REPX(REPX) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance Overview Riley Permian reported solid Q2 2025 performance, generating free cash flow and closing the Silverback acquisition Highlights and CEO Commentary 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] - 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][4] - 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] 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 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] - 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] - Total investment in the midstream project has reached $22 million to date, with subsequent phases planned for in-service in 2026[7] Financial Results 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] - As of June 30, 2025, total principal debt was $284 million, increasing to $401 million by August 1, 2025, after the Silverback acquisition[10][11] - A cash dividend of $0.38 per share was paid during the quarter, totaling $8 million[12] Power Activity Update 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] - 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] - The company has invested a total of $30 million to date in the RPC Power joint venture, in which it holds a 50% ownership stake[15] 2025 Guidance Riley Permian updated its full-year 2025 guidance, incorporating Silverback acquisition impact and projecting increased H2 production and capital expenditures - The updated guidance for Q3, Q4, and the full year 2025 incorporates the addition of the Silverback assets for the second half of the year only[21] Full-Year 2025 Guidance | Metric | Full-Year 2025 Range | | :--- | :--- | | Production | | | Total (MBoe/d) | 27.0 - 28.0 | | Oil (MBbls/d) | 16.5 - 17.0 | | Capital Expenditures ($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 This section presents selected operating and financial data, condensed consolidated financial statements, and details on derivative instruments Selected Operating and Financial Data 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 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 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 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 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 | $4,346 | Derivative Instruments The company uses derivative contracts, including swaps and collars, to hedge oil and natural gas production and interest rate risk through 2027 - The company utilizes fixed price swaps, costless collars, and basis swaps to hedge its oil and natural gas production[37] Open Oil Derivative Positions (as of Aug 1, 2025) | Period | Type | Volume (Bbl) | Weighted Avg Price ($/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% |