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Riley Exploration Permian Reports 2024 Results and Provides 2025 Guidance

Riley Exploration Permian, Inc. (NYSE American: REPX), commonly referred to as Riley Permian, has recently unveiled its financial and operational performance for the fourth quarter and full year ending December 31, 2024. The company has demonstrated robust growth and strategic investments that set the stage for an ambitious outlook in 2025.

Fourth Quarter Highlights

In the fourth quarter of 2024, Riley Permian achieved an average total equivalent production of 25.0 MBoe/d, comprising 15.9 MBbls/d of oil production. The financial performance was equally impressive: the company generated an operational cash flow of $66 million, translating to $51 million before considering changes in working capital. Moreover, Riley recorded $18 million in Total Free Cash Flow and $29 million in Upstream Free Cash Flow. Notably, total capital expenditures amounted to $31 million, showing a focus on efficient spending, alongside a $20 million reduction in outstanding debt, achieving a debt-to-Adjusted EBITDAX ratio of 1.0x.

Full Year Financial Overview

For the entire fiscal year of 2024, the company reported an average production of 22.5 MBoe/d, with oil contributing 15.1 MBbls/d to that figure. The $246 million in operating cash flow and net income of $89 million indicate an overall increase in financial health, with a 21% rise in shareholder equity year-over-year. The completion of a significant New Mexico asset acquisition, adding 13,900 net acres, reflects Riley's commitment to expanding its operational footprint. Furthermore, the company initiated operations on a self-generation power project, showcasing a dedication to sustainable practices.

2025 Strategic Guidance

Looking ahead, Riley Permian has set ambitious goals for 2025, targeting a total production of between 24.6 - 25.6 MBoe/d with oil production expected to be between 15.8 - 16.3 MBbls/d. The estimated activity-based capital expenditures for next year are projected to be between $188 - 232 million, underlining a strategic focus on both upstream and midstream investments. Notably, $60 - 80 million is earmarked for midstream operations, reinforcing Riley’s initiative to develop its gas gathering capabilities in New Mexico.

Operational Efficiency and Future Projects

Chairman and CEO Bobby D. Riley remarked on the company’s exceptional performance, highlighting a 15% increase in oil production while successfully reducing spending. This was achieved by emphasizing efficiency improvements within operations, particularly in upstream activities, as operations are expected to shift significantly towards New Mexico in 2025. The company is also advancing its gas midstream project, which is anticipated to enhance operational control over gas gathering and transportation.

The strategic plan for the New Mexico gas midstream project involves constructing a high-capacity pipeline and gathering systems, scheduled for completion by the end of 2026. This ambitious infrastructure build-out has an estimated capital expenditure of $130 million, funded through operational cash flow and other financial resources, demonstrating the company's proactive approach to meeting the increasing demands of the market.

Conclusion

Riley Exploration Permian, Inc. is not only reflecting on a successful 2024 but is also strategically positioned for significant growth in 2025. With a strong focus on operational efficiency, capital investments, and sustainable development, Riley is geared towards attracting investors and maintaining its upward trajectory in the dynamic oil and gas industry. Investors and stakeholders alike can anticipate an insightful conference call scheduled for March 6, 2025, where management will further detail these results and plans for the future.