Riley Exploration Per (REPX) Valuation Update - May 9

[dan_s]

I have updated my forecast/valuation model for REPX based on Q1 actual results and their updated guidance. It has been posted to the EPG website.

My current valuation declines by $3 to $51 per share. REPX was trading at $39.50 when this was posted.

The Company still looks good and there is upside to my valuation if Q2 results match up with my forecast.
> The Pecos / New Mexico Acquisition will have a BIG impact on Q2 results and it adds a lot of "running room".
> They did lower their full-year production guidance.
> The JV project to use produced gas for power generation in the field could have a significant impact on operating expenses (in a good way).
> The potential of the CO2 flood will not be known until next year.

[dan_s]

Note received this morning from Neal Dingmann at Truist Financial.

Riley Exploration Permian, Inc. (REPX, $35.71, Buy) -
Increased Scale to Benefit Future Growth and Shareholder Returns

While Riley reported a less than exciting first quarter, we believe the best is to come. We were surprised by investors' negative reaction to the quarterly results and suggested future operations as both were largely as we expected. Not only has the company closed the solid New Mexico acquisition, but it appears most of the integration is also completed. We forecast the larger asset base to not only potentially provide a more active
program, but we estimate slightly increased well returns driven by the new assets of the larger position. - Neal Dingmann

Neal maintains his price target of $60/share.