Riley Exploration Permian Raises Production Guidance as Oil Prices Climb
The energy producer reported second-quarter revenues of $166 million, up from $114 million in the prior quarter.
Riley Exploration Permian (REPX), an oil and gas producer, reported second-quarter revenues of $166 million. The result followed a period of accelerating growth, with revenues rising from $114 million in the first quarter and $85 million in the second quarter of 2024.
Financial results were supported by a sharp increase in average realized oil prices, which rose to $94.28 per barrel. This followed a realized price of $68.89 in the first quarter and $62.17 in the same period last year. Adjusted EBITDAX rose to $80 million, compared to $61 million in the first quarter and $59 million in the second quarter of 2024.
Oil production rose to 21.2 MBbls/d. The figure was up from 20.2 MBbls/d in the first quarter and 15.4 MBbls/d in the second quarter of 2024. Total equivalent production fell to 34.3 MBoe/d from 35.6 MBoe/d in the first quarter, though it remained higher than the 24.4 MBoe/d reported in the second quarter of 2024.
Temporary shut-ins in New Mexico caused by third-party facility outages in April and May reduced second-quarter production by approximately 1.9 MBbls/d. Additionally, lease operating expenses per Boe increased to $9.44 from $7.51 in the first quarter.
Total free cash flow declined to $6 million from $24 million in the first quarter. The decline coincided with a surge in total accrual capital expenditures, which reached $87 million in the second quarter, up from $47 million in the first quarter and $28 million in the second quarter of 2024.
Riley Exploration Permian revised its full-year 2026 oil production guidance upward, which now implies approximately 30% year-over-year growth. The company also increased its full-year activity-based capital expenditure guidance to a range of $230 million to $242 million, up from the previous range of $190 million to $210 million.
Debt increased by $26 million during the second quarter, reversing an $8 million reduction recorded in the first quarter. Realized natural gas prices continued to fall, reaching $(4.12) per Mcf, compared to $(1.68) in the first quarter and $(0.39) in the second quarter of 2024.