Riley Exploration flying!

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GeraldR
Posts: 27
Joined: Thu May 06, 2010 12:19 pm

Riley Exploration flying!

Post by GeraldR »

REPX is up over $3/share today thus far, and $16/share in the last month. The acquisition closed last week, and today the regular quarterly dividend was announced (no increase), but otherwise I have seen nothing to account for such a strong move. Is news leaking about the results of the water flood?

Any other possible explanations?

I'm just sitting back and enjoying it :D
tlengoc
Posts: 69
Joined: Thu Feb 23, 2023 1:38 pm

Re: Riley Exploration flying!

Post by tlengoc »

Truist Securities Raises Price Target on Riley Exploration Permian to $60 From $43, Maintains Buy Rating
Apr 11, 202310:40 EDT

REPX
+6.83%
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: www.mtnewswires.com/contact-us)
dan_s
Posts: 34465
Joined: Fri Apr 23, 2010 8:22 am

Re: Riley Exploration flying!

Post by dan_s »

The Pecos Acquisition that closed on April 4 is a REALLY BIG DEAL for a company of this size. In addition to adding ~7,200 Boepd of production (58% oil and 23% high value NGLs) it adds a lot of "running room".

My valuation of $54/share is based on 4.5 X annualized operating cash flow per share. If the Company's Q1 results and updated guidance confirm my forecast model assumptions a valuation multiple of 5X will be justified, pushing my valuation up to $60/share.

Riley only has 20.2 million shares outstanding, so small changes in the forecast models and rising oil prices can move the share price a lot higher.
Dan Steffens
Energy Prospectus Group
Cliff_N
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Joined: Sun Jul 24, 2022 4:09 pm
Location: Seabrook, TX
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Re: Riley Exploration flying!

Post by Cliff_N »

Bought in at 35, wish I had listened when you were talking about it at $30! Great ride!
Cliff_N
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Re: Riley Exploration flying!

Post by Cliff_N »

Any idea why the beat down of Riley today? Off 4% while others are going Green now.
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