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Riley Permian Reports Third Quarter 2024 Results

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Riley Permian (REPX) reported Q3 2024 financial results with total production averaging 23.4 MBoe/d (66% oil). The company generated $72.1 million in operating cash flow and $37.8 million in Free Cash Flow. Revenue totaled $102.3 million with net income of $25.7 million ($1.21 per diluted share). The company reduced debt by $35.0 million and paid dividends of $0.36 per share. Notable operational updates include completing installation of 20 MW electrical generation capacity and discontinuing the EOR Project, resulting in a $30.2 million impairment charge.

Riley Permian (REPX) ha riportato i risultati finanziari del terzo trimestre 2024, con una produzione totale che ha raggiunto in media 23,4 MBoe/giorno (66% olio). L'azienda ha generato 72,1 milioni di dollari in flusso di cassa operativo e 37,8 milioni di dollari in flusso di cassa libero. I ricavi totali sono stati di 102,3 milioni di dollari con un reddito netto di 25,7 milioni di dollari (1,21 dollari per azione diluita). L'azienda ha ridotto il debito di 35,0 milioni di dollari e ha distribuito dividendi di 0,36 dollari per azione. Aggiornamenti operativi significativi includono il completamento dell'installazione di una capacità di generazione elettrica di 20 MW e l'interruzione del progetto EOR, che ha comportato un onere per impairment di 30,2 milioni di dollari.

Riley Permian (REPX) reportó los resultados financieros del tercer trimestre de 2024, con una producción total que promedió 23.4 MBoe/día (66% petróleo). La compañía generó 72.1 millones de dólares en flujo de caja operativo y 37.8 millones de dólares en flujo de caja libre. Los ingresos totalizaron 102.3 millones de dólares, con un ingreso neto de 25.7 millones de dólares (1.21 dólares por acción diluida). La empresa redujo la deuda en 35.0 millones de dólares y pagó dividendos de 0.36 dólares por acción. Las actualizaciones operativas notables incluyen la finalización de la instalación de capacidad de generación eléctrica de 20 MW y la interrupción del Proyecto EOR, lo que resultó en un cargo por deterioro de 30.2 millones de dólares.

라일리 퍼미안 (REPX)은 2024년 3분기 재무 결과를 보고했으며, 총 생산량은 평균 23.4 MBoe/일(66% 원유)였다. 이 회사는 운영 현금 흐름으로 7,210만 달러를 올렸고, 자유 현금 흐름으로 3,780만 달러를 기록했다. 총 수익은 1억 230만 달러에 달하며, 순이익은 2,570만 달러였다(희석 주당 1.21 달러). 이 회사는 부채를 3,500만 달러 줄였고, 주당 0.36 달러에 배당금을 지급했다. 주목할 만한 운영 업데이트로는 20 MW 전기 생성 용량 설치 완료와 EOR 프로젝트 중단이 있으며, 이로 인해 3,020만 달러의 손상 차손이 발생했다.

Riley Permian (REPX) a publié ses résultats financiers pour le troisième trimestre 2024, avec une production totale moyenne de 23,4 MBoe/jour (66% de pétrole). L'entreprise a généré 72,1 millions de dollars de flux de trésorerie opérationnel et 37,8 millions de dollars de flux de trésorerie libre. Les revenus ont totalisé 102,3 millions de dollars, avec un bénéfice net de 25,7 millions de dollars (1,21 dollar par action diluée). La société a réduit sa dette de 35,0 millions de dollars et a distribué des dividendes de 0,36 dollar par action. Les mises à jour opérationnelles notables comprennent l'achèvement de l'installation d'une capacité de production électrique de 20 MW et l'arrêt du projet EOR, entraînant une charge de dépréciation de 30,2 millions de dollars.

Riley Permian (REPX) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, mit einer Gesamtproduktion von durchschnittlich 23,4 MBoe/Tag (66% Öl). Das Unternehmen erwirtschaftete einen operativen Cashflow von 72,1 Millionen Dollar und einen freien Cashflow von 37,8 Millionen Dollar. Die Einnahmen betrugen insgesamt 102,3 Millionen Dollar mit einem Nettogewinn von 25,7 Millionen Dollar (1,21 Dollar pro verwässerter Aktie). Das Unternehmen reduzierte die Schulden um 35,0 Millionen Dollar und zahlte Dividenden von 0,36 Dollar pro Aktie. Bedeutende operationale Aktualisierungen umfassen den Abschluss der Installation einer elektrischen Erzeugungskapazität von 20 MW und die Einstellung des EOR-Projekts, was zu einer Wertminderung von 30,2 Millionen Dollar führte.

Positive
  • Generated $72.1 million operating cash flow and $37.8 million Free Cash Flow
  • Reduced total debt by $35.0 million
  • Increased oil production by 6% quarter-over-quarter
  • Recorded $24.2 million gain from commodity derivatives
  • Maintained strong liquidity with $245.0 million available for borrowing
Negative
  • $30.2 million impairment charge from EOR Project discontinuation
  • Lower realized prices: $73.95/bbl oil vs $79.25/bbl in previous quarter
  • Negative realized prices for natural gas (-$0.60/Mcf) and NGLs (-$4.40/bbl)
  • Higher lease operating expenses at $8.60 per Boe

Insights

Riley Permian delivered solid Q3 2024 results with notable operational and financial achievements. Production increased to 23.4 MBoe/d (66% oil), up 10% quarter-over-quarter, while generating $72.1 million in operating cash flow and $37.8 million in Free Cash Flow.

Key financial strengths include debt reduction of $35 million, maintaining a healthy balance sheet with $245 million available credit facility capacity. The company's focus on capital efficiency is evident with $30 million in capital expenditures generating strong returns. The decision to discontinue the EOR project, while resulting in a $30.2 million impairment, demonstrates pragmatic capital allocation.

The completion of 20 MW power generation capacity and progress on ERCOT-focused projects positions the company well for operational cost optimization. With $102.3 million in revenue and improved hedge settlements offsetting lower commodity prices, the company maintains strong financial health.

OKLAHOMA CITY, Nov. 6, 2024 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian" or the "Company"), today reported financial and operating results for the third quarter ended September 30, 2024.

THIRD QUARTER 2024 HIGHLIGHTS

  • Averaged 23.4 MBoe/d of total equivalent production (oil production of 15.5 MBbls/d)

  • Generated $72.1 million of operating cash flow or $60.5 million before changes in working capital(1)

  • Incurred total accrual (activity-based) capital expenditures before acquisitions of $30.0 million and cash capital expenditures before acquisitions of $22.7 million

  • Generated Free Cash Flow(1) of $37.8 million

  • Paid dividends of $0.36 per share for a total of $8.1 million

  • Reduced the principal value of debt outstanding by $35.0 million

  • Completed the installation of our remaining electrical generation equipment used to power a portion of our field operations in Texas, with a total of 20 MW of installed capacity

MANAGEMENT COMMENTARY

Bobby D. Riley, Chief Executive Officer and Chairman of the Board commented: "Riley Permian delivered another quarter of strong results as we continued to execute our annual plan. Operating cash flow improved quarter-over-quarter despite lower commodity prices, driven by higher production and improved commodity hedge settlements. We've generated $99 million of Free Cash Flow(1) year-to-date, which has contributed to $70 million of principal debt reduction and $23 million of dividends paid. Our electric power projects continue advancing, which we believe will be increasingly valuable to our operations and the Company."

"Additionally, during the third quarter, we opted to discontinue our EOR Project, which was begun in 2021, and which follows an approximate two-year period of water and CO2 injection applied to three horizontal producing wells. Technical achievements were delivered from the pilot program, showing that our oil can be successfully mobilized with CO2. However, given the relatively early life stage of our assets, we believe that we can currently generate higher production levels with lower operating costs using primary production methods, and that secondary EOR may be more applicable for our assets later in their useful life, after the completion of the primary phase of production."

THIRD QUARTER 2024 OPERATIONS UPDATE AND FINANCIAL RESULTS

For the quarter ended September 30, 2024, the Company's revenues totaled $102.3 million, net cash provided by operating activities was $72.1 million and net income was $25.7 million, or $1.21 per diluted share.

On a non-GAAP basis, Adjusted EBITDAX(1) was $71.7 million, cash flow from operations before changes in working capital(1) was $60.5 million, Free Cash Flow(1) was $37.8 million and Adjusted Net Income(1) was $31.5 million, or $1.49 per diluted share.

Average oil production was 15.5 MBbls/d and average total equivalent production was 23.4 MBoe/d (66% oil and 85% liquids). Oil volumes increased by 6% quarter-over-quarter while natural gas and NGL volumes increased by 21% and 24%, respectively. The increased natural gas and NGL volumes were driven by additional processing capacity that came on-line in July at our primary third-party midstream gas processor in Texas, relieving prior gas processing constraints.

Average realized prices were $73.95 per barrel of oil, $(0.60) per Mcf of natural gas and $(4.40) per barrel of natural gas liquids. The Company's oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. These costs, related to natural gas and NGLs, at times exceeded the price received and resulted in negative average realized prices.

The Company recorded a $24.2 million gain due to commodity derivatives, including a $23.4 million non-cash, unrealized gain and a $0.8 million realized gain.

Lease operating expense ("LOE") was $18.5 million, or $8.60 per Boe, cash G&A expense(1) was $5.9 million, or $2.73 per Boe, and production and ad valorem taxes were $7.0 million or $3.25 per Boe.

Total accrued capital expenditures before acquisitions were $30.0 million and $22.7 million on a cash basis. The Company drilled 11.5 net operated horizontal wells, completed 3 net operated horizontal wells, and brought online to production 6 net operated horizontal wells.

The Company recorded a $30.2 million impairment related to the discontinuation of our EOR Project, including a $28.9 million non-cash impairment and $1.3 million cash impairment related to the termination of the Kinder Morgan CO2 contract. Select equipment from the EOR Project was salvaged for use in the Company's conventional vertical and horizontal development programs.

The Company reduced total debt by $35.0 million, including a principal reduction of $30.0 million on its Credit Facility and $5.0 million on its Senior Notes. Interest expense was $8.8 million.

The Company had $288.6 million of total debt, or $300.0 million principal balance, as of September 30, 2024, with approximately $245.0 million available for future borrowing under its Credit Facility.

Shareholders' equity was $507.4 million as of September 30, 2024, and the number of common shares outstanding was 21.5 million.

POWER ACTIVITY UPDATE

RPC Power LLC ("RPC Power"), our power-focused joint venture, completed the installation of the remaining electrical generation equipment used to power a portion of Riley Permian's field operations in Texas, with a total of 20 MW of installed capacity as of September 30, 2024. RPC Power advanced its larger, ERCOT-focused project during the third quarter with progress on siting, permitting and generation equipment procurement.

During the third quarter 2024, Riley Permian made an additional capital contribution of $1.5 million to RPC Power. The Company has invested a total of $22.5 million to date and has 50% ownership.

___________________

(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


Nine Months Ended



September 30,
2024


June 30, 2024


September 30,
2023


September 30,
2024


September 30,
2023

Select Financial Data (in thousands):











Oil and natural gas sales, net


$       102,339


$       105,343


$       107,694


$       307,106


$       273,418

Income from Operations


$         17,478


$         53,612


$         58,229


$       121,657


$       139,273

Adjusted EBITDAX(1)


$         71,741


$         73,264


$         72,227


$       215,151


$       182,000

Cash Flow from Operations


$         72,130


$         51,641


$         52,652


$       179,896


$       141,372

Free Cash Flow(1)


$         37,809


$         38,263


$         31,280


$         99,380


$         36,897












Production Data, net:











Oil (MBbls)


1,424


1,342


1,292


4,055


3,555

Natural gas (MMcf)


1,940


1,608


1,616


5,179


4,242

NGLs (MBbls)


408


330


274


1,031


691

Total (MBoe)


2,155


1,940


1,835


5,949


4,953












Daily combined volumes (Boe/d)


23,424


21,319


19,949


21,712


18,143

Daily oil volumes (Bbls/d)


15,478


14,747


14,043


14,799


13,022












Average Realized Prices:(2)











Oil ($ per Bbl)


$           73.95


$           79.25


$           80.87


$           76.12


$           75.19

Natural gas ($ per Mcf)


$           (0.60)


$           (0.61)


$             0.61


$           (0.28)


$             0.36

NGLs ($ per Bbl)


$           (4.40)


$           (0.10)


$             8.11


$           (0.08)


$             6.63












Average Realized Prices, including the effects
    of derivative settlements:(2)(3)











Oil ($ per Bbl)


$           73.84


$           76.96


$           76.00


$           75.03


$           71.23

Natural gas ($ per Mcf)


$           (0.10)


$             0.16


$             0.63


$             0.39


$             0.46

NGLs ($ per Bbl)(4)


$           (4.40)


$           (0.10)


$             8.11


$           (0.08)


$             6.63












Weighted Average Common Shares
   Outstanding (in thousands):











Basic


20,992


20,866


19,680


20,584


19,667

Diluted


21,209


21,087


19,989


20,764


19,964

_____________________

(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 oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. The costs, related to natural gas and NGLs, at times exceed the price received and result in negative average realized prices.

(3)

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.

(4)

During the periods presented, the Company did not have any NGL derivative contracts in place.

2024 GUIDANCE 

Riley Permian is providing fourth quarter 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


Q4 2024




Gross Operated Well Activity



Drilled


7 - 9

Completed


3 - 5

Turned to Sales


4 - 6




Net Production



Total (MBoe/d)


23.5 - 24.5

Oil (MBbls/d)


15.5 - 16.1




Investing Expenditures by Category (Accrual, in millions)(1)



Drilling and Completions and Capital Workovers


$18 - 21

Infrastructure and Other


14 - 21

Total E&P Capex


$32 - 42




Joint Venture Investment


$0 - 1

Total Investments


$32 - 43




Cost Guidance


Q4 2024




Operating and Corporate Costs



Lease operating expense, including workover expense ($ per Boe)


$8.00 - 9.00

Production tax (% of revenue)


6% - 8%

Cash G&A(2) ($ per Boe)


$2.50 - 3.00

Interest expense ($ in millions)(3)


$7.5 - 8.5

Income Tax Cash Payment ($ in millions)


$1.5 - 2.5

 _______________

(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.

CONFERENCE CALL
In connection with the earnings release, Riley Permian management will host a conference call for investors and analysts on November 7, 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 November 21, 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:
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; 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 Texas in an effort to control induced seismicity in the Permian Basin; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; public health crisis, such as pandemics and epidemics, and any related government policies and actions and the effects of such public health crises on the oil and natural gas industry, pricing and demand for oil and natural gas and supply chain logistics; general domestic and international economic, market and political conditions, including the military conflict between Russia and Ukraine, the Israel-Hamas conflict and the global response to such conflicts; risks related to litigation; and cybersecurity threats, technology system failures and data security issues. Additional factors that could cause results to differ materially from those described above can be found in Riley Permian's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC and available from the Company's website at www.rileypermian.com under the "Investor" tab, and in other documents the Company files with the SEC.

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)





September 30, 2024


December 31, 2023



(In thousands, except share amounts)

Assets





Current Assets:





Cash


$                13,322


$                15,319

Accounts receivable, net


41,034


35,126

Prepaid expenses


2,037


1,631

Inventory


6,738


6,177

Current derivative assets


12,195


5,013

Total Current Assets


75,326


63,266

Oil and natural gas properties, net (successful efforts)


871,996


846,901

Other property and equipment, net


19,189


20,653

Non-current derivative assets


2,475


2,296

Equity method investment


22,047


5,620

Other non-current assets, net


6,842


6,975

Total Assets


$              997,875


$              945,711

Liabilities and Shareholders' Equity





Current Liabilities:





Accounts payable


$                14,213


$                  3,855

Accrued liabilities


25,716


33,159

Revenue payable


33,745


30,695

Current derivative liabilities



360

Current portion of long-term debt


20,000


20,000

Other current liabilities


13,570


6,276

Total Current Liabilities


107,244


94,345

Non-current derivative liabilities


30


Asset retirement obligations


31,406


19,255

Long-term debt


268,620


335,959

Deferred tax liabilities


82,077


73,345

Other non-current liabilities


1,093


1,212

Total Liabilities


490,470


524,116

Commitments and Contingencies





Shareholders' Equity:





Preferred stock, $0.0001 par value, 25,000,000 shares authorized; 0 shares issued
and outstanding



Common stock, $0.001 par value, 240,000,000 shares authorized; 21,541,393
and 20,405,093 shares issued and outstanding at September 30, 2024 and
December 31, 2023, respectively


21


20

Additional paid-in capital


310,155


279,112

Retained earnings


197,229


142,463

Total Shareholders' Equity


507,405


421,595

Total Liabilities and Shareholders' Equity


$              997,875


$              945,711

 

RILEY EXPLORATION PERMIAN, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


2024


2023



(In thousands)

Revenues:









Oil and natural gas sales, net


$           102,339


$           107,694


$           307,106


$           273,418

Contract services - related parties



600


380


1,800

Total Revenues


102,339


108,294


307,486


275,218

Costs and Expenses:









Lease operating expenses


18,532


16,898


51,793


43,287

Production and ad valorem taxes


7,002


7,242


21,407


18,573

Exploration costs


375


231


439


643

Depletion, depreciation, amortization and accretion


20,722


18,706


55,971


46,390

Other impairments


30,158



30,158


General and administrative:









Administrative costs


5,879


5,530


17,862


17,497

Share-based compensation expense


1,720


1,109


6,693


3,448

Cost of contract services - related parties



128


363


347

Transaction costs


473


221


1,143


5,760

Total Costs and Expenses


84,861


50,065


185,829


135,945

Income from Operations


17,478


58,229


121,657


139,273

Other Income (Expense):









Interest expense, net


(8,789)


(10,338)


(26,713)


(21,515)

Gain (loss) on derivatives, net


24,217


(35,345)


6,781


(20,925)

Income (loss) from equity method investment


(210)


23


(235)


(213)

Total Other Income (Expense)


15,218


(45,660)


(20,167)


(42,653)

Net Income from Operations before Income Taxes


32,696


12,569


101,490


96,620

Income tax expense


(7,033)


(3,922)


(23,521)


(23,054)

Net Income


$             25,663


$                8,647


$             77,969


$             73,566

Net Income per Share:









Basic


$                  1.22


$                  0.44


$                  3.79


$                  3.94

Diluted


$                  1.21


$                  0.43


$                  3.76


$                  3.89

Weighted Average Common Shares Outstanding:









Basic


20,992


19,680


20,584


19,667

Diluted


21,209


19,989


20,764


19,964

 

RILEY EXPLORATION PERMIAN, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


2024


2023



(In thousands)

Cash Flows from Operating Activities:









Net income


$           25,663


$             8,647


$           77,969


$           73,566

Adjustments to reconcile net income to net cash
provided by operating activities:









Exploratory well costs and lease expirations


404


231


404


619

  Depletion, depreciation, amortization and accretion


20,722


18,706


55,971


46,390

Other impairments


30,158



30,158


(Gain) loss on derivatives, net


(24,217)


35,345


(6,781)


20,925

Settlements on derivative contracts


815


(6,269)


(910)


(13,660)

Amortization of deferred financing costs and
discount


1,343


1,189


3,975


2,470

Share-based compensation expense


1,720


1,109


6,693


3,594

Deferred income tax expense


3,659


3,865


8,732


17,602

(Income) loss from equity method investment


210


(23)


235


213

Other


42


(23)



(25)

Changes in operating assets and liabilities


11,611


(10,125)


3,450


(10,322)

Net Cash Provided by Operating Activities


72,130


52,652


179,896


141,372

Cash Flows from Investing Activities:









Additions to oil and natural gas properties


(22,446)


(31,275)


(76,372)


(114,298)

Net assets acquired in business combination



408



(324,686)

Acquisitions of oil and natural gas properties


(1,459)



(19,597)


(5,443)

Contributions to equity method investment


(1,500)



(16,662)


(3,566)

Additions to other property and equipment


(264)


(222)


(694)


(499)

Net Cash Used in Investing Activities

(25,669)


(31,089)


(113,325)


(448,492)

Cash Flows from Financing Activities:









Deferred financing costs


(11)


(36)


(80)


(6,250)

Proceeds from credit facility




15,000


178,000

Repayments under credit facility


(30,000)


(5,000)


(70,000)


(24,000)

Proceeds from senior notes, net of issuance costs





188,000

Repayments of senior notes


(5,000)


(5,000)


(15,000)


(10,000)

Payment of common share dividends


(8,132)


(6,810)


(22,839)


(20,173)

Proceeds from issuance of common shares, net



87


25,415


87

Common stock repurchased for tax withholding


(906)


(1,179)


(1,064)


(1,479)

Net Cash (Used in) Provided by Financing
Activities


(44,049)


(17,938)


(68,568)


304,185

Net Increase (Decrease) in Cash and Cash Equivalents


2,412


3,625


(1,997)


(2,935)

Cash, Beginning of Period


10,910


6,741


15,319


13,301

Cash, End of Period


$           13,322


$           10,366


$           13,322


$           10,366

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 November 1, 2024, related to oil and natural gas production:





Weighted Average Price

Period (1)


Notional
Volume


Fixed


Put


Call





($ per unit)

Oil Swaps (Bbl)









Q4 2024


435,000


$                74.90





2025


645,000


$                73.63














Natural Gas Swaps (Mcf)









     Q4 2024


510,000


$                  3.62





2025


1,875,000


$                  3.60





2026


555,000


$                  4.02














Oil Collars (Bbl)









Q4 2024


390,000




$                61.92


$                83.39

2025


1,700,000




$                63.28


$                76.59

2026


817,000




$                59.62


$                78.29










Natural Gas Collars (MMBtu)









Q4 2024


405,000




$                  3.50


$                  4.45

2025


1,445,000




$                  3.30


$                  4.30

2026


1,975,000




$                  3.08


$                  3.79










Oil Basis (Bbl)









Q4 2024


330,000


$                  0.97





__________________

(1)

Q4 2024 derivative positions shown include 2024 contracts, some of which have settled as of November 1, 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 to December 2024, to reduce our interest rate exposure, which resulted in a gain of approximately $1 million on a notional amount of $80 million. The remaining gain of $0.4 million will be realized upon settlement of the contracts in 2024.

The following table summarizes the open interest rate derivative positions as of September 30, 2024:

Open Coverage Period


Position


Notional Amount


Fixed Rate





(In thousands)



October 2024 - April 2026


Long


$                      30,000


3.180 %

October 2024 - April 2026


Long


$                      50,000


3.039 %

October 2024 - December 2024


Short


$                      80,000


4.910 %

 

Cision View original content:https://www.prnewswire.com/news-releases/riley-permian-reports-third-quarter-2024-results-302298008.html

SOURCE Riley Exploration Permian, Inc.

FAQ

What was Riley Permian's (REPX) oil production in Q3 2024?

Riley Permian's oil production averaged 15.5 MBbls/d in Q3 2024, representing a 6% increase from the previous quarter.

How much debt did Riley Permian (REPX) reduce in Q3 2024?

Riley Permian reduced total debt by $35.0 million in Q3 2024, including $30.0 million reduction on its Credit Facility and $5.0 million on Senior Notes.

What was the impact of discontinuing the EOR Project for REPX in Q3 2024?

The discontinuation of the EOR Project resulted in a $30.2 million impairment charge, including $28.9 million non-cash impairment and $1.3 million cash impairment related to contract termination.

What were Riley Permian's (REPX) realized commodity prices in Q3 2024?

Riley Permian's realized prices were $73.95 per barrel of oil, -$0.60 per Mcf of natural gas, and -$4.40 per barrel of natural gas liquids.

Riley Exploration Permian, Inc.

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