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Riley Exploration Permian (REPX)
:REPX
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Riley Exploration Permian
(NYSE MKT:REPX)
79Outperform
Riley Exploration Permian (REPX) vs. S&P 500 (SPY)
Market Cap
$551.60M
Dividend Yield5.8%
Average Volume (3M)95.76K
Price to Earnings (P/E)6.0
Beta (1Y)1.13
Revenue Growth15.30%
EPS Growth11.45%
CountryUS
Employees103
SectorEnergy
Sector Strength53
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)4.25
Shares Outstanding21,521,460
10 Day Avg. Volume79,315
30 Day Avg. Volume95,761
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.69
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.23
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$48.25Price Target Upside95.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Riley Exploration Permian Business Overview & Revenue Model
Company DescriptionRiley Exploration Permian, Inc. (REPX) is an independent oil and natural gas company focused on the acquisition, exploration, development, and production of oil and natural gas reserves. The company operates primarily in the Permian Basin, one of the most prolific oil-producing regions in the United States. REPX specializes in horizontal drilling and hydraulic fracturing techniques to maximize resource extraction, emphasizing operational efficiency and strategic growth.
How the Company Makes MoneyRiley Exploration Permian generates revenue primarily through the production and sale of crude oil, natural gas, and natural gas liquids. The company's revenue model is centered on the exploration and efficient extraction of hydrocarbon resources, followed by their sale in the commodity markets. REPX benefits from strategic partnerships with other operators and service providers, allowing it to optimize production processes and reduce operational costs. Additionally, the company may engage in hedging activities to stabilize cash flows against volatile commodity prices, further enhancing its financial performance. The firm's focus on the Permian Basin, known for its rich reserves and cost-effective extraction opportunities, positions it to capitalize on favorable market conditions and demand for energy resources.
Riley Exploration Permian Financial Statement Overview
Summary
Riley Exploration Permian shows strong financial health with robust revenue growth and profitability. While there is a slight increase in debt, the company's efficient cash flow generation and effective use of equity maintain a solid financial foundation.Income Statement
Riley Exploration Permian shows strong revenue growth with a 8.61% increase from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin is robust at 61.18%, indicating efficient production and cost management. However, the EBIT margin has slightly decreased over the period, suggesting rising operational costs. Despite this, the net profit margin remains healthy at 28.47%, reflecting solid profitability.85
Very Positive
Balance Sheet
The company's balance sheet displays a moderate debt-to-equity ratio of 0.58, indicating a balanced capital structure with manageable leverage. The equity ratio stands at 50.85%, suggesting a strong reliance on equity financing. ROE is impressive at 22.86%, pointing to effective use of shareholder funds to generate profit. However, the total debt has increased, which could pose a risk if not managed well.75
Positive
Cash Flow
Riley Exploration Permian demonstrates a strong free cash flow growth rate of 94.15% from 2023 to TTM, highlighting improved cash generation. The operating cash flow to net income ratio is favorable at 2.12, suggesting efficient cash generation from operations. The free cash flow to net income ratio is also strong at 1.10, indicating good conversion of earnings into free cash.80
Positive
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Sep 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 375.05M | 321.74M | 151.04M | 4.91M | 5.87M | Gross Profit |
| 220.87M | 237.45M | 93.93M | 797.00K | 1.49M | EBIT |
| 187.47M | 203.52M | 59.88M | -505.00K | 240.00K | EBITDA |
| 252.53M | 307.13M | 89.62M | 217.00K | 1.19M | Net Income Common Stockholders |
| 111.59M | 118.01M | -46.87M | -436.00K | 1.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.32M | 13.30M | 17.07M | 3.06M | 3.12M | Total Assets |
| 945.71M | 515.29M | 388.23M | 8.92M | 9.48M | Total Debt |
| 356.94M | 56.00M | 60.00M | 143.00K | 124.00K | Net Debt |
| 341.63M | 42.70M | 42.93M | -2.91M | -2.99M | Total Liabilities |
| 524.12M | 181.85M | 166.54M | 2.57M | 2.72M | Stockholders Equity |
| 421.60M | 333.45M | 221.69M | 6.35M | 6.77M |
| Cash Flow | Free Cash Flow | |||
| 65.89M | 42.03M | 25.59M | -213.00K | 299.00K | Operating Cash Flow |
| 207.19M | 170.29M | 86.08M | 226.00K | 1.34M | Investing Cash Flow |
| -469.56M | -128.26M | -55.74M | -233.00K | 1.64M | Financing Cash Flow |
| 264.38M | -37.05M | -14.94M | -53.00K | -42.00K |
Riley Exploration Permian Technical Analysis
Negative
24.68
Price Trends
27.77
Negative
30.13
Negative
28.96
Negative
Market Momentum
-0.73
Negative
42.55
Neutral
42.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REPX, the sentiment is Negative. The current price of 24.68 is below the 20-day moving average (MA) of 25.00, below the 50-day MA of 27.77, and below the 200-day MA of 28.96, indicating a bearish trend. The MACD of -0.73 indicates Negative momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REPX.
Riley Exploration Permian Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $551.60M | 6.02 | 19.07% | 5.80% | 15.30% | 11.45% | |
78 Outperform | $4.93B | 5.52 | 19.20% | 2.35% | 21.73% | 1.48% | |
74 Outperform | $2.48B | 3.25 | 19.62% | 3.27% | 13.33% | -2.72% | |
68 Neutral | $37.94B | 8.31 | 12.20% | 4.54% | 31.55% | -9.00% | |
56 Neutral | $6.93B | 3.27 | -3.99% | 5.91% | -0.52% | -47.74% |
* Energy Sector Average
Performance Comparison
REPX
Riley Exploration Permian
24.68
1.08
4.58%
MTDR
Matador Resources
39.54
-21.52
-35.24%
SM
SM Energy
22.79
-23.89
-51.18%
FANG
Diamondback
132.01
-59.05
-30.91%
Riley Exploration Permian Earnings Call Summary
Earnings Call Date:Mar 05, 2025
(Q4-2024)
| % Change Since: -10.45%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant achievements in production growth, cost reduction, strategic infrastructure investments, and improved financial positioning. Some challenges are noted in production mix shifts and potential midstream project delays, but the overall outlook remains strong.Q4-2024 Updates
Positive Updates
Exceeding Production and Expense Reduction Targets
Oil production grew by 15% and total production increased by 22% while upstream cash capital expenditures declined by 27%, surpassing initial targets of 10% growth in oil production and a 10% reduction in capital expenditures.
Strategic New Mexico Midstream Project
Investment in New Mexico midstream project with a 15-year gas purchase agreement and plans for a high-pressure 20-inch natural gas pipeline capable of transporting up to 150 million cubic feet per day.
Improved Operational Efficiency
Decreased cost per foot by 11% year-over-year, increased lateral feet drilled per day by 20%, and achieved a total recordable incident rate of zero for 2024.
Strong Financial Position
Debt reduced by $90 million year-over-year to one-times leverage at year-end, with 38% of upstream free cash flow allocated to debt reduction.
Power Joint Venture Progress
Expansion of the power project scope to include new power generation for sale into ERCOT, with self-generated power usage up 20% from the end of 2024.
Negative Updates
Production Mix Shift
Increased gas processing in Texas leads to a gassier production mix, with oil production growth lower than total production growth.
Potential Delays in Midstream Project
Timing of the New Mexico midstream project completion is uncertain, with potential delays due to right-of-way and regulatory approvals.
Company Guidance
In the fourth quarter and full year 2024 earnings call for Riley Exploration Permian Inc., the company detailed its robust performance, surpassing initial targets with a 15% increase in oil production and a 22% rise in total production, while reducing upstream cash capital expenditures by 27%. The company is pivoting towards developing its assets in New Mexico, with plans for a significant midstream project that includes a 15-year gas purchase agreement and a high-pressure 20-inch natural gas pipeline capable of transporting up to 150 million cubic feet per day. This infrastructure is projected to enhance operational control and provide commercial opportunities with third-party producers. Additionally, the company maintained a low operating cost with a lease operating expense of $8.66 per BOE for 2024. For 2025, Riley Exploration anticipates total production growth of 9% to 14%, with a focus on capital efficiency and strategic infrastructure investment, while maintaining a strong balance sheet to support future development initiatives.Riley Exploration Permian Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Riley Exploration Permian’s Strategic Financial Amendments Boost Liquidity
Positive
Dec 18, 2024
Riley Exploration Permian announced the completion of an amendment to its senior secured revolving credit facility, extending the maturity date to December 2028 and increasing the borrowing base and commitment levels by 7% to $400 million. This strategic financial adjustment is expected to enhance the company’s operational flexibility and strengthen its market position by increasing the lender syndicate to nine and ensuring substantial liquidity with $283 million available.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.