million, with total free cash flow of $25 million [6][13] - The company incurred total capital expenditures of $29 million, with $18 million accrued for activity-based capital expenditures [8][14] Operational Highlights - The company drilled 0.0 net wells in Q3 2025 but completed 5.0 net wells and turned to sales 7.5 net wells [3][4] - The integration of Silverback operations led to increased oil production above pre-acquisition levels [5] - The company is advancing its midstream infrastructure in New Mexico, with a planned 2026 in-service date for a pipeline [11][19] Production and Pricing - Average realized prices were $63.94 per barrel of oil, $(0.21) per Mcf of natural gas, and $(0.66) per barrel of natural gas liquids [7][18] - The company reported a $2 million gain on derivatives, primarily realized [7] Debt and Capital Structure - As of September 30, 2025, the company had $375 million in total debt, with $225 million outstanding on its Credit Facility and $150 million in Senior Notes [9][29] - The company increased total debt by $91 million, primarily to fund the Silverback acquisition [9] Future Guidance - The company raised its full-year oil production guidance by 2% at the midpoint, with a 4% increase expected for Q4 2025 [13][19] - Detailed guidance for Q4 2025 includes plans for drilling 8.0 to 10.0 net operated wells and total capital expenditures between $50 million and $71 million [21]

Company Highlights - Riley Exploration Permian (NYSE: REPX) has increased its quarterly dividend by 5%, raising it to $0.40 per share, continuing its trend of annual dividend increases [1] Analyst Background - Aaron Chow, known as Elephant Analytics, has over 15 years of analytical experience and is a top-rated analyst on TipRanks. He co-founded a mobile gaming company that was acquired by PENN Entertainment and has expertise in designing economic models for mobile apps [2] Investment Focus - The investing group Distressed Value Investing, led by Aaron Chow, emphasizes value opportunities and distressed plays, particularly in the energy sector [2]