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Riley Exploration Q1 2025 Earnings Report
Riley Exploration Permian, Inc. reported its financial and operating results for the first quarter ended March 31, 2025, highlighting strong performance, debt reduction, and a strategic acquisition.
Key Takeaways
Riley Permian delivered a capital-efficient quarter with strong performance, generating substantial Total Free Cash Flow and reducing debt. The company also announced an agreement to acquire Silverback Exploration for $142 million in cash, adding significant undeveloped locations and production.
Averaged 24.4 MBoe/d of total equivalent production, with oil production at 15.6 MBbls/d.
Generated $50 million of operating cash flow and $36 million of Total Free Cash Flow.
Reduced debt outstanding by $21 million, achieving a debt-to-Adjusted EBITDAX ratio of 0.9x.
Announced the acquisition of Silverback Exploration for $142 million, adding 5 MBoe/d of production and over 300 undeveloped locations.
Riley Exploration
Riley Exploration
Forward Guidance
Riley Permian is modifying its 2025 investment and development activity guidance, reducing standalone investing midpoint guidance by 50% and total production guidance by 3%, while prioritizing acquisition and preservation of high-quality inventory.
Positive Outlook
- Acquisition of Silverback Exploration adds significant long-term upstream development potential and supports gas midstream infrastructure investment.
- Forecasts 5% incremental total investing on a full-year 2025 basis, inclusive of the acquisition.
- Prioritizing acquisition and preservation of high-quality inventory over conversion of inventory to production.
- Well-positioned to succeed in the current market environment with a strong asset base.
- Disciplined capital allocation philosophy and robust hedging profile.
Challenges Ahead
- Reducing 2025 investing midpoint guidance on a standalone basis (excluding acquisition) by 50%.
- Reducing midpoint total production guidance by 3% on a standalone basis.
- Average working interest on gross operated wells drilled is subject to change, impacting net production and investing expenditures.
- Total equivalent production estimates may be subject to variability based on midstream conditions.
- Delays in midstream project or Silverback Acquisition closing could impact net production volumes and investing expenditures.