Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Q3 2022 Earnings Presentation
20 slides from Riley Exploration Permian's earnings presentation, November 2022
Slide 1: 3Q22 Results Update
3Q22 Results Update November 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: Highlights of 3Q22 Results
Highlights of 3Q22 Results Production CFFO(1) Capex (Accrual) 9.4 Mbo/d $50MM for 3Q22 $37MM RILEYfor 3Q22 PERMIAN 12.7 Mboe/d $124MM for 9 Mos. $96MMNYSE: forREPX 9 Mos. Share Price1 [$25.95] 13% oil increase Q/Q 16% increase Q/Q 7% increase Q/Q 36% oil increase Y/Y for the quarter 121% increase Y/
Slide 4: Drivers of Growth in Cash Flow from Operations
Drivers of Growth in Cash Flow from Operations(1) Q/Q: 3 Months Ending 9/30/22 vs 6/30/22 Y/Y: 9 Months Ending 9/30/22 vs 9/30/21 16% higher Q/Q despite 15% lower realized oil prices 94% higher Y/Y driven RILEY by volumes and price PERMIAN NYSE: REPX Share Price1 [$25.95] Shares Out1 [19.54MM] Marke
Slide 5: Reinvesting for Significant Growth While Also Increasing FCF
Reinvesting for Significant Growth While Also Increasing FCF(1) Improving Capital Efficiency: Increased Allocation of Capital Materially Increased FCF(1) More Growth with Less Spending to Dividends + Balance Sheet $MM 30% Capex Dividends and Balance Sheet 2022 Y/Y Oil Production Growth 20% 19% 33% 2
Slide 6: 3Q22 Operations Updates
3Q22 Operations Updates • Turned to sales 7 gross / 4.2 net horizontal wells during 3Q22, or 14 gross / 10.8 net during the Core nine months ended 9/30/22 Upstream • Average completed lateral length on operated horizontal wells turned to sales was approximately 7,800 feet, with D&C costs remaining r
Slide 7: Forward Guidance
Forward Guidance Completed Quarter Current Quarter (3 Mos. Ending 9/30/22) (3 Mos. Ending 12/31/22) Prior Guidance Actual New Forward Guidance Disclosed Performance Avg. Daily Oil Production, MBbls/d 8.2 - 8.6 9.4 9.4 - 9.9 Avg. Daily Equivalent Production, MBoe/d 11.1 - 11.6 12.7 12.6 - 13.2 LOE $8
Slide 8: Appendix
Appendix [ insert footnotes here ] 8
Slide 9: Capitalization Summary
Capitalization Summary Market Capitalization Equity Ownership Credit Facility > 5% Holders and Insiders Shares $250 NYSE: REPX as of 11/8/221 (MM) Ownership % RILEY PERMIAN $225MM Borrowing Base Share Price (11/8/22) $32.19 Yorktown Energy Partners2 5.51 27.3% NYSE: REPX $200 Shares Outstanding, MM
Slide 10: 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 2022 (one quarter remaining),
Slide 11: Hedging Positions as of 11/8/22
Hedging Positions as of 11/8/22 2022 2023 2024 4Q 1Q 2Q 3Q 4Q 1Q CRUDE OIL Fixed Swap - Volume, Bbls/Qtr 270,000 225,000 195,000 150,000 150,000 - Weighted Average Price, $/Bbl $56.03 $53.65 $53.89 $52.58 $52.58 Collars - Volume, Bbls/Qtr 90,000 30,000 30,000 - - 3,000 Weighted Average Floor Price,
Slide 12: Oil, Natural Gas and NGL Reserves as of 9/30/22
Oil, Natural Gas and NGL Reserves as of 9/30/22 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 September 30, 2022 of $92.16 per Bbl for oil and $6.13 per Mcf for gas in accor
Slide 13: Oil, Natural Gas and NGL Reserves as of 12/31/21
Oil, Natural Gas and NGL Reserves as of 12/31/21 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 December 31, 2021 of $66.55 per Bbl for oil and $3.6 per Mcf for gas in accordance wi
Slide 14: 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 15: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Adjusted Net Income We define Adjusted Net Income as net income (loss) plus (gain) 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
Slide 16: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Adjusted EBITDAX We define Adjusted EBITDAX as net income (loss) adjusted for (gain) loss on discontinued operations, exploration costs, depletion, depreciation, amortization and accretion, equity-based compensation expense, interest expense, non-cash (gain) loss o
Slide 17: 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 Cash G&A is defined as general and administrative expense, excluding September 30, September 30, September 30, September 30, 2022 June 30, 2022 2021 2022 2021 equity-based compensatio
Slide 18: 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 19: 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 20: 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 20
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