Riley Permian Reports Second Quarter 2025 Results
OKLAHOMA CITY, Aug. 6, 2025 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE:REPX) ("Riley Permian" or the "Company"), today reported financial and operating results for the second quarter ended June 30, 2025.
SECOND QUARTER 2025 AND RECENT HIGHLIGHTS
Averaged 24.4 MBoe/d of total equivalent production (oil production of 15.2 MBbls/d)
Generated $34 million of operating cash flow or $47 million before changes in working capital(1), $18 million of Total Free Cash Flow(1) and $21 million of Upstream Free Cash Flow(1)
Incurred total accrual (activity-based) capital expenditures before acquisitions of $28 million ($22 million for upstream) and cash capital expenditures before acquisitions of $29 million ($25 million for upstream)
Closed on the purchase of 100% of the ownership interests of Silverback Exploration II, LLC and its subsidiaries ("Silverback") on July 1, 2025, for $142 million in cash, subject to customary purchase price adjustments
Executed equipment purchase agreements and advanced operations with midstream and power projects
Updating capital expenditures guidance for additional drilling and completion activity in the second half of 2025
Bobby Riley, Chief Executive Officer and Chairman of the Board commented, "Riley Permian demonstrated solid overall performance in the second quarter in spite of a challenging oil market and regional operating environment. We adjusted our development activity and capital budget in response to lower oil prices and generated significant free cash flow for the first half of the year. We experienced constraints with infrastructure, like many operators in the Permian Basin, which impacted our second quarter production. These challenges also present opportunities, which we're addressing through our midstream and power generation initiatives. We closed our acquisition of Silverback in July, marking our third successful transaction in the region since 2023. This deal significantly increased our regional footprint and offers substantial undeveloped potential for future growth."
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(1)
A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com.
OPERATIONS AND DEVELOPMENT ACTIVITY UPDATE
The table below provides a summary of our operated well activity:
Three Months Ended June 30, 2025
Six Months Ended June 30, 2025
Gross
Net
Gross
Net
Wells Drilled
Texas
10
10.0
10
10.0
New Mexico
—
—
—
—
Total
10
10.0
10
10.0
Wells Completed
Texas
2
2.0
2
2.0
New Mexico
—
—
10
6.3
Total
2
2.0
12
8.3
Wells Turned to Sales
Texas
2
2.0
2
2.0
New Mexico
5
3.8
5
3.8
Total
7
5.8
7
5.8
Average oil production during the second quarter was 15.2 MBbls/d and average total equivalent production was 24.4 MBoe/d (62% oil and 83% liquids). Daily oil volumes decreased 3% and daily total equivalent volumes remained constant quarter-over-quarter. During the second quarter, the Company drilled 10.0 net wells, completed 2.0 net wells and turned to sales 5.8 net wells. The Company voluntarily turned to sales 40% fewer net wells in the six months ending June 30, 2025, as compared to the same period ending June 30, 2024, in reaction to lower oil prices during the second quarter 2025.
The Company continues to advance the build-out of its midstream infrastructure in New Mexico. During the second quarter, we commissioned the initial phases of low-pressure gathering and high-pressure compression facilities, and we commenced receipt of our operated natural gas. These initial facilities allow for the delivery of up to 15 MMcf/d of natural gas into our current midstream partner's high-pressure treating and processing facilities, which enabled us turning to sales 5 gross wells during the second quarter.
Additionally, we entered into a purchase agreement for high-pressure grade pipe to be delivered in late 2025. Further, we began assessment to potentially include the acquired Silverback acreage within this project scope. We continue to make progress on subsequent phases of the project and our planned 2026 in-service date. The Company has invested a total of $22 million to date into this midstream project.
SECOND QUARTER 2025 FINANCIAL RESULTS
Revenues totaled $85 million, net cash provided by operating activities was $34 million and net income was $30 million, or $1.44 per diluted share.
On a non-GAAP basis, Adjusted EBITDAX(1) was $59 million, cash flow from operations before changes in working capital(1) was $47 million, Total Free Cash Flow(1) was $18 million and Adjusted Net Income(1) was $22 million, or $1.02 per diluted share.
Average realized prices, before derivative settlements, were $62.17 per barrel of oil, $(0.39) per Mcf of natural gas and $0.75 per barrel of natural gas liquids ("NGL"). The Company reported a $19 million gain on derivatives, which included a $5 million realized gain on settlements and a $14 million non-cash gain due to changes in the fair value of derivatives.
Operating expenses included lease operating expense ("LOE") of $19 million, or $8.52 per Boe, cash G&A expense(1) of $6 million, or $2.80 per Boe and production and ad valorem taxes of $6 million or $2.76 per Boe.
The Company incurred $28 million in total accrued capital expenditures ($22 million for upstream). On a cash basis, the Company had total capital expenditures of $29 million ($25 million for upstream).
As of June 30, 2025, the Company had $129 million of borrowings outstanding on its Credit Facility and $155 million principal value of its Senior Notes, for a combined principal value of debt of $284 million. The Company increased total debt by $25 million, including a principal increase of $30 million on the Credit Facility and $5 million reduction on the Senior Notes. The increase in total debt can be attributed to a $14 million deposit associated with the Silverback Acquisition (in an escrow account as of June 30, 2025), a $5 million increase in cash quarter-over-quarter and general working capital purposes. Net interest expense was $7 million.
Subsequent to quarter-end the Company closed on the acquisition of 100% of the ownership interests of Silverback, on July 1, 2025, for $142 million in cash, subject to customary purchase price adjustments. The acquisition was funded using cash on hand and borrowings under our Credit Facility. As of August 1, 2025, the Company had $246 million of borrowings outstanding on its Credit Facility and $155 million principal value of its Senior Notes, for a combined principal value of debt of $401 million.
The Company paid a cash dividend of $0.38 per share, for a total of $8 million.
POWER ACTIVITY UPDATE
RPC Power LLC ("RPC Power"), our power-focused joint venture with Conduit Power LLC, provides a portion of our electric power needs for our field operation at our Champions field in Texas. During the second quarter 2025, RPC Power served approximately 65% of the Company's load for this field, which is forecasted to increase through the end of 2025. Additionally, RPC Power entered into a purchase agreement for battery energy storage systems, which are planned for installation at the Texas facility to complement the currently operational thermal generation units.
During the second quarter, RPC Power continued to progress on the construction of four thermal generation facilities (10 MW each) for the sale of power into ECROT. These facilities have planned in-service dates throughout 2026.
The Company has invested a total of $30 million to date in RPC Power and has 50% ownership.
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(1)
A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com.
Selected Operating and Financial Data
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2025
March 31, 2025
June 30, 2024
June 30, 2025
June 30, 2024
Select Financial Data (in thousands):
Oil and natural gas sales, net
$ 85,394
$ 102,457
$ 105,343
$ 187,851
$ 204,767
Income from Operations
$ 28,754
$ 49,502
$ 53,612
$ 78,256
$ 104,179
Adjusted EBITDAX(1)
$ 59,340
$ 71,133
$ 73,264
$ 130,473
$ 143,410
Cash Flow from Operations
$ 33,640
$ 50,381
$ 51,641
$ 84,021
$ 107,766
Upstream Free Cash Flow(1)
$ 21,250
$ 39,307
$ 38,263
$ 60,557
$ 61,571
Total Free Cash Flow(1)
$ 17,835
$ 36,428
$ 38,263
$ 54,263
$ 61,571
Production Data, net:
Oil (MBbls)
1,382
1,406
1,342
2,788
2,631
Natural gas (MMcf)
2,213
2,228
1,608
4,441
3,239
NGLs (MBbls)
465
422
330
887
623
Total (MBoe)
2,216
2,199
1,940
4,415
3,794
Daily combined volumes (Boe/d)
24,352
24,433
21,319
24,392
20,846
Daily oil volumes (Bbls/d)
15,187
15,622
14,747
15,403
14,456
Average Realized Prices:(2)
Oil ($ per Bbl)
$ 62.17
$ 70.12
$ 79.25
$ 66.18
$ 77.29
Natural gas ($ per Mcf)
$ (0.39)
$ 0.71
$ (0.61)
$ 0.16
$ (0.09)
NGLs ($ per Bbl)
$ 0.75
$ 5.41
$ (0.10)
$ 2.96
$ 2.75
Average Realized Prices, including the effects of derivative settlements:(2)(3)
Oil ($ per Bbl)
$ 66.10
$ 70.97
$ 76.96
$ 68.55
$ 75.68
Natural gas ($ per Mcf)
$ (0.52)
$ 0.68
$ 0.16
$ 0.08
$ 0.69
NGLs ($ per Bbl)(4)
$ 0.75
$ 5.41
$ (0.10)
$ 2.96
$ 2.75
Weighted Average Common Shares Outstanding (in thousands):
Basic
21,141
21,111
20,866
21,126
20,378
Diluted
21,158
21,111
21,087
21,135
20,539
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(1)
A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com.
(2)
The Company's oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. The costs, related to natural gas and NGLs, at times exceeded the price received and resulted in negative average realized prices.
(3)
The Company's calculation of the effects of derivative settlements includes gains (losses) on the settlement of our commodity derivative contracts. These gains (losses) are included under other income (expense) on the Company's condensed consolidated statements of operations.
(4)
During the periods presented, the Company did not have any NGL derivative contracts in place.
2025 GUIDANCE
Riley Permian is providing third and fourth quarter detailed guidance and modifying previously disclosed full-year 2025 activity guidance based on currently scheduled development ...
