Riley Permian’s Q1 2025 Results and Strategic Acquisition

Riley Exploration Permian Inc ( (REPX) ) has released its Q1 earnings. Here is a breakdown of the information Riley Exploration Permian Inc presented to its investors.

Riley Exploration Permian Inc., a growth-oriented energy company, focuses on upstream, midstream, and power activities in Texas and New Mexico. The company recently reported its financial results for the first quarter of 2025, highlighting strong cash flow generation and a strategic acquisition.

In the first quarter of 2025, Riley Permian achieved an average production of 24.4 MBoe/d, with oil production at 15.6 MBbls/d. The company generated $50 million in operating cash flow and $36 million in total free cash flow. Notably, Riley Permian announced the acquisition of Silverback Exploration for $142 million, which will add 5 MBoe/d of production and over 300 undeveloped locations to its portfolio.

Key financial metrics for the quarter included revenues of $102 million and a net income of $29 million, or $1.36 per diluted share. The company reduced its debt by $21 million, maintaining a debt-to-Adjusted EBITDAX ratio of 0.9x. Additionally, Riley Permian reaffirmed its borrowing base at $400 million and continued to advance its midstream infrastructure projects in New Mexico.

Looking ahead, Riley Permian plans to adjust its investment strategy, reducing standalone investment guidance by 50% while slightly lowering production guidance. However, with the Silverback acquisition, the company anticipates a 5% increase in total investment for 2025. The management remains optimistic about the company’s positioning in the current market environment, emphasizing a strong asset base and disciplined capital allocation.

Riley Permian’s strategic moves and financial performance suggest a focused approach to growth and stability, with the Silverback acquisition poised to enhance its development potential in the coming years.