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Riley Exploration Permian Reports Second Quarter 2026 Results

On August 5, 2026, Riley Exploration Permian, Inc. (NYSE American: REPX) released its financial results for the second quarter ending June 30, 2026. The company has shown remarkable resilience and growth amid industry challenges.

Key Highlights

During the second quarter, Riley Permian achieved notable operational milestones:

• - Total Equivalent Production: The company reported a production volume of 34.3 MBoe/d, primarily driven by oil production of 21.2 MBbls/d.
• - Cash Flow Production:

- Generated operating cash flow of $64 million, or $75 million before changes in working capital.
- Total Free Cash Flow stood at $6 million, reflecting prudent fiscal management.

• - Capital Expenditures: The total accrual-based capital expenditures before acquisitions reached $87 million, while cash capital expenditures stood at $68 million.
• - Net Income and EBITDAX: Riley reported $87 million in net income, with an Adjusted EBITDAX of $80 million, showcasing strong performance despite external pressures.
• - Debt Management: The company increased its debt by $26 million, achieving a debt-to-Adjusted EBITDAX ratio of 1.0x at the quarter's end.

Strategic Growth and Operations

Bobby Riley, the CEO, stated, "We continued executing the growth strategy we outlined earlier this year during the second quarter, delivering oil production near the high end of guidance and building momentum for the quarters ahead." The forecast indicates about 30% year-over-year growth in oil production for 2026, with the third quarter projected to exhibit significant sequential growth exceeding 20%.

Operational Insights

The company summarized its operational activities in Texas and New Mexico:

• - Wells Drilled:

- Texas: 12 gross wells, with a net of 11.9.
- New Mexico: 12 gross wells, with a net of 8.0.
- Total: 24 gross wells and 19.9 net wells for the quarter.

• - Wells Completed: The company completed 18 wells in total during this quarter, with Texas accounting for all completions.
• - Wells Turned to Sales: Of the wells completed, 15 were turned to sales in Texas, further contributing to the production numbers.

Financial Performance Overview

Revenues reached a total of $166 million in the second quarter, with operating income at $87 million, equating to $4.11 per diluted share. In examining the non-GAAP financial results, it was found that the Adjusted EBITDAX was $80 million while operating cash flow before changes in working capital measured $75 million, demonstrating robust cash generation capabilities.

The company faced challenges due to negative pricing and ongoing pipeline constraints in its New Mexico operations. The realized prices for natural gas were impacted negatively, correlating with broader pricing constraints in the region.

Looking Ahead

Riley has revised its full-year guidance to reflect an increase in oil production expectations and capital investments, indicating a proactive strategy to navigate market volatility and position for future growth. The forecast for Q3 2026 and the full year includes drilling and operational targets intended to drive production increase and cash flow generation.

Management will host a conference call on August 6, 2026, inviting investors and analysts to discuss the quarter's results and future projections. As Riley Exploration Permian continues to adapt to market conditions, its commitment to operational excellence and strategic alliances positions it well for sustaining growth in an evolving landscape.

For more information, visit Riley Exploration Permian, Inc.'s website.