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OKLAHOMA CITY - Riley Exploration Permian, Inc. (NYSE American: REPX), an independent oil and natural gas company with a market capitalization of $691 million and impressive 15.3% revenue growth over the last twelve months, announced today an amendment to its senior secured revolving credit facility. The amendment extends the facility's maturity from April 2026 to December 2028 and increases the borrowing base and commitment levels by 7% from $375 million to $400 million.
The credit facility amendment also broadens the company's banking syndicate to include a total of nine lenders. As of Monday, Riley Permian had $117 million drawn on the credit facility, with $283 million available for future use. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, reflecting strong operational performance.
The company's management team and board of directors expressed their appreciation for the ongoing support from their banking syndicate partners. This financial restructuring is poised to provide Riley Permian with enhanced financial flexibility as it continues to focus on the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids.
The information regarding the credit facility amendment is based on a press release statement. Riley Permian operates as a growth-oriented company, aiming to expand its operations and maintain a robust presence in the energy sector. The increase in their credit facility reflects a level of confidence from its financial partners and may contribute to the company's strategic growth initiatives.
In other recent news, Riley Exploration Permian, Inc. reported a robust third quarter in 2024, with a notable 6% increase in net production and an 11% rise in equivalent production. The company also declared a 15th consecutive dividend, increased by 6% to $0.38 per share, and reduced its debt by $35 million. The company's financial discipline and operational success were highlighted in the earnings call, with its focus on long-term value creation and operational excellence.
Riley Exploration Permian's free cash flow has facilitated a dividend increase, and the company has returned $98 million to shareholders since 2021. The company's production exceeded forecasts, with the company's investments in infrastructure and progress on a CO2 pilot project and RPC (NYSE:RES) Power joint venture further driving growth.
Riley Exploration Permian anticipates a 14%-15% oil production growth for the full year 2024, with 85% of the projected growth due to organic development. The company's fourth-quarter capital expenditure guidance has been reduced, and future guidance for 2025 is focused on sustaining growth amid price volatility. Despite potential market fluctuations, the company's strategies are expected to yield positive results.
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