REPX Filings — Riley Exploration Permian, Inc. - FilingSpy
REPX
Riley Exploration Permian, Inc.
An independent oil and gas producer that drills horizontal wells into oil-rich rock in the Permian Basin of West Texas and New Mexico, producing crude oil, natural gas, and natural gas liquids. It took its current form in 2021, when the public company Tengasco merged with the private firm Riley Exploration–Permian, founded by veteran oilman Bobby Riley, whose name the company now carries. Riley is also a named inventor on patented drilling equipment licensed to Baker Hughes.
Revenue nearly doubled to $165.8M as oil prices and volumes both rose, but negative gas realizations and a third-party outage weighed on operations.
nearly doubled, but the quarter's story is the return of . Revenue rose 94% to $165.8 million and widened 18.9 points to 52.6% as a $32-per-barrel increase in realized oil prices and a 40% increase in oil volumes from the Silverback Acquisition more than offset a drag from negative natural gas and NGL realizations. The company is producing more and earning more on each barrel, but its gas still costs more to handle than it sells for.
Key takeaways
Oil and gas sales rose 94% to $165.8 million, driven by a $32.11 per barrel increase in the average realized oil price and a 40% increase in daily oil volumes from new wells and the Silverback Acquisition.
rose 203% to $87.2 million and widened 18.9 points to 52.6%, as growth far outpaced a $10.6 million increase in lease operating expenses tied to the Silverback Acquisition, workovers, and higher water disposal costs.
Section summaries
Management's Discussion and Analysis
Oil revenue surged 94% YoY on higher WTI prices and 40% oil volume growth, while negative gas/NGL realizations and midstream curtailments pressured netbacks.
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Total oil and natural gas sales, net rose 94% to $165.9M in Q2 2026, driven by a $32.11/Bbl increase in realized oil prices and a 40% jump in daily oil volumes from new wells and the Silverback Acquisition.
Natural gas and NGL sales remained negative at -$13.4M and -$3.0M respectively, as widening Permian and higher allocated more than offset volume gains.
Natural gas and NGL sales remained negative at -$13.4 million and -$3.0 million, respectively, as widening Permian Basin basis differentials and higher gathering, processing, and transportation costs continued to exceed the gross sales price for those products.
A third-party gas processing outage in New Mexico caused temporary well shut-ins through May 2026; production resumed to normal levels in June, with limited financial impact because of strong Texas performance and capital reallocation.
rose 187% to $87.4 million, or $4.11 per diluted share, compared to $30.5 million a year ago, as the prior-year quarter included an $18.7 million net derivative gain that did not repeat at the same scale.
rose 89% to $63.5 million, while on oil and gas properties nearly doubled to $96.9 million for the first half of 2026, reflecting accelerated drilling and infrastructure investment.
What changed
The $115.2 million non-cash derivative loss that drove the Q1 FY2026 net loss did not repeat at the same scale; swung from -$70.4 million in Q1 to $87.4 million in Q2, as higher oil prices and volumes restored profitability.
The unplanned third-party gas processing outage in New Mexico that began in late March 2026 extended into May, but production resumed to normal levels in June and management reported limited financial impact, consistent with its Q1 expectation of no material effect on full-year results.
Natural gas and NGL realizations remained negative for a seventh consecutive quarter, with the drag widening as Permian basis differentials grew; the $130 million midstream buildout targeted for completion by end-2026 has not yet resolved the issue.
The company did not provide an updated customer concentration figure in this filing, leaving the 60% single-purchaser reliance last reported in the FY2025 10-K as the most recent disclosure of a risk flagged repeatedly in prior periods.
What to watch
Whether the $130 million midstream buildout remains on schedule for completion by end-2026, and whether it eliminates the negative natural gas and NGL realizations once operational — now a seven-quarter drag.
Whether the 40% oil volume growth rate is sustainable in Q3 FY2026 now that the New Mexico wells shut in during the outage have been restored, and whether continues at the accelerated $96.9 million first-half pace.
Whether the company provides an updated customer concentration figure, given that the 60% single-purchaser reliance last reported and the flagged pending acquisition that will concentrate nearly all gas and NGL sales with a single buyer remain material cash-flow risks.
Whether the $262 million in undrawn capacity and the increased $425 million are sufficient to fund the , accelerated , and any further acquisitions without increasing .
Lease operating expenses increased $10.6M to $29.4M, primarily from the Silverback Acquisition, workovers to restore curtailed wells, and higher water disposal costs tied to increased drilling.
A third-party gas processing outage in New Mexico caused temporary well shut-ins through May 2026; production resumed to normal levels in June, with limited financial impact due to strong Texas performance.
rose to $110.7M for H1 2026, while on oil and gas properties nearly doubled to $96.9M, reflecting accelerated drilling and infrastructure investment.
Liquidity remained supported by $262M in undrawn capacity, with the increased to $425M and the facility's extended to January 2028.
Quantitative and Qualitative Disclosures About Market Risk
Commodity price risk from oil, gas, and NGLs is the dominant exposure, partially hedged with derivatives; interest rate risk is also managed via swaps.
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Oil and natural gas sales, net were $279.7 million for the six months ended June 30, 2026, and a hypothetical 10% change in index pricing would have moved those sales by approximately $37.0 million.
The of oil and natural gas was a of $22 million as of June 30, 2026; a 10% shift in would change the net position by roughly $43 million.
The company uses commodity-based to partially reduce the impact of crude oil, natural gas, and NGL price volatility on revenues and cash flows.
Interest rate risk arises primarily from indebtedness under the , and the company employs interest rate to partially mitigate that exposure.
All market-risk-sensitive instruments are held for purposes other than speculative trading.
From time to time, we may be involved in various legal proceedings and claims in the ordinary course of business. The ultimate outcome of any such proceedings or claims, and any resulting impact on us, cannot be predicted with certainty. The Company believes that the amount of t…
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From time to time, we may be involved in various legal proceedings and claims in the ordinary course of business. The ultimate outcome of any such proceedings or claims, and any resulting impact on us, cannot be predicted with certainty. The Company believes that the amount of the liability, if any, ultimately incurred with respect to any such proceedings or claims will not have a material adverse effect on our financial condition, liquidity, capital resources, results of operations or cash flows.
Refer to "Part I, Item 3 - Legal Proceedings" of the 2025 Annual Report, and "Part I, Item 1. Note 15 - Commitments and Contingencies" in the notes to the unaudited condensed consolidated financial statements set forth in this Quarterly Report (which is incorporated by reference herein) for additional information.
In addition to the information set forth in this Quarterly Report, the risks that are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, under the headings "Part I, Item 1 and 2. Business and Properties," "Part II, Item 7. Management's Di…
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In addition to the information set forth in this Quarterly Report, the risks that are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, under the headings "Part I, Item 1 and 2. Business and Properties," "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Part I, Item 1A. Risk Factors" and in "Part II, Item 1A. Risk Factors" of our subsequently filed Quarterly Report should be carefully considered, as such risks could materially affect the Company's business, financial condition or future results. There have been no material changes in the Company's risk factors from those that were described in the Company's 2025 Annual Report and subsequently filed Quarterly Report.