Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Q3 2022 Earnings Presentation
26 slides from Riley Exploration Permian's earnings presentation, Aug 10, 2022
Slide 1: Investor Presentation August 2022
Investor Presentation August 2022
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
Corporate Overview Riley Permian is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploration, development and production of oil, natural gas and NGLs RILEY PERMIAN NYSE: REPX Share Price1 $25.95 • Our activities primarily target the horizontal development of
Slide 4: Corporate Strategy and Execution
Corporate Strategy and Execution • Consistently grew total production organically every year since Grow organically through inception, with 20% cumulative annual growth rate since 2019(1) development of our existing assets • Forecasting 22-24% oil production growth for fiscal 2022 • EOR pilot projec
Slide 5: Track Record of Consistent Growth and Shareholder Returns
Track Record of Consistent Growth and Shareholder Returns Total Net Production(1) Adjusted EBITDAX(2) Dividends per Share(1) MBoe/d $MM $/Sh 10.2 8.6 Oil, MBbls/d 7.1 6.2 141 1.24 1.01 3.5 8.4 90 0.90 6.4 68 5.4 5.6 63 0.60 3.3 37 FY18 FY19 FY20 FY21 Current FY18 FY19 FY20 FY21 FY22 YTD, FY18 FY19 F
Slide 6: Applying Modern Development Techniques to a Premier Asset
Applying Modern Development Techniques to a Premier Asset Legacy Regional Riley Permian’s Development Modern Development • The San Andres is a proven, conventional • Within this premier geologic setting, Riley reservoir that has been producing for over Permian’s focus is on horizontal development 10
Slide 7: Summary Proved Reserves (Internal Estimates of 6/30/22)
Summary Proved Reserves (Internal Estimates of 6/30/22(1)) Developed vs Developed vs Commodity Volume Mix Undeveloped Volume Mix Undeveloped PV-10(2) Mix 78 MMBoe 78 MMBoe $1.1 Bn 18% 27% 41% $807MM 18% 64% 59% PDP PV-10(2) 73% Oil NGL Nat Gas PDP PUD PDP PUD $6 13 Years 22 Years 5x 50% per BOE cost
Slide 8: Potential Upside through EOR and CCUS Initiatives
Potential Upside through EOR and CCUS Initiatives Geographic and geologic rationale for both Enhanced Oil Recovery (EOR) and Carbon Capture, Utilization and Sequestration (CCUS): (i) the most concentrated area of CO2 infrastructure in the U.S. converges within miles of Riley Permian’s core asset, an
Slide 9: Strategic Rationale for EOR
Strategic Rationale for EOR • Riley Permian’s existing production decline • Analogous fields have improved is materially lower than that of shale; EOR ultimate recovery by 1.5-3x with has the potential to lower it further secondary and tertiary methods Reduce Increase Shale REPX EOR Primary H20 H20
Slide 10: Committed to ESG Engagement
Committed to ESG Engagement Responsibly producing some of the world’s most demanded natural resources ENVIRONMENTAL SOCIAL GOVERNANCE Energy transition viewed as an opportunity for U.S.-based workforce, with zero offshoring of Prioritizing long-term corporate sustainability engagement and new
Slide 11: Investment Highlights: Inflation Hedge, Yield-Oriented Growth Story
Investment Highlights: Inflation Hedge, Yield-Oriented Growth Story Multi-year track record of organic Premier, oil-based, conventional Proven and aligned growth in production, cash flow asset with low decline rates that management team with and reserves across commodity enables capital efficiency s
Slide 12: Updates for the Quarter Ending 6/30/22
Updates for the Quarter Ending 6/30/22 [ insert footnotes here ] 12
Slide 13: Recent Performance and New Guidance
Recent Performance and New Guidance Completed Quarter New Forward Guidance (3 Months Ending 6/30/22) For the 3- Month For the 12-Month Prior Guidance Actual Period Ending Period Ending Disclosed Performance 9/30/22 9/30/22 Avg. Daily Oil Production, MBbls/d 7.6 - 8.1 8.4 8.2 - 8.6 7.8 - 7.9 Avg. Dai
Slide 14: Managing External Pressures in Today's Operating Environment
Managing External Pressures in Today’s Operating Environment • Company utilizes third-party service • Increased activity levels drives operational companies for its drilling and completions efficiencies activity Inflation • Longer-term drilling and completion Mitigation Labor • Roustabouts, used for
Slide 15: Forecasted Production and Quarterly Hedging Profile
Quarterly Hedging Profile Riley Permian will utilize commodity price hedges to manage fixed cost exposure and to comply with bank covenant requirements(1), while maintaining unhedged production for potential upside exposure and operating flexibility • For the balance of FY22 (one quarter 100% $95 re
Slide 16: Appendix
Appendix [ insert footnotes here ] 16
Slide 17: Hedging Positions as of August 8, 2022
Hedging Positions as of August 8, 2022 2022 2023 2024 Calendar Quarters 3Q 4Q 1Q 2Q 3Q 4Q 1Q CRUDE OIL Fixed Swap - Volume, Bbls/Qtr 270,000 270,000 225,000 195,000 150,000 150,000 - Weighted Average Price, $/Bbl $56.03 $56.03 $53.65 $53.89 $52.58 $52.58 - Collars - Volume, Bbls/Qtr 117,000 90,000 -
Slide 18: Oil, Natural Gas and NGL Reserves
Oil, Natural Gas and NGL Reserves The Company prepared estimates of reserves using an average price equal to the unweighted arithmetic average of the first day of each month within the 12-month period ended June 30, 2022 of $85.82 per Bbl for oil and $4.13 per Mcf for gas in accordance with SEC guid
Slide 19: Oil, Natural Gas and NGL Reserves (Cont'd.)
Oil, Natural Gas and NGL Reserves (Cont’d.) Estimates of reserves were prepared using an average price equal to the unweighted arithmetic average of the first day of each month within the 12-month period ended September 30, 2021 of $57.64 per Bbl for oil and $2.94 per Mcf for gas in accordance with
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations The Company presents certain non-GAAP financial measures to supplement its financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The non-GAAP financial measures include Adjusted Net Income, Adjusted EBITDAX,
Slide 21: Non-GAAP Reconciliations (Cont'd.)
Non-GAAP Reconciliations (Cont’d.) Adjusted Net Income We define Adjusted Net Income as net income (loss) plus loss on discontinued operations, non-cash (gain) loss on derivatives, transaction costs and other, income tax expense related to our change in tax status and the changes in estimated income
Slide 22: Non-GAAP Reconciliations (Cont'd.)
Non-GAAP Reconciliations (Cont’d.) Adjusted EBITDAX We define Adjusted EBITDAX as net income (loss) adjusted for loss on discontinued operations, exploration costs, depletion, depreciation, amortization and accretion, equity-based compensation expense, interest expense, non-cash (gain) loss on deriv
Slide 23: Non-GAAP Reconciliations (Cont'd.)
Non-GAAP Reconciliations (Cont’d.) Cash G&A, Cash Costs and Cash Margin per Boe Three Months Ended Nine Months Ended June 30, Cash G&A is defined as general and administrative expense, excluding June 30, 2022 March 31, 2022 June 30, 2021 2022 2021 equity-based compensation, plus cost of contract ser
Slide 24: Non-GAAP Reconciliations (Cont'd.)
Non-GAAP Reconciliations (Cont’d.) Free Cash Flow Free Cash Flow is a measure that we use as an indicator of our ability to fund our development activities and generate excess cash for other corporate purposes. We define Free Cash Flow as Net Cash Provided by Operating Activities, before changes in
Slide 25: Non-GAAP Reconciliations (Cont'd.)
Non-GAAP Reconciliations (Cont’d.) PV-10: PV-10 is derived from the standardized measure of discounted future net cash flows ("Standardized Measure"), which is the most directly comparable financial measure under GAAP. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is e
Slide 26: Additional Information
Additional Information Company www.rileypermian.com 29 E. Reno Ave., Ste 500 Oklahoma City, OK 73104 Investor Relations Direct: 405-415-8699 ir@rileypermian.com 26
Riley Exploration Permian — Q3 2022 Earnings Presentation on 6ix