Riley Exploration Permian (REPX) Fiscal Q2 - May 11

[dan_s]

Riley Permian Reports Fiscal Second Quarter 2022 Financial and Operating Results

OKLAHOMA CITY, May 11, 2022 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian" or the "Company"), today reported financial and operating results for the fiscal second quarter ended March 31, 2022.

HIGHLIGHTS FOR THE FISCAL SECOND QUARTER ENDING MARCH 31, 2022

Averaged oil production of 7.5 MBbls per day, which is at the high end of guidance and represents an increase of 24% as compared year-over-year to the fiscal second quarter 2021 < Beat my forecast of 7,300 BOPD.

Reported a net loss of $7 million, which includes $31 million of non-cash loss on derivative contracts, Adjusted Net Income of $19 million and income from operations of $41 million < Adjusted Net Income beat my forecast of $17.5 million net income.

Generated $34 million of Adjusted EBITDAX and $30 million of operating cash flow < My adjusted operating cash flow forecast was $30.4 million.

Incurred activity-based total capital expenditures of $25 million and cash capital expenditures of $10 million

Paid dividends of $0.31 per share for a total of $6 million

Proved reserves of 73 MMBoe (64% oil) with a standardized measure of future discounted cash flows of $863 million

PV-10 value of total proved reserves and total proved developed reserves of $1,090 million and $790 million, respectively, as of March 31, 2022 based on NYMEX strip pricing

Subsequent to quarter-end, amended our credit facility to extend the maturity to April 2026, increase the borrowing base by 14% to $200 million, and relax minimum hedging requirements to allow for more discretionary hedging decisions when the Company is less levered. < This is GOOD NEWS.

Increasing guidance for fiscal third quarter and fiscal year 2022 production volumes < Even better news.

Mr. Bobby D. Riley, Chairman of the Board and Chief Executive Officer, commented, "We are very pleased with our fiscal second quarter results. Based on the execution by our operations team and the results of wells brought on line, we had oil production at the high end of guidance. We have also achieved drilling and completion efficiencies further advancing our development and growth objectives. The Company continues to make progress on its EOR pilot project and has started water injection in one well and expects to commence water injection in additional wells in fiscal third quarter.

Our financial metrics demonstrate that our capital discipline and strategy generated free cash flow and a strong balance sheet enabling us to return capital to shareholders in the form of quarterly dividends. The Company declared and paid a dividend of $0.31 a share, which is the thirteenth consecutive quarter Riley Permian has returned capital to our shareholders.

The Company amended its credit facility by increasing the borrowing base, extending maturity to April 2026, rebalanced allocations among the six lenders in the syndicate, and most importantly relaxed minimum hedging requirements."

Mr. Riley further noted that "As we look forward, our team is taking several steps to navigate through inflationary pressure for services and products. Additionally, we continue to focus on executing a disciplined model of low leverage, production growth and return of capital through dividends to our shareholders."
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REPX closed today at $22.24. My pre-release valuation is $42.00.