Riley Exploration-permian Stock Earnings Reports

Riley Permian delivered a transformative 2025 and set a clear, growth-oriented plan for 2026. Key operational/corporate highlights: the Silverback acquisition (closed July) materially expanded undeveloped inventory and has outperformed expectations; Riley sold its New Mexico midstream interest to Targa for $123M cash plus $60M potential earnouts, removing future midstream liabilities and accelerating focus on upstream development; the company reduced net debt by $120M in Q4 to $255M and ended 2025 with trailing debt/EBITDAX around 1.0x (0.9x pro forma). Safety remained best-in-class (TRIR = 0) while full-year 2025 oil production rose 15% (total equivalent +29%), with New Mexico oil up ~74% year-over-year (now ~34% of company oil). Cost improvements include 25% D&C cost per lateral foot reduction in Red Lake and 15% in Texas; completion optimizations have reduced sand/water and improved productivity. Capital plan and 2026 guidance: planned 2026 CapEx ~ $200M, weighted to H1 (large Q2), with a program equivalent to a little more than a continuous 1-rig pace (46–53 gross wells forecast); management forecasts >20% year-over-year oil volume growth in 2026 but will remain flexible to market changes. Liquidity and capital allocation: authorized up to $100M share repurchase program and repurchased ~152k shares (~$26.54 avg); dividend coverage and allocation will be protected in weak price environments (41% of 2025 free cash flow allocated to dividends); hedging position as of Mar 2: ~70% of 2026 midpoint oil volumes hedged at a weighted-average downside near $60/bbl (36% collars). Management emphasizes flexibility (rig/pace, buybacks vs. drilling) and expects midstream/water infrastructure (Targa pipeline in H2 2026; WaterBridge disposal agreement) to enable stronger New Mexico development and improved long-term returns.