OKLAHOMA CITY, March 4, 2026 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian", the "Company" or "we"), today reported financial and operating results for the fourth quarter and year ended December 31, 2025.
FOURTH QUARTER 2025 HIGHLIGHTS
-- Averaged 35.5 MBoe/d of total equivalent production (oil production of
20.1 MBbls/d)
-- Generated $65 million of operating cash flow, $85 million of net income,
$66 million of Adjusted EBITDAX(1), $1 million of Total Free Cash Flow(1)
and $17 million of Upstream Free Cash Flow(1)
-- Incurred total accrual (activity-based) capital expenditures before
acquisitions of $50 million ($28 million for upstream)
-- Sold all of our membership interests in Dovetail Midstream LLC, a wholly
owned subsidiary of the Company that held certain midstream
infrastructure projects in Eddy County, New Mexico for total cash
consideration of $123 million, with the right to earn up to an additional
$60 million in cash payments contingent upon achieving certain volumetric
performance thresholds over a five-year period ("Midstream Sale")
-- Reduced debt outstanding by $120 million with a year-end debt-to-Adjusted
EBITDAX(1) ratio of 1.0x(2)
-- Announced the authorization of a stock repurchase program of up to $100
million of the currently outstanding shares of the Company's common stock
FULL-YEAR 2025 HIGHLIGHTS
-- Averaged 29.2 MBoe/d of total equivalent production (oil production of
17.3 MBbls/d)
-- Generated $213 million of operating cash flow, $161 million of net income,
$261 million of Adjusted EBITDAX(1), $81 million of Total Free Cash
Flow(1) and $117 million of Upstream Free Cash Flow(1)
-- Incurred total accrual (activity-based) capital expenditures before
acquisitions of $120 million ($83 million for upstream)
-- Closed on the acquisition of Silverback Exploration II, LLC and its
subsidiaries ("Silverback") for $120 million in cash plus contingent
consideration, subject to final purchase price adjustments
-- Increased the dividend on our common stock in October 2025 by 5% to $0.40
quarterly and $1.60 annually
2026 GUIDANCE HIGHLIGHTS
-- Full-year 2026 guidance for total production of 35.0 - 37.0 MBoe/d (oil
production of 21.0 - 22.0 MBbls/d)
-- Full-year 2026 guidance for activity-based capital expenditures before
acquisitions of $190 - 210 million
Bobby Riley, Chairman of the Board and Chief Executive Officer commented, "2025 was a transformational year for Riley Permian, as we made significant progress across key strategic initiatives, including inventory expansion, infrastructure build--out, and balance sheet improvement. The groundwork laid in 2025 positions the company for a more active and value--enhancing development program in 2026 and beyond."
____________________
(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) Debt leverage ratio based on principal debt outstanding as of December
31, 2025, divided by full-year Adjusted EBITDAX(1) .
OPERATIONS AND DEVELOPMENT ACTIVITY UPDATE
The tables below provide a summary of our operated well activity and production by state:
Three Months Ended Year Ended December 31,
December 31, 2025 2025
-------------------------- --------------------------
Gross(1) Net(2) Gross(1) Net(2)
Wells Drilled
Texas 8 8.0 18 18.0
New Mexico -- -- -- --
------------ ------------ ------------ ------------
Total 8 8.0 18 18.0
============ ============ ============ ============
Wells
Completed
Texas 5 5.0 12 12.0
New Mexico -- -- 10 6.3
------------ ------------ ------------ ------------
Total 5 5.0 22 18.3
============ ============ ============ ============
Wells Turned
to Sales
Texas 3 3.0 10 10.0
New Mexico -- -- 10 6.3
------------ ------------ ------------ ------------
Total 3 3.0 20 16.3
============ ============ ============ ============
___________________
(1) Gross wells are the total number of operated wells in which the Company
has an interest
(2) Net wells are gross wells multiplied by our fractional working interest
Average Daily Production by State
Three Months Ended December
31, Year Ended December 31,
--------------------------- -------------------------
2025 2024 2025 2024
------------ ------------- ------------ -----------
Combined
Texas 19.4 17.7 17.6 15.7
New Mexico 16.1 7.3 11.6 6.8
------------ ------------- ------------ -----------
Total
(MBoe/d) 35.5 25.0 29.2 22.5
============ ============= ============ ===========
Oil
Texas 11.9 12.4 11.3 11.7
New Mexico 8.2 3.5 6.0 3.4
------------ ------------- ------------ -----------
Total
(MBbls/d) 20.1 15.9 17.3 15.1
============ ============= ============ ===========
FOURTH QUARTER 2025 FINANCIAL RESULTS
Revenues totaled $97 million, net cash provided by operating activities was $65 million and net income was $85 million, or $4.02 per diluted share.
On a non-GAAP basis, Adjusted EBITDAX(1) was $66 million, cash flow from operations before changes in working capital(1) was $35 million, Total Free Cash Flow(1) was $1 million and Adjusted Net Income(1) was $22 million, or $1.01 per diluted share.
Average realized prices, before derivative settlements, were $57.18 per barrel of oil, $(0.86) per Mcf of natural gas and $(6.67) per barrel of natural gas liquids. The Company reported a $21 million gain on derivatives, net, which included an $8 million realized gain on settlements.
Operating expenses included lease operating expense ("LOE") of $23 million, or $7.16 per Boe, administrative costs of $8 million, or $2.42 per Boe, and production and ad valorem taxes of $8 million or $2.44 per Boe.
The Company incurred $50 million in total accrued capital expenditures ($28 million for upstream). On a cash basis, the Company had total capital expenditures of $51 million ($35 million for upstream).
We recognized a pre-tax gain of $72 million from the Midstream Sale, net of $3 million in transaction costs. As a result, we incurred $16 million in corresponding income tax liability. Total FCF of $1 million excludes this tax impact.
The Company sold its interest in oil and natural gas properties in Texas outside of the Company's acreage in Yoakum County for 250,000 shares of the Company's common stock, which were subsequently retired, and which led to a reduction to additional paid-in-capital of $10 million.
The Company reduced total debt by $120 million, including a principal reduction of $115 million on the Credit Facility and $5 million on the Senior Notes. As of December 31, 2025, the Company had $110 million of borrowings outstanding on its Credit Facility and $145 million principal value of its Senior Notes, for a combined principal value of debt of $255 million. Interest expense, net was $8 million.
The Company paid a cash dividend of $0.40 per share, for a total of $8 million.
YEAR ENDED 2025 FINANCIAL RESULTS
Revenues totaled $392 million, net cash provided by operating activities was $213 million and net income was $161 million, or $7.59 per diluted share.
On a non-GAAP basis, Adjusted EBITDAX(1) was $261 million, cash flow from operations before changes in working capital(1) was $192 million, Total Free Cash Flow(1) was $81 million and Adjusted Net Income(1) was $96 million or $4.53 per diluted share.
Average realized prices, before derivative settlements, were $62.95 per barrel of oil, $(0.28) per Mcf of natural gas and $(1.27) per barrel of natural gas liquids. The Company reported a $36 million gain on derivatives, net, which included a $17 million realized gain on settlements.
Operating expenses included LOE of $88 million, or $8.21 per Boe, administrative costs of $31 million, or $2.95 per Boe, and production and ad valorem taxes of $29 million or $2.73 per Boe.
The Company incurred $120 million in total accrued capital expenditures ($83 million for upstream). On a cash basis, the Company had total capital expenditures of $128 million ($91 million for upstream).
The Company reduced total debt by $25 million, including a principal reduction of $5 million on the Credit Facility and $20 million on the Senior Notes. Interest expense, net was $31 million.
The Company paid dividends of $1.54 per share for a total of $33 million.
Shareholder's equity was $634 million as of December 31, 2025, an increase of 24% year-over-year and the number of common shares outstanding was 21.7 million, an increase of 1% year-over-year.
In January 2026, as part of our stock repurchase program, the Company repurchased 152,408 shares of common stock at a weighted average price of $26.54 per share for a total of $4 million.
RESERVES
Estimates of Riley Permian's proved reserves as of December 31, 2025, were prepared by Ryder Scott Company, L.P., the Company's third-party reservoir engineer, using the SEC pricing methodology. Proved reserves at year-end 2025 of 147 MMBoe increased by 24 MMBoe or 19% over year-end 2024 reserves. Oil represented 50% of total proved reserves. Proved developed producing reserves ("PDP") increased by 13% to 87 MMBoe, which represented 59% of total proved reserves. Proved undeveloped reserves ("PUD") increased by 29% to 61 MMBoe, when compared to year-end 2024. At December 31, 2025, the standardized measure of discounted cash flows and PV-10(1) were $1.14 billion and $1.39 billion, respectively.
The net proved reserve additions resulted in a reserve replacement ratio (defined as the sum of extensions and discoveries, revisions, acquisitions and divestitures, divided by annual production) of 323% for the year ended December 31, 2025. The organic reserve replacement ratio (defined as the sum of extensions and discoveries and revisions, divided by annual production) was 230%.
Extensions and discoveries were the primary contributor to the increase in reserves of 24 MMBoe, which consisted of 23 MMBoe added to PUDs as a result of drilling activity during the year, which allowed for the booking of adjacent PUDs for locations that were previously booked as unproved reserves or not at all, and 1 MMBoe added to PDP as a result of drilling successful wells that were previously classified as unproved locations. The Company also acquired 11 MMBoe in reserves and divested 1 MMBoe. The Company had production of 11 MMBoe and positive revisions of previous estimates of 1 MMBoe.
____________________
(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 Year Ended
------------------------------------------------------- ------------------------------------
December 31, September 30, December 31, December 31, December 31,
2025 2025 2024 2025 2024
Select Financial Data
(in thousands):
Oil and natural gas
sales, net $ 97,277 $ 106,852 $ 102,695 $ 391,980 $ 409,801
Income from Operations $ 26,161 $ 28,862 $ 32,038 $ 133,279 $ 153,695
Adjusted EBITDAX(1) $ 66,051 $ 64,041 $ 69,074 $ 260,565 $ 284,225
Cash Flow from
Operations $ 64,868 $ 63,650 $ 66,378 $ 212,539 $ 246,274
Upstream Accrual
Capital Expenditures $ 28,204 $ 13,129 $ 19,385 $ 82,785 $ 97,023
Upstream Cash Capital
Expenditures $ 34,721 $ 14,893 $ 22,299 $ 91,188 $ 99,365
Total Accrual Capital
Expenditures $ 50,357 $ 18,019 $ 30,682 $ 120,162 $ 108,320
Total Cash Capital
Expenditures $ 50,960 $ 29,027 $ 33,263 $ 127,855 $ 110,329
Upstream Free Cash
Flow(1) $ 17,238 $ 39,441 $ 28,653 $ 117,236 $ 128,033
Total Free Cash Flow(1) $ 999 $ 25,307 $ 17,689 $ 80,569 $ 117,069
Production Data, net:
Oil (MBbls) 1,850 1,690 1,464 6,328 5,519
Natural gas (MMcf) 3,848 3,380 2,305 11,669 7,484
NGLs (MBbls) 778 722 455 2,387 1,486
----------------- ----------------- ----------------- ----------------- -----------------
Total (MBoe) 3,269 2,975 2,303 10,660 8,252
================= ================= ================= ================= =================
Daily combined volumes
(Boe/d) 35,533 32,337 25,033 29,205 22,546
Daily oil volumes
(Bbls/d) 20,109 18,370 15,913 17,337 15,079
Average Realized
Prices:(2)
Oil ($ per Bbl) $ 57.18 $ 63.94 $ 68.50 $ 62.95 $ 74.10
Natural gas ($ per
Mcf) $ (0.86) $ (0.21) $ 0.02 $ (0.28) $ (0.19)
NGLs ($ per Bbl) $ (6.67) $ (0.66) $ 5.18 $ (1.27) $ 1.53
Average Realized
Prices, including
derivative
settlements:(2)(3)
Oil ($ per Bbl) $ 61.06 $ 65.17 $ 69.89 $ 65.46 $ 73.67
Natural gas ($ per
Mcf) $ (0.63) $ (0.16) $ 0.34 $ (0.22) $ 0.37
NGLs ($ per Bbl)(4) $ (6.67) $ (0.66) $ 5.18 $ (1.27) $ 1.53
Weighted Average
Common Shares
Outstanding (in
thousands):
Basic 21,120 21,164 21,094 21,134 20,712
Diluted 21,242 21,263 21,205 21,194 20,875
_____________________
(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 GP&T
costs. These costs, related to natural gas and NGLs, at times exceeded
the price we received and resulted in negative average realized prices.
(3) The Company's calculation of the effects of derivative settlements
includes gains and losses on the settlement of our commodity derivative
contracts. These gains and losses are included under other income
(expense) in the Company's consolidated statements of operations.
(4) During the periods presented, the Company did not have any NGL derivative
contracts in place.
2026 GUIDANCE
Riley Permian is providing first quarter detailed guidance and select full-year 2026 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 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.
Activity and Production Q1 2026 Full-Year 2026 -------------------------------------------- ----------- -------------- Net Operated Well Activity Drilled (#) 14.3 - 16.3 37.0 - 43.0 Completed (#) 8.0 - 9.0 41.0 - 47.0 Turned to Sales (#) 7.0 - 8.0 43.0 - 49.0 Non-Operated, Net (#) 0.0 - 0.0 1.0 - 2.0 Net Production Total (MBoe/d) 33.2 - 34.0 35.0 - 37.0 Oil (MBbls/d) 19.0 - 19.5 21.0 - 22.0 Capital Expenditures and Investing (in millions)(1) -------------------------------------------- Upstream $49 - $57 $165 - $180 Infrastructure and Other $6 - $8 $25 - $30 ----------- -------------- Total Capital Expenditures $55 - $65 $190 - $210 Power JV Investment $2 - $3 $6 - $8 ----------- -------------- Total Investments $57 - $68 $196 - $218 =========== ============== Operating and Corporate Costs Q1 2026 ----------------------------------------------- ------------- Lease Operating Expenses ($ per Boe) $8.00 - $9.00 Production and Ad Valorem Taxes (% of revenue) 7.5% - 8.5% Administrative Costs ($ per Boe) $2.50 - $3.00 ___________________ (1) Accrual (activity-based) investing expenditures before acquisitions
CONFERENCE CALL
In connection with the earnings release, Riley Permian management will host a conference call for investors and analysts on March 5, 2026 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 March 19, 2026 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 upstream oil and gas company operating in Texas and New Mexico with infrastructure 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 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 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.
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, operating costs and the timing and completion of pending projects and acquisitions. 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 "Risk Factors" in our annual report on Form 10-K and our quarterly reports on Form 10-Q, which are incorporated herein. 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, 2025 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.
RILEY EXPLORATION PERMIAN, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
-----------------------------------------------
2025 2024
----------------------- ----------------------
(In thousands, except share amounts)
Assets
Current Assets:
Cash $ 17,889 $ 13,124
Accounts receivable,
net 41,045 44,411
Prepaid expenses 7,763 1,592
Inventory 7,929 5,734
Current derivative
assets 19,141 3,264
----------------------- ----------------------
Total Current Assets 93,767 68,125
----------------------- ----------------------
Oil and natural gas
properties, net
(successful efforts) 995,539 860,797
Other property and
equipment, net 21,872 30,477
Non-current derivative
assets 5,117 585
Equity method
investment 36,188 22,811
Funds held in escrow 1,196 --
Other non-current
assets, net 15,899 10,706
----------------------- ----------------------
Total Assets $ 1,169,578 $ 993,501
======================= ======================
Liabilities and
Shareholders' Equity
Current Liabilities:
Accounts payable $ 5,083 $ 13,937
Accrued liabilities 37,690 33,918
Revenue payable 59,606 34,786
Current derivative
liabilities 37 --
Current portion of
long-term debt 20,000 20,000
Other current
liabilities 34,089 20,123
----------------------- ----------------------
Total Current
Liabilities 156,505 122,764
----------------------- ----------------------
Non-current derivative
liabilities 112 414
Asset retirement
obligations 59,977 32,706
Long-term debt 227,855 249,494
Deferred tax
liabilities 86,119 76,547
Other non-current
liabilities 4,768 961
----------------------- ----------------------
Total Liabilities 535,336 482,886
----------------------- ----------------------
Commitments and
Contingencies
Shareholders' Equity:
Preferred stock,
$0.0001 par value,
25,000,000 shares
authorized; 0
shares issued -- --
Common stock, $0.001
par value,
240,000,000 shares
authorized;
21,718,800 and
21,482,555 shares
issued at December
31, 2025 and
December 31, 2024,
respectively 22 21
Additional paid-in
capital 306,660 310,232
Retained earnings 327,560 200,362
----------------------- ----------------------
Total Shareholders'
Equity 634,242 510,615
----------------------- ----------------------
Total
Liabilities
and
Shareholders'
Equity $ 1,169,578 $ 993,501
======================= ======================
RILEY EXPLORATION PERMIAN, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
----------------------------------------------
Three Months Ended December 31, Year Ended December 31,
----------------------------------------------
2025 2024 2025 2024
---------------------- ---------------------- ---------------------- ----------------------
(In thousands, except per share amounts)
Revenues:
Oil and natural gas
sales, net $ 97,277 $ 102,695 $ 391,980 $ 409,801
Contract services -
related parties -- -- -- 380
---------------------- ---------------------- ---------------------- ----------------------
Total Revenues 97,277 102,695 391,980 410,181
Costs and Expenses:
Lease operating
expenses 23,421 19,670 87,506 71,463
Production and ad
valorem taxes 7,978 8,021 29,052 29,428
Exploration costs 88 2,156 361 2,595
Depletion,
depreciation,
amortization and
accretion 27,268 18,929 93,183 74,900
Impairment of oil
and natural gas
properties -- 11,317 1,214 11,317
Other impairments 1,607 -- 1,607 30,158
General and
administrative:
Administrative
costs 7,913 8,689 31,472 26,551
Stock-based
compensation
expense 2,388 1,445 9,130 8,138
Cost of contract
services - related
parties -- -- -- 363
Transaction costs 453 430 5,176 1,573
---------------------- ---------------------- ---------------------- ----------------------
Total Costs and
Expenses 71,116 70,657 258,701 256,486
---------------------- ---------------------- ---------------------- ----------------------
Income from
Operations 26,161 32,038 133,279 153,695
Other Income
(Expense):
Interest expense,
net (7,926) (7,625) (31,364) (34,338)
Gain (loss) on
derivatives, net 21,469 (8,446) 36,259 (1,665)
Loss from equity
method investment (619) (486) (886) (721)
Gain on midstream
sale 71,675 -- 71,675 --
---------------------- ---------------------- ---------------------- ----------------------
Total Other
Income
(Expense) 84,599 (16,557) 75,684 (36,724)
---------------------- ---------------------- ---------------------- ----------------------
Net Income from
Operations Before
Income Taxes 110,760 15,481 208,963 116,971
Income tax expense (25,363) (4,553) (48,123) (28,074)
Net Income $ 85,397 $ 10,928 $ 160,840 $ 88,897
Net Income per
Share:
Basic $ 4.04 $ 0.52 $ 7.61 $ 4.29
Diluted $ 4.02 $ 0.52 $ 7.59 $ 4.26
Weighted Average
Common Shares
Outstanding:
Basic 21,120 21,094 21,134 20,712
Diluted 21,242 21,205 21,194 20,875
RILEY EXPLORATION PERMIAN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
------------------------------------
Three Months Ended December 31, Year Ended December 31,
------------------------------------
2025 2024 2025 2024
----------------- ----------------- ------------- -------------
(In thousands)
Cash Flows from
Operating
Activities:
Net income $ 85,397 $ 10,928 $ 160,840 $ 88,897
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Exploratory
well costs and
lease
expirations 88 2,156 300 2,560
Depletion,
depreciation,
amortization
and accretion 27,268 18,929 93,183 74,900
Impairment of
oil and
natural gas
properties -- 11,317 1,214 11,317
Other
impairments 1,607 (1,308) 1,607 28,850
(Gain) loss on
derivatives,
net (21,469) 8,446 (36,259) 1,665
Settlements on
derivative
contracts 8,086 2,759 16,615 1,849
Amortization of
deferred
financing
costs and
discount 1,198 1,324 4,768 5,299
Stock-based
compensation
expense 2,388 1,445 9,130 8,138
Deferred income
tax expense 1,981 (5,530) 11,352 3,202
Loss from
equity method
investment 619 486 886 721
Gain on
midstream
sale (71,675) -- (71,675) --
Other 10 -- 2 --
Changes in
operating
assets and
liabilities 29,370 15,426 20,576 18,876
Net Cash
Provided by
Operating
Activities 64,868 66,378 212,539 246,274
----------------- ----------------- ------------- -------------
Cash Flows from
Investing
Activities:
Additions to oil and
natural gas
properties (34,394) (22,118) (89,624) (98,490)
Additions to
midstream property
and equipment (16,239) (10,964) (36,667) (10,964)
Additions to other
property and
equipment (327) (181) (1,564) (875)
Net assets acquired
in business
combination 125 -- (117,702) --
Acquisitions of oil
and natural gas
properties -- -- (2,161) (19,597)
Acquisitions of land (1,309) -- (1,309) --
Disposition of
midstream property
and equipment 120,204 -- 120,204 --
Contributions to
equity method
investment (1,000) (1,250) (15,750) (17,912)
Funds held in
escrow -- -- (1,196) --
Net Cash
Provided by
(Used in)
Investing
Activities 67,060 (34,513) (145,769) (147,838)
Cash Flows from
Financing
Activities:
Deferred financing
costs (189) (2,703) (432) (2,783)
Proceeds from Credit
Facility -- -- 155,000 15,000
Repayments under
Credit Facility (115,000) (15,000) (160,000) (85,000)
Repayments of Senior
Notes (5,000) (5,000) (20,000) (20,000)
Payment of cash
dividends (8,485) (7,992) (33,325) (30,831)
Proceeds from
issuance of common
shares, net -- -- -- 25,415
Repurchase of common
shares for tax
withholding and
other (1,824) (1,368) (3,248) (2,432)
Net Cash Used
in Financing
Activities (130,498) (32,063) (62,005) (100,631)
----------------- ----------------- ------------- -------------
Net Increase
(Decrease) in Cash 1,430 (198) 4,765 (2,195)
Cash, Beginning of
Period 16,459 13,322 13,124 15,319
----------------- ----------------- ------------- -------------
Cash, End of Period $ 17,889 $ 13,124 $ 17,889 $ 13,124
OIL, NATURAL GAS AND NGL RESERVES
Estimates of Riley Permian's proved reserves as of December 31, 2025, were prepared by Ryder Scott Company, L.P. ("Ryder Scott"), the Company's third-party reservoir engineer. Estimates of proved reserves were prepared in accordance with the rules and regulations of the SEC using an average price equal to the unweighted arithmetic average of the first day of each month within the 12-month period ended December 31, 2025, of $65.34 per Bbl for oil and $3.39 per Mcf for gas. Additionally, the Company prepared estimates of proved reserves as of December 31, 2025, using NYMEX pricing, which were not reviewed by Ryder Scott. The table below presents a summary of our proved reserves as of December 31, 2025.
SEC Pricing(1) NYMEX Pricing(1)
------------------------------------------------ ------------------------------------------------
Reserves as of Proved Proved
December 31, Developed Total Proved Developed Total Proved
2025 Reserves Reserves Reserves Reserves
---------------- ------------------------ ---------------------- ------------------------ ----------------------
Oil (MBbls) 42,907 74,347 43,109 74,670
Natural gas
(MMcf) 124,165 206,657 125,592 208,636
Natural gas
liquids
(MBbls) 23,109 38,625 23,353 38,974
------------------------ ---------------------- ------------------------ ----------------------
Total (MBoe) 86,710 147,415 87,394 148,416
======================== ====================== ======================== ======================
PV-10(2) (in
thousands) $ 881,093 $ 1,392,016 $ 823,149 $ 1,305,502
======================== ====================== ======================== ======================
___________________
(1) See table below for the SEC and NYMEX pricing used to prepare reserve
estimates.
(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.
SEC Pricing NYMEX Pricing
----------------------------------------------------------- ----------------------------------------------------------
Oil Natural Gas Oil Natural Gas
---------------------------- ----------------------------- ---------------------------- ----------------------------
($ per Bbl) ($ per Mcf) ($ per Bbl) ($ per Mcf)
Calendar
year
2026 $ 65.34 $ 3.39 $ 57.03 $ 3.72
Calendar
year
2027 $ 65.34 $ 3.39 $ 57.42 $ 3.88
Calendar
year
2028 $ 65.34 $ 3.39 $ 58.73 $ 3.71
Calendar
year
2029 $ 65.34 $ 3.39 $ 59.98 $ 3.61
Calendar
year
2030 $ 65.34 $ 3.39 $ 60.85 $ 3.61
After
2030 $ 65.34 $ 3.39 $ 61.14 $ 4.16
Reserve estimates above do not include any value for probable or possible reserves that may exist, nor do they include any value for undeveloped acreage. The reserve estimates represent our net revenue interest in our properties, all of which are located within the continental United States. NYMEX pricing does not comport with the reporting requirements of the SEC and should not be used as a substitute for or compared with estimates of proved reserves using SEC pricing.
OIL, NATURAL GAS AND NGL RESERVES, Continued
Ryder Scott prepared the estimates of the Company's proved reserves as of December 31, 2024, in accordance with the rules and regulations of the SEC using an average price equal to the unweighted arithmetic average of the first day of each month within the 12-month period ended December 31, 2024, of $76.32 per Bbl for oil and $2.13 per Mcf for natural gas. The Company prepared estimates of proved reserves as of December 31, 2024, using NYMEX pricing, which were not reviewed by Ryder Scott. The table below presents a summary of our proved reserves as of December 31, 2024.
SEC Pricing(1) NYMEX Pricing(1)
------------------------------------------------ ------------------------------------------------
Reserves as of Proved Proved
December 31, Developed Total Proved Developed Total Proved
2024 Reserves Reserves Reserves Reserves
---------------- ------------------------ ---------------------- ------------------------ ----------------------
Oil (MBbls) 40,111 66,535 39,527 65,802
Natural gas
(MMcf) 103,337 162,239 102,004 160,644
Natural gas
liquids
(MBbls) 19,312 30,027 19,102 29,768
------------------------ ---------------------- ------------------------ ----------------------
Total (MBoe) 76,646 123,602 75,630 122,344
======================== ====================== ======================== ======================
PV-10(2) (in
thousands) $ 999,828 $ 1,542,583 $ 885,643 $ 1,332,696
======================== ====================== ======================== ======================
___________________
(1) See table below for the SEC and NYMEX pricing used to prepare reserve
estimates.
(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.
SEC Pricing NYMEX Pricing
----------------------------------------------------------- ----------------------------------------------------------
Oil Natural Gas Oil Natural Gas
---------------------------- ----------------------------- ---------------------------- ----------------------------
($ per Bbl) ($ per Mcf) ($ per Bbl) ($ per Mcf)
Calendar
year
2025 $ 76.32 $ 2.13 $ 69.59 $ 3.66
Calendar
year
2026 $ 76.32 $ 2.13 $ 66.45 $ 4.05
Calendar
year
2027 $ 76.32 $ 2.13 $ 64.74 $ 3.98
Calendar
year
2028 $ 76.32 $ 2.13 $ 63.71 $ 3.87
Calendar
year
2029 $ 76.32 $ 2.13 $ 63.31 $ 3.60
After
2029 $ 76.32 $ 2.13 $ 63.31 $ 3.60
Reserve estimates above do not include any value for probable or possible reserves that may exist, nor do they include any value for undeveloped acreage. The reserve estimates represent our net revenue interest in our properties, all of which are located within the continental United States. NYMEX pricing does not comport with the reporting requirements of the SEC and should not be used as a substitute for or compared with estimates of proved reserves using SEC pricing.
DERIVATIVE INSTRUMENTS
The Company's oil and natural gas derivative contracts consisted of fixed price swaps, costless collars and basis swaps. The following table summarizes the open financial derivatives as of March 2, 2026, related to our future oil and natural gas production:
2026 (1) 2027 2028
-------------------------------------------------- -----------
First Second Third Fourth First Second Third Fourth First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
----------- ------------- ------------- ------------- ----------- ----------- ----------- ----------- -----------
Oil
-----------
WTI Oil
Swaps
Volume
(Bbl) 826,000 900,000 900,000 900,000 665,000 530,000 510,000 480,000
Weighted
average
price
($/Bbl) $ 61.56 $ 62.05 $ 61.76 $ 61.56 $ 60.77 $ 60.61 $ 60.19 $ 60.45
WTI Oil
Collars
Volume
(Bbl) 516,000 486,000 480,000 460,000 415,000 477,000 340,000 165,000
Weighted
average
floor
price
($/Bbl) $ 59.55 $ 57.78 $ 56.99 $ 56.33 $ 56.73 $ 55.31 $ 51.68 $ 55.00
Weighted
average
ceiling
price
($/Bbl) $ 77.16 $ 73.54 $ 72.31 $ 68.63 $ 66.63 $ 68.35 $ 66.02 $ 67.81
Natural Gas
-----------
Henry Hub
Natural Gas
Swaps
Volume
(MMBtu) 1,005,000 450,000 300,000 500,000 600,000
Weighted
average
price
($/MMBtu) $ 3.97 $ 3.64 $ 3.59 $ 4.07 $ 4.19
Henry Hub
Natural Gas
Collars
Volume
(MMBtu) 225,000 900,000 900,000 600,000 450,000
Weighted
average
floor
price
($/MMBtu) $ 3.67 $ 3.05 $ 3.05 $ 3.43 $ 3.80
Weighted
average
ceiling
price
($/MMBtu) $ 4.30 $ 3.74 $ 3.74 $ 4.79 $ 5.84
Waha Basis
Swaps
Volume
(MMBtu) 450,000 450,000 450,000 600,000 3,150,000 3,150,000 3,150,000 3,150,000 1,800,000
Weighted
average
price
($/MMBtu) $ (2.01) $ (2.26) $ (2.26) $ (1.31) $ (0.94) $ (0.95) $ (0.95) $ (0.95) $ (1.01)
___________________
(1) Q1 2026 derivative positions shown include 2026 contracts, some of which
have settled as of March 2, 2026.
Interest Rate Contracts
The following table summarizes the open interest rate derivative positions as of March 2, 2026:
Open Coverage
Period Position Notional Amount Fixed Rate
----------------- --------- ---------------------------- ----------
(In thousands)
March 2026 - April
2026 Long $ 30,000 3.18 %
March 2026 - April
2026 Long $ 50,000 3.04 %
April 2026 - April
2027 Long $ 45,000 3.90 %
View original content:https://www.prnewswire.com/news-releases/riley-permian-reports-2025-results-and-provides-2026-guidance-302704518.html
SOURCE Riley Exploration Permian, Inc.
(END) Dow Jones Newswires
March 04, 2026 17:00 ET (22:00 GMT)