Riley Permian's Q1 2025 Financial Highlights and Strategy

Riley Permian Reports First Quarter Financial Results

Riley Exploration Permian, Inc. (NYSE American: REPX) is proud to share its financial and operational achievements during the first quarter. The results reflect a solid foundation for growth and strategic expansions in the coming months.

Key Highlights from Q1 2025

The company saw a significant production average of 24.4 MBoe/d, which includes 15.6 MBbls/d of oil. This performance not only showcases the company's operational efficiency but also emphasizes its potential in a dynamic market. The generation of operating cash flow was around $50 million, reflecting a healthy financial standing.

Cash Flow and Investments

In terms of financial metrics, Riley Permian generated $36 million in Total Free Cash Flow, alongside $39 million in Upstream Free Cash Flow. This financial strength allowed the company to strategically invest with total accrual capital expenditures of $24 million. Notably, there was an impressive reduction of debt by $21 million, marking the company's commitment to maintaining its financial agility.

Unique Acquisition Strategy

Riley Permian is pleased to announce the planned acquisition of Silverback Exploration for approximately $142 million. This strategic move aims to enhance production capacity by adding 5 MBoe/d and leveraging 300+ undeveloped locations for potential future growth. This acquisition aligns with the company’s vision of focusing on undervalued assets while navigating through market volatility.

Operational Developments and Future Outlook

Management stated that despite the current market dynamics, Riley Permian has adjusted its investment and development activities to focus on long-term strategies. The company aims to reduce 2025’s investment midpoint guidance by 50% while still being optimistic about its production guidance. The refined strategy prioritizes expanding high-quality inventory and future-proofing its operations against unpredictable market shifts.

Midstream Infrastructure Progress

The midstream sector of Riley Exploration Permian is also seeing substantial developments. The company has been advancing the expansion of its midstream infrastructure, including significant enhancements to gathering lines and compression facilities, ensuring the capacity to support future natural gas pipeline projects. The infrastructure is anticipated to bring additional operational efficiencies.

Financial Results Summary

Riley Permian achieved revenues of $102 million, with net income reported at $29 million, equating to $1.36 per diluted share. In a non-GAAP perspective, Adjusted EBITDAX stood at $71 million, showcasing robust cash generation capabilities.

Investor Insights and Contact

Interested stakeholders are encouraged to connect with the team for deeper insights into these results. On an upcoming conference call, Riley Permian representatives will elaborate on these findings and the future strategy aimed at maximizing shareholder value.

Frequently Asked Questions

What were Riley Permian's production figures for Q1 2025?

The company reported an average production of 24.4 MBoe/d, with oil production representing 15.6 MBbls/d.

How much was the Total Free Cash Flow generated in Q1 2025?

Riley Permian generated around $36 million in Total Free Cash Flow for the quarter.

What is the significance of the Silverback Exploration acquisition?

This acquisition adds 5 MBoe/d of production capacity and expands the company's available undeveloped locations, supporting long-term growth plans.

How has Riley Permian managed its debt?

The company successfully reduced its debt by $21 million, contributing to its strategic financial management objectives.

What are the key operational developments for the company moving forward?

Riley Permian is focusing on expanding its midstream infrastructure and optimizing its production strategy to navigate current market conditions.

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