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Riley Exploration Permian's Third Quarter 2025 Results

Riley Exploration Permian, Inc. (NYSE American: REPX) has unveiled its financial and operational results for the third quarter ending September 30, 2025. This announcement highlights a period of substantial growth and strategic development for the company.

Key Highlights

During the third quarter, Riley Permian averaged a significant total equivalent production of 32.3 MBoe/d, which included oil production of 18.4 MBbls/d. The company generated an impressive operating cash flow of $64 million, with a total of $25 million in free cash flow. Additionally, the company reported $39 million in upstream free cash flow, indicating a strong performance in oil production.

Riley Exploration also invested $18 million in capital expenditures, focusing on upstream activities, while closing a major acquisition of Silverback Exploration II, LLC for $120 million in cash. This acquisition is expected to enhance the company's operational capacity and production outcomes going forward. Furthermore, in recognition of its financial performance and commitment to its shareholders, Riley Permian announced a dividend increase of 5% to $0.40 per share.

Updated Guidance

In terms of future expectations, Riley Permian is optimistic and has raised its guidance for full-year oil production by 2% at the midpoint. This enhancement projects continued growth and stability in production metrics as the company moves towards the fourth quarter of 2025.

CEO Bobby Riley praised the company’s disciplined execution and strategic advancements, noting that the integration of the Silverback acquisition is already contributing positively to production levels and cost reductions.

Operational Updates

The third quarter saw the company complete five net wells, with a total of 7.5 net wells turned to sales during this period. Notably, average daily oil production rose by 21% quarter-over-quarter, reflecting enhanced operational efficiency and scaling efforts.

Riley Exploration remains committed to expanding its midstream infrastructure in New Mexico, targeting a planned in-service date for its new pipeline by 2026. This strategic move aims to fortify the company's logistical capabilities and ensure a steady flow of production.

Financial Overview

Riley's revenues for the quarter totaled $107 million, yielding a net income of $16 million or $0.77 per diluted share. In terms of operational costs, the lease operating expenses were reported at $27 million, amounting to $9.03 per Boe. The company also faced an increase in total debt of $91 million, largely attributed to funding the Silverback acquisition. As of the end of the quarter, Riley Permian reported $225 million in outstanding borrowings, alongside a total debt value of $375 million.

Power and Energy Projects

In addition to production activities, Riley Permian's joint venture, RPC Power, has made significant strides in achieving its energy project objectives. The company’s partnership is expected to ramp up gas supply and battery storage capabilities in the upcoming year. During the third quarter alone, Riley invested $8.5 million in RPC Power, reflecting its commitment to developing alternative energy initiatives that align with modern operational strategies.

Conclusion

As Riley Exploration Permian looks forward to the future, the company is poised for continued growth through strategic investments and operational efficiencies. The combination of energetic leadership, a robust operational strategy, and a focus on shareholder value positions Riley Exploration favorably within the competitive landscape of the energy sector. The upcoming quarter will be pivotal as the company integrates its recent acquisitions and drives towards its long-term production goals.