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]

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 in-game economic models for mobile apps with over 30 million combined installs [2] Investment Focus - The investing group Distressed Value Investing, authored by Aaron Chow, emphasizes value opportunities and distressed plays, particularly in the energy sector [2]

Group 1 - Riley Exploration Permian, Inc. (REPX) is recognized for its high upside potential in the stock market [1] - PDT Partners LLC has reduced its stake in REPX by 34.2%, now holding 16,698 shares, which is approximately 0.08% ownership [1] - The company has completed its Silverback acquisition, which is expected to enhance growth and market access [2] Group 2 - Management has partially reversed previous capital expenditure budget cuts, indicating plans to rebuild DUCs and improve the New Mexico gas takeaway situation [2] - REPX is noted for its commitment to shareholders, exemplified by a dividend yield of approximately 6% while developing midstream and power projects [3] - REPX operates as an independent oil and natural gas company based in Oklahoma, focusing on the acquisition, exploration, and production of oil, natural gas, and natural gas liquids [4]

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]