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.
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.”
___________________
(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).
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, 2026 | | Six Months Ended June 30, 2026 |
| | Gross(1) | | Net(2) | | Gross(1) | | Net(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 30, | | Six Months Ended June 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 | |
SECOND QUARTER 2026 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.
___________________
(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.
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.
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| Selected Operating and Financial Data | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
| | June 30, 2026 | | March 31, 2026 | | June 30, 2025 | | June 30, 2026 | | June 30, 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 - $252 |
| | | | | | | | | | |
| | |
| Operating and Corporate Costs | | Q3 2026 | | |
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Lease Operating Expenses ($ 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
About Riley Exploration Permian, Inc.
Riley Permian is a growth-oriented upstream oil and gas company operating in Texas and New Mexico with infrastructure projects that complement our operations. For more information, please visit www.rileypermian.com.
Investor Contact:
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.
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| 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 issued at June 30, 2026 and December 31, 2025, respectively | | 22 | | | 22 | |
| 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 Quarter | | Fourth Quarter | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | First Quarter | | Second Quarter |
| Oil | | | | | | | | | | | | | | | | |
| WTI Oil Swaps | | | | | | | | | | | | | | | | |
| Volume (Bbl) | | 860,000 | | | 820,000 | | | 725,000 | | | 650,000 | | | 630,000 | | | 605,000 | | | 330,000 | | | |
Weighted average price ($/Bbl) | | $ | 61.65 | | | $ | 61.42 | | | $ | 61.48 | | | $ | 61.68 | | | $ | 61.38 | | | $ | 61.62 | | | $ | 70.18 | | | |
| | | | | | | | | | | | | | | | |
| WTI Oil Collars | | | | | | | | | | | | | | | | |
| Volume (Bbl) | | 570,000 | | | 550,000 | | | 475,000 | | | 537,000 | | | 490,000 | | | 315,000 | | | 270,000 | | | 90,000 | |
Weighted average floor price ($/Bbl) | | $ | 58.25 | | | $ | 57.75 | | | $ | 57.15 | | | $ | 55.84 | | | $ | 54.22 | | | $ | 57.38 | | | $ | 56.67 | | | $ | 60.00 | |
Weighted average ceiling price ($/Bbl) | | $ | 72.66 | | | $ | 69.59 | | | $ | 66.42 | | | $ | 67.97 | | | $ | 69.43 | | | $ | 72.26 | | | $ | 75.77 | | | $ | 80.65 | |
| | | | | | | | | | | | | | | | |
| Natural Gas | | | | | | | | | | | | | | | | |
Henry Hub Natural Gas Swaps | | | | | | | | | | | | | | | | |
| Volume (MMBtu) | | 300,000 | | | 500,000 | | | 600,000 | | | | | | | | | | | |
Weighted average price ($/MMBtu) | | $ | 3.59 | | | $ | 4.07 | | | $ | 4.19 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Henry Hub Natural Gas Collars | | | | | | | | | | | | | | | | |
| Volume (MMBtu) | | 900,000 | | | 600,000 | | | 450,000 | | | | | | | | | | | |
Weighted average floor price ($/MMBtu) | | $ | 3.05 | | | $ | 3.43 | | | $ | 3.80 | | | | | | | | | | | |
Weighted average ceiling price ($/MMBtu) | | $ | 3.74 | | | $ | 4.79 | | | $ | 5.84 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| 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 average price ($/MMBtu) | | $ | (1.65) | | | $ | (1.58) | | | $ | (0.94) | | | $ | (0.95) | | | $ | (0.95) | | | $ | (0.95) | | | $ | (1.01) | | | |
| | | | | | | | | | | | | | | | |
___________________
(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 | % |
