Riley Exploration Permian (REPX) Water Tower Research Virtual Insights Conference summary

Strategic asset focus and operational approach

• Concentrates on conventional oil-weighted assets in the Permian Basin, specifically Champions (Texas) and Red Lake (New Mexico), leveraging conventional rock with modern development techniques for strong well returns and lower decline rates.

• Prefers assets with good permeability, porosity, and oil saturation, resulting in lower drilling costs and less intensive completions.

• Maintains a flexible approach to production growth, balancing reinvestment and shareholder returns based on cash flow and asset performance.

Capital allocation and shareholder value

• Measures value creation primarily through free cash flow per share, focusing on sustainable growth and prudent capital allocation.

• Balances organic growth with disciplined acquisitions, favoring largely undeveloped assets for higher returns.

• Maintains a base dividend since 2018, increasing it annually with a recent 5% growth rate, aiming for sustainability and coverage from excess free cash flow.

• Uses share buybacks opportunistically, guided by NAV models and market conditions, while keeping leverage low.

Risk management and market adaptation

• Adapts capital programs to oil price volatility, with 2026 activity levels set during lower price environments and flexibility for 2027.

• Employs hedging primarily for debt compliance and risk management, adjusting strategies as debt declines and market conditions shift.

• Maintains financial flexibility to adjust activity and capital allocation in response to market, geopolitical, or regulatory changes.