Key Highlights from the 2025 Financial Report

• Debt Reduction: The company reduced its outstanding debt by \$120 million in 2025, ending the year with a debt-to-Adjusted EBITDAX ratio of 1.0x. This significant deleveraging is a major financial milestone and improves the company’s balance sheet strength.
• Stock Repurchase Authorization: Riley announced a stock repurchase program authorizing up to \$100 million for buybacks of its outstanding common shares. This move signals management confidence and may directly impact share value by reducing float and potentially supporting price appreciation.
• Dividend Payments: The company paid a cash dividend of \$0.40 per share in Q4 2025, totaling \$8 million for the quarter. This demonstrates continued commitment to shareholder returns.

2025 Full-Year Financial Performance

• Revenue: Full-year revenues totaled \$392 million.
• Net Income: Net income reached \$161 million, or \$7.59 per diluted share, marking strong profitability.
• Adjusted EBITDAX: On a non-GAAP basis, Adjusted EBITDAX was \$261 million, indicating robust cash generation.
• Cash Flow: Net cash provided by operating activities was \$213 million; cash flow from operations before changes in working capital stood at \$1.14 billion.
• Reserve Additions: Net proved reserve additions resulted in a reserve replacement ratio of 323% for 2025, with organic reserve replacement ratio at 230%. This substantial reserve growth underscores future production potential and asset quality.

Fourth Quarter 2025 Results

• Revenue: Q4 revenues were \$97 million.
• Net Income: Net income for the quarter was \$85 million, or \$4.02 per diluted share.
• Adjusted EBITDAX: \$1 million for Q4, with Adjusted Net Income at \$22 million, or \$1.01 per diluted share.
• Derivative Gains: The company reported a \$21 million net gain on derivatives, including \$8 million realized gain on settlements.
• Operating Expenses: Lease operating expense (LOE) was \$23 million (\$7.16 per Boe), administrative costs were \$8 million (\$2.42 per Boe), and production/ad valorem taxes totaled \$8 million (\$2.44 per Boe).

2026 Guidance and Outlook

• Well Activity: Net operated wells turned to sales are projected at 7.0-8.0 for Q1 2026 and 43.0-49.0 for the full year. Non-operated wells: 19.0-19.5 in Q1; 21.0-22.0 for the year.
• Capital Expenditures: Upstream investing is guided at \$55-\$65 million for Q1 and \$190-\$210 million for 2026. Power JV investment: \$2-\$3 million for Q1 and \$6-\$8 million for the year. Total investments: \$57-\$68 million for Q1, \$196-\$218 million for full-year 2026.
• Operating Costs: Administrative costs are estimated at \$2.50-\$3.00 per Boe for Q1 2026.

Management notes that the groundwork laid in 2025—including inventory expansion, infrastructure buildout, and balance sheet improvement—positions the company for a more active and value-enhancing development program in 2026 and beyond.

Balance Sheet and Capital Structure

• Total Assets: At year-end 2025, total assets reached \$993.5 million.
• Shareholders’ Equity: Shareholders’ equity increased to \$634.2 million (from \$510.6 million in 2024), reflecting strong earnings retention and capital returns.
• Long-term Debt: The company ended 2025 with \$227.9 million in long-term debt.

Potential Price Sensitive Developments

• Stock Repurchase Program: The \$100 million buyback authorization is a notable capital allocation decision that may positively impact share price through reduced share supply and signaling management’s confidence in the intrinsic value.
• Debt Reduction: The substantial \$120 million debt reduction and improved leverage ratio (1.0x) enhance financial flexibility and could attract investor interest.
• Reserve Replacement Ratios: Exceptional reserve growth (323% reserve replacement ratio) signals strong asset quality and future production growth, potentially boosting investor confidence.
• Dividend Payments: Continued cash dividends (Q4: \$0.40/share) affirm the company’s commitment to direct shareholder returns.

Investor Conference Call

Riley Permian management will host a conference call for investors and analysts on March 5, 2026 at 9:00 a.m. CT to discuss results and provide a Q&A session. Dial-in details and a company presentation are available on www.rileypermian.com. A replay will be available through March 19, 2026.

Forward-Looking Statements and Risks

This report includes forward-looking statements regarding Riley Permian’s future operations, strategies, and financial outlook. These are subject to various risks, including commodity price volatility, operational delays, and regulatory changes. Investors are urged to review the “Risk Factors” in the company’s annual and quarterly SEC filings.

Conclusion

Riley Exploration Permian, Inc. delivered a strong 2025 performance, underpinned by improved debt metrics, robust earnings, substantial reserve growth, and capital returns to shareholders. The 2026 guidance points to continued operational activity and disciplined capital investment. The stock repurchase program, ongoing dividends, and reserve additions are all potentially price-sensitive developments likely to be closely watched by investors.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The information is based on publicly available filings and press releases as of March 4, 2026. Investors should consider their own circumstances and consult with a financial advisor before making any investment decisions. Riley Exploration Permian, Inc.’s future results may differ materially from those discussed, due to risks and uncertainties as described in the company’s filings with the SEC.