Riley Exploration Permian (REPX) Q3 2024 earnings summary

Executive summary

• Achieved or exceeded key operational and financial metrics, including 5% sequential oil production growth in Q3 2024 to 15.5 MBbls/d and total production of 23.4 MBoe/d, with significant free cash flow and continued debt reduction.

• Paid 15th consecutive dividend, increased to $0.38 per share, and returned $98 million to shareholders since 2021.

• Discontinued the EOR Project, recording a $30.2 million impairment, and completed installation of 20 MW of field power generation capacity.

• Completed a $19.1 million asset acquisition in New Mexico, expanding operations and production.

• Maintained a disciplined capital allocation strategy, reinvesting 43% of LTM cash flow and advancing power generation initiatives.

Financial highlights

• Q3 2024 operating cash flow was $72.1 million ($60.5 million before working capital changes), with $37.8 million in Free Cash Flow and 62% conversion from CFFO.

• Net income for Q3 2024 was $25.7 million ($1.21 per diluted share), with Adjusted Net Income at $31.5 million ($1.49 per diluted share).

• Year-to-date Free Cash Flow reached $99 million, 2.7x higher than the first nine months of 2023.

• Lease operating expense was $18.5 million ($8.60/Boe); cash G&A expense was $5.9 million ($2.73/Boe).

• Reduced debt by $35 million in Q3, with total debt at $288.6 million and $245 million available under the credit facility.

Outlook and guidance

• Full-year 2024 oil production expected to increase 14%-15% over 2023, exceeding original 10% growth target.

• Q4 2024 production guidance: 23.5–24.5 MBoe/d total, 15.5–16.1 MBbls/d oil; capex expected at $32–42 million.

• Fourth quarter OpEx and overhead cost guidance reduced due to Q3 improvements and higher gas sales volumes.

• Management expects continued development of reserves through drilling and acquisitions in the Permian Basin.

• New power generation and storage assets from the RPC Power JV expected to be operational throughout 2025.