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Dec 31, 2023
Riley Exploration Q4 2023 Earnings Report
Reported financial and operating results for Q4 2023.
Key Takeaways
Riley Exploration Permian reported strong operational and financial performance for Q4 2023, with total revenues of $100 million and net income of $38 million, or $1.90 per diluted share. The company averaged 19.9 MBoe/d of total equivalent production and generated $66 million of operating cash flow. They also reduced debt by $30 million and paid dividends of $0.36 per share.
Averaged 19.9 MBoe/d of total equivalent production (oil production of 13.6 MBbls/d).
Generated $66 million of operating cash flow.
Generated Free Cash Flow of $33 million.
Reduced debt outstanding by $30 million.
Riley Exploration
Riley Exploration
Forward Guidance
Riley Permian provided first quarter detailed guidance and select full year 2024 activity guidance based on currently scheduled development activity and current market conditions.
Positive Outlook
- Full year 2024 guidance for oil production of 14.0 – 15.0 MBbls/d, corresponding to approximately 10% year-over-year growth at the midpoint
- Full year 2024 guidance for total production of 21.0 – 22.5 MBoe/d, corresponding to approximately 17% year-over-year growth at the midpoint, benefiting from the anticipated addition of natural gas processing capacity through the year
- Full year 2024 guidance for activity-based investing expenditures before acquisitions of $115 - 130 million, corresponding to an approximate 10% year-over-year reduction at the midpoint
- The Company anticipates a notable increase in sales of processed natural gas and NGLs from its Yoakum County, Texas, operations during the second quarter of 2024, corresponding with a capacity expansion at our midstream counterparty’s processing plant.
- Drilled 7 gross operated wells in Q1 2024.
Challenges Ahead
- The average working interest on gross operated wells drilled is subject to change and may have corresponding impacts on investing expenditures.
- The completion and timing of the plant capacity expansion is outside of the Company’s control, and delays in the plant being fully operational could lead to lower actual results for the Company’s total equivalent production volumes due to lower natural gas and natural gas liquids processed.
- Oil basis differentials and fees are expected to be $(2.75) - (2.25) per Bbl in Q1 2024.
- Natural gas basis differentials and fees are expected to be $(2.75) - (2.00) per Mcf in Q1 2024.
- Interest expense is expected to be $9.5-10.5 million in Q1 2024.