Riley Permian Announces Closing of New Mexico Acquisition

Rhea-AI Summary

Riley Exploration Permian, Inc. (NYSE American: REPX) has successfully completed its acquisition of New Mexico oil and natural gas assets from Pecos Oil & Gas, LLC for $330 million. The transaction was financed through $200 million in new senior unsecured notes, maturing in April 2028, and borrowings from its existing credit facility. The company also increased its credit facility's borrowing base by $100 million to $325 million. This acquisition enhances Riley's asset base and growth potential in the oil and gas sector.

Positive

• Acquisition of New Mexico assets expected to enhance growth.
• Increased borrowing base by $100 million to $325 million.
• Strategic investment of $330 million to strengthen market position.

Negative

• Issuance of $200 million in senior unsecured notes could strain finances.
• High interest rate of 10.5% on senior notes increases financial burden.

OKLAHOMA CITY, April 4, 2023 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian") today announced that it completed its previously announced acquisition of New Mexico oil and natural gas assets from Pecos Oil & Gas, LLC, an affiliate of Cibolo Energy Partners LLC (the "New Mexico Acquisition").

Consideration for the New Mexico Acquisition was $330 million before customary purchase price adjustments. In conjunction with the closing, the Company issued $200 million in new, senior unsecured notes (the "Senior Notes") and funded the balance of consideration with borrowings from the Company's existing revolving credit facility. The Senior Notes will bear interest at an annual rate of 10.5% and will mature in April 2028.

At the time of the acquisition, the Company also completed an amendment to its revolving credit facility to increase the borrowing base by $100 million to $325 million.

About Riley Exploration Permian, Inc.

Riley Permian is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploration, development and production of oil, natural gas, and natural gas liquids. For more information please visit www.rileypermian.com.

Investor Contact:
Rick D'Angelo
405-438-0126
IR@rileypermian.com

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SOURCE Riley Exploration Permian, Inc.

FAQ

What was the value of the acquisition by Riley Exploration Permian (REPX)?

The acquisition of New Mexico oil and natural gas assets was valued at $330 million.

How did Riley Exploration Permian finance the acquisition?

Riley financed the acquisition through $200 million in new senior unsecured notes and borrowings from its revolving credit facility.

What are the details of the senior unsecured notes issued by REPX?

The senior unsecured notes amount to $200 million, bear an interest rate of 10.5%, and mature in April 2028.

How much was the increase in Riley's borrowing base?

Riley increased its borrowing base by $100 million to a total of $325 million.

What impact does the acquisition have on Riley Exploration Permian's market position?

The acquisition is expected to enhance Riley's asset base and growth potential in the oil and gas sector.