#United States #Oklahoma City #oil production #Riley Permian #Silverback Exploration

Riley Exploration Permian's Second Quarter 2025 Results Report

Riley Exploration Permian, Inc. (NYSE American: REPX) has released its latest financial and operational outcomes for the second quarter ending June 30, 2025. Key highlights include significant production and financial achievements juxtaposed against a challenging market landscape.

Financial Highlights

During the second quarter, Riley Permian achieved an average total equivalent production of 24.4 MBoe/d, which included 15.2 MBbls/d of oil production. The company generated $34 million in operating cash flow, and a notable total of $18 million in Free Cash Flow. Despite incurring capital expenditures totaling $28 million prior to acquisitions, the company remains committed to advancing its operational capabilities.

Riley's acquisition of Silverback Exploration II, LLC on July 1, for $142 million has altered its regional footprint significantly. CEO Bobby Riley asserted, "Despite the hurdles presented by lower oil prices, we adapted our development strategy and generated substantial free cash flow over the first half of the year. This acquisition not only diversifies our assets but also presents us with numerous growth opportunities."

Operational Strategy and Development Update

The second quarter saw Riley Permian drill 10 net wells and complete two net wells in Texas, maintaining strategic operations amidst constraints from regional infrastructure. Production numbers decreased slightly, with daily oil volumes dropping by 3%. However, the total equivalent production volumes held steady compared to the previous quarter.

Investment in midstream infrastructure is a core focus for Riley. The company has initiated the construction of low-pressure gathering and high-pressure facilities in New Mexico, progressing towards a planned in-service date in 2026. So far, Riley Permian has allocated $22 million towards this essential infrastructure project, which aims to enhance operational efficiencies and production capacity.

Market Context and Challenges Ahead

The volatility of oil prices continues to challenge many operators within the Permian Basin. With average realized prices of oil at approximately $62.17 per barrel, strategic adjustments and operational resilience are imperative for maintaining robust cash flow. Riley has adapted its activity levels to align with current market realities, showing nimbleness and foresight in its operational decision-making.

Further developments in equipment procurement and ongoing midstream projects underscore Riley Permian’s commitment to scalability and future growth. With a sharp focus on integrating newly acquired assets effectively, the company anticipates enhanced production capabilities as it navigates through changing market dynamics.

Looking Forward

For the latter part of 2025, Riley has updated its capital expenditure guidance to adjust for additional drilling and completion activities. The company appears well-positioned to capitalize on its recent acquisitions and enhance its production profile despite observed market fluctuations.

In the words of CEO Bobby Riley, “Our recent acquisition and strategic adjustments provide a promising outlook for future quarters, positioning Riley Permian for sustained growth and operational excellence.” As the company continues to evolve its strategies, stakeholders remain hopeful of achieving solid performance metrics moving into the second half of the year.

With a planned conference call on August 7, 2025, Riley Permian encourages investor engagement to discuss these pivotal insights as part of their proactive outreach strategy.

Conclusion

In summary, Riley Exploration Permian has exhibited resilience and strategic foresight despite external market pressures. This quarterly report not only highlights the company’s solid financial fundamentals but also its ambitious plans for future growth and operational enhancement in the oil and gas sector.