Riley Permian Reports Second Quarter 2024 Results
Riley Exploration Permian (NYSE American: REPX) reported its Q2 2024 results, showcasing a strong financial and operational performance. The company achieved a total equivalent production of 21.3 MBoe/d, including 14.7 MBbls/d of oil. Key financial highlights include $105.4 million in revenue, $51.6 million in operating cash flow, and $33.5 million in net income, equating to $1.59 per diluted share.
The company generated Free Cash Flow of $38.3 million and paid $7.5 million in dividends. Debt reduction was substantial, with $20 million repaid. An additional $25.4 million raised through equity helped facilitate the acquisition of 13,900 net acres in New Mexico.
Management highlighted cost efficiencies in drilling and completion activities, contributing to improved free cash flow. The company expanded its power joint venture, RPC Power , increasing its ownership to 50% and planning new energy projects for ERCOT.
Guidance for Q3 and full-year 2024 includes projections for drilling, completions, and production, maintaining a focus on operational efficiency and financial prudence.
Riley Exploration Permian (NYSE American: REPX) ha riportato i risultati per il Q2 2024, evidenziando una solida performance finanziaria e operativa. L'azienda ha raggiunto una produzione equivalente totale di 21,3 MBoe/giorno, di cui 14,7 MBbls/giorno di petrolio. Tra i principali risultati finanziari figurano 105,4 milioni di dollari di fatturato, 51,6 milioni di dollari di flusso di cassa operativo e 33,5 milioni di dollari di utile netto, pari a 1,59 dollari per azione diluita.
L'azienda ha generato un Flusso di Cassa Libero di 38,3 milioni di dollari e ha distribuito 7,5 milioni di dollari in dividendi. La riduzione dell'indebitamento è stata significativa, con 20 milioni di dollari ripagati. Un ulteriore 25,4 milioni di dollari raccolti tramite capitale hanno facilitato l'acquisizione di 13.900 acri netti nel New Mexico.
Il management ha evidenziato le efficienze di costo nelle operazioni di perforazione e completamento, contribuendo a un miglioramento del flusso di cassa libero. L'azienda ha ampliato la sua joint venture energetica, RPC Power, aumentando la sua partecipazione al 50% e pianificando nuovi progetti energetici per ERCOT.
Le previsioni per il Q3 e per l'intero anno 2024 includono proiezioni per perforazioni, completamenti e produzione, mantenendo un focus sull'efficienza operativa e la prudenza finanziaria.
Riley Exploration Permian (NYSE American: REPX) ha reportado sus resultados del segundo trimestre de 2024, destacando un sólido rendimiento financiero y operativo. La compañía alcanzó una producción equivalente total de 21.3 MBoe/día, incluyendo 14.7 MBbls/día de petróleo. Los principales aspectos financieros incluyen $105.4 millones en ingresos, $51.6 millones en flujo de caja operativo y $33.5 millones en ingresos netos, equivalentes a $1.59 por acción diluida.
La empresa generó un Flujo de Caja Libre de $38.3 millones y pagó $7.5 millones en dividendos. La reducción de deuda fue considerable, con $20 millones reembolsados. Se recaudaron otros $25.4 millones a través de acciones, ayudando a facilitar la adquisición de 13,900 acres netos en Nuevo México.
La dirección destacó las eficiencias de costos en las actividades de perforación y finalización, lo que contribuyó a mejorar el flujo de caja libre. La compañía amplió su empresa conjunta de energía, RPC Power, aumentando su participación al 50% y planeando nuevos proyectos energéticos para ERCOT.
Las proyecciones para el tercer trimestre y el año completo 2024 incluyen previsiones para perforaciones, finalizaciones y producción, manteniendo un enfoque en la eficiencia operativa y la prudencia financiera.
라일리 탐사 퍼미안(Riley Exploration Permian, NYSE American: REPX)이 2024년 2분기 실적을 발표하며 강력한 재무 및 운영 성과를 보여주었습니다. 회사는 총 동등 생산량 21.3 MBoe/일을 달성했으며, 여기에는 14.7 MBbls/일의 원유가 포함됩니다. 주요 재무 하이라이트에는 1억 540만 달러의 수익, 5,160만 달러의 운영 현금 흐름, 3,350만 달러의 순이익이 포함되어 있으며, 이는 희석 주당 1.59 달러에 해당합니다.
회사는 자유 현금 흐름 3,830만 달러를 생성하였고, 750만 달러를 배당금으로 지급하였습니다. 부채 감소가 상당하여, 2,000만 달러가 상환되었습니다. 추가로 2,540만 달러가 자본을 통해 조달되어 뉴멕시코에서 13,900 에이커를 인수하는 데 도움이 되었습니다.
경영진은 드릴링 및 완공 활동에서의 비용 효율성을 강조하며, 이것이 자유 현금 흐름 향상에 기여했다고 밝혔습니다. 회사는 에너지 합작 투자인 RPC Power의 소유 지분을 50%로 확대하고 ERCOT를 위한 새로운 에너지 프로젝트를 계획하고 있습니다.
2024년 3분기 및 연간 가이던스에는 드릴링, 완공 및 생산에 대한 예측이 포함되어 있으며, 운영 효율성 및 재무 신중성에 초점을 맞추고 있습니다.
Riley Exploration Permian (NYSE American: REPX) a publié ses résultats pour le 2ème trimestre 2024, mettant en avant une solide performance financière et opérationnelle. L'entreprise a atteint une production équivalente totale de 21,3 MBoe/jour, incluant 14,7 MBbls/jour de pétrole. Parmi les points financiers clés figurent 105,4 millions de dollars de revenus, 51,6 millions de dollars de flux de trésorerie opérationnels et 33,5 millions de dollars de bénéfice net, équivalant à 1,59 dollar par action diluée.
L'entreprise a généré un Flux de Trésorerie Libre de 38,3 millions de dollars et a versé 7,5 millions de dollars en dividendes. La réduction de la dette a été substantielle, avec 20 millions de dollars remboursés. Un montant supplémentaire de 25,4 millions de dollars levé par actions a facilité l'acquisition de 13 900 acres nets au Nouveau-Mexique.
La direction a souligné les économies de coûts dans les activités de forage et de complétion, contribuant à améliorer le flux de trésorerie libre. L'entreprise a élargi sa coentreprise énergétique, RPC Power, en augmentant son partenariat à 50% et en prévoyant de nouveaux projets énergétiques pour ERCOT.
Les prévisions pour le 3ème trimestre et l'année entière 2024 incluent des projections pour le forage, les achèvements et la production, tout en maintenant un accent sur l'efficacité opérationnelle et la prudence financière.
Riley Exploration Permian (NYSE American: REPX) hat ihre Ergebnisse für das 2. Quartal 2024 veröffentlicht und dabei eine starke finanzielle und operationale Leistung gezeigt. Das Unternehmen erzielte eine gesamtäquivalente Produktion von 21,3 MBoe/d, darunter 14,7 MBbls/d Öl. Zu den wichtigsten finanziellen Highlights gehören 105,4 Millionen Dollar Umsatz, 51,6 Millionen Dollar operativer Cashflow und 33,5 Millionen Dollar Nettogewinn, was 1,59 Dollar pro verwässerter Aktie entspricht.
Das Unternehmen generierte einen Freien Cashflow von 38,3 Millionen Dollar und zahlte 7,5 Millionen Dollar an Dividenden. Die Schuldenreduzierung war erheblich, mit einer Rückzahlung von 20 Millionen Dollar. Weitere 25,4 Millionen Dollar wurden durch Eigenkapital beschafft, um den Erwerb von 13.900 Netto-Acres in New Mexico zu ermöglichen.
Das Management hob die Kosteneffizienz bei Bohr- und Fertigstellungsaktivitäten hervor, die zur Verbesserung des freien Cashflows beitrugen. Das Unternehmen erweiterte sein Energie-Joint Venture, RPC Power, indem es seinen Anteil auf 50% erhöhte und neue Energieprojekte für ERCOT plant.
Die Prognosen für das 3. Quartal und das Gesamtjahr 2024 umfassen Projektionen für Bohrungen, Fertigstellungen und Produktion und legen den Fokus auf betriebliche Effizienz und finanzielle Vorsicht.
- Revenue of $105.4 million
- Net income of $33.5 million ($1.59 per diluted share)
- Free Cash Flow of $38.3 million
- $51.6 million in operating cash flow
- Debt reduction by $20 million
- $25.4 million raised from an equity offering
- Negative average realized price for natural gas at $(0.61) per Mcf
- Negative average realized price for NGLs at $(0.10) per barrel
Insights
Riley Permian's Q2 2024 results show solid financial performance and operational execution. Key highlights include:
- Revenue of
$105.4 million - Net income of
$33.5 million ($1.59 per diluted share) - Adjusted EBITDAX of
$73.3 million - Free Cash Flow of
$38.3 million
The company's focus on cost savings and operational efficiencies is paying off, particularly in well costs. The
Riley Permian's Q2 2024 operational results are encouraging. The company achieved:
- Average total production of 21.3 MBoe/d (14.7 MBbls/d oil)
- Drilled 2 gross operated horizontal wells
- Completed 8 gross operated horizontal wells
- Brought 4 gross operated horizontal wells online
The company's efficient capital deployment is evident with total accrued capital expenditures of
Riley Permian's Q2 2024 results and future outlook present a mixed picture for investors. Positive aspects include:
- Strong free cash flow generation
- Debt reduction and improved liquidity
- Strategic acquisitions and joint venture expansion
However, investors should note the challenges in the natural gas market, with average realized prices of
SECOND QUARTER 2024 HIGHLIGHTS
- Averaged 21.3 MBoe/d of total equivalent production (oil production of 14.7 MBbls/d)
- Generated
$51.6 million $57.6 million - Incurred total accrual (activity-based) capital expenditures before acquisitions of
$21.4 million $19.3 million - Generated Free Cash Flow(1) of
$38.3 million - Paid dividends of
$0.36 $7.5 million - Reduced debt outstanding by
$20.0 million - Raised
$25.4 million - Closed acquisition that added approximately 13,900 contiguous net acres to our
New Mexico position - Signed agreements to expand the scope of our power joint venture RPC Power, LLC ("RPC Power") and increased our ownership position from
35% to50%
MANAGEMENT COMMENTARY
"We continue to execute our annual plan with overall positive results," said Bobby D. Riley, Chief Executive Officer and Chairman of the Board. "It's early in the year to report on medium-term to longer-term well results, but thus far we are generally seeing outperformance on 2024 legacy well production results relative to our internal forecasts. We continue to experience favorable efficiencies and cost savings on our drilling and completion activity. Well cost savings represent our largest driver of free cash flow improvement this year. The team has also done a great job in smoothing development activity and spend, one of our core objectives coming into the year."
OPERATIONS UPDATE AND FINANCIAL RESULTS
SECOND QUARTER 2024 RESULTS
For the quarter ended June 30, 2024, the Company's revenues totaled
On a non-GAAP basis, Adjusted EBITDAX(1) was
Average oil production was 14.7 MBbls/d and average total equivalent production was 21.3 MBoe/d (
Average realized prices were
Lease operating expense ("LOE") was
Total accrued capital expenditures before acquisitions were
The Company made an additional capital contribution of
The Company reduced total debt by
The Company had
Shareholders' equity was
On April 8, 2024, the Company issued and sold 1,015,000 shares of common stock at a price of
INVESTMENT UPDATE
On May 7, 2024, the Company closed on the purchase of oil and natural gas properties in
On May 21, 2024, the Company entered into definitive agreements to expand the scope of its joint venture, RPC Power. The expanded scope will enable RPC Power to build new power generation and storage assets for the sale of energy and ancillary services to ERCOT, the
___________________ | |
(1) | A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com. |
Selected Operating and Financial Data | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||
Select Financial Data (in thousands): | ||||||||||
Oil and natural gas sales, net | $ 105,343 | $ 99,424 | $ 99,312 | $ 204,767 | $ 165,724 | |||||
Income from Operations | $ 53,612 | $ 50,567 | $ 45,010 | $ 104,179 | $ 81,044 | |||||
Adjusted EBITDAX(1) | $ 73,264 | $ 70,146 | $ 66,265 | $ 143,410 | $ 109,773 | |||||
Cash Flow from Operations | $ 51,641 | $ 56,125 | $ 55,915 | $ 107,766 | $ 88,720 | |||||
Free Cash Flow(1) | $ 38,263 | $ 23,308 | $ 3,270 | $ 61,571 | $ 5,619 | |||||
Production Data, net: | ||||||||||
Oil (MBbls) | 1,342 | 1,289 | 1,370 | 2,631 | 2,263 | |||||
Natural gas (MMcf) | 1,608 | 1,631 | 1,677 | 3,239 | 2,626 | |||||
NGLs (MBbls) | 330 | 293 | 283 | 623 | 417 | |||||
Total (MBoe) | 1,940 | 1,854 | 1,933 | 3,794 | 3,118 | |||||
Daily combined volumes (Boe/d) | 21,319 | 20,374 | 21,236 | 20,846 | 17,225 | |||||
Daily oil volumes (Bbls/d) | 14,747 | 14,165 | 15,055 | 14,456 | 12,503 | |||||
Average Realized Prices: | ||||||||||
Oil ($ per Bbl) | $ 79.25 | $ 75.25 | $ 71.41 | $ 77.29 | $ 71.94 | |||||
Natural gas ($ per Mcf) | $ (0.61) | $ 0.42 | $ 0.02 | $ (0.09) | $ 0.21 | |||||
NGLs ($ per Bbl) | $ (0.10) | $ 5.97 | $ 5.10 | $ 2.75 | $ 5.65 | |||||
Average Realized Prices, including the effects | ||||||||||
Oil ($ per Bbl) | $ 76.96 | $ 74.33 | $ 69.46 | $ 75.68 | $ 68.51 | |||||
Natural gas ($ per Mcf) | $ 0.16 | $ 1.20 | $ 0.24 | $ 0.69 | $ 0.35 | |||||
NGLs ($ per Bbl)(3) | $ (0.10) | $ 5.97 | $ 5.10 | $ 2.75 | $ 5.65 | |||||
Weighted Average Common Shares | ||||||||||
Basic | 20,866 | 19,891 | 19,671 | 20,378 | 19,660 | |||||
Diluted | 21,087 | 19,992 | 19,985 | 20,539 | 19,951 | |||||
_____________________ | |
(1) | A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com. |
(2) | The Company's calculation of the effects of derivative settlements includes gains and losses on the settlement of its commodity derivative contracts. These gains and losses are included under other income (expense) on the Company's condensed consolidated statements of operations. |
(3) | During the periods presented, the Company did not have any NGL derivative contracts in place. |
2024 GUIDANCE
Riley Permian is providing third quarter detailed guidance and reiterating, previously disclosed full-year 2024 activity guidance based on currently scheduled development activity and current market conditions. The average working interest on gross operated wells drilled is subject to change and may have corresponding impacts on investing expenditures. Total equivalent production estimates, inclusive of production from natural gas and NGLs, may be subject to variability based on natural gas dynamics.
Activity, Production, and Investing Guidance | Q3 2024 | Full-Year 2024 | ||
Gross Operated Well Activity | ||||
Drilled | 10 - 12 | 24 - 26 | ||
Completed | 1 - 3 | 18 - 20 | ||
Turned to Sales | 4 - 7 | 20 - 22 | ||
Net Production | ||||
Total (MBoe/d) | 21.0 - 23.0 | 21.0 - 22.5 | ||
Oil (MBbls/d) | 14.8 - 15.3 | 14.5 - 15.2 | ||
Investing Expenditures by Category (Accrual, in millions)(1) | ||||
Drilling and Completions and Capital Workovers | ||||
Infrastructure and Other | 7 - 9 | 21 - 26 | ||
Total E&P Capex | ||||
Joint Venture Investment | ||||
Total Investments | ||||
Cost Guidance | Q3 2024 | |
Operating and Corporate Costs | ||
Lease operating expense, including workover expense ($ per Boe) | ||
Production tax (% of revenue) | ||
Cash G&A(2) ($ per Boe) | ||
Interest expense ($ in millions)(3) | ||
Income Tax Cash Payment ($ in millions)(4) | ||
Income Tax Cash Payment (Full-year 2024) ($ in millions)(4) |
_______________ | |
(1) | Activity-based investing expenditures before acquisitions. |
(2) | A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com. |
(3) | Interest expense is net of interest rate derivative settlements. |
(4) | Low end of guidance is based on |
CONFERENCE CALL
In connection with the earnings release, Riley Permian management will host a conference call for investors and analysts on August 8, 2024 at 9:00 a.m. CT to discuss the Company's results and to host a Q&A session. Interested parties are invited to participate by calling:
- Toll Free Dial-In, +1 (888) 596-4144
- Toll Dial-in, +1 (646) 968-2525
- Conference ID number 1303008
An updated company presentation, which will include certain items to be discussed on the call, will be posted prior to the call on the Company's website (www.rileypermian.com). In addition to a webcast of the call available on the Company's website, a replay of the call will be available until August 22, 2024 by calling:
- Toll Free Dial-In, +1 (800) 770-2030
- Toll Dial-in, +1 (609) 800-9909
- Conference ID number 1303008
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
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained in this release that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, need for financing, competitive position and potential growth opportunities. Our forward-looking statements do not consider the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believes," "intends," "may," "should," "anticipates," "expects," "could," "plans," "estimates," "projects," "targets," "forecasts" or comparable terminology or by discussions of strategy or trends. You should not place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or occur, and actual results could differ materially and adversely from those anticipated or implied by the forward-looking statements.
Among the factors that could cause actual future results to differ materially are the risks and uncertainties the Company is exposed to. While it is not possible to identify all factors, we continue to face many risks and uncertainties including, but not limited to: the volatility of oil, natural gas and NGL prices; regional supply and demand factors, any delays, curtailment delays or interruptions of production, and any governmental order, rule or regulation that may impose production limits; cost and availability of gathering, pipeline, refining, transportation and other midstream and downstream activities; severe weather and other risks that lead to a lack of any available markets; our ability to successfully complete mergers, acquisitions or divestitures; the inability or failure of the Company to successfully integrate the acquired assets into its operations and development activities; the potential delays in the development, construction or start-up of planned projects; failure to realize any of the anticipated benefits of our joint ventures or other equity investments; the risk that the Company's enhanced oil recovery, or EOR, or carbon capture, utilization and sequestration, or CCUS, projects may not perform as expected or produce the anticipated benefits; risks relating to our operations, including development drilling and testing results and performance of acquired properties and newly drilled wells; inability to prove up undeveloped acreage and maintain production on leases; any reduction in our borrowing base on our revolving credit facility from time to time and our ability to repay any excess borrowings as a result of such reduction; the impact of our derivative strategy and the results of future settlement; our ability to comply with the financial covenants contained in our credit agreement and senior notes; changes in general economic, business or industry conditions, including changes in inflation rates, interest rates and foreign currency exchange rates; conditions in the capital, financial and credit markets and our ability to obtain capital needed for development and exploration operations on favorable terms or at all; the loss of certain tax deductions; risks associated with executing our business strategy, including any changes in our strategy; risks associated with concentration of operations in one major geographic area; legislative or regulatory changes, including initiatives related to hydraulic fracturing, regulation of greenhouse gases, water conservation, seismic activity, weatherization, or protection of certain species of wildlife, or of sensitive environmental areas; the ability to receive drilling and other permits or approvals and rights-of-way in a timely manner (or at all), which may be restricted by governmental regulation and legislation; restrictions on the use of water, including limits on the use of produced water and a moratorium on new produced water well permits recently imposed by the Railroad Commission of
The forward-looking statements in this press release are made as of the date hereof and are based on information available at that time. The Company does not undertake, and expressly disclaims, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.
Cautionary Statement Regarding Guidance
The estimates and guidance presented in this release are based on assumptions of current and future capital expenditure levels, prices for oil, natural gas and NGLs, available liquidity, indications of supply and demand for oil, well results, and operating costs. The guidance provided in this release does not constitute any form of guarantee or assurance that the matters indicated will be achieved. While we believe these estimates and the assumptions on which they are based are reasonable as of the date on which they are made, they are inherently uncertain and are subject to, among other things, significant business, economic, operational, and regulatory risks, and uncertainties, some of which are not known as of the date of the statement. Guidance and estimates, and the assumptions on which they are based, are subject to material revision. Actual results may differ materially from estimates and guidance. Please read the "Cautionary Statement Regarding Forward Looking Information" section above, as well as "Risk Factors" in our annual report on Form 10-K and our quarterly reports on Form 10-Q, which are incorporated herein.
RILEY EXPLORATION PERMIAN, INC. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Unaudited) | ||||
June 30, 2024 | December 31, 2023 | |||
(In thousands, except share amounts) | ||||
Assets | ||||
Current Assets: | ||||
Cash | $ 10,910 | $ 15,319 | ||
Accounts receivable | 42,077 | 35,126 | ||
Prepaid expenses | 1,766 | 1,625 | ||
Inventory | 5,685 | 6,177 | ||
Current derivative assets | 1,426 | 5,013 | ||
Total current assets | 61,864 | 63,260 | ||
Oil and natural gas properties, net (successful efforts) | 889,270 | 846,901 | ||
Other property and equipment, net | 20,630 | 20,653 | ||
Non-current derivative assets | 631 | 2,296 | ||
Equity method investment | 20,757 | 5,620 | ||
Other non-current assets, net | 9,805 | 6,981 | ||
Total Assets | $ 1,002,957 | $ 945,711 | ||
Liabilities and Shareholders' Equity | ||||
Current Liabilities: | ||||
Accounts payable | $ 12,581 | $ 3,855 | ||
Accrued liabilities | 19,156 | 33,159 | ||
Revenue payable | 32,902 | 30,695 | ||
Current derivative liabilities | 8,292 | 360 | ||
Current portion of long-term debt | 20,000 | 20,000 | ||
Other current liabilities | 4,691 | 6,276 | ||
Total Current Liabilities | 97,622 | 94,345 | ||
Non-current derivative liabilities | 2,527 | — | ||
Asset retirement obligations | 31,503 | 19,255 | ||
Long-term debt | 302,720 | 335,959 | ||
Deferred tax liabilities | 78,418 | 73,345 | ||
Other non-current liabilities | 1,135 | 1,212 | ||
Total Liabilities | 513,925 | 524,116 | ||
Commitments and Contingencies | ||||
Shareholders' Equity: | ||||
Preferred stock, | — | — | ||
Common stock, | 21 | 20 | ||
Additional paid-in capital | 309,341 | 279,112 | ||
Retained earnings | 179,670 | 142,463 | ||
Total Shareholders' Equity | 489,032 | 421,595 | ||
Total Liabilities and Shareholders' Equity | $ 1,002,957 | $ 945,711 | ||
RILEY EXPLORATION PERMIAN, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(In thousands) | ||||||||
Revenues: | ||||||||
Oil and natural gas sales, net | $ 105,343 | $ 99,312 | $ 204,767 | $ 165,724 | ||||
Contract services - related parties | 60 | 600 | 380 | 1,200 | ||||
Total Revenues | 105,403 | 99,912 | 205,147 | 166,924 | ||||
Costs and Expenses: | ||||||||
Lease operating expenses | 16,492 | 17,514 | 33,261 | 26,389 | ||||
Production and ad valorem taxes | 7,174 | 7,221 | 14,405 | 11,331 | ||||
Exploration costs | 60 | 80 | 64 | 412 | ||||
Depletion, depreciation, amortization and accretion | 17,470 | 18,601 | 35,249 | 27,684 | ||||
General and administrative: | ||||||||
Administrative costs | 6,644 | 6,500 | 11,983 | 11,967 | ||||
Share-based compensation expense | 3,281 | 1,225 | 4,973 | 2,339 | ||||
Cost of contract services - related parties | — | 109 | 363 | 219 | ||||
Transaction costs | 670 | 3,652 | 670 | 5,539 | ||||
Total Costs and Expenses | 51,791 | 54,902 | 100,968 | 85,880 | ||||
Income from Operations | 53,612 | 45,010 | 104,179 | 81,044 | ||||
Other Income (Expense): | ||||||||
Interest expense, net | (8,857) | (10,161) | (17,924) | (11,177) | ||||
Gain (loss) on derivatives, net | (359) | 8,665 | (17,436) | 14,420 | ||||
Loss from equity method investment | (192) | (4) | (25) | (236) | ||||
Total Other Income (Expense) | (9,408) | (1,500) | (35,385) | 3,007 | ||||
Net Income from Operations before Income Taxes | 44,204 | 43,510 | 68,794 | 84,051 | ||||
Income tax expense | (10,656) | (10,442) | (16,488) | (19,132) | ||||
Net Income | $ 33,548 | $ 33,068 | $ 52,306 | $ 64,919 | ||||
Net Income per Share: | ||||||||
Basic | $ 1.61 | $ 1.68 | $ 2.57 | $ 3.30 | ||||
Diluted | $ 1.59 | $ 1.65 | $ 2.55 | $ 3.25 | ||||
Weighted Average Common Shares Outstanding: | ||||||||
Basic | 20,866 | 19,671 | 20,378 | 19,660 | ||||
Diluted | 21,087 | 19,985 | 20,539 | 19,951 | ||||
RILEY EXPLORATION PERMIAN, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(In thousands) | ||||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ 33,548 | $ 33,068 | $ 52,306 | $ 64,919 | ||||
Adjustments to reconcile net income to net cash provided | ||||||||
Exploratory well costs and lease expirations | — | 56 | — | 388 | ||||
Depletion, depreciation, amortization and accretion | 17,470 | 18,601 | 35,249 | 27,684 | ||||
(Gain) loss on derivatives, net | 359 | (8,665) | 17,436 | (14,420) | ||||
Settlements on derivative contracts | (1,829) | (2,303) | (1,725) | (7,391) | ||||
Amortization of deferred financing costs and discount | 1,317 | 1,088 | 2,632 | 1,281 | ||||
Share-based compensation expense | 3,281 | 1,225 | 4,973 | 2,485 | ||||
Deferred income tax expense | 3,187 | 8,454 | 5,073 | 13,737 | ||||
Loss from equity method investment | 192 | 4 | 25 | 236 | ||||
Other | 31 | — | (42) | — | ||||
Changes in operating assets and liabilities | (5,915) | 4,387 | (8,161) | (199) | ||||
Net Cash Provided by Operating Activities | 51,641 | 55,915 | 107,766 | 88,720 | ||||
Cash Flows from Investing Activities: | ||||||||
Additions to oil and natural gas properties | (18,987) | (48,090) | (53,926) | (83,023) | ||||
Net assets acquired in business combination | — | (292,094) | — | (325,094) | ||||
Acquisitions of oil and natural gas properties | (18,138) | (5,443) | (18,138) | (5,443) | ||||
Contributions to equity method investment | (9,543) | (1,726) | (15,162) | (3,566) | ||||
Funds held in escrow | 1,926 | — | — | — | ||||
Additions to other property and equipment | (306) | (168) | (430) | (277) | ||||
Net Cash Used in Investing Activities | (45,048) | (347,521) | (87,656) | (417,403) | ||||
Cash Flows from Financing Activities: | ||||||||
Deferred financing costs | (69) | (6,165) | (69) | (6,214) | ||||
Proceeds from credit facility | 15,000 | 145,000 | 15,000 | 178,000 | ||||
Repayments under credit facility | (30,000) | (19,000) | (40,000) | (19,000) | ||||
Proceeds from senior notes, net of issuance costs | — | 188,000 | — | 188,000 | ||||
Repayments of senior notes | (5,000) | (5,000) | (10,000) | (5,000) | ||||
Payment of common share dividends | (7,541) | (6,695) | (14,707) | (13,363) | ||||
Proceeds from issuance of common shares, net | 25,415 | — | 25,415 | — | ||||
Common stock repurchased for tax withholding | (52) | (68) | (158) | (300) | ||||
Net Cash (Used in) Provided by Financing Activities | (2,247) | 296,072 | (24,519) | 322,123 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 4,346 | 4,466 | (4,409) | (6,560) | ||||
Cash, Beginning of Period | 6,564 | 2,275 | 15,319 | 13,301 | ||||
Cash, End of Period | $ 10,910 | $ 6,741 | $ 10,910 | $ 6,741 | ||||
DERIVATIVE CONTRACTS
The Company's oil and natural gas derivative instruments consisted of fixed price swaps, costless collars, and basis swaps. The following table summarizes the open financial derivatives as of August 2, 2024, related to oil and natural gas production.
Weighted Average Price | |||||||||
Period (1) | Notional | Fixed | Put | Call | |||||
($ per unit) | |||||||||
Oil Swaps (Bbl) | |||||||||
Q3 2024 | 455,000 | $ 74.91 | |||||||
Q4 2024 | 435,000 | $ 74.90 | |||||||
2025 | 645,000 | $ 73.63 | |||||||
Natural Gas Swaps (Mcf) | |||||||||
Q3 2024 | 600,000 | $ 3.21 | |||||||
Q4 2024 | 450,000 | $ 3.67 | |||||||
2025 | 1,470,000 | $ 3.71 | |||||||
2026 | 555,000 | $ 4.02 | |||||||
Oil Collars (Bbl) | |||||||||
Q3 2024 | 366,000 | $ 61.00 | $ 83.61 | ||||||
Q4 2024 | 390,000 | $ 61.92 | $ 83.39 | ||||||
2025 | 1,635,000 | $ 63.41 | $ 76.42 | ||||||
2026 | 356,000 | $ 60.53 | $ 80.29 | ||||||
Natural Gas Collars (MMBtu) | |||||||||
Q3 2024 | 405,000 | $ 3.01 | $ 3.68 | ||||||
Q4 2024 | 405,000 | $ 3.50 | $ 4.45 | ||||||
2025 | 1,395,000 | $ 3.29 | $ 4.30 | ||||||
Oil Basis (Bbl) | |||||||||
Q3 2024 | 330,000 | $ 0.97 | |||||||
Q4 2024 | 330,000 | $ 0.97 | |||||||
__________________ | |
(1) | Q3 2024 derivative positions shown include 2024 contracts, some of which have settled as of August 2, 2024. |
Interest Rate Contracts
The Company entered into floating-to-fixed interest rate swaps, in which it will receive a floating market rate equal to one-month CME Term Secured Overnight Financing Rate and will pay a fixed interest rate, to manage future interest rate exposure related to the Company's Credit Facility. In March 2024, the Company entered into a fixed-to-floating interest rate swap for the period May 2024 - December 2024, to reduce our interest rate exposure, which resulted in a gain of approximately
The following table summarizes the open interest rate derivative positions as of June 30, 2024:
Open Coverage Period | Position | Notional Amount | Fixed Rate | |||
(In thousands) | ||||||
July 2024 - April 2026 | Long | $ 30,000 | 3.180 % | |||
July 2024 - April 2026 | Long | $ 50,000 | 3.039 % | |||
July 2024 - December 2024 | Short | $ 80,000 | 4.910 % |
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SOURCE Riley Exploration Permian, Inc.
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