Riley Exploration Permian (REPX) Q4 Results - Mar 7

[dan_s]

FOURTH QUARTER 2025 HIGHLIGHTS

Averaged 35.5 MBoe/d of total equivalent production (oil production of 20.1 MBbls/d) < Beat my forecast of 33,500 Boepd.

Generated $65 million of operating cash flow, $85 million of net income, $66 million of Adjusted EBITDAX, $1 million of Total Free Cash Flow and $17 million of Upstream Free Cash Flow < My Adjusted Operating Cash Flow forecast was $49.6 million.

Incurred total accrual (activity-based) capital expenditures before acquisitions of $50 million ($28 million for upstream)

Sold all of our membership interests in Dovetail Midstream LLC, a wholly owned subsidiary of the Company that held certain midstream infrastructure projects in Eddy County, New Mexico for total cash consideration of $123 million, with the right to earn up to an additional $60 million in cash payments contingent upon achieving certain volumetric performance thresholds over a five-year period ("Midstream Sale") < Sale was to Targa, a large midstream company that will complete the gathering system, which should result in Riley getting better prices for its natural gas in NGLs in 2H 2026.

Reduced debt outstanding by $120 million with a year-end debt-to-Adjusted EBITDAX ratio of 1.0x. < Good news! Riley has a solid balance thanks to the proceeds from the Dovetail sale.

Announced the authorization of a stock repurchase program of up to $100 million of the currently outstanding shares of the Company's common stock.

I have updated my current valuation for Riley's strong Q4 results and guidance for 2026. My valuation increases by $7 to $52.