Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Q4 2021 Earnings Presentation
25 slides from Riley Exploration Permian's earnings presentation, Dec 13, 2021
Slide 1: Investor Presentation December 2021
Investor Presentation December 2021
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 $17.76 • Our activities primarily target the horizontal development of
Slide 4: Corporate Strategy
Corporate Strategy Steadily grow cash flow Identify attractive new from operations through opportunities for capital Distribute excess returns development of our investment, including to stockholders in the existing assets and complementary assets or form of dividends continuous improvement new vent
Slide 5: Premier, Oil-Based, Conventional Asset
Premier, Oil-Based, Conventional Asset • Riley Permian’s focus is on development of horizontal San Andres production on the Northwest Shelf of the Permian Basin • The San Andres is a proven, conventional reservoir that has been producing since the 1920s • The San Andres’ moderate depth generally lea
Slide 6: Low Decline Rates Enable Capital Efficiency
Low Decline Rates Enable Capital Efficiency Lower Decline Rate in Wells Enables Distributed Allocation Enabling Growth, Dividend Payments Relative to Shale of Capital Use and Excess Cash Flow Comparison of Initial Decline Rates for Cumulative Allocation of Riley Permian’s Representative Riley Permia
Slide 7: Multi-Year Track Record of Execution Across Cycles
Multi-Year Track Record of Execution Across Cycles Total Net Production and Adj. EBITDAX1 Oil Price2 100 10 Adj. EBITDAX (Right Axis) 100 90 Production (Left Axis) 75 77 76 76 Total Equivalent Production, MBoe/d 8 80 54 64 63 68 58 59 63 50 49 49 Adj. EBITDAX, $MM 43 WTI Spot, $/Bbl 6 60 44 42 36 25
Slide 8: Organic Reserve Growth is Far Outpacing Production
Organic Reserve Growth is Far Outpacing Production 2017 2018 2019 2020 2021 ‘18-’21 YTD Track Record: Data shown as net and in MMBOE 7x reserve additions vs. production Ending Reserves Additions 5x ’21 ending reserves vs. Production ’18 starting reserves Large additions during 2018-19 as 6:1 equival
Slide 9: Excelling on Full-Cycle Cash Conversion Efficiency
Excelling on Full-Cycle Cash Conversion Efficiency High Cash Margin1 Low Finding & Development Cost2 High Cash Conversion Metric3 $/Boe $/Boe Multiple of Cash Margin vs Total F&D Riley Permian Riley Permian Riley Permian Other Permian, Group Average Other Permian, Group Average Other Permian, Group
Slide 10: Identifying Attractive New Opportunities for Investment
Identifying Attractive New Opportunities for Investment Our business produces one of the most highly demanded and valuable commodities in the world, which society uses across many fundamental aspects of everyday life. Concurrently, we acknowledge a growing discussion for decarbonizing economies and
Slide 11: 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 12: Forward Guidance
Forward Guidance Quarter Only Full-Year FQ1 22 FY22 Non-EOR Capex (Accrual Method) $8 - 10MM $65 - 71MM EOR Capex (Accrual Method) $18 - 22MM $20 - 24MM Total Capex (Accrual Method) $26 - 32MM $85 - 95MM Avg. Daily Oil Production, MBbls/d 7.0 - 7.3 11 - 15% year-over-year Avg. Daily Equivalent Produ
Slide 13: Forecasted Production and Capital Budget
Forecasted Production and Capital Budget Forecasted PDP and Growth Production Midpoint FY22 Capital Budget 12 PDP Maintenance Non-EOR Growth +11-15% 9 -21% Net MBoe/D Base 6 Decline 3 0 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22 Aug-22 Base Decline per management estimates and NSAI reserve reports. Forecast
Slide 14: Balanced Hedging Strategy with Improving Price Profile
Balanced Hedging Strategy with Improving Price Profile • Riley’s hedging strategy uses a combination of swaps, collars and basis differential hedges to protect cash flow and comply with credit facility covenants while allowing for exposure commodity upside • The Company restructured certain derivati
Slide 15: 11 Consecutive Quarters of Returning Cash to Our Shareholders
11 Consecutive Quarters of Returning Cash to Our Shareholders $1.24 The payment of a regular $1.01 quarterly dividend has long been $0.90 a priority for Riley Permian, dating back to its predecessor entity as a private company. $0.60 Going forward, one of Riley Permian’s core priorities is to contin
Slide 16: Committed to ESG Engagement
Committed to ESG Engagement ENVIRONMENTAL SOCIAL GOVERNANCE Energy transition viewed as an opportunity for Hiring employees from diverse backgrounds Prioritizing long-term corporate sustainability engagement and new ventures displaced by economic downturn and creating value for shareholders
Slide 17: Investment Highlights
Investment Highlights Proven and aligned management Premier, oil-based, conventional Multi-year track record of team with substantial expertise asset with low decline rates that organic growth in production, across disciplines and long-term enables capital efficiency cash flow and reserves across pe
Slide 18: 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 18
Slide 19: Appendix
Appendix [ insert footnotes here ] 19
Slide 20: Commodity Hedging Position as of December 8, 2021
Commodity Hedging Position as of December 8, 2021 Oil Price Swaps Oil Price Collars Composite Oil Price Derivatives Volume as a % of Calendar Calendar Volume, Volume, Bought Put Sold Call Volume, 3Q21 Downside Quarters MBbls Price MBbls Price Price MBbls Production Price Upside Price Q4 2021 558 $51
Slide 21: 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 22: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Adjusted Net Income We define Adjusted Net Income as net income (loss) plus (income) loss on discontinued operations, unrealized (gain) loss on derivative contracts, transaction costs, income tax expense related to our change in tax status and the associated change
Slide 23: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Adjusted EBITDAX We define Adjusted EBITDAX as net income (loss) adjusted for loss (income) on discontinued operations, exploration expense, depletion, depreciation, amortization and accretion, equity-based compensation expense, interest expense, unrealized (gain)
Slide 24: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Cash G&A, Cash Costs and Cash Margin Three Months Ended September 30, Year Ended September 30, Cash G&A is defined as general and administrative expense 2021 2020 2021 2020 less share-based and unit-based compensation and contract (In thousands) services–related pa
Slide 25: 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 Cash Flow from Continuing Operations, less capital expenditur
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