REPX prices its public offering at $27.00. Why would it have to be priced so far below the current market?
2.1 million shares being sold; 1.4 million by "certain company stockholders", 700,000 shares by the company. Any idea who the selling stockholders are?
Stock is down over $6 per share (over18%) as I type. Holy crap.
REPX
Re: REPX
OKLAHOMA CITY, April 4, 2024 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian" or the "Company") announced today the pricing of its previously announced underwritten public offering of 2,100,000 shares of its common stock at a price to the public of $27.00 per share (the "Offering"), which includes 700,000 shares being offered by the Company and 1,400,000 shares being offered by certain of the Company's stockholders (the "Selling Stockholders"). The Company has granted the underwriters a 30-day option to purchase up to an additional 315,000 shares of common stock. The Offering is expected to close on or about April 8, 2024, subject to customary closing conditions. < This just increases number of outstanding shares by 3.43% to ~21,105,000.
Gross proceeds to the Company from the Offering are expected to be approximately $18.9 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for general corporate purposes, which may include financing acquisitions (including a pending acquisition of an approximate 12,500 net acre position in Eddy County, New Mexico for 100% cash consideration, which the Company anticipates funding primarily with proceeds from the Offering with any remaining balance funded through borrowings under the Company's revolving credit facility and expects will close in May 2024), repayment of outstanding debt, financing of capital expenditures, financing other investments or business opportunities, and general working capital purposes. The Company will not receive any proceeds from any sale of shares by the Selling Stockholders. The Company will, however, bear the costs other than the underwriting discount and commissions associated with the sale of common stock by the Selling Stockholders. < Eddy County is some of the best acreage in the Delaware Basin. I like small-caps to fund acquisitions with a combination of debt + equity because it keeps the balance sheet "in balance". You may recall that this is how Earthstone Energy grew, making us big winners when it merged into Permian Resources.
Truist Securities, Inc. and Roth Capital Partners are acting as joint book-running managers for the Offering. Janney Montgomery Scott LLC and Tuohy Brothers Investment Research, Inc. are acting as co-managers for the Offering.
TipRanks:
> On 2/12/2024 Roth Capital Partners' price target on REPX was $49.50
> On 3/11/2024 Truist Financial's price target on REPX was $53.00
Keep in mind that the price of oil was much lower on the dates above..
The shares are being offered pursuant to a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (the "SEC") on April 7, 2021, as amended, and declared effective by the SEC on May 12, 2021. The Offering is being made only by means of a prospectus supplement and the accompanying base prospectus. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the Offering, as well as copies of the final prospectus supplement, once available, may be obtained on the SEC's website at www.sec.gov or by contacting Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, Georgia 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com, or Roth Capital Partners, LLC, 888 San Clemente, Newport Beach, CA 92660, Attention: Prospectus Department, by telephone at (800) 678-9147, or by email at rothecm@roth.com.
This press release does not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Riley Exploration Permian, Inc.
Riley Permian is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploration, development and production of oil, natural gas, and natural gas liquids. For more information please visit www.rileypermian.com.
Gross proceeds to the Company from the Offering are expected to be approximately $18.9 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for general corporate purposes, which may include financing acquisitions (including a pending acquisition of an approximate 12,500 net acre position in Eddy County, New Mexico for 100% cash consideration, which the Company anticipates funding primarily with proceeds from the Offering with any remaining balance funded through borrowings under the Company's revolving credit facility and expects will close in May 2024), repayment of outstanding debt, financing of capital expenditures, financing other investments or business opportunities, and general working capital purposes. The Company will not receive any proceeds from any sale of shares by the Selling Stockholders. The Company will, however, bear the costs other than the underwriting discount and commissions associated with the sale of common stock by the Selling Stockholders. < Eddy County is some of the best acreage in the Delaware Basin. I like small-caps to fund acquisitions with a combination of debt + equity because it keeps the balance sheet "in balance". You may recall that this is how Earthstone Energy grew, making us big winners when it merged into Permian Resources.
Truist Securities, Inc. and Roth Capital Partners are acting as joint book-running managers for the Offering. Janney Montgomery Scott LLC and Tuohy Brothers Investment Research, Inc. are acting as co-managers for the Offering.
TipRanks:
> On 2/12/2024 Roth Capital Partners' price target on REPX was $49.50
> On 3/11/2024 Truist Financial's price target on REPX was $53.00
Keep in mind that the price of oil was much lower on the dates above..
The shares are being offered pursuant to a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (the "SEC") on April 7, 2021, as amended, and declared effective by the SEC on May 12, 2021. The Offering is being made only by means of a prospectus supplement and the accompanying base prospectus. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the Offering, as well as copies of the final prospectus supplement, once available, may be obtained on the SEC's website at www.sec.gov or by contacting Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, Georgia 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com, or Roth Capital Partners, LLC, 888 San Clemente, Newport Beach, CA 92660, Attention: Prospectus Department, by telephone at (800) 678-9147, or by email at rothecm@roth.com.
This press release does not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Riley Exploration Permian, Inc.
Riley Permian is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploration, development and production of oil, natural gas, and natural gas liquids. For more information please visit www.rileypermian.com.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group