Riley Exploration Permian, Inc. (NYSEAMERICAN:REPX) is among the best stocks with the highest upside potential. According to a recent disclosure with the SEC, PDT Partners LLC has trimmed its stake in Riley Exploration Permian, Inc. (NYSEAMERICAN:REPX) by 34.2% during the first quarter. Following the sale of 8,681 shares, the hedge fund firm now owns 16,698 shares, which translates to an ownership of about 0.08%. Just recently, Riley Exploration Permian, Inc. (NYSEAMERICAN:REPX) announced the completion o ...

Group 1 - Riley Exploration Permian (NYSE: REPX) has partially reversed its earlier reduction in the 2025 capex budget, adding back close to $35 million [2] - The additional budget will be allocated towards a mix of midstream and upstream capital expenditures [2] - The company is focused on both value opportunities and distressed plays, particularly in the energy sector [2]

Financial Data and Key Metrics Changes - The company generated significant free cash flow for the first half of the year despite a less favorable oil macro backdrop and regional operating environment [6] - Cash flow from operations for the second quarter was $33.6 million lower quarter over quarter primarily due to changes in working capital [18] - Realized oil prices before hedges fell 11% quarter over quarter and 22% year over year, while prices after hedges fell only 7% quarter over quarter and 14% year over year [18] - Adjusted EBITDAX margin decreased to 60% from 71% one year ago, reflecting the impact of lower oil prices [19] - The company converted 59% of year-to-date operating cash flow into $61 million of upstream free cash flow [20] Business Line Data and Key Metrics Changes - Net production declined marginally from 1.41 million to 1.38 million barrels of oil quarter over quarter but increased 3% compared to the same quarter last year [12] - Average daily net production was 15,200 barrels of oil per day and 24,400 barrels of oil equivalent per day for 2025 [13] - The company drilled 10, completed 2, and turned in line 7 gross operated wells during the quarter [11] Market Data and Key Metrics Changes - The company experienced production impacts from infrastructure challenges, particularly unreliable natural gas processing in Mexico, leading to shut-in wells and deferred production [7] - The acquisition of SilverBack Exploration increased the company's footprint to 30,000 net acres, with 98% held by production [8] Company Strategy and Development Direction - The company is focused on building long-term value through disciplined capital allocation, strategic infrastructure investments, and operational excellence [28] - Midstream projects are being advanced to enhance gas and oil flow assurance and support access to a stable power supply [7] - The company plans to maintain a smaller drawdown of drilled but uncompleted wells (DUCs) to set up for maximum flexibility in 2026 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter exit rate production and indicated a potential budget of around $120 million for the next year to continue growth [32] - The company remains cautious on the macro front and will monitor OPEC's marketed supply and market absorption of increases [26] - Management highlighted the importance of managing power production as a critical component of operations in the Permian Basin [14] Other Important Information - The company achieved a total recordable incident rate of zero in the second quarter, reflecting a commitment to safe operations [10] - The average upstream lease operating expense (LOE) per barrel of oil equivalent (BOE) decreased by 3.7% compared to the 2024 average [14] - The company is exploring opportunities for power solutions in New Mexico due to longer wait times for power delivery [53] Q&A Session Summary Question: Production trajectory into 2026 and capital run rate - Management indicated that the fourth quarter capital run rate is a reasonable starting point for 2026, with a potential budget of around $120 million to continue growth [31][32] Question: Funding development and flexibility in New Mexico - Management is considering various financing options for midstream development and emphasized the flexibility in their plans [35][36] Question: Economic impact from midstream projects - Management anticipates that midstream projects could translate into $10 to $30 million of cash flow in a few years, depending on market rates [49] Question: Water handling opportunities - The company is enhancing its water handling systems to manage high water cuts effectively, which is integral to their operations [56] Question: Service cost trends - Management noted potential reductions in service costs of 5% to 15% due to increased scale and competitive bidding [59]

Company Overview - Riley Permian has an enterprise value of approximately $950 million [13] - The company's 3Q25 midpoint guidance production is 302 Mboe/d [13] - Riley Permian possesses over 10 years of drilling inventory at a normalized development pace [13] - The company's last twelve months (LTM) total free cash flow (FCF) is $110 million [13] - Riley Permian has a dividend yield of 60% [13] - Insiders hold 24% stock ownership in the company [13] Financial Performance and Capital Allocation - Riley Permian allocated 45% of total FCF to direct shareholder returns through dividends, resulting in a 60% annualized yield [47] - In 2Q25, the company reinvested 47% of cash flow from operations (CFFO) into upstream capex on an accrual basis and 54% on a cash basis [47] - The company converted 46% of CFFO into upstream FCF and 38% into total FCF in 2Q25 [47] - For the last 12 months, upstream FCF allocation shows 595% allocated to upstream FCF, totaling $127 million [29] Hedging Strategy - For 3Q25, 76% of production is hedged (60% swaps / 40% collars) with an average downside price of $66 [32] - For 2026, 54% of production is hedged (56% swaps / 44% collars) with an average downside price of $60 [32]

[Part I. FINANCIAL INFORMATION](index=6&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's total assets increased to **$1.03 billion** as of June 30, 2025, from **$993.5 million** at year-end 2024, with net income rising to **$59.1 million** despite a decrease in total revenues [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $66,994 | $68,125 | | **Total Assets** | **$1,033,567** | **$993,501** | | **Total Current Liabilities** | $104,775 | $122,764 | | **Total Liabilities** | $476,686 | $482,886 | | **Total Shareholders' Equity** | $556,881 | $510,615 | | **Total Liabilities and Shareholders' Equity** | **$1,033,567** | **$993,501** | - Total assets grew by approximately **$40 million**, primarily driven by increases in oil and natural gas properties and other property and equipment[13](index=13&type=chunk) - Total liabilities decreased slightly, while shareholders' equity increased by over **$46 million**, mainly due to retained earnings growth[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $85,394 | $105,403 | $187,851 | $205,147 | | **Income from Operations** | $28,754 | $53,612 | $78,256 | $104,179 | | **Net Income** | **$30,470** | **$33,548** | **$59,103** | **$52,306** | | **Diluted EPS** | **$1.44** | **$1.59** | **$2.80** | **$2.55** | - For the six months ended June 30, 2025, net income increased to **$59.1 million** from **$52.3 million** year-over-year, primarily due to a significant net gain on derivatives of **$12.9 million** compared to a **$17.4 million** loss in the prior year period[15](index=15&type=chunk) - A non-cash impairment charge of **$1.2 million** on oil and natural gas properties was recognized in the second quarter of 2025[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $84,021 | $107,766 | | **Net Cash Used in Investing Activities** | ($70,457) | ($87,656) | | **Net Cash Used in Financing Activities** | ($12,662) | ($24,519) | | **Net Increase (Decrease) in Cash** | $902 | ($4,409) | - Net cash from operating activities decreased by **$23.7 million** year-over-year, primarily due to changes in operating assets and liabilities and lower revenues before derivative settlements[21](index=21&type=chunk) - Cash used in investing activities decreased, mainly due to lower spending on acquisitions of oil and natural gas properties (**$2.1 million** in 2025 vs. **$18.1 million** in 2024)[21](index=21&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - On July 1, 2025, the company closed the acquisition of Silverback Exploration II, LLC for approximately **$142 million**, adding **47,000 net acres** in Eddy County, New Mexico, with a **$14.2 million** deposit held in escrow as of June 30, 2025[40](index=40&type=chunk)[41](index=41&type=chunk)[108](index=108&type=chunk) - The company has a joint venture, RPC Power LLC, for power generation assets, with **$30 million** invested and a remaining commitment of up to **$21.5 million** as of June 30, 2025[62](index=62&type=chunk) - As of June 30, 2025, the company had **$129 million** outstanding on its **$400 million** borrowing base Credit Facility and **$155 million** in principal outstanding on its Senior Notes[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk) - The company declared dividends totaling **$16.5 million** for the first six months of 2025[87](index=87&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a decrease in oil and gas revenues for the first half of 2025 compared to 2024, driven by lower realized commodity prices, partially offset by increased production volumes, while highlighting strong liquidity and strategic acquisitions [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Production and Realized Prices (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Production (MBoe)** | 4,415 | 3,794 | | **Daily Production (Boe/d)** | 24,392 | 20,846 | | **Average Realized Oil Price ($/Bbl)** | $66.18 | $77.29 | | **Oil and Natural Gas Sales, net (in thousands)** | $187,851 | $204,767 | - For the six months ended June 30, 2025, total oil and natural gas revenues decreased by **$16.9 million** compared to the same period in 2024, primarily due to a **$31.0 million** decrease from lower realized oil prices, partially offset by a **$12.1 million** increase from higher oil production volumes[128](index=128&type=chunk)[129](index=129&type=chunk) - Lease Operating Expenses (LOE) increased by **$4.0 million** for the first six months of 2025 compared to 2024, mainly due to higher production volumes[136](index=136&type=chunk) - The company recorded a net gain on derivatives of **$12.9 million** for the first six months of 2025, compared to a net loss of **$17.4 million** in the prior-year period, significantly impacting net income[149](index=149&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary sources of liquidity are cash on hand, cash flow from operations, and borrowings under the Credit Facility, which the company believes are adequate to meet short and long-term needs[152](index=152&type=chunk) - As of June 30, 2025, the company had a working capital deficit of **$37.8 million**, an improvement from a **$54.6 million** deficit at year-end 2024, which includes **$20 million** for the current portion of Senior Notes[154](index=154&type=chunk) - At June 30, 2025, the company had **$14.0 million** in cash and **$271 million** of available borrowing capacity under its **$400 million** Credit Facility[154](index=154&type=chunk)[160](index=160&type=chunk) - The company is committed to spending approximately **$130 million** in capital expenditures through 2026 to complete its midstream buildout plan in New Mexico, with about **$22 million** incurred to date[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are from commodity price volatility and interest rate fluctuations, which are mitigated through derivative contracts, with a 10% change in commodity prices impacting sales by approximately **$18.8 million** for the first half of 2025 - The company's main market risks are commodity price risk (crude oil, natural gas, NGLs) and interest rate risk[168](index=168&type=chunk) - To manage price volatility, the company utilizes commodity-based derivative contracts, with a fair value of these contracts being a net asset of **$10 million** as of June 30, 2025[169](index=169&type=chunk)[171](index=171&type=chunk) - A **10%** change in realized commodity pricing for the six months ended June 30, 2025, would have changed oil and natural gas sales by approximately **$18.8 million**[171](index=171&type=chunk) - The company uses interest rate derivative contracts to partially reduce exposure to interest rate fluctuations on its debt[172](index=172&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the second quarter of 2025 - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[174](index=174&type=chunk) - There were no changes in internal control over financial reporting during the three months ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[175](index=175&type=chunk) [Part II. OTHER INFORMATION](index=39&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business but does not believe the ultimate liability, if any, will have a material adverse effect on its financial condition or results of operations - The company may be involved in various legal proceedings and claims in the ordinary course of business[176](index=176&type=chunk) - Management believes that the outcome of any such proceedings will not have a material adverse effect on the company's financial condition, liquidity, or results of operations[176](index=176&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those described in its Annual Report on Form 10-K for the year ended December 31, 2024 - There has been no material change in the Company's risk factors from those described in the 2024 Annual Report and subsequently filed Quarterly Report[178](index=178&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, the company repurchased **10,473 shares** at an average price of **$29.15** per share, related to employee tax withholding obligations on vesting transactions Issuer Repurchases of Equity Securities (Q2 2025) | Month Ended | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 30 | 10,473 | $29.15 | | May 31 | — | $— | | June 30 | — | $— | - The repurchased shares were received from employees for the payment of personal income tax withholding on vesting transactions and were not part of a publicly announced repurchase program[179](index=179&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) On June 29, 2025, CEO Bobby Riley adopted a Rule 10b5-1 trading plan for the potential sale of up to **50,000 shares** of common stock, with the plan expiring on August 31, 2026 - On June 29, 2025, CEO Bobby Riley adopted a Rule 10b5-1(c) trading plan for the sale of up to **50,000 shares** of Common Stock[180](index=180&type=chunk) - The trading plan is set to expire on August 31, 2026[180](index=180&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Securities Purchase Agreement for the Silverback acquisition, corporate governance documents, debt agreements, and officer certifications

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Riley%20Permian%20Reports%20Second%20Quarter%202025%20Results) Riley Permian reported solid Q2 2025 performance, generating free cash flow and closing the Silverback acquisition [Highlights and CEO Commentary](index=1&type=section&id=SECOND%20QUARTER%202025%20AND%20RECENT%20HIGHLIGTS) Riley Permian generated significant free cash flow in Q2 2025, closed the Silverback acquisition, and advanced infrastructure projects - The CEO noted that the company adjusted its development activity and capital budget in response to lower oil prices, which led to **significant free cash flow generation** in the first half of the year[3](index=3&type=chunk) - The acquisition of Silverback Exploration II, LLC closed on July 1, 2025, for **$142 million in cash**, significantly increasing the company's regional footprint and future growth potential[3](index=3&type=chunk)[4](index=4&type=chunk) - The company faced infrastructure constraints common in the Permian Basin, which impacted Q2 production, but is addressing these challenges through midstream and power generation projects[3](index=3&type=chunk) Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Average Total Production | 24.4 MBoe/d | | Average Oil Production | 15.2 MBbls/d | | Operating Cash Flow | $34 million | | Total Free Cash Flow | $18 million | | Upstream Free Cash Flow | $21 million | | Total Accrual Capex (pre-acq.) | $28 million | [Operations and Development Activity](index=3&type=section&id=OPERATIONS%20AND%20DEVELOPMENT%20ACTIVITY%20UPDATE) Q2 2025 production averaged 24.4 MBoe/d, with reduced completion activity due to lower oil prices, and midstream infrastructure advanced Operated Well Activity (Net Wells) | Activity | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Wells Drilled | 10.0 | 10.0 | | Wells Completed | 2.0 | 8.3 | | Wells Turned to Sales | 5.8 | 5.8 | - Average daily oil production decreased by **3% quarter-over-quarter to 15.2 MBbls/d**, while total equivalent production remained constant at **24.4 MBoe/d**[5](index=5&type=chunk) - The company is advancing its midstream infrastructure in New Mexico, commissioning initial gathering and compression facilities that allow for the delivery of up to **15 MMcf/d of natural gas**[6](index=6&type=chunk) - Total investment in the midstream project has reached **$22 million** to date, with subsequent phases planned for in-service in 2026[7](index=7&type=chunk) [Financial Results](index=4&type=section&id=SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) Q2 2025 revenue was **$85 million** with **$30 million net income**, boosted by derivative gains, and total debt increased to **$284 million** Q2 2025 Financial Summary | Metric | Value | | :--- | :--- | | Revenues | $85 million | | Net Income | $30 million | | Diluted EPS | $1.44 | | Adjusted EBITDAX | $59 million | | Total Free Cash Flow | $18 million | - The company reported a **$19 million gain on derivatives**, which included a **$5 million realized gain** and a **$14 million non-cash unrealized gain**[8](index=8&type=chunk) - As of June 30, 2025, total principal debt was **$284 million**, increasing to **$401 million** by August 1, 2025, after the Silverback acquisition[10](index=10&type=chunk)[11](index=11&type=chunk) - A cash dividend of **$0.38 per share** was paid during the quarter, totaling **$8 million**[12](index=12&type=chunk) [Power Activity Update](index=4&type=section&id=POWER%20ACTIVITY%20UPDATE) RPC Power JV supplied **65% of Champions field electricity** in Q2 2025 and is constructing new 10 MW thermal generation facilities for ERCOT - The RPC Power joint venture served about **65% of the company's power load** for its Champions field in Texas during Q2, with plans to increase this percentage[13](index=13&type=chunk) - RPC Power is constructing **four new thermal generation facilities (10 MW each)** for selling power into ERCOT, with in-service dates planned for 2026[14](index=14&type=chunk) - The company has invested a total of **$30 million** to date in the RPC Power joint venture, in which it holds a **50% ownership stake**[15](index=15&type=chunk) [2025 Guidance](index=6&type=section&id=2025%20GUIDANCE) Riley Permian updated its full-year 2025 guidance, incorporating Silverback acquisition impact and projecting increased H2 production and capital expenditures - The updated guidance for Q3, Q4, and the full year 2025 incorporates the addition of the Silverback assets for the second half of the year only[21](index=21&type=chunk) Full-Year 2025 Guidance | Metric | Full-Year 2025 Range | | :--- | :--- | | **Production** | | | Total (MBoe/d) | 27.0 - 28.0 | | Oil (MBbls/d) | 16.5 - 17.0 | | **Capital Expenditures ($M)** | | | Upstream Capital | $84 - $100 | | Midstream Capital | $29 - $46 | | Total Capital Expenditures | $113 - $146 | | Power JV Investment | $15 - $18 | | **Total Investments** | **$128 - $164** | Q3 2025 Guidance | Metric | Q3 2025 Range | | :--- | :--- | | **Production** | | | Total (MBoe/d) | 29.8 - 30.6 | | Oil (MBbls/d) | 17.3 - 17.8 | | **Capital Expenditures ($M)** | | | Total Capital Expenditures | $19 - $30 | | **Operating Costs** | | | LOE ($ per Boe) | $8.90 - $9.90 | | Cash G&A ($ per Boe) | $3.00 - $3.50 | [Financial Statements and Data](index=5&type=section&id=Financial%20Statements%20and%20Data) This section presents selected operating and financial data, condensed consolidated financial statements, and details on derivative instruments [Selected Operating and Financial Data](index=5&type=section&id=Selected%20Operating%20and%20Financial%20Data) Q2 2025 oil and natural gas sales decreased to **$85.4 million** due to lower realized oil prices, despite increased total production volumes year-over-year Financial Performance Comparison (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Oil and natural gas sales, net | $85,394 | $105,343 | | Income from Operations | $28,754 | $53,612 | | Adjusted EBITDAX | $59,340 | $73,264 | | Cash Flow from Operations | $33,640 | $51,641 | Production Data Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Daily combined volumes (Boe/d) | 24,352 | 21,319 | | Daily oil volumes (Bbls/d) | 15,187 | 14,747 | Average Realized Prices Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Oil ($ per Bbl) | $62.17 | $79.25 | | Natural gas ($ per Mcf) | $(0.39) | $(0.61) | [Condensed Consolidated Financial Statements](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Unaudited financial statements show total assets at **$1.03 billion** as of June 30, 2025, with **net income of $59.1 million** for the first six months [Balance Sheet](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets reached **$1.03 billion**, with long-term debt increasing to **$255.2 million** and total liabilities at **$476.7 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $66,994 | $68,125 | | **Total Assets** | **$1,033,567** | **$993,501** | | **Total Current Liabilities** | $104,775 | $122,764 | | **Long-term debt** | $255,191 | $249,494 | | **Total Liabilities** | **$476,686** | **$482,886** | | **Total Shareholders' Equity** | **$556,881** | **$510,615** | [Statement of Operations](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q2 2025 net income was **$30.5 million** on **$85.4 million in total revenues**, a decrease from Q2 2024, partially offset by derivative gains Statement of Operations Summary (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $85,394 | $105,403 | | Total Costs and Expenses | $56,640 | $51,791 | | Income from Operations | $28,754 | $53,612 | | Gain (loss) on derivatives, net | $18,720 | $(359) | | **Net Income** | **$30,470** | **$33,548** | | **Diluted EPS** | **$1.44** | **$1.59** | [Statement of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q2 2025 net cash from operating activities was **$33.6 million**, with **$45.1 million used in investing** and **$16.6 million provided by financing activities** Cash Flow Summary (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $33,640 | $51,641 | | Net Cash Used in Investing Activities | $(45,054) | $(45,048) | | Net Cash Provided by (Used in) Financing Activities | $16,583 | $(2,247) | | **Net Increase in Cash** | **$5,169** | **$4,346** | [Derivative Instruments](index=13&type=section&id=DERIVATIVE%20INSTRUMENTS) The company uses derivative contracts, including swaps and collars, to hedge oil and natural gas production and interest rate risk through 2027 - The company utilizes fixed price swaps, costless collars, and basis swaps to hedge its oil and natural gas production[37](index=37&type=chunk) Open Oil Derivative Positions (as of Aug 1, 2025) | Period | Type | Volume (Bbl) | Weighted Avg Price ($/Bbl) | | :--- | :--- | :--- | :--- | | Q3 2025 | Swap | 728,213 | $67.43 | | Q3 2025 | Collar | 452,000 | $64.23 (Put) / $74.19 (Call) | | 2026 | Swap | 2,046,000 | $61.60 | | 2026 | Collar | 1,602,000 | $57.84 (Put) / $74.67 (Call) | Open Interest Rate Derivative Positions (as of June 30, 2025) | Coverage Period | Notional Amount (in thousands) | Fixed Rate | | :--- | :--- | :--- | | July 2025 - April 2026 | $80,000 | 3.09% (Blended) | | July 2026 - April 2027 | $45,000 | 3.90% |

Core Insights - Riley Exploration Permian, Inc. reported solid performance in Q2 2025 despite a challenging oil market, adjusting development activity and capital budget in response to lower oil prices, resulting in significant free cash flow [3][7] - The company closed the acquisition of Silverback, enhancing its regional footprint and growth potential [3][11] Operations and Development Activity Update - In Q2 2025, the company drilled 10 gross wells, completed 2 gross wells, and turned to sales 7 gross wells, with average oil production at 15.2 MBbls/d and total equivalent production at 24.4 MBoe/d [4][5] - Daily oil volumes decreased by 3% compared to the previous quarter, while total equivalent volumes remained constant [4] - The company is advancing midstream infrastructure in New Mexico, commissioning initial phases of facilities to deliver up to 15 MMcf/d of natural gas [5][6] Financial Results - Revenues for Q2 2025 totaled $85 million, with net income of $30 million or $1.44 per diluted share [7][8] - Adjusted EBITDAX was $59 million, and total free cash flow was $18 million [7][8] - Average realized prices were $62.17 per barrel of oil, $(0.39) per Mcf of natural gas, and $0.75 per barrel of natural gas liquids [8] Debt and Capital Expenditures - As of June 30, 2025, the company had $284 million in total debt, with a $25 million increase attributed to the Silverback acquisition [10][12] - Total accrued capital expenditures were $28 million, with cash capital expenditures of $29 million [9][10] Power Activity Update - RPC Power LLC provided approximately 65% of the company's electric power needs for its Champions field in Texas during Q2 2025 [13] - The company is progressing on the construction of thermal generation facilities, with planned in-service dates throughout 2026 [14] Guidance - The company updated its guidance for Q3 and Q4 2025, incorporating the addition of Silverback and reflecting current market conditions [16][18]

Core Points - Riley Exploration Permian, Inc. has announced a cash dividend of $0.38 per share, payable on August 7, 2025, to stockholders of record as of July 24, 2025 [1] - The company will release its financial and operating results for the second quarter on August 6, 2025, after U.S. financial markets close [2] - A conference call for investors and analysts will be held on August 7, 2025, at 9:00 a.m. CT to discuss the results and conduct a Q&A session [2] - Riley Exploration Permian is an independent oil and natural gas company focused on the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids [3]

Core Viewpoint - Riley Exploration Permian, Inc. has successfully completed the acquisition of Silverback Exploration II, LLC, enhancing its oil and gas asset portfolio in Eddy County, New Mexico [1]. Company Overview - Riley Exploration Permian is an independent oil and natural gas company focused on growth through the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids [2].

Company Overview - Riley Exploration Permian (NYSE: REPX) is a pure player in the Permian Basin, with a production split of 60% oil and 40% gas [1] - The company operates across 78,600 acres and plans to acquire an additional 47,000 acres [1] - REPX is guiding towards an output of 26.4 Mboe/d (thousand barrels of oil equivalent per day) [1] Leadership and Background - Benjamin Halliburton, the founder of Building Benjamins, has a notable investment background, having founded Tradition Capital Management in 2000 [1] - Halliburton has been recognized as "PSN Manager of the Decade" for All-Cap in the 2000s and for Dividend Value in the 2010s [1] - He has a Master of Business Administration (MBA) with a focus on finance from Duke's Fuqua School of Business and earned the Chartered Financial Analyst designation in 1994 [1]