#United States #Oklahoma City #Riley Exploration #oil production #Q3 2026

Overview of Riley Exploration Permian's Q3 2026 Results

Riley Exploration Permian, Inc., listed on the NYSE American as REPX, recently disclosed its third-quarter financial and operational performance for the period ending September 30, 2026. The company has demonstrated exceptional growth metrics alongside effective management of operational challenges. Key highlights from Q3 include significant increases in oil production and cash flow, alongside a commendable reduction in debt.

Key Highlights

• - Oil Production Surge: The company reported a 20% increase in oil production quarter-over-quarter, totaling 25.4 MBbls/d, which marks a 38% increase year-over-year. This robust production contributes to a total equivalent production of 42.0 MBoe/d.

• - Financial Growth: Operating cash flow increased by a staggering 75% from the previous quarter, sitting at $111 million, while total free cash flow reached $42 million.

• - Debt Management: Riley Permian successfully reduced its debt by 10% over the quarter and 35% year-over-year to $245 million, indicating a strategic financial management approach in a challenging market.

• - Capital Expenditures: The company reported capital expenditures of $53 million on an accrual basis and $66 million on a cash basis, highlighting its commitment to ongoing resource development.

• - Dividend Increase: In a positive move for shareholders, Riley Permian increased its quarterly dividend by 5% to $0.42 per share in October 2026.

Operational Developments

In the last seven weeks, Riley Permian has commenced operations involving new third-party water and gas infrastructure in New Mexico. This infrastructure includes a natural gas gathering system and a high-pressure trunkline aimed at enhancing operational efficiency and production capacity.

The company is actively involved in expanding its operations in the Red Lake asset, particularly focusing on the evaluation and potential development of the San Andres formation. Initial activities are slated to kick off in the second quarter of 2027, further bolstering production capabilities.

Additionally, Riley Permian has streamlined its debt structure by retiring 10.5% of its unsecured senior notes, reflecting a proactive approach to financial management.

Comment from Management

Bobby Riley, the CEO and Chairman, emphasized the company's strong performance across both operational and financial metrics. He noted that the enhanced production was primarily due to the successful drilling of new development wells and the recovery of previously disrupted wells in New Mexico. Riley stated, “Looking forward, we will continue to heavily invest in our assets, buoyed by our supportive inventory base and favorable market conditions.”

Fiscal Details

In terms of fiscal performance, Riley recorded total revenues of $201 million with an operating income of $107 million. However, it did experience a net loss of $2 million or $(0.11) per diluted share during the quarter. On a non-GAAP basis, adjusted EBITDAX stood at $117 million, and adjusted net income was reported at $56 million, translating to an income of $2.66 per diluted share.

Future Projections

Riley Exploration has outlined its Q4 outlook, projecting net operated well activity to include drilling 13 to 17 new wells and completion of a similar range. Production estimates for the upcoming quarter are between 25.5 and 26.5 MBbls/d of oil, with total equivalent production projected at 42.5 to 43.5 MBoe/d. Capital expenditures for Q4 are expected to range from $60 million to $70 million, affirming the company's commitment to growth.

As Riley Exploration Permian continues to pursue growth avenues, stakeholders and investors remain keenly interested in how the company leverages its assets and infrastructure to further enhance its market position.