Riley Exploration Permian, Inc. · AMEX:REPX
Riley Exploration Permian — Q2 2022 Earnings Presentation
26 slides from Riley Exploration Permian's earnings presentation, May 11, 2022
Slide 1: Investor Presentation May 2022
Investor Presentation May 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 $22.83 • 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 17-22% year-over-year oil production growth for fiscal 2022 bas
Slide 5: Track Record of Consistent Growth and Shareholder Returns
Track Record of Consistent Growth and Shareholder Returns Total Net Production Adjusted EBITDAX(2) Dividends per Share(3) MBoe/d $MM $/Sh 10.20 8.6 Oil, MBbls/d 7.1 6.2 123 1.24 1.01 3.5 90 0.90 7.65 6.4 68 5.4 5.6 63 0.60 3.3 37 FY18 FY19 FY20 FY21 FY22 G(1) FY18 FY19 FY20 FY21 FY22 YTD, FY18 FY19
Slide 6: 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 7: Summary Proved Reserves (Internal Estimates of 3/31/22)
Summary Proved Reserves (Internal Estimates of 3/31/22(1)) Developed vs Developed vs Commodity Volume Mix Undeveloped Volume Mix Undeveloped PV-10(2) Mix 73 MMBoe 73 MMBoe $1.1 Bn 18% 28% 41% 18% 59% 64% 72% Oil NGL Nat Gas PDP PUD PDP PUD $6 12 Years 21 Years 5x 50% per BOE cost to add Ratio of pro
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 v
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 3/31/22
Updates for the Quarter Ending 3/31/22 [ insert footnotes here ] 12
Slide 13: Recent Performance and New Guidance
Recent Performance and New Guidance Completed Quarter New Forward Guidance (3 Months Ending 3/31/22) For the 3- Month For the 3- Month For the 12-Month Prior Guidance Actual Period Ending Period Ending Period Ending Disclosed Performance 6/30/22 9/30/22 9/30/22 Avg. Daily Oil Production, MBbls/d 7.2
Slide 14: Managing External Pressures in Today’s Operating Environment
Managing External Pressures in Today’s Operating Environment • Company utilizes third-party service • Cost control efforts paid off in the most companies for its drilling and completions recent quarter, as LOE decreased on a unit activity basis ($/Boe) by 4% Q-o-Q and by 3% Y-o-Y Inflation Labor • R
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 100% $100 • For the balance of FY22 (two quarters
Slide 16: Appendix
Appendix [ insert footnotes here ] 16
Slide 17: Commodity Hedging Positions as of May 9, 2022
Commodity Hedging Positions as of May 9, 2022 2022 2023 2024 Calendar Quarters 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q CRUDE OIL Fixed Swap - Volume, Bbls/Qtr 345,000 270,000 270,000 225,000 195,000 150,000 150,000 - Weighted Average Price, $/Bbl $57.47 $56.03 $56.03 $53.65 $53.89 $52.58 $52.58 Collars - Volume, Bb
Slide 18: Oil, Natural Gas and NGL Reserves
Oil, Natural Gas and NGL Reserves The Company prepared estimates of proved reserves as of March 31, 2022 using NYMEX pricing. The Company also 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 en
Slide 19: Oil, Natural Gas and NGL Reserves, continued
Oil, Natural Gas and NGL Reserves, continued 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 (income) loss on discontinued operations, unrealized (gain) loss on derivative contracts, transaction costs and other, income tax expense related to our change in tax status and the changes
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 (income) on discontinued operations, exploration expense, depletion, depreciation, amortization and accretion, equity-based compensation expense, interest expense, unrealized (gain)
Slide 23: Non-GAAP Reconciliations (Cont’d.)
Non-GAAP Reconciliations (Cont’d.) Cash G&A, Cash Costs and Cash Margin Three Months Ended March 31, Six Months Ended March 31, Cash G&A is defined as general and administrative expense less share- 2022 2021 2022 2021 based and unit-based compensation and contract services–related (Unaudited, In tho
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: The non-GAAP financial measure of PV-10, as defined and presented below, is intended to provide readers with meaningful information that supplements our financial statements prepared in accordance with GAAP. PV-10 is derived from the standardized measure of
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
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