Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Q3 2024 Earnings Presentation
22 slides from Riley Exploration Permian's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 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 energy company with operations 3Q24 Production 23.4 Mboe/d in Texas and New Mexico Our oil-focused and capital efficient asset base enables optionality on our Equity Market Cap(1) ~$570MM corporate investment allocation: Enterprise V
Slide 4: Oil-Focused, Permian Asset Base
Oil-Focused, Permian Asset Base 1. Business focus: applying modern horizontal drilling and completions techniques to oil-saturated and liquids-rich formations 3Q24 Commodity Splits Oil Natural Gas NGL 2. Regional focus: Northwest Shelf of the Permian Basin • Two core assets in West Texas and Southea
Slide 5: Riley’s Assets Compete with Core Permian on Productivity
Riley’s Assets Compete with Core Permian on Productivity Riley’s wells to date have experienced lower relative Riley’s wells to date have outperformed Midland and declines versus Delaware and Midland basin wells Delaware basin wells on a 5-year basis Oil Production Rates over Time Cumulative Oil Pro
Slide 6: Riley’s Assets Compete with Core Permian on Economics
Riley’s Assets Compete with Core Permian on Economics Riley’s wells costs on an absolute and relative basis are The combination of higher productivity and lower well lower than average Delaware and Midland basin wells costs can lead to significantly lower breakeven costs 2024 Vintage Average Well Co
Slide 7: Balanced Capital Allocation
Balanced Capital Allocation Reinvestment in Upstream Excess FCF Allows for Optionality Development for Volume Growth 43% reinvestment rate for LTM 57% FCF conversion rate for LTM Invested over the past year in our power Achieving Q/Q production volume growth joint venture and a small acquisition, wi
Slide 8: Track Record of Direct Return of Capital
Track Record of Direct Return of Capital History of paying fixed 9% CAGR since May 2021 1 dividends every quarter as a public company $0.38 $0.36 $0.36 $0.36 $0.36 $0.34 $0.34 $0.34 $0.34 Quarterly Dividends Paid, $/Sh. $0.31 $0.31 $0.31 $0.31 History of raising dividends 2 annually $0.28 $0.28 5.7%
Slide 9: Track Record of Growth
Track Record of Growth CFFO(1) FCF(2) Shareholders’ Equity $MM $MM $MM 133 507 231 206 422 169 333 70 238 56 89 8 (3) (3) 2021 2022 2023 LTM 2021 2022 2023 LTM 2021 2022 2023 3Q24 3Q24 3Q24 (1) Cash Flows from Operations before the impact of changes in working capital (2) A non-GAAP financial measur
Slide 10: Power Generation Initiatives
Power Generation Initiatives Investing in electric power initiatives that we believe can optimize our business, provide a hedge for gas prices and offer attractive rates of return on investment Natural Gas Power Generator Power Purchaser Feedstock Provider Self-consume to power Texas field operation
Slide 11: Power Generation Initiatives (Cont’d.)
Power Generation Initiatives (Cont’d.) Self-Consume for REPX Operations Sell to the Grid • Utilize in-basin, lower-cost natural gas for thermal • Capitalize on market dynamics including abundant, associated power generation natural gas production, gas midstream egress limitations and • Improve relia
Slide 12: 3Q24 Results Summary
3Q24 Results Summary [ insert footnotes here ] 12
Slide 13: Highlights from 3Q24 Earnings Release
Highlights from 3Q24 Earnings Release 1 Production 2 Cash Flow 3 Reinvestment 4 FCF Conversion Increased oil production by 5% Generated $61MM of CFFO Reinvested 50% of CFFO into Converted 62% of CFFO to FCF Q/Q to 15.5MBbls/d with total and $72MM of Adjusted capital expenditures on an for $38MM in 3
Slide 14: Drivers of Quarter-over-Quarter Growth
Drivers of Quarter-over-Quarter Growth Cash Flow From Operations (CFFO)(1) Free Cash Flow (FCF)(2) Q/Q: 3 Months Ending 9/30/24 vs 6/30/24 Q/Q: 3 Months Ending 9/30/24 vs 6/30/24 Flat Q/Q despite increased development 5% increase Q/Q despite lower pricing activity and corresponding capex (3) 3 3.7 4
Slide 15: Drivers of Year-over-Year Growth
Drivers of Year-over-Year Growth Cash Flow From Operations (CFFO)(1) Free Cash Flow (FCF)(2) Y/Y: 9 Months Ending 9/30/24 vs 9/30/23 Y/Y: 9 Months Ending 9/30/24 vs 9/30/23 16% increase driven primarily by production 169% growth Y/Y (3) and improved hedge settlements 12.8 27.7 (0.2) 176.4 (5.2) (5.6
Slide 16: Appendix
Appendix [ insert footnotes here ] 16
Slide 17: 4Q24 Guidance
4Q24 Guidance Forecasting ~15% Y/Y oil volume growth while reducing Y/Y capex by ~16%, based on midpoint 4Q24 Guidance Activity, Production, and Investing Guidance Quarterly Detail for Estimated Realizations and Cost Guidance 4 Q2 4 4 Q2 4 Gross Operated W ell Activity Operating and C orporate C ost
Slide 18: 2024 Forecasted Sources and Uses of Capital
2024 Forecasted Sources and Uses of Capital 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 $80 WTI Incr. FCF at $70 WTI Incr. debt paydown at $80 WTI Incr. debt paydown at $70 WTI (1) (2) FCF at $60 WTI Excess beginning cas
Slide 19: 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) 45% 44% % Mix of Swaps vs Collars – Forward 12 Months 36% Swaps | 64% Collars 54% Swaps | 46% Col
Slide 20: Hedging Summary Positions as of 11/1/24
Hedging Summary Positions as of 11/1/24 2024 2025 2026 Calendar Quarters 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 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 $
Slide 21: 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 11/1/24 Shares (MM) Ownership % (2) Yorktown Energy Part
Slide 22: Debt Summary
Debt Summary • Company plans to pursue a normal-course extension for its credit facility by early 2025 • SOFR swaps in place for $80MM per quarter of notional value for 3Q24 - 1Q26, corresponding to 62% of principal value of floating-rate debt at 9/30/24(1) • Approximately 83% of the principal value
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