Riley Permian Announces Sale of New Mexico Midstream Project

Core Viewpoint - Riley Exploration Permian, Inc. has entered into a purchase and sale agreement with Targa Northern Delaware LLC, selling its subsidiary Dovetail Midstream, LLC for approximately $111 million, with potential additional cash payments of up to $60 million based on performance thresholds over five years [1][2]. Group 1: Transaction Details - The sale includes all membership interests in Dovetail, which primarily consists of natural gas gathering infrastructure in Eddy County, New Mexico [1]. - The proceeds from the transaction will be used to reduce borrowings on the Company's credit facility and cover income taxes and transaction costs [1]. - A subsequent sale of certain compressor station assets is anticipated for approximately $10 million, expected to close by the first quarter of 2026, subject to certain conditions [1]. Group 2: Strategic Implications - The transaction is aimed at achieving flow assurance for the Company's natural gas production, facilitating wider development of its New Mexico assets [2]. - By divesting midstream obligations, the Company can concentrate its resources on upstream asset development, including a recent acquisition of Silverback Exploration II, LLC and its subsidiaries [2]. Group 3: Company Overview - Riley Exploration Permian, Inc. is a growth-oriented upstream oil and gas company operating in Texas and New Mexico, with infrastructure projects that complement its operations [3].