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 in 2024, surpassing initial 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).

• Maintained a disciplined reinvestment rate (44% of CFFO), supporting production growth, infrastructure investment, and shareholder returns.

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

• Expanded midstream and power joint ventures, completed a significant New Mexico asset acquisition, and signed a long-term gas purchase agreement.

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 was allocated: 38% to growth initiatives, 38% to debt reduction ($90M), and 24% to dividends.

• Paid $31 million in dividends ($1.46 per share) in 2024, with a 5.3% annualized yield and 3.8x dividend coverage.

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

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

Outlook and guidance

• 2025 production guidance: 24.6–25.6 MBoe/d (oil: 15.8–16.3 MBbls/d); total production growth guidance of 9%-14%, 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.

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

• Plan to remain approximately debt-neutral in 2025 at $70 WTI.