Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Investor Presentation (November 2022)
23 slides from Riley Exploration Permian's investor presentation, November 2022
Slide 1: Company Overview November 2022
Company Overview 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: Corporate and Strategic Overview
Corporate and Strategic 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 • Core business operations focus on modern horizontal drilling and completions applied to the
Slide 4: 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 13.0 12.7 12.0 11.0 10.0 9.2 9.0 Oil, MBbls/d 8.0 7.2 7.0 6.6 174 1.36 6.0 5.0 1.08 4.1 9.4 4.0 0.92 97 0.83 6.7 3.0 5.6 5.7 67 68 2.0 3.9 41 1.0 - CY18 CY19 C
Slide 5: 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 100 years deve
Slide 6: Summary Proved Reserves (Internal Estimates of 9/30/22)
Summary Proved Reserves (Internal Estimates of 9/30/22(1)) Developed vs Developed vs Commodity Volume Mix Undeveloped Volume Mix Undeveloped PV-10(2) Mix 82 MMBoe 82 MMBoe $874 MM $711MM PDP PV-10, based on ~$78 WTI in 2022, decreasing to $60 in 2026 and beyond(2) $6 13 Years 21 Years 5x 29% per BOE
Slide 7: 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 8: 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 9: Committed to ESG Engagement
Committed to ESG Engagement Responsibly producing some of the world’s most demanded natural resources Environmental Social Governance • Pursuing CCUS activities to capture and • Providing low-cost, reliable and secure • Prioritizing long-term corporate storage industrial CO2 energy and natural resou
Slide 10: 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 11: Appendix
Appendix [ insert footnotes here ] 11
Slide 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 23
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