Riley Exploration Per (REPX) Update - Jan 17
Posted: Tue Jan 17, 2023 3:21 pm
Riley Exploration Permian, Inc. (REPX) recently announced that its Board of Directors has approved a cash dividend on the Company's common stock in the amount of $0.34 per share ($1.36/year). The dividend is payable on February 8, 2023 to stockholders of record as of the close of business on January 25, 2023. This marks the 16th consecutive quarter that the Company has distributed a dividend to its common shareholders.
Lower natural gas prices reduce my current valuation by $1 to $45/share. At the time of this post REPX was trading at $34.77.
If the Company's guidance confirms my forecast assumptions for 2023, my valuation will be going over $50/share because I will double weight 2023 operating cash flow in all of the valuation models once they release Q4 2022 results and provide updated guidance for 2023.
Riley has a CO2 flood pilot project underway that has the potential to add significant upside. Riley's core asset is in an area of the Permian Basin where CO2 floods have significantly increased recovery rates. Plus, Riley should qualify for some large tax credits for pumping CO2 into the ground.
Lower natural gas prices reduce my current valuation by $1 to $45/share. At the time of this post REPX was trading at $34.77.
If the Company's guidance confirms my forecast assumptions for 2023, my valuation will be going over $50/share because I will double weight 2023 operating cash flow in all of the valuation models once they release Q4 2022 results and provide updated guidance for 2023.
Riley has a CO2 flood pilot project underway that has the potential to add significant upside. Riley's core asset is in an area of the Permian Basin where CO2 floods have significantly increased recovery rates. Plus, Riley should qualify for some large tax credits for pumping CO2 into the ground.