Wed, Mar 5, 9:42 PM (46 days ago)
Riley Exploration Permian, Inc. (REPX) reported a solid financial performance for the year ending December 31, 2024, with total revenues of approximately $410.2 million, a 10% increase from $375.0 million in 2023. Oil sales contributed significantly, reaching $408.9 million, despite a slight decline in realized prices. The average daily production rose to 22,546 Boe/d, driven by new wells and acquisitions in New Mexico. However, the company faced challenges with natural gas sales, which resulted in a net loss due to high gathering and processing costs. Operating expenses totaled $256.5 million, resulting in a net income of $88.9 million, down from $111.6 million in the previous year. The company recognized impairments totaling $41.5 million, primarily related to properties in Texas and the discontinuation of an Enhanced Oil Recovery project. Strategically, REPX is focusing on enhancing returns through acquisitions, including the recent 2024 New Mexico Asset Acquisition, and has plans to construct midstream infrastructure to support its operations. However, risks remain, including regulatory changes, commodity price volatility, and operational challenges in a competitive market. The company ended the year with a working capital deficit of $54.6 million but had $285 million available under its credit facility, indicating a strong liquidity position.