Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Investor Presentation (June 2024)
21 slides from Riley Exploration Permian's investor presentation, Jun 25, 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024
Slide 2: Forward-Looking Statements
2 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 t
Slide 3: Corporate Overview and Strategy
Corporate Overview and Strategy Riley Permian is a growth-oriented, oil and natural gas company with operations focused in Texas and New Mexico • We focus on modern horizontal drilling and completions applied to conventional formations in the Permian Basin • We believe our assets’ economics compare
Slide 4: Conventional Asset Base Compares Favorably to Shale
• Riley Permian’s focus is on horizontal well development of conventional hydrocarbon formations on the Northwest Shelf of the Permian Basin • Large degree of operatorship and generally high net working interests across assets Conventional Asset Base Compares Favorably to Shale(1) 4 Rock Properties
Slide 5: Track Record of Growth
Track Record of Growth 5 CFFO(1) $MM FCF(2) $MM Shareholders’ Equity $MM (1) Cash Flows from Operations before the impact of changes in working capital (2) A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company’s website at www.rileypermi
Slide 6: Capital Allocation Priorities
Capital Allocation Priorities 6 INVESTMENT FOR GROWTH SHAREHOLDER RETURNS BALANCE SHEET MANAGEMENT • Organic development • Opportunistic acquisitions • Complementary new ventures such as thermal power generation • Quarterly dividend(1) • Debt paydown • Liquidity management (1) Future dividends subje
Slide 7: Reducing Capital Intensity and Increasing FCF Conversion
21% 27% 33% 34% 40% 46% 50% 79% 73% 67% 66% 60% 54% 50% 2020 2021 2022 2023 1Q24 2024E at $70 WTI 2024E at $80 WTI FCF as a % of CFFO E&P Cash Capex as a % of CFFO 7 Reducing Capital Intensity and Increasing FCF(1) Conversion (1) A non-GAAP financial measure as defined and reconciled in the suppleme
Slide 8: 2024 Forecasted FCF Sensitivity Based on Oil Price
0% 5% 10% 15% 20% 25% $0 $50 $100 $150 $200 $60 $70 $80 $90 FC F Yi el d on m ar ke t v al ue o f e qu ity $M M WTI, $/Bbl Excess cash flow for Credit Facility paydown and opportunistic investments Annual paydown on Sr. Notes ($20MM per year) Dividend (current level of $0.36 per share per quarter) F
Slide 9: Power Generation Initiatives
Power Generation Initiatives 9 Natural Gas Feedstock Provider Power Generator Power Purchaser RPC Power LLC (50/50 JV between Riley Permian and Conduit LLC) Self-consume to power Texas field operations Sell to Texas grid operator for use by third parties
Slide 10: Power Generation Initiatives (Cont'd.)
Power Generation Initiatives (Cont’d.) 10 Self-Consume for REPX Operations Sell to the Grid REPX Objectives • Utilize low-cost natural gas for thermal power generation • Improve reliability, powering 100% of Texas operations • Stabilize cost of power for operations • Earn attractive returns on inves
Slide 11: 1Q24 Results Summary
1Q24 Results Summary 11[ insert footnotes here ]
Slide 12: Highlights from 1Q24 Earnings Release
Highlights from 1Q24 Earnings Release 12 1 Production 2 Cash Flow 3 Reinvestment 4 FCF Conversion Increased oil production by 4% Q/Q to 14.2MBbls/d with total production of 20.4MBoe/d Generated $58MM of CFFO and $70MM of Adjusted EBITDAX (70% margin) Reinvested 45% of CFFO into capital expenditures
Slide 13: Cash Flow From Operations and Free Cash Flow Drivers
Cash Flow From Operations (CFFO)(1) Q/Q: 3 Months Ending 3/31/24 vs 12/31/23 Free Cash Flow (FCF)(2) Q/Q: 3 Months Ending 3/31/24 vs 12/31/23 7% increase Q/Q due to the factors noted below FCF decreased 30% Q/Q due to higher capex(1), which more than offset the higher operating cash flow Drivers of
Slide 14: Appendix
Appendix 14[ insert footnotes here ]
Slide 15: 2024 Plan Guidance: Growing While Reducing Spending
15 2024 Plan Guidance: Growing While Reducing Spending (1) Activity-based investing expenditures before acquisitions (2) A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company’s website at www.rileypermian.com (3) Interest expense is net
Slide 16: 2024 Forecasted Sources and Uses
$0 $50 $100 $150 $200 Incr. FCF at $90 WTI Incr. FCF at $80 WTI Incr. FCF at $70 WTI FCF at $60 WTI Excess beginning cash Equity raise net proceeds Sources of Capital $MM Uses of Capital $MM 16 2024 Forecasted Sources and Uses (1) A non-GAAP financial measure as defined and reconciled in the supplem
Slide 17: Hedging Program Summary
$1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 HH Weighted Average Hedge Price(2) Henry Hub Downside Price Limit Upside Price Limit 17 Hedging Program Summary Hedging Strategy: protect downside, meet debt convent obligations, reduce vo
Slide 18: Hedging Summary
18 Hedging Summary Positions as of 6/20/24 Note: Q1 2024 derivative positions shown include all contracts that have settled as of 6/20/24 (1) Entered into offsetting position to lock in ~$1MM gain on interest rate swaps 2024 2025 2026 Calendar Quarters 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q CRUDE OIL Fixed Swap
Slide 19: Equity Ownership and Research Analyst Coverage
Equity Ownership Research Analyst Coverage Firm Analyst E-mail 1 Roth John White jwhite@roth.com 2 Truist Neal Dingmann neal.dingmann@truist.com 3 Water Tower Jeff Robertson jeff@watertowerresearch.com 4 Energy Prospectus Group Daniel Steffens dmsteffens@comcast.net 5 Tuohy Brothers Noel Parks npark
Slide 20: Debt Summary
Facility Principal Amount Outstanding at 3/31/24 Borrowing Base at 3/31/24 Annual Interest Rate Amortization Final Maturity Sr. Secured Credit Facility $175MM $375MM Term SOFR + 2.85% – 3.85%; most recent quarter was 3.10% margin(2) None; Company intends to periodically pay down balance with excess
Slide 21: Additional Information
Additional Information 21 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
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