Riley Exploration Permian(NYSEMKT) REPX

Riley Exploration Permian, Inc. pumps oil and natural gas in Texas.

It sells fuel to companies that make gasoline and electricity.

This work helps power cars and homes across the country.

What Riley Permian Produces

• Crude Oil: Liquid petroleum extracted from horizontal wells in the Permian Basin; represented the largest sales portion in the quarter ended June 30, 2026.
• Natural Gas: Gaseous fuel found during oil drilling; used for heating homes and generating electricity.
• Natural Gas Liquids: Ethane and propane products removed from gas during processing; used for heating and chemical manufacturing.

How the Company Grows

• Completed the Silverback Acquisition on July 1, 2025, to increase production and land holdings.
• Increased its borrowing base to $425 million through a credit facility amendment on April 30, 2026.
• Partnered with Targa to build new gathering and pipeline infrastructure in New Mexico, expected to start in late 2026.
• Entered an agreement with Waterbridge for water disposal services in New Mexico beginning in the fourth quarter of 2026.

What Makes the Business Unique

The company focuses on the San Andres Formation. This geological area in the Permian Basin provides steady cash flows from conventional oil-saturated rock. It also manages its own water disposal through a subsidiary to lower costs and increase drilling efficiency.

Key Financial Facts

• Total oil and natural gas sales, net rose 94% to $165.9 million for the three-month period ended June 30, 2026.
• Daily equivalent production averaged 34,264 barrels of oil equivalent per day during the second quarter of 2026.
• Net cash provided by operating activities reached $110.7 million for the six-month period ended June 30, 2026.
• The company paid $17.0 million in cash dividends during the first half of 2026.
• Working capital deficit was $127.7 million as of June 30, 2026, up from $37.8 million one year earlier.

The Bottom Line

Riley Permian has grown from a smaller driller into a larger producer by acquiring new land and building its own pipeline access. The business focuses on balancing production growth with cash dividends to its shareholders.