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Riley Exploration Permian (REPX)
:REPX
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Riley Exploration Permian
(NYSE MKT:REPX)
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Rating:72Outperform
Price Target:
$31.00
▲(7.04% Upside)
Riley Exploration Permian's overall score reflects strong financial performance and an attractive valuation, offset by technical indicators suggesting potential bearish momentum. The earnings call provided a positive outlook with strategic initiatives and operational efficiencies, despite challenges from declining oil prices and infrastructure issues.
Riley Exploration Permian (REPX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$638.34M
Dividend Yield5.25%
Average Volume (3M)118.08K
Price to Earnings (P/E)6.4
Beta (1Y)1.04
Revenue Growth-4.93%
EPS Growth-7.56%
CountryUS
Employees103
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)1.02
Shares Outstanding22,042,244
10 Day Avg. Volume127,213
30 Day Avg. Volume118,080
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)1.29
Price to Sales (P/S)1.61
P/FCF Ratio5.68
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue2.08
Enterprise Value/Gross Profit3.86
Enterprise Value/Ebitda3.53
Forecast
1Y Price Target
$49.50Price Target Upside70.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Riley Exploration Permian Business Overview & Revenue Model
Company DescriptionRiley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the San Andres Formation, a shelf margin deposit on the Central Basin Platform and Northwest Shelf. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Lea and Roosevelt Counties, New Mexico. As of September 30, 2021, the company had approximately 31,352 net acres and a total of 77 net producing wells. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.
How the Company Makes MoneyRiley Exploration Permian generates revenue primarily through the exploration, production, and sale of oil and natural gas. The company's revenue model is largely based on the sale of crude oil, natural gas, and natural gas liquids, which are sold to various customers, including refiners and marketers. Key revenue streams include direct sales from production, as well as potential revenue from joint ventures and partnerships that may involve shared resources or infrastructure. Factors contributing to the company's earnings include market prices for oil and gas, operational efficiency in extraction and production processes, and the strategic acquisition of high-potential properties within the Permian Basin. Additionally, REPX may benefit from hedging strategies to mitigate price volatility and optimize revenue stability.
Riley Exploration Permian Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational performance, strategic acquisitions, and safety achievements, despite facing challenges from oil price declines and infrastructure-related production impacts. The company's proactive measures in cost reduction and project advancements indicate resilience and a positive outlook.Q2-2025 Updates
Positive Updates
Acquisition of Silverback Exploration
Closed acquisition of Silverback Exploration, increasing the Yeso trend footprint to 30,000 net acres, with 98% held by production. This region offers substantial undeveloped potential for future growth.
Record Safety Metrics
Achieved a total recordable incident rate of 0 in the second quarter, marking a record number of safe days for the second quarter in a row.
Operational Efficiency and Cost Reduction
Reduced total average drilling cost per lateral foot by 15% over the previous program in 2024 despite added tariff costs. Achieved the most efficient and cost-effective drilling campaign to date.
Production Growth
Barrel of oil equivalent production is up 1% quarter-over-quarter and up 14% compared to the same quarter last year, from 1.94 million to 2.22 million barrels of oil equivalent.
Midstream and Power Project Advancements
Continued progress on midstream and power projects, with an expansion of the Birdy compressor station underway, supporting future operational scale and reliability.
Negative Updates
Oil Price and Revenue Decline
Realized oil prices before hedges fell 11% quarter-over-quarter and 22% year-over-year, impacting cash flow from operations.
Production Challenges Due to Infrastructure
Production impacted by infrastructure challenges and gas takeaway constraints in New Mexico, leading to deferred oil volumes.
Debt Increase
Debt level increased to $401 million as of August 1, driven by Silverback acquisition funding and working capital needs.
Company Guidance
During the second quarter of 2025, Riley Exploration Permian Inc. provided guidance indicating a strategic adjustment in response to a less favorable oil market environment. The company moderated its development activity and capital expenditures (CapEx), generating significant free cash flow in the first half of the year. Despite a decline in net oil production from 1.41 million to 1.38 million barrels quarter-over-quarter, production increased by 3% compared to the previous year. The average daily net production was 15,200 barrels of oil per day and 24,400 barrels of oil equivalent per day. The company achieved a total recordable incident rate of 0 and 97% safe days, marking a record number of safe days for the second consecutive quarter. Riley set records in Yoakum County for drilling efficiencies, reducing the average drilling cost per lateral foot by 15% year-over-year. The acquisition of Silverback Exploration expanded their Yeso trend footprint to 30,000 net acres. The company plans to manage costs through synergies with Silverback, leveraging water infrastructure, and expects potential savings of 5% to 15% for regularly used services. Despite lower realized oil prices, the company maintained a resilient adjusted EBITDAX margin of 66%. Riley is cautiously optimistic about future growth, with plans to reinvest approximately 45% of cash flow from operations in upstream activities. The midstream and power generation projects continue to advance, aiming for increased efficiency and reliability.Riley Exploration Permian Financial Statement Overview
Summary
Riley Exploration Permian demonstrates strong profitability and operational efficiency, with solid margins and a balanced leverage position. However, the decline in revenue and free cash flow growth in the TTM suggests potential challenges in maintaining growth momentum. The company remains financially stable with effective cash generation, but should focus on reversing the negative growth trends to sustain long-term success.Income Statement
Riley Exploration Permian shows strong profitability with a consistent gross profit margin above 50% and a solid net profit margin of 24.36% in the TTM. However, the revenue growth rate has declined by 4.85% in the TTM, indicating a potential slowdown in sales. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting efficient operations.75
Positive
Balance Sheet
The company has a moderate debt-to-equity ratio of 0.50, indicating a balanced approach to leveraging. The return on equity is decent at 18.16%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly calculated, but the overall asset base is strong, supporting financial stability.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 9.03% in the TTM, which could be a concern for future investments. The operating cash flow to net income ratio is robust at 2.12, indicating good cash generation relative to net income. The free cash flow to net income ratio is over 50%, suggesting a reasonable conversion of income to cash.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 392.88M | 410.18M | 375.05M | 321.74M | 151.04M | 4.91M |
| Gross Profit | 211.30M | 234.03M | 220.87M | 237.45M | 93.93M | 797.00K |
| EBITDA | 231.00M | 223.50M | 252.53M | 307.13M | 89.62M | 217.00K |
| Net Income | 95.69M | 88.90M | 111.59M | 118.01M | -46.87M | -436.00K |
Balance Sheet | ||||||
| Total Assets | 1.03B | 993.50M | 945.71M | 515.29M | 388.23M | 8.92M |
| Cash, Cash Equivalents and Short-Term Investments | 14.03M | 13.12M | 15.32M | 13.30M | 17.07M | 3.06M |
| Total Debt | 279.45M | 277.17M | 356.94M | 56.00M | 60.00M | 143.00K |
| Total Liabilities | 476.69M | 482.89M | 524.12M | 181.85M | 166.54M | 2.57M |
| Stockholders Equity | 556.88M | 510.62M | 421.60M | 333.45M | 221.69M | 6.35M |
Cash Flow | ||||||
| Free Cash Flow | 115.09M | 116.35M | 65.89M | 42.03M | 25.59M | -213.00K |
| Operating Cash Flow | 222.53M | 246.27M | 207.19M | 170.29M | 86.08M | 226.00K |
| Investing Cash Flow | -130.64M | -147.84M | -469.56M | -128.26M | -55.74M | -233.00K |
| Financing Cash Flow | -88.77M | -100.63M | 264.38M | -37.05M | -14.94M | -53.00K |
Riley Exploration Permian Technical Analysis
Positive
28.96
Price Trends
27.41
Positive
27.00
Positive
28.27
Positive
Market Momentum
0.13
Negative
57.59
Neutral
85.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REPX, the sentiment is Positive. The current price of 28.96 is above the 20-day moving average (MA) of 28.04, above the 50-day MA of 27.41, and above the 200-day MA of 28.27, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 85.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REPX.
Riley Exploration Permian Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $429.63M | 5.72 | 13.68% | 3.85% | 13.75% | 87.48% | |
72 Outperform | $638.34M | 6.40 | 18.30% | 5.25% | -4.93% | -7.56% | |
72 Outperform | $443.10M | 11.56 | 7.58% | 5.88% | -2.71% | -54.82% | |
68 Neutral | $757.30M | 23.52 | 5.03% | 7.63% | 9.54% | -42.85% | |
55 Neutral | $709.70M | -0.93 | -35.41% | ― | 5.26% | -309.56% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
REPX
Riley Exploration Permian
28.96
3.84
15.29%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.