Riley Exploration Permian, Inc. (REPX): Results of Operations and Financial Condition
Riley Exploration Permian, Inc. (REPX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Riley Permian Reports Second Quarter 2026 Results OKLAHOMA CITY, August 5, 2026 -- 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. SEC
How this was made
The 30-second read
Why it matters
The filing provides concrete production, cash flow, leverage, and guidance changes, plus operational detail on New Mexico midstream constraints and a planned Targa pipeline system expected in Q4 2026.
Market read
Guidance revision and Q2 cash flow/production metrics can drive repricing for small-cap Permian equities, especially around oil growth and midstream constraint mitigation.
What to watch
Derivative accounting shows a realized loss on settlements ($36M) and a non-cash gain ($69M); traders should separate cash-settlement impacts from mark-to-market when assessing near-term liquidity and risk.
Riley Permian Reports Second Quarter 2026 Results
Production, oil and natural gas sales, income from operations, and Adjusted EBITDAX increased from the prior-year quarter, while temporary New Mexico processing constraints reduced production and Total Free Cash Flow declined from both the prior quarter and prior-year quarter. The Company raised full-year oil-production guidance but also increased capital expenditures and investments guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Oil and natural gas sales, netGAAP | $165,850 (in thousands) | – | – |
| Income from operationsGAAP | $87,232 (in thousands) | – | – |
| Net incomeGAAP | $87 million | – | – |
| Net income per diluted shareGAAP | $4.11 per diluted share | – | – |
| Adjusted EBITDAXnon-GAAP | $80,107 (in thousands) | – | – |
| Adjusted Net Incomenon-GAAP | $33 million | – | – |
| Adjusted Net Income per diluted sharenon-GAAP | $1.54 per diluted share | – | – |
| Cash flow from operationsother | $63,500 (in thousands) | – | – |
| Cash flow from operations before changes in working capitalnon-GAAP | $75 million | – | – |
| Upstream accrual capital expendituresother | $86,599 (in thousands) | – | – |
| Upstream cash capital expendituresother | $67,931 (in thousands) | – | – |
| Total accrual capital expendituresother | $86,599 (in thousands) | – | – |
| Total cash capital expendituresother | $68,287 (in thousands) | – | – |
| Upstream Free Cash Flownon-GAAP | $6,613 (in thousands) | – | – |
| Total Free Cash Flownon-GAAP | $6,257 (in thousands) | – | – |
| Oil productionother | 1,933 MBbls | – | – |
| Natural gas productionother | 3,241 MMcf | – | – |
| NGL productionother | 645 MBbls | – | – |
| Total equivalent productionother | 3,118 MBoe | – | – |
| Daily equivalent productionother | 34,264 Boe/d | – | – |
| Daily oil productionother | 21,242 Bbls/d | – | – |
| Average realized oil priceother | $94.28 | – | – |
| Average realized natural gas priceother | $(4.12) | – | – |
| Average realized NGL priceother | $(4.71) | – | – |
| Average realized oil price, including the effects of derivative settlementsother | $74.25 | – | – |
| Average realized natural gas price, including the effects of derivative settlementsother | $(3.33) | – | – |
| Weighted average common shares outstanding, basicother | 20,937 (in thousands) | – | – |
| Weighted average common shares outstanding, dilutedother | 21,255 (in thousands) | – | – |
Q3 2026 and Full-Year 2026 outlook
- NoteQ3 2026 net operated wells drilled: 4.9 - 6.9
- NoteFull-Year 2026 net operated wells drilled: 51.6 - 53.6
- NoteQ3 2026 net operated wells completed: 8.2 - 10.2
- NoteFull-Year 2026 net operated wells completed: 41.1 - 43.1
- NoteQ3 2026 net operated wells turned to sales: 15.2 - 17.2
- NoteFull-Year 2026 net operated wells turned to sales: 42.8 - 44.8
- NoteQ3 2026 non-operated, net: 1.9 - 2.9
- NoteFull-Year 2026 non-operated, net: 1.9 - 2.9
- NoteQ3 2026 oil production: 25.1 - 26.1 MBbls/d
- NoteFull-Year 2026 oil production: 22.5 - 23.5 MBbls/d
- NoteQ3 2026 total equivalent production: 40.5 - 41.5 MBoe/d
- NoteFull-Year 2026 total equivalent production: 37.5 - 38.5 MBoe/d
- NoteQ3 2026 upstream capital expenditures: $46 - $52
- NoteFull-Year 2026 upstream capital expenditures: $189 - $195
- NoteQ3 2026 infrastructure and other capital expenditures: $7 - $13
- NoteFull-Year 2026 infrastructure and other capital expenditures: $41 - $47
- NoteQ3 2026 total capital expenditures: $53 - $65
- NoteFull-Year 2026 total capital expenditures: $230 - $242
- NoteQ3 2026 Power JV investment: $2
- NoteFull-Year 2026 Power JV investment: $9 - $10
- NoteQ3 2026 total investments: $55 - $67
- NoteFull-Year 2026 total investments: $239 - $252
- NoteQ3 2026 lease operating expenses: $8.50 - $9.50 per Boe
- NoteQ3 2026 production and ad valorem taxes: 7.5% - 8.5% of Revenue
- NoteQ3 2026 administrative costs: $2.25 - $2.75 per Boe
Capital returns
- Repurchased 25 thousand shares of common stock at a weighted average price of $34.13 per share for a total of $1 million.
- Paid a cash dividend of $0.40 per share, for a total of $9 million.
What drove it
- Reported 34.3 MBoe/d of total equivalent production, including oil production of 21.2 MBbls/d.
- Texas average daily total equivalent production was 24.0 MBoe/d and New Mexico average daily total equivalent production was 10.3 MBoe/d.
- Texas average daily oil production was 15.8 MBbls/d and New Mexico average daily oil production was 5.4 MBbls/d.
- June oil production was 24.4 MBbls/d.
- The Company reported a $69 million non-cash gain due to changes in the fair value of derivatives that will settle in future periods.
- Lease operating expense was $29 million, or $9.44 per Boe, including $11 million in workover expense.
- The Company executed a large number of workover projects in an effort to capitalize on high oil prices and supplement operationally disrupted volumes.
- Administrative costs were $9 million, or $2.80 per Boe, and production and ad valorem taxes were $11 million, or $3.67 per Boe.
Concerns
- New Mexico operations were impacted during April and May by gas processing and midstream constraints following an unplanned outage at a third-party facility beginning in late March.
- The Company estimates temporary shut-ins reduced second-quarter production by approximately 1.9 MBbls/d.
- Realized natural gas prices were $(4.12) per Mcf and realized NGL prices were $(4.71) per barrel before derivative settlements.
- The Company reported a $36 million realized loss on derivative settlements.
- Total Free Cash Flow was $6,257 (in thousands), versus $23,500 (in thousands) in the prior quarter and $17,835 (in thousands) in the prior-year quarter.
- Total debt increased by $26 million during the quarter.
What to watch
- The new Targa pipeline system in Eddy County, New Mexico is currently expected to occur in the fourth quarter of 2026.
- Q3 2026 oil-production guidance of 25.1 - 26.1 MBbls/d.
- Q3 2026 total-equivalent-production guidance of 40.5 - 41.5 MBoe/d.
- Full-Year 2026 oil-production guidance of 22.5 - 23.5 MBbls/d.
- Full-Year 2026 total capital expenditures guidance of $230 - $242.
- Full-Year 2026 total investments guidance of $239 - $252.
Balance sheet and cash flow
- Operating cash flow was $64 million.
- Cash flow from operations before changes in working capital was $75 million.
- Total Free Cash Flow was $6 million.
- 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, borrowings outstanding on the Credit Facility were $138 million.
- As of June 30, 2026, principal value of Senior Notes was $135 million.
- Combined principal value of debt was $273 million.
- Quarter-end debt-to-Adjusted EBITDAX ratio was 1.0x.
- Interest expense, net was $7 million.
- Invested $3 million in its power-focused joint venture, RPC Power.
Analysis
Riley Permian reported stronger year-over-year operating and financial results in the second quarter. Oil and natural gas sales, net were $165,850 (in thousands), income from operations was $87,232 (in thousands), and Adjusted EBITDAX was $80,107 (in thousands), compared with $85,394 (in thousands), $28,754 (in thousands), and $59,340 (in thousands), respectively, in the prior-year quarter. Daily equivalent production was 34,264 Boe/d and daily oil production was 21,242 Bbls/d, compared with 24,352 Boe/d and 15,187 Bbls/d in the prior-year quarter.
Sequential production trends were affected by the New Mexico outage and related midstream constraints. Daily equivalent production of 34,264 Boe/d was below 35,600 Boe/d in the prior quarter, while daily oil production increased from 20,156 Bbls/d. The Company estimates temporary shut-ins reduced second-quarter production by approximately 1.9 MBbls/d. June oil production reached 24.4 MBbls/d, and management expects the Targa pipeline system in Eddy County, New Mexico to enter service in the fourth quarter of 2026.
Realized commodity pricing and derivatives were important contributors to quarterly results. Average realized oil price before derivative settlements was $94.28 per Bbl, while natural gas and NGL prices were negative at $(4.12) per Mcf and $(4.71) per Bbl, respectively. The Company reported a $36 million realized loss on derivative settlements and a $69 million non-cash gain from changes in the fair value of derivatives, for a combined $33 million net gain on derivatives. Lease operating expense included $11 million of workover expense, and the Company attributed the workovers to pursuing high oil prices and supplementing disrupted volumes.
Capital spending rose materially, with total accrual capital expenditures of $86,599 (in thousands) and total cash capital expenditures of $68,287 (in thousands). Total Free Cash Flow was $6,257 (in thousands), down from $23,500 (in thousands) in the prior quarter and $17,835 (in thousands) in the prior-year quarter. The Company increased total debt by $26 million to a combined principal value of debt of $273 million, while returning $1 million through share repurchases and $9 million through cash dividends.
The updated outlook calls for Q3 oil production of 25.1 - 26.1 MBbls/d and total equivalent production of 40.5 - 41.5 MBoe/d. Full-Year 2026 oil production guidance is 22.5 - 23.5 MBbls/d, and total equivalent production guidance is 37.5 - 38.5 MBoe/d. The Company also guided to Full-Year 2026 total capital expenditures of $230 - $242 and total investments of $239 - $252, reflecting the planned production ramp and infrastructure and power-focused investment activity.
Management, verbatim
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.
Bobby Riley, Chief Executive Officer and Chairman of the Board
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating margin
- GAAP net income prior-year and prior-quarter comparisons
- GAAP diluted EPS prior-year and prior-quarter comparisons
- Adjusted Net Income prior-year and prior-quarter comparisons
- Adjusted diluted EPS prior-year and prior-quarter comparisons
- Cash balance
- Total debt prior-year and prior-quarter balances
- Revenue guidance
- Gross margin guidance
- Tax-rate guidance
- Prior outlook guidance for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Exhibit 99.1 reporting Riley Exploration Permian’s Q2 2026 results and an update to full-year 2026 guidance.
Ticker impact
Riley Exploration Permian reported Q2 results and revised full-year 2026 guidance, including higher forecasted oil production and capex.
Bias modestly positive if investors focus on raised oil production guidance and operating cash flow, partially offset by New Mexico midstream constraint impacts and derivative losses.
The filing includes multiple decision-relevant datapoints: Q2 operating cash flow ($64M), production levels (34.3 MBoe/d), estimated shut-ins (1.9 MBbls/d), and a stated guidance increase implying ~30% YoY oil growth in 2026 plus a pipeline in-service expectation in Q4 2026.
Market effects
Adds another data point on Permian operator sensitivity to midstream constraints and the importance of gathering/trunkline buildouts.
Highlights New Mexico Waha-related gas pricing weakness and takeaway/processing outages affecting volumes and shut-ins.
Limited direct global impact; primarily relevant to US Permian E&P sentiment and small-cap energy risk appetite.
Counterpoint
Raised guidance may be partially offset by near-term operational disruptions (estimated shut-ins) and higher accrued capex, which could pressure free cash flow if commodity prices or differentials move against them.
Key entities
- companyRiley Exploration Permian, Inc.
NYSE American-listed E&P company reporting Q2 2026 results and revised full-year 2026 guidance.
- counterpartyTarga Northern Delaware LLC
Contracted to construct new gathering and high-pressure trunkline infrastructure in Eddy County, New Mexico, with expected in-service in Q4 2026.
- joint ventureRPC Power
Power-focused joint venture in which the company invested $3 million during the quarter.
