Riley Exploration Permian, Inc. press release

Riley Permian Reports Third Quarter 2025 Results

2025-11-05

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

PR Newswire

OKLAHOMA CITY, Nov. 5, 2025/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, 2025.

THIRD QUARTER 2025 AND RECENT HIGHLIGHTS

Averaged 32.3 MBoe/d of total equivalent production (oil production of 18.4 MBbls/d) Generated $64 millionof operating cash flow or $54 millionbefore changes in working capital(1), $25 millionof Total Free Cash Flow(1) and $39 millionof Upstream Free Cash Flow(1) Incurred total accrual (activity-based) capital expenditures before acquisitions of $18 million($13 millionfor upstream) and cash capital expenditures before acquisitions of $29 million($15 millionfor upstream) Closed on the acquisition of Silverback Exploration II, LLC and its subsidiaries ("Silverback") for $120 millionin cash plus $3.1 millionin contingent consideration, subject to final purchase price adjustments, and began integration of the assets Increased annual dividend by 5% to $0.40per share during October 2025

UPDATED GUIDANCE HIGHLIGHTS

Raising guidance for full-year oil production by 2% at the midpoint (4% at the midpoint for the fourth quarter 2025) Maintaining guidance for full-year total capital expenditures and investments (at the midpoint)

Bobby Riley, Chief Executive Officer and Chairman of the Board commented, "Riley Permian delivered another solid quarter, marked by disciplined execution and strategic progress. We closed the Silverback acquisition in July and began integrating the asset, where we are already seeing increased production and reduced costs. The execution of our development and capital plan has generated significant free cash flow year-to-date. The combination of these factors gave us confidence to increase our quarterly dividend by 5% to $0.40per share. We continue to progress our midstream and power generation projects, which provide critical infrastructure for Riley Permian to scale its operations in 2026 and beyond."

OPERATIONS AND DEVELOPMENT ACTIVITY UPDATE

During the third quarter, the Company drilled 0.0 net wells, completed 5.0 net wells and turned to sales 7.5 net wells.

| | | Three Months Ended September 30, 2025 | | Nine Months Ended September 30, 2025 | | | | | | | | Gross | | Net | | Gross | | Net | | Wells Drilled | | | | | | | | | | Texas | | — | | — | | 10 | | 10.0 | | New Mexico | | — | | — | | — | | — | | Total | | — | | — | | 10 | | 10.0 | | | | | | | | | | | | Wells Completed | | | | | | | | | | Texas | | 5 | | 5.0 | | 7 | | 7.0 | | New Mexico | | — | | — | | 10 | | 6.3 | | Total | | 5 | | 5.0 | | 17 | | 13.3 | | | | | | | | | | | | Wells Turned to Sales | | | | | | | | | | Texas | | 5 | | 5.0 | | 7 | | 7.0 | | New Mexico | | 5 | | 2.5 | | 10 | | 6.3 | | Total | | 10 | | 7.5 | | 17 | | 13.3 |

Average oil production during the third quarter was 18.4 MBbls/d and average total equivalent production was 32.3 MBoe/d (57% oil and 81% liquids). Daily oil volumes increased 21% and daily total equivalent volumes increased 33% quarter-over-quarter.

The Silverback operations were successfully transitioned to the Company during the third quarter. We completed several successful workovers which resulted in increased oil production above pre-acquisition levels.

THIRD QUARTER 2025 FINANCIAL RESULTS

Revenues totaled $107 million, net cash provided by operating activities was $64 millionand net income was $16 million, or $0.77per diluted share.

On a non-GAAP basis, Adjusted EBITDAX(1)was $64 million, cash flow from operations before changes in working capital(1)was $54 million, Total Free Cash Flow(1) was $25 millionand Adjusted Net Income(1)was $19 million, or $0.88per diluted share.

Average realized prices, before derivative settlements, were $63.94per barrel of oil, $(0.21)per Mcf of natural gas and $(0.66)per barrel of natural gas liquids ("NGL"). The Company reported a $2 milliongain on derivatives, substantially all of which was realized.

Operating expenses included lease operating expense of $27 million, or $9.03per Boe, administrative costs of $10 million, or $3.34per Boe and production and ad valorem taxes of $8 millionor $2.78per Boe.

The Company incurred $18 millionin total accrued capital expenditures ($13 millionfor upstream). On a cash basis, the Company had total capital expenditures of $29 million($15 millionfor upstream).

As of September 30, 2025, the Company had $225 millionof borrowings outstanding on its Credit Facility and $150 millionprincipal value of its Senior Notes, for a combined principal value of debt of $375 million. The Company increased total debt by $91 million, including a $96 millionincrease on the Credit Facility and $5 millionreduction on the Senior Notes. The increase in total debt can be attributed to Credit Facility proceeds of $125 millionto fund the acquisition of Silverback and related transaction expenses, partially offset by repayments of $29 million. Net interest expense was $10 million.

The Company paid a cash dividend of $0.38per share, for a total of $9 million. Subsequent to quarter-end, the Company declared a cash dividend of $0.40per share, a 5% increase from our previous level.

NEW MEXICOMIDSTREAM PROJECT UPDATE

The Company continues to advance the build-out of its midstream infrastructure in New Mexico, for which we have a planned 2026 in-service date for our pipeline to connect to our third-party midstream counterparty.

During the third quarter, we continued to capitalize on the low-pressure gathering and high-pressure compression facilities commissioned in the prior quarter, which enabled us to turn to sales 5 gross wells during the third quarter.

Additionally, we entered into a purchase agreement for three additional compressors to be delivered in late 2026 and early 2027.

The Company incurred $5 millionin accrued midstream capital expenditures during the third quarter. On a cash basis, the Company had midstream capital expenditures of $14 million(higher than accruals due to deposits related to purchase agreements). The Company has incurred a total of $26.5 millionof midstream capital expenditures from inception to date on an accrual basis and a total of $31.4 millionon a cash basis through September 30, 2025.

POWER ACTIVITY UPDATE

RPC Power LLC ("RPC Power"), is our power-focused joint venture with Conduit Power LLC, in which we have 50% ownership.

During the third quarter 2025, RPC Power served approximately 70% of the Company's load for its Champions field in Texas. The amount of load served is forecasted to increase during 2026 following planned improvements to gas supply infrastructure and the installation of battery energy storage systems.

RPC Power's other project is focused on building 40 MW of generation capacity across four sites in west Texasfor the sale of power into ERCOT. Construction and interconnection work continued across each of the four sites during the third quarter of 2025. The first site has a planned commissioning with ERCOT during the first quarter of 2026, with the remaining sites planned for commissioning in subsequent quarters throughout 2026.

During the third quarter, Riley Permian invested $8.5 millionin RPC Power. Each of the Company and Conduit Power LLC has invested a total of $39 millionas of September 30, 2025in RPC Power.

| _ | | | (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, 2025 | | June 30, 2025 | | September 30, 2024 | | September 30, 2025 | | September 30, 2024 | | Selected Financial Data (in thousands): | | | | | | | | | | | | Oil and natural gas sales, net | | $ 106,852 | | $ 85,394 | | $ 102,339 | | $ 294,703 | | $ 307,106 | | Income from Operations | | $ 28,862 | | $ 28,754 | | $ 17,478 | | $ 107,118 | | $ 121,657 | | Adjusted EBITDAX(1) | | $ 64,041 | | $ 59,340 | | $ 71,741 | | $ 194,514 | | $ 215,151 | | Cash Flow from Operations | | $ 63,650 | | $ 33,640 | | $ 72,130 | | $ 147,671 | | $ 179,896 | | | | | | | | | | | | | | Upstream Accrual Capital Expenditures | | $ 13,129 | | $ 22,022 | | $ 30,018 | | $ 54,581 | | $ 77,638 | | Upstream Cash Capital Expenditures | | $ 14,893 | | $ 25,300 | | $ 22,710 | | $ 56,467 | | $ 77,066 | | Total Accrual Capital Expenditures | | $ 18,019 | | $ 27,786 | | $ 30,018 | | $ 69,805 | | $ 77,638 | | Total Cash Capital Expenditures | | $ 29,027 | | $ 28,715 | | $ 22,710 | | $ 76,895 | | $ 77,066 | | | | | | | | | | | | | | Upstream Free Cash Flow(1) | | $ 39,441 | | $ 21,250 | | $ 37,809 | | $ 99,998 | | $ 99,380 | | Total Free Cash Flow(1) | | $ 25,307 | | $ 17,835 | | $ 37,809 | | $ 79,570 | | $ 99,380 | | | | | | | | | | | | | | Production Data, net: | | | | | | | | | | | | Oil (MBbls) | | 1,690 | | 1,382 | | 1,424 | | 4,478 | | 4,055 | | Natural gas (MMcf) | | 3,380 | | 2,213 | | 1,940 | | 7,821 | | 5,179 | | NGLs (MBbls) | | 722 | | 465 | | 408 | | 1,609 | | 1,031 | | Total (MBoe) | | 2,975 | | 2,216 | | 2,155 | | 7,391 | | 5,949 | | | | | | | | | | | | | | Daily combined volumes (Boe/d) | | 32,337 | | 24,352 | | 23,424 | | 27,073 | | 21,712 | | Daily oil volumes (Bbls/d) | | 18,370 | | 15,187 | | 15,478 | | 16,403 | | 14,799 | | | | | | | | | | | | | | Average Realized Prices:(2) | | | | | | | | | | | | Oil ($ per Bbl) | | $ 63.94 | | $ 62.17 | | $ 73.95 | | $ 65.33 | | $ 76.12 | | Natural gas ($ per Mcf) | | $ (0.21) | | $ (0.39) | | $ (0.60) | | $ 0.00 | | $ (0.28) | | NGLs ($ per Bbl) | | $ (0.66) | | $ 0.75 | | $ (4.40) | | $ 1.34 | | $ (0.08) | | | | | | | | | | | | | | Average Realized Prices, including the effects of derivative settlements:(2)(3) | | | | | | | | | | | | Oil ($ per Bbl) | | $ 65.17 | | $ 66.10 | | $ 73.84 | | $ 67.28 | | $ 75.03 | | Natural gas ($ per Mcf) | | $ (0.16) | | $ (0.52) | | $ (0.10) | | $ (0.02) | | $ 0.39 | | NGLs ($ per Bbl)(4) | | $ (0.66) | | $ 0.75 | | $ (4.40) | | $ 1.34 | | $ (0.08) | | | | | | | | | | | | | | Weighted Average Common Shares Outstanding (in thousands): | | | | | | | | | | | | Basic | | 21,164 | | 21,141 | | 20,992 | | 21,139 | | 20,584 | | Diluted | | 21,263 | | 21,158 | | 21,209 | | 21,178 | | 20,764 |

| _ | | | (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 exceeded the price received and resulted in negative average realized prices. | | (3) | The Company's calculation of the effects of derivative settlements includes gains (losses) on the settlement of our commodity derivative contracts. These gains (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. |

2025 GUIDANCE

Riley Permian is providing fourth quarter detailed guidance and modifying previously disclosed full-year 2025 activity guidance based on currently scheduled development activity and current market conditions. The Company's operating and financial results for the fourth quarter 2025 will incorporate the addition of Silverback, while full-year 2025 guidance reflects the impact of six months for Silverback.

The average working interest on gross operated wells drilled is subject to change and may have corresponding impacts on net production volumes and investing expenditures. Total equivalent production estimates, inclusive of production from natural gas and NGLs, may be subject to variability based on third-party midstream service provider conditions. In the event our midstream project is delayed, it may have corresponding impacts on net production volumes and investing expenditures.

| Activity and Production | | Q4 2025 | | Full-Year 2025 | | Net Operated Well Activity | | | | | | Drilled (#) | | 8.0 - 10.0 | | 18.0 - 20.0 | | Completed (#) | | 3.0 - 5.0 | | 16.3 - 18.3 | | Turned to Sales (#) | | 2.0 - 3.0 | | 15.3 - 16.3 | | | | | | | | Non-Operated D&C (#) | | 0.5 - 1.3 | | 0.5 - 1.3 | | | | | | | | Net Production | | | | | | Total (MBoe/d) | | 32.9 - 33.9 | | 28.6 - 28.8 | | Oil (MBbls/d) | | 18.7 - 19.7 | | 17.0 - 17.2 | | | | | | | | Capital Expenditures and Investing (in millions)(1) | | | | | | Drilling, Completions and Capitalized Workovers | | 27 - 31 | | 76 - 80 | | Upstream Infrastructure (Excluding New Mexico Midstream) | | 4 - 5 | | 4 - 5 | | Land and Other | | 4 - 5 | | 9 - 10 | | Upstream Capital Expenditures | | 35 - 41 | | 89 - 95 | | | | | | | | Midstream Capital Expenditures | | 15 - 30 | | 30 - 45 | | Total Capital Expenditures | | 50 - 71 | | 119 - 140 | | | | | | | | Power JV Investment | | 1 | | 16 | | Total Investments | | 51 - 72 | | 135 - 156 |

| Operating and Corporate Costs | | Q4 2025 | | | | | | Lease Operating Expenses ($ per Boe) | | 8.50 - 9.50 | | Production and Ad Valorem Taxes (% of revenue) | | 7.5% - 8.5% | | Administrative Costs ($ per Boe) | | 2.75 - 3.25 | | Interest Expense ($ in millions)(2) | | 6 - 8 |

| _ | | | (1) | Accrual (activity-based) investing expenditures before acquisitions | | (2) | 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 6, 2025at 9:00 a.m. CTto 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 20, 2025by 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 upstream company operating in Texasand New Mexicowith midstream and power projects that complement our operations. For more information, please visit www.rileypermian.com.

Investor Contact: 405-438-0126 IR@rileypermian.com

Cautionary Statement Regarding Forward Looking Information and Guidance

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, power and other midstream and downstream activities, which could result in a prolonged shut-in of our wells that may adversely affect our reserves, financial condition and results of operations; 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 our 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; 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 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 Facility 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 to fund our exploration and development and midstream project 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 Texasin 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 military conflicts, global economic growth, unpredictability of new tariffs, actions of OPEC+ countries and changes to the current political environment under the new administration; risks related to litigation; and cybersecurity threats, technology system failures and data security issues.