Riley Exploration Permian, Inc. (REPX) reported a decrease in total revenues for the fiscal year ending December 31, 2025, amounting to $391.98 million, down from $409.80 million in 2024. This decline of approximately 4% was primarily attributed to lower realized prices for oil, natural gas, and natural gas liquids (NGLs), despite an increase in production volumes. The company’s average daily production rose to 29,205 barrels of oil equivalent per day (Boe/d), compared to 22,546 Boe/d in the previous year, driven by new wells coming online and contributions from recent acquisitions. However, the average realized price for oil fell to $62.95 per barrel, down from $74.10, reflecting broader market trends.
In terms of operational changes, REPX made significant strategic moves, including the acquisition of Silverback Exploration II, LLC, which added approximately 40,000 net acres in Eddy County, New Mexico, to its portfolio. The company also completed the sale of its midstream subsidiary, Dovetail Midstream, LLC, for approximately $111 million, which included a subsequent sale of compressor station assets for an additional $10 million. These transactions are part of REPX's strategy to optimize its asset base and enhance operational efficiency. The company’s total proved reserves increased to 147.4 million barrels of oil equivalent (MMBoe) as of December 31, 2025, up from 123.6 MMBoe in 2024, with proved undeveloped reserves also rising significantly.
The company’s financial performance was impacted by increased operating expenses, which rose to $153.25 million, up from $128.65 million in 2024. This increase was largely due to higher production volumes and associated costs, including lease operating expenses. Additionally, the company recognized a non-cash impairment loss of $1.2 million related to certain properties in New Mexico, reflecting lower commodity prices and reduced well results. Despite these challenges, REPX maintained a strong balance sheet, with a borrowing base of $400 million under its credit facility and $290 million of undrawn capacity as of year-end.
Looking ahead, REPX's management expressed optimism about the company’s growth potential, emphasizing its focus on generating sustainable free cash flow and maximizing returns to shareholders. The company plans to continue its development activities in the Permian Basin while navigating the challenges posed by fluctuating commodity prices and regulatory changes. The outlook remains cautiously optimistic, with expectations for continued production growth and strategic acquisitions to enhance its operational footprint in the region.
About Riley Exploration Permian, Inc.
Riley Exploration Permian is an independent oil and natural gas company focused on horizontal drilling in the Permian Basin. It develops long-term, stable cash flows through its operated and non-operated wells, primarily in Texas and New Mexico. The company emphasizes asset optimization, strategic acquisitions, and midstream infrastructure to enhance production, reserves, and shareholder returns within a highly competitive and regulated industry.
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