Riley Exploration Permian (REPX) Q2 2024 earnings summary

Executive summary

• Achieved or exceeded key metrics on planned guidance, driving improved capital efficiency, strong free cash flow, and reduced debt.

• Q2 2024 net income was $33.5 million ($1.59 per diluted share) on $105.4 million revenue, with oil revenues offsetting gas/NGL declines.

• Closed an asset acquisition in Eddy County, NM for $17.6–$18.1 million, adding producing properties and development locations.

• Expanded power joint venture (RPC Power) to 50% ownership, with plans to sell electricity and ancillary services to ERCOT.

• Raised $25.4 million in net equity proceeds to fund acquisitions and power JV investment; welcomed new executives.

Financial highlights

• Generated $38.3 million of free cash flow in Q2 and $126 million over the last 12 months; adjusted EBITDAX was $73–$73.3 million.

• Q2 operating cash flow was $51.6–$58 million; free cash flow margin was 36.3%.

• Oil revenue reached $105.4–$106 million in Q2, up 6–9% year-over-year.

• Reduced debt by $20–$75 million and paid $7.5–$28 million in dividends in the last 12 months.

• Shareholders' equity increased to $489 million as of June 30, 2024.

Outlook and guidance

• 2024 guidance forecasts 10–13% oil production growth and over 20% CapEx reduction year-over-year.

• Q3 and full-year 2024 production guidance: 21.0–23.0 MBoe/d (oil: 14.5–15.3 MBbls/d); E&P capex at $100–110 million.

• Forecasting $115 million in free cash flow for full year 2024 at $75 WTI, a 65% year-over-year increase.

• Free cash flow yield on equity projected at 22–23%, well above E&P and S&P 500 medians.

• Management expects stable production despite a temporary midstream disruption in New Mexico.