REPX(REPX) - 2025 Q1 - Quarterly Report

Part I. FINANCIAL INFORMATION This section details the company's financial performance and position for Q1 2025, including statements, management analysis, market risks, and controls Financial Statements The company's Q1 2025 financial statements show increased assets and equity, with net income rising to $28.6 million despite lower operating cash flow Condensed Consolidated Balance Sheets As of March 31, 2025, total assets increased slightly to $994.9 million, liabilities decreased, and shareholders' equity grew to $532.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $53,812 | $68,125 | | Total Assets | $994,944 | $993,501 | | Total Current Liabilities | $121,834 | $122,764 | | Total Liabilities | $462,561 | $482,886 | | Total Shareholders' Equity | $532,383 | $510,615 | Condensed Consolidated Statements of Operations Q1 2025 total revenues rose to $102.5 million, with net income significantly increasing to $28.6 million or $1.36 per diluted share Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $102,457 | $99,744 | | Income from Operations | $49,502 | $50,567 | | Net Income | $28,633 | $18,758 | | Diluted EPS | $1.36 | $0.94 | Condensed Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity increased to $532.4 million by March 31, 2025, driven by net income, partially offset by dividends - The increase in shareholders' equity during Q1 2025 was primarily due to net income of $28.6 million, which was partially offset by $8.2 million in declared dividends[17] Condensed Consolidated Statements of Cash Flows Q1 2025 net cash from operations was $50.4 million, with significant cash used in investing and financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $50,381 | $56,125 | | Net Cash Used in Investing Activities | $(25,403) | $(42,608) | | Net Cash Used in Financing Activities | $(29,245) | $(22,272) | | Net Decrease in Cash | $(4,267) | $(8,755) | Notes to the Condensed Consolidated Financial Statements Notes detail accounting policies, derivative positions, debt, and significant acquisitions, including the $142 million Silverback Exploration II purchase - In March 2025, the company agreed to acquire undivided interest in oil, natural gas, and minerals in its Red Lake field for approximately $2.1 million[41] - The company uses fixed price swaps and costless collars to hedge its oil and natural gas production against price fluctuations[43][44] - On May 3, 2025, the company entered into an agreement to acquire Silverback Exploration II, which owns assets in Eddy County, New Mexico, for an aggregate purchase price of $142 million plus potential earnout payments[102] Management's Discussion and Analysis of Financial Condition and Results of Operations Q1 2025 oil and gas sales increased due to higher production volumes, offsetting lower prices, while managing liquidity and strategic projects Results of Operations Q1 2025 total oil and natural gas sales increased by 3% to $102.5 million, driven by a 20% rise in daily production despite lower oil prices Production and Realized Prices (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Production (MBoe) | 2,199 | 1,854 | | Daily Production (Boe/d) | 24,433 | 20,374 | | Avg. Realized Oil Price ($/Bbl) | $70.12 | $75.25 | | Avg. Realized Nat Gas Price ($/Mcf) | $0.71 | $0.42 | - The increase in oil revenues was driven by a 10% rise in daily oil volumes, which more than offset a $5.13 per barrel decrease in realized prices[115] - Lease Operating Expenses (LOE) increased by $1.6 million, primarily due to the addition of assets from the 2024 New Mexico Asset Acquisition[120] - General & Administrative (G&A) expense increased by $1.8 million, mainly due to increased employee headcount and higher legal fees associated with the midstream project development[127] Liquidity and Capital Resources The company maintains liquidity through cash from operations and its credit facility, managing a working capital deficit and significant capital commitments - As of March 31, 2025, the company had a working capital deficit of $68.0 million, cash of $8.9 million, and $301 million of undrawn capacity under its Credit Facility[133] Cash Flow Summary (Q1 2025 vs Q1 2024, in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,381 | $56,125 | | Net cash used in investing activities | $(25,403) | $(42,608) | | Net cash used in financing activities | $(29,245) | $(22,272) | - The company has a remaining commitment to invest up to $21.5 million in the RPC Power joint venture and is committed to spend approximately $130 million in capital expenditures through 2026 for its midstream buildout, of which $16 million has been incurred[143][144] Quantitative and Qualitative Disclosures About Market Risk The company faces significant commodity price and interest rate risks, partially mitigated by derivative contracts, with a 10% price change impacting sales by $10.2 million - The company's results are highly sensitive to commodity price volatility; a 10% change in realized pricing would have changed Q1 2025 oil and natural gas sales by approximately $10.2 million[148][150] - A 10% change in the forward price curves for oil and natural gas would have changed the net fair value of the company's derivative contracts by approximately $26 million as of March 31, 2025[150] - The company is subject to interest rate risk, which could increase its cost of capital, partially mitigated through the use of interest rate derivative contracts[151] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[153][154] - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, these controls[155] Part II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and exhibits filed with the Form 10-Q Legal Proceedings The company is not involved in any legal proceedings expected to materially adversely affect its financial condition or operations - The company is not currently involved in any legal proceedings that are expected to have a material adverse effect on its financial condition, liquidity, or results of operations[156] Risk Factors No material changes to the company's risk factors have occurred since the 2024 Annual Report filing - No material changes to the company's risk factors have occurred since the filing of its 2024 Annual Report[158] Unregistered Sales of Equity Securities and Use of Proceeds The company repurchased 2,123 common shares from employees in Q1 2025 for tax withholding purposes, not as part of a public program Issuer Repurchases of Equity Securities (Q1 2025) | Month Ended | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 31 | 1,703 | $34.24 | | February 28 | 420 | $33.81 | | March 31 | 0 | $0.00 | - The repurchased shares were received from employees to cover tax withholding on vesting transactions and were not part of a publicly announced repurchase program[159] Other Information No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025[160] Exhibits The report includes a list of exhibits, such as CEO/CFO certifications and corporate documents incorporated by reference - The report includes a list of exhibits filed, such as CEO/CFO certifications and various corporate and financial agreements incorporated by reference[161]