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 Insights - Energy Transfer LP (ET) is strategically positioned with a vast midstream infrastructure network of nearly 140,000 miles of pipelines across North America, providing a competitive advantage in natural gas, NGL, crude oil, and refined product transportation [1][2][8] - The company's geographic and product diversification enhances cash flow stability and reduces exposure to single commodities or regions, supported by long-term contracts and fee-based earnings [2][4] - Energy Transfer is well-positioned to capitalize on the growing demand for U.S. energy exports, with Gulf Coast assets enabling it to serve international markets [3][5] Infrastructure and Operations - The extensive midstream infrastructure allows Energy Transfer to capture volumes from multiple basins, including Permian, Eagle Ford, and Marcellus, linking them to key demand centers and export hubs [1][2] - The focus on operational efficiency and cost discipline positions the company for sustained growth and strong cash flows [4] Market Position and Financial Performance - Energy Transfer's units have increased by 10.1% over the past year, outperforming the Zacks Oil and Gas - Production Pipeline - MLB industry's growth of 6.3% [11] - The Zacks Consensus Estimate indicates an increase in earnings per unit of 2.86% for 2025 and 4.26% for 2026 [7] - Energy Transfer units are currently trading at a trailing 12-month EV/EBITDA of 10.25X, below the industry average of 11.53X, indicating undervaluation [9] Export Capabilities - The company's Gulf Coast assets, including LNG and NGL export terminals, are crucial for accessing global markets and enhancing margins [3][5] - Currently, 80 countries and territories benefit from Energy Transfer's exports, highlighting its international reach [3]