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OKLAHOMA CITY - Riley Exploration Permian, Inc. (NYSE American: REPX), an energy company focusing on upstream, midstream, and power activities, has announced its financial and operational results for the first quarter ending March 31, 2025, alongside news of a strategic acquisition and revised investment guidance. According to InvestingPro analysis, REPX currently trades at attractive valuation multiples with a P/E ratio of 5.76x and shows GREAT financial health scores, suggesting strong operational efficiency.
In the first quarter, Riley Permian averaged 24.4 MBoe/d in production, with oil accounting for 15.6 MBbls/d. This performance was accompanied by $50 million in operating cash flow and a notable reduction of debt by $21 million, achieving a debt-to-Adjusted EBITDAX ratio of 0.9x. Despite not turning any new wells to sales, the company still managed a 2% quarter-over-quarter production increase.
The company has also confirmed the reaffirmation of its $400 million borrowing base on its senior secured revolving credit facility and declared a cash dividend of $0.38 per share.
On the acquisition front, Riley Permian has agreed to purchase Silverback Exploration for $142 million in cash, a move expected to add 5 MBoe/d to its production and over 300 undeveloped locations. This acquisition aligns with the company’s long-term strategy and is anticipated to close early in the third quarter of 2025.
In light of recent market conditions, Riley Permian has adjusted its 2025 investment and production guidance. The company has reduced its 2025 investing midpoint guidance by 50% and total production guidance by 3% on a standalone basis. Including the Silverback acquisition, the company forecasts a 5% increase in total investing for the full year of 2025.
Riley Permian’s midstream infrastructure development in New Mexico is progressing, with the construction of its first compression station completed and further stages underway, aiming for a 2026 in-service date.
For the first quarter, the company reported revenues of $102 million, net income of $29 million, or $1.36 per diluted share, and Adjusted EBITDAX of $71 million. The average realized prices before derivative settlements were $70.12 per barrel of oil, $0.71 per Mcf of natural gas, and $5.41 per barrel of NGL. Operating expenses included lease operating expenses of $18 million, cash G&A expenses of $7 million, and production and ad valorem taxes of $7 million.
The company’s power-focused joint venture, RPC Power LLC, continues to develop, providing a portion of Riley Permian’s electric power needs and progressing on a phase 2 project aimed at selling power into ERCOT.
This report is based on a press release statement and aims to provide a factual and unbiased summary of Riley Permian’s first-quarter performance and strategic developments.
In other recent news, Riley Exploration Permian reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.96, which fell short of the forecasted $1.60. The company’s revenue also missed expectations, coming in at $102.7 million compared to the anticipated $106.26 million. Despite the earnings miss, Riley Exploration Permian saw a 22% increase in total production for 2024, driven by operational efficiencies. The company has also made significant investments in infrastructure and power projects, which are expected to enhance its competitive position and drive future growth. Additionally, Riley Exploration Permian announced updates to its executive compensation plans, with new short-term and long-term incentive plans approved by the Compensation Committee. These plans aim to align executive rewards with company performance. Furthermore, the company has amended employment agreements with its named executive officers, effective April 2025. These recent developments reflect Riley Exploration Permian’s strategic focus on operational efficiency and infrastructure investment.
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