Riley Exploration Permian (NYSEAM:REPX) Q4 2025 Earnings call March 05, 2026 10:00 AM ET Speaker6Hello, thank you for standing by. My name is Regina, I will be your conference operator today. At this time, I would like to welcome everyone to the Riley Exploration Permian Inc. fourth quarter and full year 2025 earnings release and conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ...

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $171.2 million, down 22.9% year-over-year, reflecting a strategic decision to reduce production [5] - Full-year 2025 revenue was $790.3 million, down 37.2% from 2024, with gross profit at $120.4 million or 15.2% of sales [6] - Diluted EPS for Q4 was $0.29 per share, with net income for the full year at $23 million or $1.98 per diluted share [6] Business Line Data and Key Metrics Changes - The company strategically decreased production to normalize distributor inventories, which has now returned to historical levels, allowing for improved visibility into retail demand [6][9] - SG&A expenses increased year-over-year due to one-time expenses related to a voluntary retirement program and transaction costs from the OMARS acquisition [6][7] Market Data and Key Metrics Changes - Domestic market conditions are improving with normalized distributor inventory and steadier retail demand as the company enters 2026 [9] - The export business remains strong, with growing demand in international markets such as Australia, Japan, Mexico, and Indonesia [9] Company Strategy and Development Direction - The acquisition of OMARS is a key part of the company's strategy to expand its European footprint and capitalize on strong regional demand for heavy-duty products [3][10] - The company plans to increase production levels in response to improved demand and is investing in expanding its manufacturing capabilities, including a significant project at the Ooltewah facility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of retail demand and production levels, expecting revenues between $850 million and $900 million for 2026 [13][14] - The company anticipates gross margins returning to historical levels in the mid-13% range as product mix normalizes [14] Other Important Information - The company has maintained a consistent quarterly dividend, increasing it by 5% to $0.21 per share, and has reduced debt to $20 million as of January 2026 [12][13] - A robust pipeline of military RFQs is expected to provide significant long-term growth opportunities, with over $150 million in military commitments secured [11] Q&A Session Summary Question: Understanding margin expectations - The company believes gross margins are normalizing and may be better than pre-COVID levels, with expectations to return to mid-13% range [20][21] Question: Impact of cost reductions on margins - Cost reductions primarily involved hourly employees, and as production ramps up, some employees will be added back to support operations [22] Question: Confidence in 2026 outlook compared to previous year - Management expressed higher confidence in the 2026 outlook due to improved data analysis and normalized distributor inventory [24][25] Question: Mix between chassis and tow sales - The mix is returning to a normalized level, but it is not a one-to-one ratio as some distributors provide their own chassis [28][29] Question: Accretion from OMARS acquisition - The OMARS acquisition is expected to be accretive in the first year, with additional long-term synergies anticipated as integration progresses [30][31]

Financial Data and Key Metrics Changes - GAAP net loss allocable to common shares in Q4 2025 was $3 million, or $0.43 per share, which included a net interest income of $10.7 million, an increase of $2.3 million from the prior quarter [12] - The total allowance for credit losses at December 31 was $20.4 million, representing 1.11% of the $1.8 billion loan portfolio at par [13] - GAAP book value per share increased to $30.01 on December 31 from $29.63 on September 30 [14] Business Line Data and Key Metrics Changes - In Q4 2025, the company closed new commitments of $571 million, resulting in a net increase to the loan portfolio of $443.8 million [5] - The weighted average spread on newly originated loans was 2.83%, with the portfolio's weighted average spread now at 3.35% over one-month term SOFR rates [6] - The weighted average risk rating of the loan portfolio decreased to 2.7 from 3.0 at the end of Q3 2025, with the portion of loans rated four or five dropping to 17% from 32% [7] Market Data and Key Metrics Changes - The company ended the quarter with $1.8 billion of commercial real estate loans across 53 individual investments [6] - The company expects net growth in the portfolio of $500 million to $700 million in 2026, indicating a strong outlook for loan originations [27] Company Strategy and Development Direction - The company remains focused on investing in high-quality commercial real estate loans and actively managing the portfolio to grow earnings for shareholders [5] - The management team is optimistic about the opportunities in the asset class and competitive landscape, aiming to deploy capital through careful underwriting [17] Management's Comments on Operating Environment and Future Outlook - Management noted a decrease in current expected credit losses, driven by loan payoffs and improvements in credit risk models, despite a general decline in projected macroeconomic factors [13] - The company is positioned to resume paying dividends to common shareholders, reflecting confidence in its financial health and operational strategy [16] Other Important Information - The company sold an REO asset in Austin, Texas, resulting in an earnings available for distribution gain of $1.3 million [10] - The company has incurred minimal realized losses on almost $8 billion of invested capital since inception [10] Q&A Session Summary Question: Could you touch a little bit more on the loans that you guys completed this quarter? - The majority of the loans were multi-family, with average loan sizes around $40 million to $50 million, and spreads ranging between 250 and 325 [19] Question: How long is the reinvestment period? - The reinvestment period is 30 months [20] Question: What is the plan for equity investments? - The company expects to exit from one of the smaller land deals currently under LOI and is open to offers on another asset [21] Question: What caused the jump in non-controlling interest? - The increase was due to the sale of a position in a previously issued financing arrangement with JP Morgan [22] Question: Could we see the same pace of deployment in the near term? - The company expects a significant amount of deployment in the first quarter of 2026, projecting net growth in the portfolio of $500 million to $700 million for the year [27] Question: Will future gains on REO be fully taxed? - The company still has remaining net operating losses available, which should protect against taxation on future gains [28] Question: Was the $3.4 million of realized losses on core activities just the mezzanine loan write-off? - Yes, a significant portion was related to the mezzanine loan write-off, with additional improvements in net credit contributing to the overall losses [31]

Financial Data and Key Metrics Changes - Total company revenue for 2025 was $547 million, with Adjusted EBITDA of $73.2 million, reflecting a stable operational performance despite market challenges [4][20] - Fourth quarter revenue was $142.2 million, up from $128.9 million in the third quarter and essentially flat compared to $143.1 million in the fourth quarter of 2024 [17] - Full year net income was $3.2 million or $0.14 per diluted share, compared to $1.2 million or $0.05 per diluted share in the prior quarter [19] Business Line Data and Key Metrics Changes - High-spec rigs generated $92.3 million in revenue for the fourth quarter, up from $80.9 million in the third quarter and $87 million in the fourth quarter of 2024, with rig hours growing 16% sequentially [18] - Processing Solutions and Ancillary Services contributed $37.5 million in revenue, representing a 22% sequential increase from Q3, driven by organic performance and contributions from the AWS acquisition [18] - Wireline services revenue was $12.4 million, down from $17.2 million in the third quarter, reflecting lower completed stage counts [18] Market Data and Key Metrics Changes - The operating environment in 2025 was characterized by stable demand and a focus on high-quality service execution, with continued emphasis on efficiency and cost management [5][12] - The company expects the operating environment in 2026 to remain generally stable, similar to 2025, with a focus on execution and strategic evaluation [12] Company Strategy and Development Direction - The acquisition of American Well Services (AWS) aims to broaden the company's footprint and enhance service offerings in the Permian Basin, with integration progressing well [6][7] - The EchoRig program represents a significant advancement in well service technology, focusing on reducing emissions and improving operational efficiency [8][9] - The company plans to continue investing in growth opportunities while maintaining capital discipline, with a focus on safety, efficiency, and customer service [11][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute and build on its foundation, with expectations for healthy cash generation and continued growth opportunities [15][26] - The pro forma financial profile post-AWS acquisition suggests an annual EBITDA generation opportunity of over $100 million in 2026, with potential for further growth in a supportive macro environment [13][14] Other Important Information - Free cash flow for 2025 was $42.9 million, with a conversion rate of nearly 60%, reflecting disciplined operational execution [23] - The company returned over 40% of free cash flow to shareholders in 2025 through dividends and stock repurchases, demonstrating confidence in long-term cash generation capabilities [25] Q&A Session Summary Question: Update on Echo build-out and customer conversations - Management indicated productive conversations with customers regarding Echo rigs and expressed confidence in manufacturing capabilities to meet demand [32][33] Question: Details on plug and abandonment contract - The contract is with the Texas regulator and aims to position the company as a contractor of choice for complex wells, with potential growth opportunities [35] Question: CapEx metrics for EchoRig program - Management noted that CapEx will ramp up in the back half of the year, with progress milestone payments expected in the first half [37][39] Question: Earnings power with Echo rig build-out - Management highlighted that Echo rigs could represent a significant portion of the fleet, with potential margin expansion expected as contracts are executed [50][56]

Q4 & FY 2025 EARNINGS 2026 GUIDANCE NYSE American: REI www.ringenergy.com www.ringenergy.com Forward-Looking Statements and Supplemental Non-GAAP Financial Measures Forward – Looking Statements This Presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this Presentation, regarding our strategy, future ...

Earnings Conference Call March 5, 2026 Quarter Ended December 31, 2025 Important Notice Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "may," "expect," "project," "believe," "intend," "seek," "plan" and similar expressions or thei ...

Financial Data and Key Metrics Changes - Vermilion generated $241 million of Funds From Operations in Q4 2025, with Free Cash Flow of $49 million [11] - Production averaged 121,308 BOE per day, with a 69% weighting to natural gas, marking a significant increase compared to previous quarters [11][12] - Total proved plus probable (2P) reserves increased by 36% from the prior year, reaching 592 million BOEs [6][7] Business Line Data and Key Metrics Changes - In Canada, production benefited from a three-rig drilling program in the Deep Basin, resulting in 17 liquids-rich gas wells brought on production [11][12] - International operations averaged 30,137 BOE per day, consistent with Q3, with new production in the Netherlands and increased gas output in Germany [12][13] - The Osterheide well in Germany generated approximately $8 million of Free Cash Flow in Q4 alone, with production 40% higher compared to Q3 [5][12] Market Data and Key Metrics Changes - Realized gas pricing was $5.50 per Mcf, double the AECO benchmark, driven by direct European gas exposure where TTF prices averaged $15 per MMBtu [5][11] - The company has a strong exposure to European gas markets, with inventories well below five-year averages and current prices over $20 per MMBtu [19] Company Strategy and Development Direction - The company is focused on becoming a global gas producer with a long-duration asset base capable of delivering sustainable Free Cash Flow [2][3] - Vermilion's strategic roadmap to 2030 emphasizes disciplined capital allocation and long-term profitability, aiming for meaningful per-share excess Free Cash Flow growth [19][20] - The company is actively pursuing M&A opportunities to create a focused portfolio, particularly in Canada and Europe [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and the ability to deliver attractive shareholder returns over the long term [15][19] - The recent run-up in global gas prices is seen as a substantial advantage for the company, reinforcing the importance of being able to sell products at higher prices [18][19] - The company expects production in Q1 2026 to be in line with recent levels, with a forecast of 122,000-124,000 BOEs per day [18] Other Important Information - The company has identified up to six additional drilling locations on the Bommelsen license, representing significant upside for European reserves [8][9] - Vermilion's tax Net Present Value of 2P reserves discounted at 10% is estimated at $23 per basic share, well above the current share price [10] Q&A Session Summary Question: Free Cash Flow inflection in 2028 - Management indicated that the Free Cash Flow inflection is driven by ramp-up in Germany volumes and production increases in Montney, with updated estimates reflecting a 40% increase in excess Free Cash Flow [22][25] Question: Hedging strategy - The company is about 50% hedged on European gas for 2026 and has been active in locking in recent price increases, with potential to increase hedge percentages if opportunities arise [30][31] Question: Deep Basin well outperformance - Management confirmed that the positive results in the Deep Basin are expected to continue, with a focus on tier one locations and a strong inventory depth [36][40] Question: Australian production ramp-up - Production in Australia is expected to return to normal levels by Q2 2026, following recent disruptions [46][47] Question: Negative technical revisions on reserves - Negative technical revisions were attributed to high-grading the reserves book due to M&A activity, with a focus on replacing locations with better profitability [52][53] Question: M&A market outlook - The company is exploring M&A opportunities, particularly following the Westbrick acquisition, and is open to potential deals in Canada and Europe [57][58]

March 2026 z Investor Presentation Informe de resultados 1 Agenda | 01 | | 03 | 05 | 07 | | --- | --- | --- | --- | --- | | The | Argentine | Grupo Financiero | Naranja X | Fondos | | | | Galicia | | FIMA | | Economy | | | | | | 02 | | 04 | 06 | 08 | | The | Argentine | Banco | Galicia | Galicia | | Financial | System | Galicia | Seguros | Securities | Economic Activity Real Gross Domestic Product % Change YoY Source: Banco Galicia based on INDEC, BCRA and own estimations GDP Industrial Production Source: B ...

March 4, 2026 Financial Supplement Fourth Quarter & Full Year 2025 This Financial Supplement contains non-GAAP financial guidance. There is no reliable or reasonably estimable comparable GAAP measure for the Company's non-GAAP financial guidance because the Company is not able to reliably predict the impact of certain items that typically have one or more of the following characteristics: highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indic ...

4 th Quarter 2025 Results Presentation | 4Q 2025 Results 1 | 4Q 2025 Results 2 Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer to sell or an invitation, solicitation, or inducement to purchase or subscribe for securities with respect to any transaction, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This presentation does not constitute either advice or a recommendation re ...