18:46:23 EDT Wed 05 Aug 2026
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Riley Permian Reports Second Quarter 2026 Results

2026-08-05 16:30 ET - News Release

Riley Permian Reports Second Quarter 2026 Results

PR Newswire

OKLAHOMA CITY, Aug. 5, 2026 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian" or the "Company"), today reported financial and operating results for the second quarter ended June 30, 2026.

SECOND QUARTER 2026 HIGHLIGHTS

  • Reported 34.3 MBoe/d of total equivalent production (oil production of 21.2 MBbls/d)
  • Generated $64 million of operating cash flow or $75 million before changes in working capital(1) and $6 million of Total Free Cash Flow(1)
  • Incurred total accrual (activity-based) capital expenditures before acquisitions of $87 million and cash capital expenditures before acquisitions of $68 million
  • Generated $87 million of net income and $80 million of Adjusted EBITDAX(1)
  • Increased debt by $26 million with a quarter-end debt-to-Adjusted EBITDAX(1) ratio of 1.0x(2)
  • Revised full-year 2026 guidance to reflect higher forecasted oil production and total capital expenditures and investments

Bobby Riley, Chief Executive Officer and Chairman of the Board commented, "We continued executing the growth strategy we outlined earlier this year during the second quarter, delivering oil production near the high end of guidance and building momentum for the quarters ahead. We are increasing full-year oil production guidance, which now implies approximately 30% year-over-year growth in 2026. Our outlook calls for the largest production increase of the year in the third quarter, with oil production expected to grow more than 20% sequentially. We are encouraged by the progress made to date and believe the activity underway positions us for meaningful production growth through the remainder of 2026 and into 2027."

OPERATIONS AND DEVELOPMENT ACTIVITY UPDATE

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

                                           Three Months Ended June 30,                Six Months Ended June 30,
                                                         2026                                       2026


                                   Gross                               Net      Gross                           Net

                                         (1)                               (2)        (1)                           (2)



 
          Wells Drilled



 Texas                                   12                               11.9          25                           24.4



 New Mexico                              12                                8.0          16                           11.1



 Total                                   24                               19.9          41                           35.5




             Wells Completed



 Texas                                   18                               17.3          31                           30.1



 New Mexico



 Total                                   18                               17.3          31                           30.1




             Wells Turned to Sales



 Texas                                   15                               13.9          23                           21.9



 New Mexico



 Total                                   15                               13.9          23                           21.9


 ___________________



 (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 June           Six Months Ended June
                                                        30,                      30,


                                                  2026    2025              2026    2025



 
          Total Equivalent Production (MBoe/d)



 Texas                                           24.0    16.5              22.3    16.8



 New Mexico                                      10.3     7.9              12.6     7.6



 Total                                           34.3    24.4              34.9    24.4





 
          Oil Production (MBbls/d)



 Texas                                           15.8    11.1              14.3    11.6



 New Mexico                                       5.4     4.1               6.4     3.8



 Total                                           21.2    15.2              20.7    15.4

SECONDQUARTER2026 FINANCIAL RESULTS

Revenues totaled $166 million, operating income was $87 million, operating cash flow was $64 million and net income was $87 million, or $4.11 per diluted share.

On a non-GAAP basis, Adjusted EBITDAX(1) was $80 million, cash flow from operations before changes in working capital(1) was $75 million, Total Free Cash Flow(1) was $6 million and Adjusted Net Income(1) was $33 million, or $1.54 per diluted share.

Average realized prices, before derivative settlements, were $94.28 per barrel of oil, $(4.12) per Mcf of natural gas and $(4.71) per barrel of natural gas liquids ("NGL").

Realized natural gas prices were negative before gathering, processing and transportation costs ("GP&T costs") due to Waha pricing being negatively impacted from ongoing regional pipeline constraints. Realized NGL prices before GP&T costs increased primarily due to higher Mont Belvieu pricing during the quarter. The pricing benefit to NGL sales were more than offset by higher allocated GP&T costs from negative realized natural gas prices.

Certain portions of our New Mexico operations were impacted during April and May of the second quarter of 2026 by ongoing gas processing and midstream constraints following an unplanned outage at a third-party facility beginning in late March. The disruptions resulted in periodic processing limitations, reduced gas takeaway capacity, and temporary well shut-ins, reducing production from affected areas. We estimate the temporary shut-ins reduced second quarter production by approximately 1.9 MBbls/d. June oil production was 24.4 MBbls/d.

In December of 2025, we contracted with Targa Northern Delaware LLC ("Targa") to construct new gathering and high-pressure trunkline infrastructure in Eddy County, New Mexico pursuant to the A&R Gas Purchase Agreement, to mitigate processing and takeaway constraints of the nature experienced during the second quarter. The in-service date of the new Targa pipeline system is currently expected to occur in the fourth quarter of 2026.

The Company reported a $36 million realized loss on derivative settlements, reflecting cash settlements on financial contracts linked to crude oil prices, and a $69 million non-cash gain due to the changes in the fair value of derivatives that will settle in future periods for a combined $33 million net gain on derivatives. Unrealized derivatives reflect the accounting remeasurement of the Company's derivative portfolio based on changes in the market value of contracts that remain open and do not represent current-period cash inflows or outflows.

Operating expenses included lease operating expense of $29 million, or $9.44 per Boe, which included $11 million in workover expense. The Company executed a large number of workover projects during the quarter in an effort to capitalize on high oil prices as well as to supplement volumes operationally disrupted. Administrative costs were $9 million, or $2.80 per Boe and production and ad valorem taxes were $11 million or $3.67 per Boe.

The Company incurred $87 million in total accrued capital expenditures. On a cash basis, the Company had total capital expenditures of $68 million. The Company invested $3 million in its power-focused joint venture, RPC Power.

The Company increased total debt by $26 million, including a $31 million increase on the Credit Facility and $5 million reduction on the Senior Notes. As of June 30, 2026, the Company had $138 million of borrowings outstanding on its Credit Facility and $135 million principal value of its Senior Notes, for a combined principal value of debt of $273 million. Interest expense, net was $7 million.

As part of our stock repurchase program, the Company repurchased 25 thousand shares of common stock at a weighted average price of $34.13 per share for a total of $1 million. The diluted weighted average shares outstanding during the quarter was 21.3 million.

The Company paid a cash dividend of $0.40 per share, for a total of $9 million.


 ___________________



 (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 based on principal debt outstanding as of June 30, 2026, divided by Last Twelve Months Adjusted EBITDAX(1).




   
            
              Selected Operating and Financial Data

---


   
            (Unaudited)


                                                                                                            
 
 Three Months Ended                  Six Months Ended


                                                                                                     June 30,           March 31,  June 30,   June 30,               June 30,
                                                                                                        2026                2026        2025        2026                    2025



   
            Selected Financial Data (in thousands):



   Oil and natural gas sales, net                                                                   $165,850             $113,881    $85,394    $279,731                $187,851



   Income from operations                                                                            $87,232              $43,670    $28,754    $130,902                 $78,256



   Adjusted EBITDAX(1)                                                                               $80,107              $60,933    $59,340    $141,040                $130,473



   Cash flow from operations                                                                         $63,500              $47,176    $33,640    $110,676                 $84,021





   Upstream accrual capital expenditures                                                             $86,599              $47,087    $22,022    $133,686                 $41,452



   Upstream cash capital expenditures                                                                $67,931              $30,130    $25,300     $98,061                 $41,574



   Total accrual capital expenditures                                                                $86,599              $47,087    $27,786    $133,686                 $51,786



   Total cash capital expenditures                                                                   $68,287              $31,184    $28,715     $99,471                 $47,868





   Upstream Free Cash Flow(1)                                                                         $6,613              $24,554    $21,250     $31,167                 $60,557



   Total Free Cash Flow(1)                                                                            $6,257              $23,500    $17,835     $29,757                 $54,263





   
            Production Data, net:



   Oil (MBbls)                                                                                         1,933                1,814      1,382       3,747                   2,788



   Natural gas (MMcf)                                                                                  3,241                3,781      2,213       7,022                   4,441



   NGLs (MBbls)                                                                                          645                  760        465       1,405                     887



   Total equivalent (MBoe)                                                                             3,118                3,204      2,216       6,322                   4,415





   Daily equivalent production (Boe/d)                                                                34,264               35,600     24,352      34,928                  24,392



   Daily oil production (Bbls/d)                                                                      21,242               20,156     15,187      20,702                  15,403





   
            Average Realized Prices:
            
              (2)



   Oil ($ per Bbl)                                                                                    $94.28               $68.89     $62.17      $81.99                  $66.18



   Natural gas ($ per Mcf)                                                                           $(4.12)             $(1.68)   $(0.39)    $(2.81)                  $0.16



   NGLs ($ per Bbl)                                                                                  $(4.71)             $(6.22)     $0.75     $(5.53)                  $2.96





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



   Oil ($ per Bbl)                                                                                    $74.25               $62.40     $66.10      $68.51                  $68.55



   Natural gas ($ per Mcf)                                                                           $(3.33)             $(1.67)   $(0.52)    $(2.44)                  $0.08



   NGLs ($ per Bbl)(4)                                                                               $(4.71)             $(6.22)     $0.75     $(5.53)                  $2.96





   
            Weighted Average Common Shares Outstanding (in thousands):



   Basic                                                                                              20,937               20,869     21,141      20,903                  21,126



   Diluted                                                                                            21,255               20,869     21,158      21,138                  21,135


 ___________________



 (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 gathering, processing and transportation costs. These costs,
                          related to natural gas and NGLs, at times exceeded the price received and resulted in negative average realized prices.



 (3)                   The Company's calculation of the effects of derivative settlements includes gains (losses) on the settlement of our commodity
                          derivative contracts. These realized gains (losses), along with unrealized gains (losses) from changes in the fair value of
                          derivatives, are included under other income (expense) on the Company's condensed 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 third quarter detailed guidance and updated 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.


 
            Activity and Production                                             Q3 2026              Full-Year
                                                                                                           2026



 
            Net Operated Well Activity



 Drilled (#)                                                               4.9 -6.9             51.6 -53.6



 Completed (#)                                                               8.2 -
                                                                               10.2               41.1 -43.1



 Turned to Sales (#)                                                        15.2 -
                                                                               17.2               42.8 -44.8





 Non-Operated, Net (#)                                                     1.9 -2.9              1.9 -2.9





 
            Net Production



 Oil (MBbls/d)                                                              25.1 -
                                                                               26.1               22.5 -23.5



 Total Equivalent (MBoe/d)                                                  40.5 -
                                                                               41.5               37.5 -38.5




               Capital Expenditures and Investments (in millions)
 
 (1)



 Upstream                                                               
       $46 - $52 
          $189 - $195



 Infrastructure and Other                                                
       $7 - $13   
          $41 - $47



 
            Total Capital Expenditures                                
       $53 - $65 
          $230 - $242





 Power JV Investment                                                                   $2     
          $9 - $10



 
            Total Investments                                         
       $55 - $67 
          $239 - $252




 
            Operating and Corporate Costs             Q3 2026





 Lease Operating Expenses ($ per Boe)           
 $8.50 - $9.50



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



 Administrative Costs ($ per Boe)               
 $2.25 - $2.75


 ___________________



 (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 August 6, 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).

A replay of the call will be available until August 20, 2026 by calling:

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

AboutRiley 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:
Ben McQueen
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, including basis differentials between published indices and the prices we actually receive for our production; 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 any potential moratorium on new produced water well permits recently imposed by the Railroad Commission of Texas or New Mexico Oil Conservation Division 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 current 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.


                                                                                                       
    
   CONDENSED CONSOLIDATED BALANCE SHEETS




                                                                                                                                                              (Unaudited)


                                                                                                                                                      June 30, 2026                              December 31, 2025


                                                                                                                                                                     (In thousands, except share
                                                                                                                                                                               amounts)



          
            Assets



          
            Current Assets:



          Cash                                                                                                                                                   $20,686                                   $17,889



          Accounts receivable, net                                                                                                                                69,169                                    41,045



          Prepaid expenses                                                                                                                                         5,428                                     7,763



          Inventory                                                                                                                                                9,029                                     7,929



          Current derivative assets                                                                                                                                   10                                    19,141



          
            Total Current Assets                                                                                                                      104,322                                    93,767



          Oil and natural gas properties, net (successful efforts)                                                                                             1,082,809                                   995,539



          Other property and equipment, net                                                                                                                       23,205                                    21,872



          Non-current derivative assets                                                                                                                            3,213                                     5,117



          Equity method investment                                                                                                                                42,365                                    36,188



          Funds held in escrow                                                                                                                                     1,196                                     1,196



          Other non-current assets, net                                                                                                                           13,381                                    15,899



          
            Total Assets                                                                                                                           $1,270,491                                $1,169,578



          
            Liabilities and Shareholders' Equity



          
            Current Liabilities:



          Accounts payable                                                                                                                                       $33,189                                    $5,083



          Accrued liabilities                                                                                                                                     54,531                                    37,690



          Revenue payable                                                                                                                                         77,854                                    59,606



          Current derivative liabilities                                                                                                                          22,106                                        37



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



          Other current liabilities                                                                                                                               24,299                                    34,089



          
            Total Current Liabilities                                                                                                                 231,979                                   156,505



          Non-current derivative liabilities                                                                                                                       2,858                                       112



          Asset retirement obligations                                                                                                                            59,642                                    59,977



          Long-term debt                                                                                                                                         247,495                                   227,855



          Deferred tax liabilities                                                                                                                                91,044                                    86,119



          Other non-current liabilities                                                                                                                            4,119                                     4,768



          
            Total Liabilities                                                                                                                         637,137                                   535,336



          
            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; 22,173,260 and 21,718,800 shares                                                             22                                        22
issued at June 30, 2026 and December 31, 2025, respectively



          Additional paid-in capital                                                                                                                             306,106                                   306,660



          Retained earnings                                                                                                                                      327,226                                   327,560



          
            Total Shareholders' Equity                                                                                                                633,354                                   634,242



          
            Total Liabilities and Shareholders' Equity                                                                                             $1,270,491                                $1,169,578

                                             
          
            RILEY EXPLORATION PERMIAN, INC.


                                     
          
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                                               
          
            
              (Unaudited)




                                                                                                                     Three Months Ended June
                                                                                                                      30,                                Six Months Ended June 30,


                                                                                                                2026     2025                2026                2025


                                                                                                                     (In thousands, except per share amounts)



 
            Revenues:



 Oil and natural gas sales, net                                                                            $165,850  $85,394            $279,731            $187,851



 
            Total Revenues                                                                                165,850   85,394             279,731             187,851



 
            Costs and Expenses:



 Lease operating expenses                                                                                    29,433   18,880              53,504              37,211



 Production and ad valorem taxes                                                                             11,430    6,126              20,462              12,796



 Exploration costs                                                                                              466       47               1,433                  56



 Depletion, depreciation, amortization and accretion                                                         24,651   19,563              50,371              38,701



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



 General and administrative:



 Administrative costs                                                                                         8,720    6,199              16,840              13,637



 Stock-based compensation expense                                                                             3,918    2,685               6,219               4,054



 Transaction costs                                                                                                    1,926                                  1,926



 
            Total Costs and Expenses                                                                       78,618   56,640             148,829             109,595



 
            Income from Operations                                                                         87,232   28,754             130,902              78,256



 
            Other Income (Expense):



 Interest expense, net                                                                                      (6,770) (7,171)           (13,127)           (13,832)



 Gain (loss) on derivatives, net                                                                             33,235   18,720            (93,735)             12,870



 Income (loss) from equity method investment                                                                     45    (129)              (323)              (248)



 Gain (loss) on acquisitions and divestitures, net                                                              961                     (1,736)



 
            Total Other Income (Expense)                                                                   27,471   11,420           (108,921)            (1,210)



 
            Net Income from Operations before Income Taxes                                                114,703   40,174              21,981              77,046



 Income tax expense                                                                                        (27,333) (9,704)            (5,045)           (17,943)



 
            Net Income                                                                                    $87,370  $30,470             $16,936             $59,103





 
            Net Income per Share:



 Basic                                                                                                        $4.17    $1.44               $0.81               $2.80



 Diluted                                                                                                      $4.11    $1.44               $0.80               $2.80



 
            Weighted Average Common Shares Outstanding:



 Basic                                                                                                       20,937   21,141              20,903              21,126



 Diluted                                                                                                     21,255   21,158              21,138              21,135

                                                                         
          
           RILEY EXPLORATION PERMIAN, INC.


                                                                 
          
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                           
          
           
              (Unaudited)




                                                                                                                                                    Three Months Ended June
                                                                                                                                                     30,                        Six Months Ended June 30,


                                                                                                                                            2026        2025               2026         2025


                                                                                                                                              
  
            (In thousands)



 
            Cash Flows from Operating Activities:



 Net income                                                                                                                             $87,370     $30,470            $16,936      $59,103



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



 Exploratory well costs and lease expirations                                                                                               466           1              1,379           10



 Depletion, depreciation, amortization and accretion                                                                                     24,651      19,563             50,371       38,701



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



 (Gain) loss on derivatives, net                                                                                                       (33,235)   (18,720)            93,735     (12,870)



 Settlements on derivative contracts                                                                                                   (36,160)      5,151           (47,885)       6,266



 Amortization of deferred financing costs and discount                                                                                    1,185       1,191              2,367        2,373



 Stock-based compensation expense                                                                                                         3,918       2,685              6,219        4,054



 Deferred income tax expense                                                                                                             28,233       4,866              4,925        3,040



 (Income) loss from equity method investment                                                                                               (45)        129                323          248



 (Gain) loss on acquisitions and divestitures, net                                                                                      (1,839)                          858



 Other                                                                                                                                                                               (8)



 Changes in operating assets and liabilities                                                                                           (11,044)   (12,910)          (18,552)    (18,110)



 
            Net Cash Provided by Operating Activities                                                                                  63,500      33,640            110,676       84,021



 
            Cash Flows from Investing Activities:



 Additions to oil and natural gas properties                                                                                           (67,294)   (24,788)          (96,864)    (40,938)



 Additions to midstream property and equipment                                                                                            (356)    (3,415)           (1,410)     (6,294)



 Additions to other property and equipment                                                                                                (637)      (512)           (1,197)       (636)



 Acquisitions of oil and natural gas properties                                                                                         (2,649)    (2,138)           (4,824)     (2,138)



 Acquisitions of land                                                                                                                       (4)                        (548)



 Proceeds from divestitures                                                                                                                 599                         8,206



 Contributions to equity method investment                                                                                              (2,500)                      (6,500)     (6,250)



 Distributions from equity method investment                                                                                                                           1,487



 Funds held in escrow                                                                                                                             (14,201)                      (14,201)



 
            Net Cash Used in Investing Activities                                                                                    (72,841)   (45,054)         (101,650)    (70,457)



 
            Cash Flows from Financing Activities:



 Deferred financing costs                                                                                                                  (82)       (24)             (108)       (164)



 Proceeds from credit facility                                                                                                           69,000      30,000             77,000       30,000



 Repayments under credit facility                                                                                                      (38,000)                     (49,000)    (16,000)



 Repayments of senior notes                                                                                                             (5,000)    (5,000)          (10,000)    (10,000)



 Payment of earnout liability                                                                                                             (310)                        (310)



 Payment of cash dividends                                                                                                              (8,678)    (8,088)          (17,038)    (16,121)



 Repurchase of common shares                                                                                                              (854)                      (4,902)



 Repurchase of common shares for tax withholding and other                                                                              (1,858)      (305)           (1,871)       (377)



 
            Net Cash (Used in) Provided by Financing Activities                                                                        14,218      16,583            (6,229)    (12,662)



 
            Net Increase in Cash                                                                                                        4,877       5,169              2,797          902



 
            Cash, Beginning of Period                                                                                                  15,809       8,857             17,889       13,124



 
            Cash, End of Period                                                                                                       $20,686     $14,026            $20,686      $14,026

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 August 3, 2026, related to our future oil and natural gas production:

                                                                    2026
                                                                           (1)                                                                           2027                                       2028


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


             
          
            Oil



 
            
              WTI Oil Swaps



 Volume (Bbl)                                              860,000                820,000           725,000            650,000             630,000                605,000               330,000



 Weighted                                                   $61.65                 $61.42            $61.48             $61.68              $61.38                 $61.62                $70.18


 average price


 ($/Bbl)





 
            
              WTI Oil Collars



 Volume (Bbl)                                              570,000                550,000           475,000            537,000             490,000                315,000               270,000                90,000



 Weighted                                                   $58.25                 $57.75            $57.15             $55.84              $54.22                 $57.38                $56.67                $60.00


 average floor


 price ($/Bbl)



 Weighted                                                   $72.66                 $69.59            $66.42             $67.97              $69.43                 $72.26                $75.77                $80.65


 average ceiling price ($/Bbl)




         
          
            Natural Gas



 
            
              Henry Hub

                              Natural Gas Swaps



 Volume (MMBtu)                                            300,000                500,000           600,000



 Weighted                                                    $3.59                  $4.07             $4.19


 average price


 ($/MMBtu)





 
            
              Henry Hub

                              Natural Gas Collars



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



 Weighted                                                    $3.05                  $3.43             $3.80


 average floor


 price ($/MMBtu)



 Weighted                                                    $3.74                  $4.79             $5.84


 average ceiling price ($/MMBtu)





 
            
              Waha Basis Swaps



 Volume (MMBtu)                                          1,250,000              3,450,000         3,150,000          3,150,000           3,150,000              3,150,000             1,800,000



 Weighted                                                  $(1.65)               $(1.58)          $(0.94)           $(0.95)            $(0.95)               $(0.95)              $(1.01)


 average price


 ($/MMBtu)


 ___________________



 (1)  Q3 2026 derivative positions shown include 2026 contracts, some of which have settled as of August 3, 2026.

Interest Rate Contracts

The following table summarizes the open interest rate derivative positions as of August 3, 2026:


 
            Open Coverage Period Position Notional Amount Fixed Rate


                                             (In thousands)



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

View original content:https://www.prnewswire.com/news-releases/riley-permian-reports-second-quarter-2026-results-302844189.html

SOURCE Riley Exploration Permian, Inc.

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