Riley Exploration Permian (REPX) 7 Nov 24 2024 Q3 Earnings call transcript

In a recent earnings call, Riley Exploration Permian, Inc. provided an update on its third-quarter 2024 financial performance, highlighting key operational and strategic achievements. The call, led by CEO Bobby Riley, CFO Philip Riley, and COO John Suter, showcased the company's continued commitment to efficient operations, capital management, and strategic growth. Here are the key takeaways from the call.

Operational Excellence and Efficiency

Riley Exploration Permian has seen significant operational successes in the third quarter of 2024. The company's drilling and completion campaign has delivered excellent results, with production outperforming forecasts and costs being driven down. This has enabled the company to pay down debt and distribute dividends to shareholders, showcasing a strong focus on financial health and shareholder returns.

Financial Performance and Capital Management

The call revealed that Riley Exploration Permian has been able to generate significant free cash flow, even in a challenging market environment. The company has achieved this by reinvesting less than half of its after-tax cash flow while growing production volumes. This focus on capital efficiency and effective asset management is a testament to the company's strategic approach to maximizing value for its stakeholders.

Strategic Investments and Growth

Riley Exploration Permian is also making strategic investments in infrastructure and power generation to support its long-term growth plans. These investments, including the installation of a gathering and compression system in New Mexico, will enhance transportation and processing capabilities, ensuring operational efficiency and positioning the company well for future growth.

Looking Ahead: 2025 and Beyond

The call also provided some insights into the company's plans for 2025, with a focus on continued operational excellence and strategic investments. The company is expected to maintain its growth trajectory, even in a volatile market environment, thanks to its capital-efficient assets and hedging strategies.

In conclusion, Riley Exploration Permian's third-quarter 2024 earnings call highlighted the company's operational successes, financial performance, and strategic growth plans. With a focus on capital efficiency, operational excellence, and strategic investments, the company is well-positioned for long-term value creation and shareholder returns.