Riley Exploration Per (REPX) Update - July 19

[dan_s]

REPX is up 17.3% YTD, holding on to 2nd place in our Small-Cap Growth Portfolio. Kolibri Global Energy (KGEIF) leads the portfolio, up 58.1% YTD.

At the time of this post, REPX was trading at $35.08. My current valuation is $57.00, which compares to Truist Financial's price target of $60/share. It seems weird to me that Neal Dingmann is the only respected energy sector analyst that follows this company. Riley's Q2 results could draw more of the Wall Street Gang's attention.

Riley closed the Pecos Acquisition on April 4, 2023. So, Q2 production (~20,000 Boepd) should be ~7,000 Boepd higher than Q1 production and the Company's guidance for 2H 2023 will be very important. If it matches my forecast, this stock has 60% upside to a reasonable valuation. Keep in mind that Riley has a CO2 flood pilot underway that could significantly increase recoverable reserves.

Take a hard look at my 2024 forecast to see why I am very bullish on this stock.