Riley Exploration Permian (REPX) Q4 2024 earnings summary

Executive summary

• Achieved record oil production growth of 15% and total production growth of 22% year-over-year, surpassing 2024 targets while reducing upstream cash capital expenditures by 27%.

• Generated $246 million in operating cash flow and $117 million in Total Free Cash Flow for 2024, with net income of $89 million ($4.26 per diluted share).

• Reinvested less than half of cash flow into upstream business, enabling debt paydown, dividends, and investments in midstream and power.

• Returned 45% of Total FCF to shareholders via dividends, with a 5.3% annualized yield and 3.8x dividend coverage.

• Strategic focus shifting to New Mexico for long-term growth, with major infrastructure investments and asset acquisitions underway.

Financial highlights

• Full-year 2024 revenues reached $410 million, Adjusted EBITDAX $284 million, and Adjusted Net Income $117 million ($5.59 per diluted share).

• Upstream free cash flow in 2024 was allocated: 38% to growth initiatives, 38% to debt reduction, and 24% to dividends.

• Reduced total debt by $90 million in 2024, ending at 1.0x leverage.

• LOE per BOE for 2024 was $8.66, flat year-over-year; Texas workover expense down 16% per BOE.

• Shareholder equity increased 21% year-over-year to $511 million.

Outlook and guidance

• 2025 production guidance: 24.6–25.6 MBoe/d (oil: 15.8–16.3 MBbls/d), with total production up 9%-14% and oil up 5%-8%.

• 2025 capital expenditures expected at $170–232 million, including $60–80 million for midstream and $18–22 million for Power JV.

• LOE guidance for 2025: $8.00–9.00 per Boe; cash G&A: $3.00–3.50 per Boe; interest expense: $7–8MM.

• 45% of net operated wells to be put online in Q4 2025, mostly in New Mexico.

• 2025 hedging covers 50% of oil and 63% of gas production, with weighted average floors of $66 (oil) and $3.49 (gas).