Riley Permian (REPX) Announces 2024 Earnings Results And Provides 2025 Guidance

Riley Exploration Permian, Inc. (REPX) today announced its financial results for the latest quarter. The company reported a quarterly revenue of $102.7 million, slightly surpassing the estimated $102.5 million, marking a positive revenue beat. However, the earnings per share (EPS) came in at $0.52, which fell short of the anticipated $1.52, resulting in a significant miss. Despite the earnings miss, the revenue beat highlights the company’s ability to generate strong sales performance.

Key Highlights:

• Riley Permian reported a 15% increase in oil production and a 22% increase in total production for 2024, surpassing their initial growth targets.
• The company generated $246 million in operating cash flow and $117 million in Total Free Cash Flow for the year.
• Riley Permian reduced its debt by $90 million and increased shareholder equity by 21% year-over-year.
• The company completed a New Mexico Asset Acquisition, adding 13,900 net acres to its portfolio.
• For 2025, Riley Permian projects total production between 24.6 - 25.6 MBoe/d and plans capital expenditures of $188 - 232 million.
• The company is advancing its New Mexico gas midstream project, with plans to construct a high-capacity natural gas pipeline.

Summary:

Riley Exploration Permian, Inc. reported strong financial and operational results for 2024, with significant growth in production and cash flow. The company achieved a 15% increase in oil production and a 22% increase in total production, exceeding its initial targets. This performance was accompanied by a 67% growth in Total Free Cash Flow and an 82% increase in Upstream Free Cash Flow. The company also reduced its debt by $90 million and increased shareholder equity by 21% year-over-year. CEO Bobby D. Riley expressed pride in the company’s achievements, highlighting the capital efficiency of their asset base and the strategic investments planned for 2025 to secure long-term growth.

Looking ahead to 2025, Riley Permian has set a production guidance of 24.6 - 25.6 MBoe/d and plans to invest strategically across its business. The company is focusing on its New Mexico gas midstream project, which includes constructing a high-capacity natural gas pipeline to enhance operational control and ensure long-term growth. Riley Permian’s financial strategy includes funding capital expenditures through operating cash flow, cash on hand, and credit facility borrowings. The company remains committed to maintaining a strong financial position while pursuing growth opportunities in the oil and gas sector.

Riley Exploration Permian, Inc. (REPX) has experienced a rollercoaster ride in its stock price over the past year, with a notable 24.05% increase over the last twelve months, despite a recent downturn of 12.12% in the past week and 15.81% over the past month. This volatility may be reflective of broader market conditions or investor sentiment, but the company’s fundamentals paint a more stable picture. With a price-to-earnings ratio of 4.93, REPX appears undervalued compared to the industry average, suggesting potential for growth. The company’s robust net profit margin of 28.45% and a return on invested capital of 17.70% indicate efficient management and profitability. Furthermore, the impressive free cash flow growth of 79.40% over the past two years highlights strong operational cash generation, which could support future investments or shareholder returns. However, the negative earnings per share two-year compound annual growth rate of -58.20% may raise concerns about the sustainability of earnings growth. Overall, while the recent price declines may cause some investor anxiety, Riley Exploration Permian’s solid financial metrics suggest a resilient underlying business.

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company’s activities are primarily focused on the San Andres Formation, a shelf margin deposit on the Central Basin Platform and Northwest Shelf. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Lea and Roosevelt Counties, New Mexico. As of September 30, 2021, the company had approximately 31,352 net acres and a total of 77 net producing wells. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.