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Sep 30
Riley Exploration Q3 2025 Earnings Report
Riley Exploration Permian reported its third quarter 2025 financial and operating results, highlighting increased production, strategic acquisitions, and a dividend increase.
Key Takeaways
Riley Permian delivered a solid third quarter in 2025, marked by disciplined execution and strategic progress. The company successfully closed the Silverback acquisition, which contributed to increased production and reduced costs. This, combined with effective development and capital planning, generated significant free cash flow year-to-date, leading to a 5% increase in the quarterly dividend.
Total equivalent production averaged 32.3 MBoe/d, with oil production at 18.4 MBbls/d, representing a 33% increase in total equivalent volumes quarter-over-quarter.
The company generated $64 million in operating cash flow and $39 million in Upstream Free Cash Flow.
Riley Permian closed the acquisition of Silverback Exploration II, LLC for $120 million in cash plus contingent consideration, and began integrating the assets.
The annual dividend was increased by 5% to $0.40 per share, reflecting confidence in the company's financial performance and future outlook.
Riley Exploration
Riley Exploration
Forward Guidance
Riley Permian is raising its full-year oil production guidance by 2% at the midpoint and maintaining its full-year total capital expenditures and investments guidance. The company anticipates continued growth from the Silverback acquisition and progress on midstream and power generation projects.
Positive Outlook
- Raising full-year oil production guidance by 2% at the midpoint.
- Fourth quarter 2025 oil production guidance increased by 4% at the midpoint.
- Maintaining full-year total capital expenditures and investments guidance at the midpoint.
- Successful integration of Silverback assets expected to contribute to increased production and reduced costs.
- Continued progress on New Mexico midstream and Texas power generation projects, providing critical infrastructure for future growth.
Challenges Ahead
- Total equivalent production estimates may be subject to variability based on third-party midstream service provider conditions.
- Potential delays in the New Mexico midstream project could impact net production volumes and investing expenditures.
- Average working interest on gross operated wells drilled is subject to change, potentially affecting net production and expenditures.
- Interest expense is projected to be between $6 million and $8 million for Q4 2025.
- Production and ad valorem taxes are estimated to be 7.5% - 8.5% of revenue for Q4 2025.