18:13:14 EST Wed 04 Nov 2026
Enter Symbol
or Name
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Riley Permian Reports Third Quarter 2026 Results

2026-11-04 16:30 ET - News Release

Riley Permian Reports Third Quarter 2026 Results

PR Newswire

OKLAHOMA CITY, Nov. 4, 2026 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian" or the "Company"), today reported financial and operating results for the third quarter ended September 30, 2026.

THIRD QUARTER 2026 HIGHLIGHTS

  • Increased oil production by 20% quarter-over-quarter (+38% year-over-year) to 25.4 MBbls/d, with total equivalent production of 42.0 MBoe/d
  • Grew operating cash flow 75% quarter-over-quarter (+75% year-over-year) to $111 million and $42 million of Total Free Cash Flow(1)
  • Incurred total accrual capital expenditures before acquisitions of $53 million and cash capital expenditures before acquisitions of $66 million
  • Reduced debt by 10% quarter-over-quarter (-35% year-over-year) to $245 million

ADDITIONAL UPDATES

  • Commenced operations over the past seven weeks on new third-party water and gas infrastructure in New Mexico, including natural gas gathering and high pressure trunkline system developed over the past year
  • Progressed organic resource expansion initiatives across the Red Lake asset, including evaluation of the San Andres formation with planned development activity beginning in the second quarter of 2027
  • Retired 10.5% unsecured senior notes ("Senior Notes") in October 2026
  • Increased quarterly dividend by 5% to $0.42 per share in October 2026

MANAGEMENT COMMENTARY

The Company reported strong results across operating and financial metrics. Production growth was driven by new development well volumes from capital invested in prior quarters, as well as the return to production of select New Mexico wells following disruptions during the second quarter. Stronger natural gas and NGL realizations resulted in a $22 million positive swing in revenue compared to the second quarter, when we experienced negative revenue on those products. Core operating costs also improved on a per unit basis, contributing to stronger margins.

Bobby Riley, CEO and Chairman of the Board, stated, "Going forward, and based on current market conditions, we plan to continue investing significantly in the development of our assets, supported by our large and growing base of undeveloped inventory, improving third-party infrastructure conditions, and the currently supportive commodity price environment."


 ____________________



 (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.

THIRD QUARTER 2026 OPERATIONS AND DEVELOPMENT ACTIVITY RESULTS

Average Daily Production by State

                                                       Three Months Ended September               Nine Months Ended September
                                                            30,                          30,


                                                  2026           2025               2026     2025



 
          Total Equivalent Production (MBoe/d)



 Texas                                           27.7           17.2               24.1     17.0



 New Mexico                                      14.3           15.1               13.2     10.1



 Total                                           42.0           32.3               37.3     27.1





 
          Oil Production (MBbls/d)



 Texas                                           18.5           10.5               15.7     11.2



 New Mexico                                       6.9            7.9                6.6      5.2



 Total                                           25.4           18.4               22.3     16.4

Development Activity by State

                                            Three Months Ended September 30,                Nine Months Ended September 30,
                                                            2026                                             2026


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


             Wells Drilled



 Texas                                    5                                      4.1           30                                28.5



 New Mexico                               8                                      4.5           24                                15.6



 Total                                   13                                      8.6           54                                44.1




             Wells Completed



 Texas                                    7                                      6.5           38                                36.6



 New Mexico                               2                                      1.4            2                                 1.4



 Total                                    9                                      7.9           40                                38.0




             Wells Turned to Sales



 Texas                                   12                                     11.9           35                                33.8



 New Mexico



 Total                                   12                                     11.9           35                                33.8


 ____________________



 (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

Production increased in Texas for both the three months and nine months periods ending September 30, 2026, primarily from the contribution of new wells turned to sales. Year-to-date, all of the Company's new wells turned to sales have been in Texas.

Production increased in New Mexico quarter-over-quarter primarily from the return to normal operations in most areas following shut-ins from third-party midstream constraints experienced in the second quarter. Production decreased in New Mexico year-over-year for the three months ended September 30, 2026, due to natural decline, as zero new wells were turned to sales since July 2025, while production increased year-over-year for the nine months ended September 30, 2026 as a result of workover activity and the acquisition of Silverback Exploration II, LLC and its subsidiaries on July 1, 2025.

Year-to-date, the Company drilled 44.1 net wells, completed 38.0 net wells and turned to sales 33.8 net wells. The Company exited the third quarter with 17.3 net drilled-but-uncompleted wells, including 2.6 net wells in Texas and 14.7 net wells in New Mexico, with an additional 5.9 net completed wells not yet turned to sales. Wells are scheduled to turn to sales in the coming quarters across both regions.

THIRDQUARTER2026 FINANCIAL RESULTS

Revenues totaled $201 million, operating income was $107 million, operating cash flow was $111 million and net loss was $2 million, or $(0.11) per diluted share.

On a non-GAAP basis, Adjusted EBITDAX(1) was $117 million, cash flow from operations before changes in working capital(1) was $108 million, Total Free Cash Flow(1) was $42 million and Adjusted Net Income(1) was $56 million, or $2.66 per diluted share.

Average realized prices, before derivative settlements, were $83.63 per barrel of oil, $0.27 per Mcf of natural gas and $5.08 per barrel of natural gas liquids ("NGL"). Total revenues increased $35 million or 21% quarter-over-quarter, as higher volumes and positive natural gas and NGL revenue more than offset a $10.65/Bbl decline in realized oil price before derivative settlements.

The Company reported a $28 million realized loss on derivative settlements, reflecting cash settlements on financial contracts linked to crude oil prices, and a $72 million non-cash loss due to the changes in the fair value of derivatives that will settle in future periods for a combined $100 million net loss 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.

Revenue net of derivative settlements increased $43 million or 33% quarter-over-quarter to $173 million, with oil accounting for 31% of the positive variance, natural gas and NGL accounting for 51% of the variance, and derivative settlements accounting for 18%.

Operating expenses included lease operating expense of $34 million, or $8.84 per Boe, which included $11 million in workover expense. Administrative costs were $9 million, or $2.27 per Boe and production and ad valorem taxes were $13 million or $3.30 per Boe.

The Company incurred $53 million in total accrued capital expenditures. On a cash basis, the Company had total capital expenditures of $66 million. The Company invested $2 million in its power-focused joint venture, RPC Power.

The Company reduced total debt by $28 million, including a $23 million decrease on the Credit Facility and $5 million reduction on the Senior Notes. As of September 30, 2026, the Company had $115 million of borrowings outstanding on its Credit Facility and $130 million principal value of its Senior Notes, for a combined principal value of debt of $245 million. Interest expense, net was $7 million.

The Company paid a cash dividend of $0.40 per share, for a total of $8 million. Subsequent to quarter-end, the Company declared a cash dividend of $0.42 per share, a 5% increase from the prior quarter. The Company completed zero buybacks during the quarter. As of September 30, 2026, there were 22.15 million shares outstanding, including unvested shares, a year-over-year increase of 0.7%.


 ____________________



 (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.

INFRASTRUCTURE UPDATES

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. On October 1, 2026, the new Targa pipeline system was placed in service.

In January of 2026, the Company entered into a 15-year water management services agreement with Waterbridge Stateline LLC to deliver a portion of its New Mexico produced water for disposal purposes within a specified dedicated area. The in-service date occurred on September 15, 2026.

The additional natural gas infrastructure and water management services agreement are expected to improve natural gas flow assurance and expand water handling capacity to support increased development of the Company's New Mexico acreage position.

DEBT FINANCING UPDATES

On October 5, 2026, the Company voluntarily prepaid in full all of its outstanding Senior Notes, which was $130 million plus $0.2 million of accrued interest through the prepayment date. The Company funded the prepayment with borrowings under its existing revolving credit facility ("Credit Facility").

On October 29, 2026, the Company entered into an amended and restated credit agreement to the Credit Facility, which among other things, increased the Company's borrowing base from $425 million to $450 million and increased the elected commitments from $400 million to $450 million. The maturity date was extended to October 2030, and the minimum hedging requirement was reduced to a rolling 18-month basis, down from 24 months.

POTENTIAL RESOURCE EXPANSION

The Company continues to advance geological and reservoir evaluation of the San Andres formation across its Red Lake asset, a productive interval located above the Blinebry and Paddock formations, where modern horizontal development has historically been concentrated. The Company's evaluation incorporates well logs, seismic and other subsurface data, reservoir performance and depletion analysis, as well as recent results from industry development activity in the San Andres. Based on this work, the Company plans to allocate capital to initial development of the San Andres during the second quarter of 2027.

                                       Selected Operating and Financial Data

---


          
            (Unaudited)


                                                                                           
  
 Three Months Ended                         Nine Months Ended


                                                                                September 30,            June 30,
                                                                                                            2026   September 30,  September 30,              September 30,
                                                                                         2026                               2025            2026                        2025



          
            Selected Financial Data (in thousands):



          Oil and natural gas sales, net                                            $201,203             $165,850       $106,852        $480,934                    $294,703



          Income from operations                                                    $106,725              $87,232        $28,862        $237,627                    $107,118



          Net income (loss)                                                         $(2,400)             $87,370        $16,340         $14,536                     $75,443



          Adjusted EBITDAX(1)                                                       $117,287              $80,107        $64,041        $258,327                    $194,514



          Cash flow from operations                                                 $111,303              $63,500        $63,650        $221,979                    $147,671





          Upstream accrual capital expenditures                                      $53,114              $86,599        $13,129        $186,800                     $54,581



          Upstream cash capital expenditures                                         $65,446              $67,931        $14,893        $163,507                     $56,467



          Total accrual capital expenditures                                         $53,114              $86,599        $18,019        $186,800                     $69,805



          Total cash capital expenditures                                            $65,581              $68,287        $29,027        $165,052                     $76,895





          Upstream Free Cash Flow(1)                                                 $42,486               $6,613        $39,441         $73,653                     $99,998



          Total Free Cash Flow(1)                                                    $42,351               $6,257        $25,307         $72,108                     $79,570





          
            Production Data, net:



          Oil (MBbls)                                                                  2,340                1,933          1,690           6,087                       4,478



          Natural gas (MMcf)                                                           3,898                3,241          3,380          10,920                       7,821



          NGLs (MBbls)                                                                   876                  645            722           2,281                       1,609



          Total equivalent (MBoe)                                                      3,866                3,118          2,975          10,188                       7,391





          Daily equivalent production (Boe/d)                                         42,022               34,264         32,337          37,319                      27,073



          Daily oil production (Bbls/d)                                               25,435               21,242         18,370          22,297                      16,403




                        Average Realized Prices:
            
              (2)



          Oil ($ per Bbl)                                                             $83.63               $94.28         $63.94          $82.62                      $65.33



          Natural gas ($ per Mcf)                                                      $0.27              $(4.12)       $(0.21)        $(1.71)                      $0.00



          NGLs ($ per Bbl)                                                             $5.08              $(4.71)       $(0.66)        $(1.46)                      $1.34





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



          Oil ($ per Bbl)                                                             $71.61               $74.25         $65.17          $69.70                      $67.28



          Natural gas ($ per Mcf)                                                      $0.26              $(3.33)       $(0.16)        $(1.48)                    $(0.02)



          NGLs ($ per Bbl)                                                             $5.08              $(4.71)       $(0.66)        $(1.46)                      $1.34





          Basic weighted average common shares                                        20,945               20,937         21,164          20,918                      21,139
outstanding (in thousands)(4)



          Diluted weighted average common shares                                      20,945               21,255         21,263          21,221                      21,178
outstanding (in thousands)(5)


 ____________________



 (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)                  
 Excludes all unvested shares.



 (5)                    Excludes potentially dilutive shares that would have been anti-dilutive. Performance shares are included based on performance
                           achieved through September 30, 2026. For periods with a net loss, all potentially dilutive securities are excluded, as their
                           effect would be anti-dilutive.

2026 GUIDANCE

Riley Permian is providing fourth quarter detailed 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                                           Q4 2026



 
            Net Operated Well Activity



 Drilled (#)                                                              13 -17



 Completed (#)                                                            13 -17



 Turned to Sales (#)                                                      14 -18





 Non-Operated, Net (#)                                                     0 -1





 
            Net Production



 Oil (MBbls/d)                                                            25.5 -
                                                                             26.5



 Total Equivalent (MBoe/d)                                                42.5 -
                                                                             43.5




               Capital Expenditures and Investments (in millions)
 
 (1)



 Upstream                                                               
     $60 - $70



 Infrastructure and Other                                               
     $14 - $16



 
            Total Capital Expenditures                                
     $74 - $86





 Power JV Investment                                                                 $2



 
            Total Investments                                         
     $76 - $88


 
            Operating and Corporate Costs             Q4 2026



 Lease Operating Expenses ($ per Boe)           
 $8.75 - $9.75



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



 Administrative Costs ($ per Boe)               
 $2.00 - $2.50


 ____________________



 (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 November 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 (833) 461-5787
  • Toll Dial-in, +1 (585) 542-9983
  • Meeting ID number 124 912 180

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 November 19, 2026 by calling:

  • Toll Free Dial-In, +1 (833) 309-1852
  • Meeting ID number 124 912 180

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, including uncertainties in San Andres development, well spacing and the applicability of offset-well results to our acreage; 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)


                                                                                                                                September 30,
                                                                                                                                     2026                                      December 31, 2025


                                                                                                                                          (In thousands, except share amounts)



          
            Assets



          
            Current Assets:



          Cash                                                                                                                             $26,833                                      $17,889



          Accounts receivable, net                                                                                                          92,010                                       41,045



          Prepaid expenses                                                                                                                   3,591                                        7,763



          Inventory                                                                                                                          5,305                                        7,929



          Current derivative assets                                                                                                             89                                       19,141



          
            Total Current Assets                                                                                                127,828                                       93,767



          Oil and natural gas properties, net (successful efforts)                                                                       1,109,695                                      995,539



          Other property and equipment, net                                                                                                 23,623                                       21,872



          Non-current derivative assets                                                                                                        829                                        5,117



          Equity method investment                                                                                                          44,184                                       36,188



          Funds held in escrow                                                                                                                                                           1,196



          Other non-current assets, net                                                                                                     14,450                                       15,899



          
            Total Assets                                                                                                     $1,320,609                                   $1,169,578



          
            Liabilities and Shareholders' Equity



          
            Current Liabilities:



          Accounts payable                                                                                                                 $36,025                                       $5,083



          Accrued liabilities                                                                                                               52,475                                       37,690



          Revenue payable                                                                                                                   91,447                                       59,606



          Current derivative liabilities                                                                                                    85,481                                           37



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



          Other current liabilities                                                                                                         24,016                                       34,089



          
            Total Current Liabilities                                                                                           309,444                                      156,505



          Non-current derivative liabilities                                                                                                 8,821                                          112



          Asset retirement obligations                                                                                                      64,089                                       59,977



          Long-term debt                                                                                                                   220,316                                      227,855



          Deferred tax liabilities                                                                                                          87,897                                       86,119



          Other non-current liabilities                                                                                                      3,859                                        4,768



          
            Total Liabilities                                                                                                   694,426                                      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; 22,153,785                                                             22                                           22
and 21,718,800 shares issued at September 30, 2026 and December 31, 2025,
respectively



          Additional paid-in capital                                                                                                       310,138                                      306,660



          Retained earnings                                                                                                                316,023                                      327,560



          
            Total Shareholders' Equity                                                                                          626,183                                      634,242



          
            Total Liabilities and Shareholders' Equity                                                                       $1,320,609                                   $1,169,578

                                                     
          
            RILEY EXPLORATION PERMIAN, INC.


                                             
          
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


                                                        
          
            
              (Unaudited)




                                                                                                                            Three Months Ended September                             Nine Months Ended September
                                                                                                                                30,                                    30,


                                                                                                                       2026          2025                  2026                 2025


                                                                                                                              (In thousands, except per share amounts)



     
            Revenues:



     Oil and natural gas sales, net                                                                               $201,203      $106,852              $480,934             $294,703



     
            Total Revenues                                                                                   201,203       106,852               480,934              294,703



     
            Costs and Expenses:



     Lease operating expenses                                                                                       34,173        26,874                87,677               64,085



     Production and ad valorem taxes                                                                                12,764         8,278                33,226               21,074



     Exploration costs                                                                                               2,086           217                 3,519                  273



     Depletion, depreciation, amortization and accretion                                                            32,478        27,214                82,849               65,915



     Impairment of oil and natural gas properties                                                                                                                          1,214



     General and administrative:



     Administrative costs                                                                                            8,784         9,922                25,624               23,559



     Stock-based compensation expense                                                                                4,169         2,688                10,388                6,742



     Transaction costs                                                                                                  24         2,797                    24                4,723



     
            Total Costs and Expenses                                                                          94,478        77,990               243,307              187,585



     
            Income from Operations                                                                           106,725        28,862               237,627              107,118



     
            Other Income (Expense):



     Interest expense, net                                                                                         (6,731)      (9,606)             (19,858)            (23,438)



     Gain (loss) on derivatives, net                                                                              (99,838)        1,920             (193,573)              14,790



     Loss from equity method investment                                                                              (181)         (19)                (504)               (267)



     Loss on acquisitions and divestitures, net                                                                    (3,254)                           (4,990)



     
            Total Other Income (Expense)                                                                   (110,004)      (7,705)            (218,925)             (8,915)



     
            Net Income (Loss) from Operations before Income                                                  (3,279)       21,157                18,702               98,203
Taxes



     Income tax benefit (expense)                                                                                      879       (4,817)              (4,166)            (22,760)



     
            Net Income (Loss)                                                                               $(2,400)      $16,340               $14,536              $75,443





     
            Net Income (Loss) per Share:



     Basic                                                                                                         $(0.11)        $0.77                 $0.69                $3.57



     Diluted                                                                                                       $(0.11)        $0.77                 $0.68                $3.56



     
            Weighted Average Common Shares Outstanding:



     Basic                                                                                                          20,945        21,164                20,918               21,139



     Diluted                                                                                                        20,945        21,263                21,221               21,178

                                                              
    
           RILEY EXPLORATION PERMIAN, INC.


                                                      
          
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                 
   
            
              (Unaudited)




                                                                                                                                  Three Months Ended September                     Nine Months Ended September
                                                                                                                                      30,                            30,


                                                                                                                           2026            2025                 2026          2025


                                                                                                                                
   
            (In thousands)



          
            Cash Flows from Operating Activities:



          Net income (loss)                                                                                           $(2,400)        $16,340              $14,536       $75,443



          Adjustments to reconcile net income (loss) to net cash
provided by operating activities:



          Exploration costs                                                                                              2,086             202                3,465           212



          Depletion, depreciation, amortization and accretion                                                           32,478          27,214               82,849        65,915



          Impairment of oil and natural gas properties                                                                                                                   1,214



          (Gain) loss on derivatives, net                                                                               99,838         (1,920)             193,573      (14,790)



          Settlements on derivative contracts                                                                         (28,195)          2,263             (76,080)        8,529



          Amortization of deferred financing costs and discount                                                          1,193           1,197                3,560         3,570



          Stock-based compensation expense                                                                               4,169           2,688               10,388         6,742



          Deferred income tax (benefit) expense                                                                        (3,147)          6,331                1,778         9,371



          Loss from equity method investment                                                                               181              19                  504           267



          Loss on acquisitions and divestitures, net                                                                     1,729                               2,587



          Other                                                                                                                                                            (8)



          Changes in operating assets and liabilities                                                                    3,371           9,316             (15,181)      (8,794)



          
            Net Cash Provided by Operating Activities                                                       111,303          63,650              221,979       147,671



          
            Cash Flows from Investing Activities:



          Additions to oil and natural gas properties                                                                 (65,163)       (14,292)           (162,027)     (55,230)



          Additions to midstream property and equipment                                                                  (135)       (14,134)             (1,545)     (20,428)



          Additions to other property and equipment                                                                      (283)          (601)             (1,480)      (1,237)



          Net assets acquired in business combination                                                                               (117,827)                        (117,827)



          Acquisitions of oil and natural gas properties                                                                 (515)           (23)             (5,339)      (2,161)



          Acquisitions of land                                                                                           (422)                              (970)



          Proceeds from divestitures                                                                                                                        8,206



          Contributions to equity method investment                                                                    (2,000)        (8,500)             (8,500)     (14,750)



          Distributions from equity method investment                                                                                                       1,487



          Funds held in escrow                                                                                             319          13,005                  319       (1,196)



          
            Net Cash Used in Investing Activities                                                          (68,199)      (142,372)           (169,849)    (212,829)



          
            Cash Flows from Financing Activities:



          Deferred financing costs                                                                                        (69)           (79)               (177)        (243)



          Proceeds from credit facility                                                                                  6,000         125,000               83,000       155,000



          Repayments under credit facility                                                                            (29,000)       (29,000)            (78,000)     (45,000)



          Repayments of senior notes                                                                                   (5,000)        (5,000)            (15,000)     (15,000)



          Payment of earnout liability                                                                                   (350)                              (660)



          Payment of cash dividends                                                                                    (8,401)        (8,719)            (25,439)     (24,840)



          Repurchase of common shares                                                                                                                     (4,902)



          Repurchase of common shares for tax withholding and                                                            (137)        (1,047)             (2,008)      (1,424)
other



          
            Net Cash (Used in) Provided by Financing                                                       (36,957)         81,155             (43,186)       68,493
Activities



          
            Net Increase in Cash                                                                              6,147           2,433                8,944         3,335



          
            Cash, Beginning of Period                                                                        20,686          14,026               17,889        13,124



          
            Cash, End of Period                                                                             $26,833         $16,459              $26,833       $16,459

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 November 2, 2026, related to our future oil and natural gas production:

                                                         2026



                                                                 (1)                                                               2027                                      2028


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


       
          
           Oil


                             WTI Oil Swaps



 Volume (Bbl)                                               820,000           725,000           690,000            630,000                605,000              330,000



 Weighted average                                            $61.42            $61.48            $62.72             $61.38                 $61.62               $70.18


 price ($/Bbl)




                             WTI Oil Collars



 Volume (Bbl)                                               550,000           475,000           537,000            530,000                465,000              270,000                 90,000



 Weighted average                                            $57.75            $57.15            $55.84             $55.57                 $58.23               $56.67                 $60.00


  floor price ($/Bbl)



 Weighted average                                            $69.59            $66.42            $67.97             $70.51                 $76.92               $75.77                 $80.65


  ceiling price ($/Bbl)




   
          
           Natural Gas


                             Henry Hub

                             Natural Gas Swaps



 Volume (MMBtu)                                             500,000           600,000



 Weighted average                                             $4.07             $4.19


  price ($/MMBtu)




                             Henry Hub

                             Natural Gas Collars



 Volume (MMBtu)                                             600,000           450,000



 Weighted average                                             $3.43             $3.80


 floor price ($/MMBtu)



 Weighted average                                             $4.79             $5.84


 ceiling price ($/MMBtu)




                             Waha Basis Swaps



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



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


 price ($/MMBtu)


 ____________________


        
          (1) Q4 2026 derivative positions shown include 2026 contracts, some of which have settled as
                         of November 2, 2026.

Interest Rate Contracts

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


 
            Open Coverage Period     Position Notional Amount Fixed Rate


                                                 (In thousands)



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

View original content:https://www.prnewswire.com/news-releases/riley-permian-reports-third-quarter-2026-results-302929799.html

SOURCE Riley Exploration Permian, Inc.

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