23:39:16 EST Wed 04 Mar 2026
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Riley Permian Reports 2025 Results and Provides 2026 Guidance

2026-03-04 17:00 ET - News Release

Riley Permian Reports 2025 Results and Provides 2026 Guidance

PR Newswire

OKLAHOMA CITY, March 4, 2026 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian", the "Company" or "we"), today reported financial and operating results for the fourth quarter and year ended December 31, 2025.

FOURTH QUARTER 2025 HIGHLIGHTS

  • Averaged 35.5 MBoe/d of total equivalent production (oil production of 20.1 MBbls/d)
  • Generated $65 million of operating cash flow, $85 million of net income, $66 million of Adjusted EBITDAX(1), $1 million of Total Free Cash Flow(1) and $17 million of Upstream Free Cash Flow(1)
  • Incurred total accrual (activity-based) capital expenditures before acquisitions of $50 million ($28 million for upstream)
  • Sold all of our membership interests in Dovetail Midstream LLC, a wholly owned subsidiary of the Company that held certain midstream infrastructure projects in Eddy County, New Mexico for total cash consideration of $123 million, with the right to earn up to an additional $60 million in cash payments contingent upon achieving certain volumetric performance thresholds over a five-year period ("Midstream Sale")
  • Reduced debt outstanding by $120 million with a year-end debt-to-Adjusted EBITDAX(1) ratio of 1.0x(2)
  • Announced the authorization of a stock repurchase program of up to $100 million of the currently outstanding shares of the Company's common stock

FULL-YEAR 2025 HIGHLIGHTS

  • Averaged 29.2 MBoe/d of total equivalent production (oil production of 17.3 MBbls/d)
  • Generated $213 million of operating cash flow, $161 million of net income, $261 million of Adjusted EBITDAX(1), $81 million of Total Free Cash Flow(1) and $117 million of Upstream Free Cash Flow(1)
  • Incurred total accrual (activity-based) capital expenditures before acquisitions of $120 million ($83 million for upstream)
  • Closed on the acquisition of Silverback Exploration II, LLC and its subsidiaries ("Silverback") for $120 million in cash plus contingent consideration, subject to final purchase price adjustments
  • Increased the dividend on our common stock in October 2025 by 5% to $0.40 quarterly and $1.60 annually

2026 GUIDANCE HIGHLIGHTS

  • Full-year 2026 guidance for total production of 35.0 - 37.0 MBoe/d (oil production of 21.0 - 22.0 MBbls/d)
  • Full-year 2026 guidance for activity-based capital expenditures before acquisitions of $190 - 210 million

Bobby Riley, Chairman of the Board and Chief Executive Officer commented, "2025 was a transformational year for Riley Permian, as we made significant progress across key strategic initiatives, including inventory expansion, infrastructure build?out, and balance sheet improvement. The groundwork laid in 2025 positions the company for a more active and value?enhancing development program in 2026 and beyond."


 ____________________



 (1)                  A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's
                         website at www.rileypermian.com.



 (2)                  Debt leverage ratio based on principal debt outstanding as of December 31, 2025, divided by full-year Adjusted EBITDAX(1).

OPERATIONS AND DEVELOPMENT ACTIVITY UPDATE

The tables below provide a summary of our operated well activity and production by state:

                                         Three Months Ended December 31,               Year Ended December 31,
                                                        2025                                        2025


                                   Gross(1)                              Net(2)  Gross(1)                      Net(2)


             Wells Drilled



 Texas                                   8                                  8.0         18                         18.0



 New Mexico



 Total                                   8                                  8.0         18                         18.0




             Wells Completed



 Texas                                   5                                  5.0         12                         12.0



 New Mexico                                                                           10                          6.3



 Total                                   5                                  5.0         22                         18.3




             Wells Turned to Sales



 Texas                                   3                                  3.0         10                         10.0



 New Mexico                                                                           10                          6.3



 Total                                   3                                  3.0         20                         16.3


 ___________________



 (1)     Gross wells are the total number of operated wells in which the Company has an interest



 (2)     Net wells are gross wells multiplied by our fractional working interest

Average Daily Production by State

                             Three Months Ended December
                                 31,                        Year Ended December 31,


                        2025         2024              2025      2024


               Combined



 Texas                 19.4         17.7              17.6      15.7



 New Mexico            16.1          7.3              11.6       6.8



 Total (MBoe/d)        35.5         25.0              29.2      22.5




               Oil



 Texas                 11.9         12.4              11.3      11.7



 New Mexico             8.2          3.5               6.0       3.4



 Total (MBbls/d)       20.1         15.9              17.3      15.1

FOURTH QUARTER 2025 FINANCIAL RESULTS

Revenues totaled $97 million, net cash provided by operating activities was $65 million and net income was $85 million, or $4.02 per diluted share.

On a non-GAAP basis, Adjusted EBITDAX(1) was $66 million, cash flow from operations before changes in working capital(1) was $35 million, Total Free Cash Flow(1) was $1 million and Adjusted Net Income(1) was $22 million, or $1.01 per diluted share.

Average realized prices, before derivative settlements, were $57.18 per barrel of oil, $(0.86) per Mcf of natural gas and $(6.67) per barrel of natural gas liquids. The Company reported a $21 million gain on derivatives, net, which included an $8 million realized gain on settlements.

Operating expenses included lease operating expense ("LOE") of $23 million, or $7.16 per Boe, administrative costs of $8 million, or $2.42 per Boe, and production and ad valorem taxes of $8 million or $2.44 per Boe.

The Company incurred $50 million in total accrued capital expenditures ($28 million for upstream). On a cash basis, the Company had total capital expenditures of $51 million ($35 million for upstream).

We recognized a pre-tax gain of $72 million from the Midstream Sale, net of $3 million in transaction costs. As a result, we incurred $16 million in corresponding income tax liability. Total FCF of $1 million excludes this tax impact.

The Company sold its interest in oil and natural gas properties in Texas outside of the Company's acreage in Yoakum County for 250,000 shares of the Company's common stock, which were subsequently retired, and which led to a reduction to additional paid-in-capital of $10 million.

The Company reduced total debt by $120 million, including a principal reduction of $115 million on the Credit Facility and $5 million on the Senior Notes. As of December 31, 2025, the Company had $110 million of borrowings outstanding on its Credit Facility and $145 million principal value of its Senior Notes, for a combined principal value of debt of $255 million. Interest expense, net was $8 million.

The Company paid a cash dividend of $0.40 per share, for a total of $8 million.

YEAR ENDED 2025 FINANCIAL RESULTS

Revenues totaled $392 million, net cash provided by operating activities was $213 million and net income was $161 million, or $7.59 per diluted share.

On a non-GAAP basis, Adjusted EBITDAX(1) was $261 million, cash flow from operations before changes in working capital(1) was $192 million, Total Free Cash Flow(1) was $81 million and Adjusted Net Income(1) was $96 million or $4.53 per diluted share.

Average realized prices, before derivative settlements, were $62.95 per barrel of oil, $(0.28) per Mcf of natural gas and $(1.27) per barrel of natural gas liquids. The Company reported a $36 million gain on derivatives, net, which included a $17 million realized gain on settlements.

Operating expenses included LOE of $88 million, or $8.21 per Boe, administrative costs of $31 million, or $2.95 per Boe, and production and ad valorem taxes of $29 million or $2.73 per Boe.

The Company incurred $120 million in total accrued capital expenditures ($83 million for upstream). On a cash basis, the Company had total capital expenditures of $128 million ($91 million for upstream).

The Company reduced total debt by $25 million, including a principal reduction of $5 million on the Credit Facility and $20 million on the Senior Notes. Interest expense, net was $31 million.

The Company paid dividends of $1.54 per share for a total of $33 million.

Shareholder's equity was $634 million as of December 31, 2025, an increase of 24% year-over-year and the number of common shares outstanding was 21.7 million, an increase of 1% year-over-year.

In January 2026, as part of our stock repurchase program, the Company repurchased 152,408 shares of common stock at a weighted average price of $26.54 per share for a total of $4 million.

RESERVES

Estimates of Riley Permian's proved reserves as of December 31, 2025, were prepared by Ryder Scott Company, L.P., the Company's third-party reservoir engineer, using the SEC pricing methodology. Proved reserves at year-end 2025 of 147 MMBoe increased by 24 MMBoe or 19% over year-end 2024 reserves. Oil represented 50% of total proved reserves. Proved developed producing reserves ("PDP") increased by 13% to 87 MMBoe, which represented 59% of total proved reserves. Proved undeveloped reserves ("PUD") increased by 29% to 61 MMBoe, when compared to year-end 2024. At December 31, 2025, the standardized measure of discounted cash flows and PV-10(1) were $1.14 billion and $1.39 billion, respectively.

The net proved reserve additions resulted in a reserve replacement ratio (defined as the sum of extensions and discoveries, revisions, acquisitions and divestitures, divided by annual production) of 323% for the year ended December 31, 2025. The organic reserve replacement ratio (defined as the sum of extensions and discoveries and revisions, divided by annual production) was 230%.

Extensions and discoveries were the primary contributor to the increase in reserves of 24 MMBoe, which consisted of 23 MMBoe added to PUDs as a result of drilling activity during the year, which allowed for the booking of adjacent PUDs for locations that were previously booked as unproved reserves or not at all, and 1 MMBoe added to PDP as a result of drilling successful wells that were previously classified as unproved locations. The Company also acquired 11 MMBoe in reserves and divested 1 MMBoe. The Company had production of 11 MMBoe and positive revisions of previous estimates of 1 MMBoe.


 ____________________



 (1)                  A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's
                         website at www.rileypermian.com.


         
            
              Selected Operating and Financial Data

---


         
            
              (Unaudited)




                                                                                         
 
 Three Months Ended                               Year Ended


                                                                            December 31,           September 30,  December 31,   December 31,            December 31,
                                                                                    2025                     2025           2024            2025                     2024



         
            Select Financial Data (in thousands):



         Oil and natural gas sales, net                                         $97,277                 $106,852       $102,695        $391,980                 $409,801



         Income from Operations                                                 $26,161                  $28,862        $32,038        $133,279                 $153,695



         Adjusted EBITDAX(1)                                                    $66,051                  $64,041        $69,074        $260,565                 $284,225



         Cash Flow from Operations                                              $64,868                  $63,650        $66,378        $212,539                 $246,274





         Upstream Accrual Capital Expenditures                                  $28,204                  $13,129        $19,385         $82,785                  $97,023



         Upstream Cash Capital Expenditures                                     $34,721                  $14,893        $22,299         $91,188                  $99,365



         Total Accrual Capital Expenditures                                     $50,357                  $18,019        $30,682        $120,162                 $108,320



         Total Cash Capital Expenditures                                        $50,960                  $29,027        $33,263        $127,855                 $110,329





         Upstream Free Cash Flow(1)                                             $17,238                  $39,441        $28,653        $117,236                 $128,033



         Total Free Cash Flow(1)                                                   $999                  $25,307        $17,689         $80,569                 $117,069





         
            Production Data, net:



         Oil (MBbls)                                                              1,850                    1,690          1,464           6,328                    5,519



         Natural gas (MMcf)                                                       3,848                    3,380          2,305          11,669                    7,484



         NGLs (MBbls)                                                               778                      722            455           2,387                    1,486



         Total (MBoe)                                                             3,269                    2,975          2,303          10,660                    8,252





         Daily combined volumes (Boe/d)                                          35,533                   32,337         25,033          29,205                   22,546



         Daily oil volumes (Bbls/d)                                              20,109                   18,370         15,913          17,337                   15,079





         
            Average Realized Prices:(2)



         Oil ($ per Bbl)                                                         $57.18                   $63.94         $68.50          $62.95                   $74.10



         Natural gas ($ per Mcf)                                                $(0.86)                 $(0.21)         $0.02         $(0.28)                 $(0.19)



         NGLs ($ per Bbl)                                                       $(6.67)                 $(0.66)         $5.18         $(1.27)                   $1.53





         
            Average Realized Prices, including derivative
    settlements:(2)(3)



         Oil ($ per Bbl)                                                         $61.06                   $65.17         $69.89          $65.46                   $73.67



         Natural gas ($ per Mcf)                                                $(0.63)                 $(0.16)         $0.34         $(0.22)                   $0.37



         NGLs ($ per Bbl)(4)                                                    $(6.67)                 $(0.66)         $5.18         $(1.27)                   $1.53





         
            Weighted Average Common Shares
    Outstanding (in thousands):



         Basic                                                                   21,120                   21,164         21,094          21,134                   20,712



         Diluted                                                                 21,242                   21,263         21,205          21,194                   20,875


 _____________________



 (1)                   
 A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com.



 (2)                     The Company's oil, natural gas and NGL sales are presented net of GP&T costs. These costs, related to natural gas and NGLs, at times exceeded the price we received and resulted in negative average realized prices.



 (3)                     The Company's calculation of the effects of derivative settlements includes gains and losses on the settlement of our commodity derivative contracts. These gains and losses are included under other income (expense)
                            in the Company's consolidated statements of operations.



 (4)                   
 During the periods presented, the Company did not have any NGL derivative contracts in place.

2026 GUIDANCE

Riley Permian is providing first quarter detailed guidance and select full-year 2026 activity guidance based on currently scheduled development activity and current market conditions. The average working interest on gross operated wells drilled is subject to change and may have corresponding impacts on net production volumes and investing expenditures. Total equivalent production estimates, inclusive of production from natural gas and NGLs, may be subject to variability based on third-party midstream service provider conditions.


 
            Activity and Production                                        Q1 2026              Full-Year
                                                                                                      2026



 
            Net Operated Well Activity



 Drilled (#)                                                           14.3 -
                                                                          16.3               37.0 -43.0



 Completed (#)                                                        8.0 -9.0             41.0 -47.0



 Turned to Sales (#)                                                  7.0 -8.0             43.0 -49.0





 Non-Operated, Net (#)                                                0.0 -0.0              1.0 -2.0





 
            Net Production



 Total (MBoe/d)                                                        33.2 -
                                                                          34.0               35.0 -37.0



 Oil (MBbls/d)                                                         19.0 -
                                                                          19.5               21.0 -22.0





 
            Capital Expenditures and Investing (in millions)(1)



 Upstream                                                         
        $49 - $57 
          $165 - $180



 Infrastructure and Other                                           
        $6 - $8   
          $25 - $30



 
            Total Capital Expenditures                          
        $55 - $65 
          $190 - $210





 Power JV Investment                                                
        $2 - $3     
          $6 - $8



 
            Total Investments                                   
        $57 - $68 
          $196 - $218


 
            Operating and Corporate Costs             Q1 2026





 Lease Operating Expenses ($ per Boe)           
 $8.00 - $9.00



 Production and Ad Valorem Taxes (% of revenue)     7.5% - 8.5%



 Administrative Costs ($ per Boe)               
 $2.50 - $3.00


 ___________________



 (1)                 Accrual (activity-based) investing expenditures
                        before acquisitions

CONFERENCE CALL
In connection with the earnings release, Riley Permian management will host a conference call for investors and analysts on March 5, 2026 at 9:00 a.m. CT to discuss the Company's results and to host a Q&A session. Interested parties are invited to participate by calling:

  • Toll Free Dial-In, +1 (888) 596-4144
  • Toll Dial-in, +1 (646) 968-2525
  • Conference ID number 1303008

An updated company presentation, which will include certain items to be discussed on the call, will be posted prior to the call on the Company's website (www.rileypermian.com). In addition to a webcast of the call available on the Company's website, a replay of the call will be available March 19, 2026 by calling:

  • Toll Free Dial-In, +1 (800) 770-2030
  • Toll Dial-in, +1 (609) 800-9909
  • Conference ID number 1303008

About Riley Exploration Permian, Inc.
Riley Permian is a growth-oriented upstream oil and gas company operating in Texas and New Mexico with infrastructure projects that complement our operations. For more information, please visit www.rileypermian.com.

Investor Contact:
405-438-0126
IR@rileypermian.com

Cautionary Statement Regarding Forward Looking Information and Guidance

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained in this release that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, need for financing, competitive position and potential growth opportunities. Our forward-looking statements do not consider the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believes," "intends," "may," "should," "anticipates," "expects," "could," "plans," "estimates," "projects," "targets," "forecasts" or comparable terminology or by discussions of strategy or trends. You should not place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved or occur, and actual results could differ materially and adversely from those anticipated or implied by the forward-looking statements.

Among the factors that could cause actual future results to differ materially are the risks and uncertainties the Company is exposed to. While it is not possible to identify all factors, we continue to face many risks and uncertainties including, but not limited to: the volatility of oil, natural gas and NGL prices; regional supply and demand factors, any delays, curtailment delays or interruptions of production, and any governmental order, rule or regulation that may impose production limits; cost and availability of gathering, pipeline, refining, transportation, power and other midstream and downstream activities, which could result in a prolonged shut-in of our wells that may adversely affect our reserves, financial condition and results of operations; severe weather and other risks that lead to a lack of any available markets; our ability to successfully complete mergers, acquisitions or divestitures; the inability or failure of the Company to successfully integrate the acquired assets into our operations and development activities; the potential delays in the development, construction or start-up of planned projects; failure to realize any of the anticipated benefits of our joint ventures or other equity investments; risks relating to our operations, including development drilling and testing results and performance of acquired properties and newly drilled wells; inability to prove up undeveloped acreage and maintain production on leases; any reduction in our borrowing base on our Credit Facility from time to time and our ability to repay any excess borrowings as a result of such reduction; the impact of our derivative strategy and the results of future settlement; our ability to comply with the financial covenants contained in our Credit Facility and Senior Notes; changes in general economic, business or industry conditions, including changes in inflation rates, interest rates and foreign currency exchange rates; conditions in the capital, financial and credit markets and our ability to obtain capital needed to fund our exploration and development on favorable terms or at all; the loss of certain tax deductions; risks associated with executing our business strategy, including any changes in our strategy; risks associated with concentration of operations in one major geographic area; legislative or regulatory changes, including initiatives related to hydraulic fracturing, regulation of greenhouse gases, water conservation, seismic activity, weatherization, or protection of certain species of wildlife, or of sensitive environmental areas; the ability to receive drilling and other permits or approvals and rights-of-way in a timely manner (or at all), which may be restricted by governmental regulation and legislation; restrictions on the use of water, including limits on the use of produced water and a moratorium on new produced water well permits recently imposed by the Railroad Commission of Texas in an effort to control induced seismicity in the Permian Basin; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production; tax consequences of business transactions; public health crisis, such as pandemics and epidemics, and any related government policies and actions and the effects of such public health crises on the oil and natural gas industry, pricing and demand for oil and natural gas and supply chain logistics; general domestic and international economic, market and political conditions, including military conflicts, global economic growth, unpredictability of new tariffs, actions of OPEC+ countries and changes to the current political environment under the new administration; risks related to litigation; and cybersecurity threats, technology system failures and data security issues.

The estimates and guidance presented in this release are based on assumptions of current and future capital expenditure levels, prices for oil, natural gas and NGLs, available liquidity, indications of supply and demand for oil, well results, operating costs and the timing and completion of pending projects and acquisitions. The guidance provided in this release does not constitute any form of guarantee or assurance that the matters indicated will be achieved. While we believe these estimates and the assumptions on which they are based are reasonable as of the date on which they are made, they are inherently uncertain and are subject to, among other things, significant business, economic, operational, and regulatory risks, and uncertainties, some of which are not known as of the date of the statement. Guidance and estimates, and the assumptions on which they are based, are subject to material revision. Actual results may differ materially from estimates and guidance.

Please read the "Risk Factors" in our annual report on Form 10-K and our quarterly reports on Form 10-Q, which are incorporated herein. Additional factors that could cause results to differ materially from those described above can be found in Riley Permian's Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and available from the Company's website at www.rileypermian.com under the "Investor" tab, and in other documents the Company files with the SEC.

The forward-looking statements in this press release are made as of the date hereof and are based on information available at that time. The Company does not undertake, and expressly disclaims, any duty to update or revise our forward-looking statements based on new information, future events or otherwise.

                                                                         
          
        RILEY EXPLORATION PERMIAN, INC.


                                                                           
          
        CONSOLIDATED BALANCE SHEETS




                                                                                                                                          December 31,


                                                                                                                                   2025             2024


                                                                                                                                        (In thousands, except share
                                                                                                                                          amounts)



          
            Assets



          
            Current Assets:



          Cash                                                                                                                 $17,889          $13,124



          Accounts receivable, net                                                                                              41,045           44,411



          Prepaid expenses                                                                                                       7,763            1,592



          Inventory                                                                                                              7,929            5,734



          Current derivative assets                                                                                             19,141            3,264



          
            Total Current Assets                                                                                     93,767           68,125



          Oil and natural gas properties, net (successful efforts)                                                             995,539          860,797



          Other property and equipment, net                                                                                     21,872           30,477



          Non-current derivative assets                                                                                          5,117              585



          Equity method investment                                                                                              36,188           22,811



          Funds held in escrow                                                                                                   1,196



          Other non-current assets, net                                                                                         15,899           10,706



          
            Total Assets                                                                                         $1,169,578         $993,501



          
            Liabilities and Shareholders' Equity



          
            Current Liabilities:



          Accounts payable                                                                                                      $5,083          $13,937



          Accrued liabilities                                                                                                   37,690           33,918



          Revenue payable                                                                                                       59,606           34,786



          Current derivative liabilities                                                                                            37



          Current portion of long-term debt                                                                                     20,000           20,000



          Other current liabilities                                                                                             34,089           20,123



          
            Total Current Liabilities                                                                               156,505          122,764



          Non-current derivative liabilities                                                                                       112              414



          Asset retirement obligations                                                                                          59,977           32,706



          Long-term debt                                                                                                       227,855          249,494



          Deferred tax liabilities                                                                                              86,119           76,547



          Other non-current liabilities                                                                                          4,768              961



          
            Total Liabilities                                                                                       535,336          482,886



          
            Commitments and Contingencies



          
            Shareholders' Equity:



          Preferred stock, $0.0001 par value, 25,000,000 shares authorized; 0 shares issued



          Common stock, $0.001 par value, 240,000,000 shares authorized; 21,718,800                                                 22               21
and 21,482,555 shares issued at December 31, 2025 and December 31, 2024,
respectively



          Additional paid-in capital                                                                                           306,660          310,232



          Retained earnings                                                                                                    327,560          200,362



          
            Total Shareholders' Equity                                                                              634,242          510,615



          
            Total Liabilities and Shareholders' Equity                                                           $1,169,578         $993,501



                                                  
          
    RILEY EXPLORATION PERMIAN, INC.


                                               
          
    CONSOLIDATED STATEMENTS OF OPERATIONS


                                                                                                                              (Unaudited)


                                                                                                               Three Months Ended December 31,                         Year Ended December 31,


                                                                                                          2025           2024                   2025              2024


                                                                                                    
        
    (In thousands, except per share amounts)



 
            Revenues:



 Oil and natural gas sales, net                                                                       $97,277       $102,695               $391,980          $409,801



 Contract services - related parties                                                                                                                           380



 
            Total Revenues                                                                           97,277        102,695                391,980           410,181



 
            Costs and Expenses:



 Lease operating expenses                                                                              23,421         19,670                 87,506            71,463



 Production and ad valorem taxes                                                                        7,978          8,021                 29,052            29,428



 Exploration costs                                                                                         88          2,156                    361             2,595



 Depletion, depreciation, amortization and accretion                                                   27,268         18,929                 93,183            74,900



 Impairment of oil and natural gas properties                                                                        11,317                  1,214            11,317



 Other impairments                                                                                      1,607                                1,607            30,158



 General and administrative:



 Administrative costs                                                                                   7,913          8,689                 31,472            26,551



 Stock-based compensation expense                                                                       2,388          1,445                  9,130             8,138



 Cost of contract services - related parties                                                                                                                   363



 Transaction costs                                                                                        453            430                  5,176             1,573



 
            Total Costs and Expenses                                                                 71,116         70,657                258,701           256,486



 
            Income from Operations                                                                   26,161         32,038                133,279           153,695



 
            Other Income (Expense):



 Interest expense, net                                                                                (7,926)       (7,625)              (31,364)         (34,338)



 Gain (loss) on derivatives, net                                                                       21,469        (8,446)                36,259           (1,665)



 Loss from equity method investment                                                                     (619)         (486)                 (886)            (721)



 Gain on midstream sale                                                                                71,675                               71,675



 
            Total Other Income (Expense)                                                             84,599       (16,557)                75,684          (36,724)



 
            Net Income from Operations Before Income Taxes                                          110,760         15,481                208,963           116,971



 Income tax expense                                                                                  (25,363)       (4,553)              (48,123)         (28,074)



 
            Net Income                                                                              $85,397        $10,928               $160,840           $88,897





 
            Net Income per Share:



 Basic                                                                                                  $4.04          $0.52                  $7.61             $4.29



 Diluted                                                                                                $4.02          $0.52                  $7.59             $4.26



 
            Weighted Average Common Shares Outstanding:



 Basic                                                                                                 21,120         21,094                 21,134            20,712



 Diluted                                                                                               21,242         21,205                 21,194            20,875

                                                                 
          
    RILEY EXPLORATION PERMIAN, INC.


                                                              
          
    CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                                                                                               (Unaudited)


                                                                                                                                Three Months Ended December
                                                                                                                                    31,                           Year Ended December 31,


                                                                                                                         2025           2024               2025         2024


                                                                                                                          
   
            (In thousands)



          
            Cash Flows from Operating Activities:



          Net income                                                                                                 $85,397        $10,928           $160,840      $88,897



          Adjustments to reconcile net income to net cash provided by
operating activities:



          Exploratory well costs and lease expirations                                                                    88          2,156                300        2,560



          Depletion, depreciation, amortization and accretion                                                         27,268         18,929             93,183       74,900



          Impairment of oil and natural gas properties                                                                              11,317              1,214       11,317



          Other impairments                                                                                            1,607        (1,308)             1,607       28,850



          (Gain) loss on derivatives, net                                                                           (21,469)         8,446           (36,259)       1,665



          Settlements on derivative contracts                                                                          8,086          2,759             16,615        1,849



          Amortization of deferred financing costs and discount                                                        1,198          1,324              4,768        5,299



          Stock-based compensation expense                                                                             2,388          1,445              9,130        8,138



          Deferred income tax expense                                                                                  1,981        (5,530)            11,352        3,202



          Loss from equity method investment                                                                             619            486                886          721



          Gain on midstream sale                                                                                    (71,675)                        (71,675)



          Other                                                                                                           10                                2



          Changes in operating assets and liabilities                                                                 29,370         15,426             20,576       18,876



          
            Net Cash Provided by Operating Activities                                                      64,868         66,378            212,539      246,274



          
            Cash Flows from Investing Activities:



          Additions to oil and natural gas properties                                                               (34,394)      (22,118)          (89,624)    (98,490)



          Additions to midstream property and equipment                                                             (16,239)      (10,964)          (36,667)    (10,964)



          Additions to other property and equipment                                                                    (327)         (181)           (1,564)       (875)



          Net assets acquired in business combination                                                                    125                        (117,702)



          Acquisitions of oil and natural gas properties                                                                                             (2,161)    (19,597)



          Acquisitions of land                                                                                       (1,309)                         (1,309)



          Disposition of midstream property and equipment                                                            120,204                          120,204



          Contributions to equity method investment                                                                  (1,000)       (1,250)          (15,750)    (17,912)



          Funds held in escrow                                                                                                                       (1,196)



          
            Net Cash Provided by (Used in) Investing Activities                                            67,060       (34,513)         (145,769)   (147,838)



          
            Cash Flows from Financing Activities:



          Deferred financing costs                                                                                     (189)       (2,703)             (432)     (2,783)



          Proceeds from Credit Facility                                                                                                              155,000       15,000



          Repayments under Credit Facility                                                                         (115,000)      (15,000)         (160,000)    (85,000)



          Repayments of Senior Notes                                                                                 (5,000)       (5,000)          (20,000)    (20,000)



          Payment of cash dividends                                                                                  (8,485)       (7,992)          (33,325)    (30,831)



          Proceeds from issuance of common shares, net                                                                                                            25,415



          Repurchase of common shares for tax withholding and other                                                  (1,824)       (1,368)           (3,248)     (2,432)



          
            Net Cash Used in Financing Activities                                                       (130,498)      (32,063)          (62,005)   (100,631)



          
            Net Increase (Decrease) in Cash                                                                 1,430          (198)             4,765      (2,195)



          
            Cash, Beginning of Period                                                                      16,459         13,322             13,124       15,319



          
            Cash, End of Period                                                                           $17,889        $13,124            $17,889      $13,124



OIL, NATURAL GAS AND NGL RESERVES

Estimates of Riley Permian's proved reserves as of December 31, 2025, were prepared by Ryder Scott Company, L.P. ("Ryder Scott"), the Company's third-party reservoir engineer. Estimates of proved reserves were prepared in accordance with the rules and regulations of the SEC using an average price equal to the unweighted arithmetic average of the first day of each month within the 12-month period ended December 31, 2025, of $65.34 per Bbl for oil and $3.39 per Mcf for gas. Additionally, the Company prepared estimates of proved reserves as of December 31, 2025, using NYMEX pricing, which were not reviewed by Ryder Scott. The table below presents a summary of our proved reserves as of December 31, 2025.

                                                                   SEC Pricing(1)                                       NYMEX Pricing(1)



 
            Reserves as of December 31, 2025             Proved                     Total Proved            Proved                            Total Proved
                                                Developed                     Reserves               Developed                          Reserves
                                                 Reserves                                             Reserves



 Oil (MBbls)                                               42,907                            74,347             43,109                                   74,670



 Natural gas (MMcf)                                       124,165                           206,657            125,592                                  208,636



 Natural gas liquids (MBbls)                               23,109                            38,625             23,353                                   38,974



 Total (MBoe)                                              86,710                           147,415             87,394                                  148,416



 PV-10(2) (in thousands)                                 $881,093                        $1,392,016           $823,149                               $1,305,502


 ___________________



 (1)                 
 See table below for the SEC and NYMEX pricing used to prepare reserve estimates.



 (2)                   A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's
                          website at www.rileypermian.com.

                       
       
     SEC Pricing                            NYMEX Pricing


                     
       Oil               Natural Gas  
     Oil                     Natural Gas


                         ($ per Bbl)           ($ per Mcf)    ($ per Bbl)                 ($ per Mcf)


  Calendar year 2026          $65.34                  $3.39          $57.03                        $3.72


  Calendar year 2027          $65.34                  $3.39          $57.42                        $3.88


  Calendar year 2028          $65.34                  $3.39          $58.73                        $3.71


  Calendar year 2029          $65.34                  $3.39          $59.98                        $3.61


  Calendar year 2030          $65.34                  $3.39          $60.85                        $3.61



 After 2030                  $65.34                  $3.39          $61.14                        $4.16

Reserve estimates above do not include any value for probable or possible reserves that may exist, nor do they include any value for undeveloped acreage. The reserve estimates represent our net revenue interest in our properties, all of which are located within the continental United States. NYMEX pricing does not comport with the reporting requirements of the SEC and should not be used as a substitute for or compared with estimates of proved reserves using SEC pricing.

OIL, NATURAL GAS AND NGL RESERVES, Continued

Ryder Scott prepared the estimates of the Company's proved reserves as of December 31, 2024, in accordance with the rules and regulations of the SEC using an average price equal to the unweighted arithmetic average of the first day of each month within the 12-month period ended December 31, 2024, of $76.32 per Bbl for oil and $2.13 per Mcf for natural gas. The Company prepared estimates of proved reserves as of December 31, 2024, using NYMEX pricing, which were not reviewed by Ryder Scott. The table below presents a summary of our proved reserves as of December 31, 2024.

                                                                   SEC Pricing(1)                                       NYMEX Pricing(1)



 
            Reserves as of December 31, 2024             Proved                     Total Proved            Proved                            Total Proved
                                                Developed                     Reserves               Developed                          Reserves
                                                 Reserves                                             Reserves



 Oil (MBbls)                                               40,111                            66,535             39,527                                   65,802



 Natural gas (MMcf)                                       103,337                           162,239            102,004                                  160,644



 Natural gas liquids (MBbls)                               19,312                            30,027             19,102                                   29,768



 Total (MBoe)                                              76,646                           123,602             75,630                                  122,344



 PV-10(2) (in thousands)                                 $999,828                        $1,542,583           $885,643                               $1,332,696


 ___________________



 (1)                 
 See table below for the SEC and NYMEX pricing used to prepare reserve estimates.



 (2)                   A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's
                          website at www.rileypermian.com.

                       
       
     SEC Pricing                            NYMEX Pricing


                     
       Oil               Natural Gas  
     Oil                     Natural Gas


                         ($ per Bbl)           ($ per Mcf)    ($ per Bbl)                 ($ per Mcf)


  Calendar year 2025          $76.32                  $2.13          $69.59                        $3.66


  Calendar year 2026          $76.32                  $2.13          $66.45                        $4.05


  Calendar year 2027          $76.32                  $2.13          $64.74                        $3.98


  Calendar year 2028          $76.32                  $2.13          $63.71                        $3.87


  Calendar year 2029          $76.32                  $2.13          $63.31                        $3.60



 After 2029                  $76.32                  $2.13          $63.31                        $3.60

Reserve estimates above do not include any value for probable or possible reserves that may exist, nor do they include any value for undeveloped acreage. The reserve estimates represent our net revenue interest in our properties, all of which are located within the continental United States. NYMEX pricing does not comport with the reporting requirements of the SEC and should not be used as a substitute for or compared with estimates of proved reserves using SEC pricing.

DERIVATIVE INSTRUMENTS

The Company's oil and natural gas derivative contracts consisted of fixed price swaps, costless collars and basis swaps. The following table summarizes the open financial derivatives as of March 2, 2026, related to our future oil and natural gas production:

                                                                                                
         
 2026 (1)                                                                            2027                        2028


                                                                 First          Second            Third                Fourth              First              Second                Third                     Fourth                      First
                                                     Quarter           Quarter          Quarter               Quarter            Quarter             Quarter              Quarter                    Quarter                    Quarter


               
          
         Oil


                                    WTI Oil Swaps



          Volume (Bbl)                                        826,000          900,000           900,000                900,000             665,000              530,000               510,000                     480,000



          Weighted                                             $61.56           $62.05            $61.76                 $61.56              $60.77               $60.61                $60.19                      $60.45
average price


          ($/Bbl)




                                    WTI Oil Collars



          Volume (Bbl)                                        516,000          486,000           480,000                460,000             415,000              477,000               340,000                     165,000



          Weighted                                             $59.55           $57.78            $56.99                 $56.33              $56.73               $55.31                $51.68                      $55.00
average floor
price ($/Bbl)



          Weighted                                             $77.16           $73.54            $72.31                 $68.63              $66.63               $68.35                $66.02                      $67.81
average ceiling
price ($/Bbl)




                        Natural Gas


                                    Henry Hub
Natural Gas Swaps



          Volume                                            1,005,000          450,000           300,000                500,000             600,000
(MMBtu)



          Weighted                                              $3.97            $3.64             $3.59                  $4.07               $4.19
average price


          ($/MMBtu)




                                    Henry Hub
Natural Gas Collars



          Volume                                              225,000          900,000           900,000                600,000             450,000
(MMBtu)



          Weighted                                              $3.67            $3.05             $3.05                  $3.43               $3.80
average floor
price
($/MMBtu)



          Weighted                                              $4.30            $3.74             $3.74                  $4.79               $5.84
average ceiling
price
($/MMBtu)




                                    Waha Basis Swaps



          Volume                                              450,000          450,000           450,000                600,000           3,150,000            3,150,000             3,150,000                   3,150,000                   1,800,000
(MMBtu)



          Weighted                                            $(2.01)         $(2.26)          $(2.26)               $(1.31)            $(0.94)             $(0.95)              $(0.95)                    $(0.95)                    $(1.01)
average price


          ($/MMBtu)


 ___________________



 (1)                 Q1 2026 derivative positions shown include 2026 contracts, some of which have settled
                        as of March 2, 2026.

Interest Rate Contracts

The following table summarizes the open interest rate derivative positions as of March 2, 2026:

               Open Coverage Period      Position Notional Amount Fixed Rate


                                                  (In thousands)



 March 2026 - April 2026           Long                  $30,000      3.18 %



 March 2026 - April 2026           Long                  $50,000      3.04 %



 April 2026 - April 2027           Long                  $45,000      3.90 %

View original content:https://www.prnewswire.com/news-releases/riley-permian-reports-2025-results-and-provides-2026-guidance-302704518.html

SOURCE Riley Exploration Permian, Inc.

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