Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Q2 2024 Earnings Presentation
21 slides from Riley Exploration Permian's earnings presentation, Aug 8, 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements This presentation contains projections and other forward-looking statements within the meaning of federal securities laws. These projections and statements reflect Riley Exploration Permian, Inc.’s (“Riley Permian”) current views with respect to
Slide 3: Corporate Overview and Strategy
Corporate Overview and Strategy Riley Permian is a growth-oriented, oil and natural gas Select Company Metrics company with operations focused in Texas and New Mexico Net Acres 58K • We focus on modern horizontal drilling and completions applied to conventional formations in the Permian Basin 2Q24 P
Slide 4: Conventional Asset Base Compares Favorably to Shale
Conventional Asset Base Compares Favorably to Shale (1) • Riley Permian’s focus is on horizontal well development of conventional hydrocarbon formations on the Northwest Shelf Higher porosity and of the Permian Basin Rock Properties permeability • Large degree of operatorship and generally high net
Slide 5: Track Record of Growth
Track Record of Growth CFFO(1) FCF(2) Shareholders’ Equity $MM $MM $MM 233 126 489 206 422 169 333 70 238 56 89 8 (3) (3) 2021 2022 2023 LTM 2021 2022 2023 LTM 2021 2022 2023 2Q24 2Q24 2Q24 (1) Cash Flows from Operations before the impact of changes in working capital (2) A non-GAAP financial measur
Slide 6: Capital Allocation Priorities
Capital Allocation Priorities INVESTMENT SHAREHOLDER BALANCE SHEET FOR GROWTH RETURNS MANAGEMENT • Organic development • Opportunistic acquisitions • Debt paydown • Quarterly dividend(1) • Complementary new • Liquidity management ventures such as thermal power generation (1) Future dividends subject
Slide 7: Improving Capital Efficiency and FCF Conversion
Improving Capital Efficiency and FCF Conversion (1) 47% 67% 66% 73% 79% 53% 33% 34% 27% 21% (2) (2) 2020 2021 2022 2023 1H24 (1) (3) (4) (3) FCF as a % of CFFO E&P Cash Capex as a % of CFFO (1) A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on t
Slide 8: 2024 Forecasted FCF Sensitivity Based on Oil Price
2024 Forecasted FCF Sensitivity Based on Oil Price (1) (2) Excess cash flow for Credit Facility paydown and opportunistic investments Annual paydown on Sr. Notes ($20MM per year) (3) Dividend (current level of $0.36 per share per quarter) (1) (3) FCF Yield on market value of equity (3) FCF Yield on
Slide 9: Power Generation Initiatives
Power Generation Initiatives Natural Gas Power Generator Power Purchaser Feedstock Provider Self-consume to power Texas field operations RPC Power LLC (50/50 JV between Riley Permian and Conduit LLC) Sell to Texas grid operator for use by third parties 9
Slide 10: Power Generation Initiatives (Cont'd.)
Power Generation Initiatives (Cont’d.) Self-Consume for REPX Operations Sell to the Grid • Utilize low-cost natural gas for thermal power • Capitalize on market dynamics including abundant, associated generation natural gas production, gas midstream egress limitations and • Improve reliability, powe
Slide 11: 2Q24 Results Summary
2Q24 Results Summary [ insert footnotes here ] 11
Slide 12: Highlights from 2Q24 Earnings Release
Highlights from 2Q24 Earnings Release 1 Production 2 Cash Flow 3 Reinvestment 4 FCF Conversion Increased oil production by 4% Generated $58MM of CFFO Reinvested 37% of CFFO into Converted 66% of CFFO to FCF Q/Q to 14.7MBbls/d with total and $73MM of Adjusted capital expenditures on an for $38MM in 2
Slide 13: Drivers of Q/Q Growth
Drivers of Q/Q Growth Cash Flow From Operations (CFFO)(1) Free Cash Flow (FCF)(2) Q/Q: 3 Months Ending 6/30/24 vs 3/31/24 Q/Q: 3 Months Ending 6/30/24 vs 3/31/24 1% decrease Q/Q due to the factors noted below FCF increased 65% Q/Q due to lower capex(3) 2.2 2.8 58.4 (1.9) (0.1) 16 38 57.6 (3.8) 23 $M
Slide 14: Appendix
Appendix [ insert footnotes here ] 14
Slide 15: 2024 Plan Guidance: Improving Capital Efficiency
2024 Plan Guidance: Improving Capital Efficiency Forecasting greater than 10% Y/Y organic oil volume growth while reducing Y/Y capex by more than 20% Activity, Production, and Investing Guidance Quarterly Detail for Estimated Realizations and Cost Guidance Full-Year 3Q24 3Q24 2024 Gross Operated Wel
Slide 16: 2024 Forecasted Sources and Uses
2024 Forecasted Sources and Uses Sources of Capital Uses of Capital $MM $MM $200 $200 $150 $150 $100 $100 $50 $50 $0 $0 (1) (2) (1) (2) (2) (2) Incr. FCF at $90 WTI Incr. FCF at $80 WTI Incr. debt paydown at $90 WTI Incr. debt paydown at $80 WTI (1) (2) (1) (2) (2) (2) Incr. FCF at $70 WTI FCF at $6
Slide 17: Hedging Program Summary
Hedging Program Summary Hedging Strategy: protect downside, meet debt convent obligations, reduce volatility and maintain upside exposure Metric Oil (WTI) Natural Gas (HH) Hedge % - Forward 12 Months(1) 53% 50% % Mix of Swaps vs Collars – Forward 12 Months 47% Swaps | 53% Collars 51% Swaps | 49% Col
Slide 18: Hedging Summary Positions as of 8/2/24
Hedging Summary Positions as of 8/2/24 2024 2025 2026 Calendar Quarters 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q CRUDE OIL Fixed Swap - Volume, Bbls/Qtr 210,000 465,000 455,000 435,000 315,000 285,000 45,000 - - Weighted Average Price, $/Bbl $73.54 $74.76 $74.91 $74.90 $75.29 $71.96 $72.65 $0.00 $0.00 Collars - V
Slide 19: Equity Ownership and Research Analyst Coverage
Equity Ownership and Research Analyst Coverage Equity Ownership Research Analyst Coverage 22% Firm Analyst E-mail 21% 10% 1 Roth John White jwhite@roth.com 44% 3% 2 Truist Neal Dingmann neal.dingmann@truist.com (1) >5% Holders & Insiders as of 7/31/24 Shares (MM) Ownership % (2) Yorktown Energy Part
Slide 20: Debt Summary
Debt Summary • 52% of principal value of debt at 6/30/24 was fixed rate debt • SOFR swaps in place for $80MM per quarter of notional value for 2Q24 - 1Q26, corresponding to 50% of principal value of floating-rate debt at 6/30/24(1) • Approximately 76% of the principal value of debt is fixed rate or
Slide 21: Additional Information
Additional Information Company 29 E. Reno Ave., Ste 500 Oklahoma City, OK 73104 405-415-8699 www.rileypermian.com Investor Relations Rick D’Angelo 405-438-0126 ir@rileypermian.com 21
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