Riley Exploration Permian Reports 94% Revenue Growth to $165.9 Million in Latest Quarter

Riley Exploration Permian, Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $165.9 million for the three months ended June 30, 2026, compared to $85.4 million in the same period last year, marking a 94% increase. The company's net income also saw a substantial rise, amounting to $87.4 million, up from $30.5 million in the prior year, resulting in a basic net income per share of $4.17, compared to $1.44 in the previous year. For the first half of 2026, total revenues were $279.7 million, a 49% increase from $187.9 million in the first half of 2025, while net income for the same period was $16.9 million, down from $59.1 million.

The company attributed its financial performance to increased oil production and higher realized prices, particularly in oil sales, which surged to $182.2 million from $85.9 million year-over-year. Daily oil production increased by 40%, driven by new wells and contributions from the Silverback Acquisition, which was completed in July 2025. However, natural gas revenues decreased significantly due to negative realized prices, which were impacted by regional pipeline constraints. The company reported a working capital deficit of $127.7 million as of June 30, 2026, an increase from $37.8 million a year earlier, primarily due to higher revenue payables and increased operational costs.

In terms of strategic developments, Riley Exploration completed the acquisition of Silverback Exploration II, LLC, which added significant oil and natural gas assets in the Permian Basin. The acquisition was valued at approximately $123 million and is expected to enhance the company's production capabilities. The company also reported ongoing investments in infrastructure to mitigate future processing constraints, particularly in New Mexico, where third-party midstream disruptions had previously affected production.

Operationally, Riley Exploration's total equivalent production for the second quarter of 2026 was 3.1 million barrels of oil equivalent (MBoe), compared to 2.2 MBoe in the same quarter of 2025. The company has also increased its capital expenditures significantly, totaling $86.6 million for the quarter, reflecting its commitment to expanding production capacity. The company’s total assets increased to $1.27 billion, up from $1.17 billion at the end of 2025, driven by the acquisition and ongoing investments in oil and gas properties.

Looking ahead, Riley Exploration remains focused on enhancing its operational efficiency and capitalizing on growth opportunities in the Permian Basin. The company is closely monitoring market conditions, including commodity price volatility and geopolitical factors, which could impact future performance. The management expressed confidence in the company's ability to navigate these challenges while continuing to deliver value to shareholders through strategic investments and operational improvements.