Riley Exploration Per (REPX) Update - Mar 10

[dan_s]

We will be sending out an updated profile on REPX tomorrow morning.
At the time of this post the stock was trading at $30.50. My current valuation is $52/share.
In case you are wondering, even if WTI averaged $60/bbl for the rest of the year, Riley would still generate enough operating cash flow to cover this year's drilling program.

2022 was a great year for this small-cap. Production increased 33% year-over-year to 11,500 Boepd (13,300 Boepd in Q4) and operating cash flow more than doubled. They reported net income of $118 million ($5.85 per share) and operating cash flow of $168.8 million ($8.37 per share)
Quarterly dividends are now $0.34 per share.

Riley will soon be closing the "Pecos Acquisition" that will increase production to over 20,000 Boepd and give them a lot more running room. The assets being acquired are in SE New Mexico.

I added REPX to our Small-Cap Growth Portfolio because I believe the company has a potential tertiary project (CO2 flood) that could double their recoverable reserves in Texas. The Pecos Acquisition adds a lot more upside potential.