Riley Permian Reports 21% Sequential Sales Growth in Third Quarter 2026

The Tip Desk · November 11, 2026 · 4 min read

Third-quarter 2026 oil and natural gas sales, net, rose 21% sequentially to $201 million as oil production reached 25.4 MBbls/d and New Mexico wells returned after second-quarter constraints.

Riley Exploration Permian, Inc. (REPX), a growth-oriented upstream oil and gas company operating in Texas and New Mexico, reported oil and natural gas sales, net, of $201 million for the third quarter ended September 30, 2026, up $35 million or 21% from the second quarter.

Oil production rose 20% quarter-over-quarter to 25.4 MBbls/d, after a 5% sequential increase in the prior quarter. Total equivalent production increased 23% to 42.0 MBoe/d, reversing a 4% sequential decline in the second quarter.

The company said production growth was driven by new development well volumes from capital invested in prior quarters and the return to production of select New Mexico wells following disruptions during the second quarter. Stronger natural gas and NGL realizations resulted in a $22 million positive swing in revenue compared with the second quarter, when the company experienced negative revenue on those products.

Texas oil production rose to 18.5 MBbls/d from 15.8 MBbls/d, and Texas total equivalent production rose to 27.7 MBoe/d from 24.0 MBoe/d, as 12 net Texas wells were turned to sales. New Mexico oil production rose to 6.9 MBbls/d from 5.4 MBbls/d and New Mexico total equivalent production rose to 14.3 MBoe/d from 10.3 MBoe/d, primarily from the return to normal operations after second-quarter midstream shut-ins; zero New Mexico wells were turned to sales.

Average realized oil price before derivative settlements fell $10.65 a barrel to $83.63 from $94.28. Natural gas realized price before derivative settlements and net of gathering, processing and transportation costs turned positive at $0.27 per Mcf from $(4.12) per Mcf, and NGL realized price on the same basis turned positive at $5.08 a barrel from $(4.71) a barrel.

Operating income rose to $107 million from $87 million, and Adjusted EBITDAX rose to $117 million from $80 million. Operating cash flow grew 75% quarter-over-quarter to $111 million, after a 36% sequential increase in the prior quarter. Total Free Cash Flow rose to $42 million from $6 million.

The company swung to a net loss of $2 million, or $(0.11) per diluted share, from net income of $87 million, or $4.11 per diluted share, on a $100 million net loss on derivatives, including a $28 million realized loss on settlements and a $72 million non-cash loss from changes in the fair value of derivatives that will settle in future periods.

Lease operating expense was $34 million, or $8.84 per Boe, including $11 million of workover expense. Administrative costs were $9 million, or $2.27 per Boe, and production and ad valorem taxes were $13 million, or $3.30 per Boe.

Total accrual capital expenditures before acquisitions fell to $53 million from $87 million. Cash capital expenditures before acquisitions were $66 million. The company invested $2 million in its power-focused joint venture, RPC Power.

Total debt was reduced $28 million to $245 million, including a $23 million decrease on the Credit Facility and a $5 million reduction on Senior Notes, after a $26 million debt increase in the prior quarter. Interest expense, net, was $7 million. The company paid a cash dividend of $0.40 a share, for a total of $8 million.

Subsequent to quarter-end, the company prepaid all $130 million of Senior Notes, raised the Credit Facility borrowing base to $450 million, extended maturity to October 2030, and cut the minimum hedging requirement to a rolling 18-month basis from 24 months. It declared a $0.42 a share quarterly dividend, a 5% increase from $0.40.

In December 2025, the company contracted with Targa Northern Delaware LLC to construct new gathering and high-pressure trunkline infrastructure in Eddy County, New Mexico. The new Targa pipeline system was placed in service on October 1, 2026. A 15-year water management services agreement with Waterbridge Stateline LLC went in service on September 15, 2026. The company said the additional natural gas infrastructure and water management services are expected to improve natural gas flow assurance and expand water handling capacity.

The company said it plans to allocate capital to initial development of the San Andres formation during the second quarter of 2027.

Fourth-quarter 2026 guidance calls for oil production of 25.5–26.5 MBbls/d and total equivalent production of 42.5–43.5 MBoe/d, with 14–18 net wells turned to sales and total accrual (activity-based) capital expenditures before acquisitions of $74–86 million.