Riley Exploration Permian (REPX) has received a new Buy rating, initiated by William Blair analyst, Neal Dingmann.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Neal Dingmann has given his Buy rating due to a combination of factors that highlight Riley Exploration Permian’s strong financial and operational position. The company’s ability to generate solid free cash flow, even in periods of weaker oil prices, is a significant factor. This is attributed to their efficient operations and unique assets, which include a power joint venture and a gas midstream project in New Mexico, both of which offer additional growth opportunities.
Furthermore, Riley’s conventional Permian wells have shown to outperform other wells in the region after a certain period, leading to lower breakeven costs and increased margins. The company’s strategic power project, which serves both its operations and third parties, further enhances its revenue streams. With a strong balance sheet, low reinvestment rate, and solid oil hedges, Riley is well-positioned to deliver consistent shareholder returns. Additionally, the valuation metrics suggest that Riley’s shares are undervalued compared to its peers, offering a potential upside in share price.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $28.00 price target.