In This Article:
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Revenue: Reported at $100 million, falling short of estimates of $105.85 million.
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Net Income: Achieved $19 million, below the estimated $34.63 million.
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Earnings Per Share (EPS): Recorded at $0.94 per diluted share, significantly below the expected $1.64.
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Free Cash Flow: Generated $23 million, indicating strong financial health and operational efficiency.
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Debt Reduction: Reduced total debt by $15 million, enhancing the company's financial stability.
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Oil Production: Increased to 14.2 MBbls/d, up by 4% from the previous quarter, reflecting improved operational performance.
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Dividends: Paid $0.36 per share, totaling $7 million, demonstrating commitment to returning value to shareholders.
Riley Exploration Permian, Inc. (REPX) unveiled its financial and operational results for the first quarter ended March 31, 2024, through its recent 8-K filing. The company, a prominent player in the oil and natural gas sector with operations primarily in New Mexico and surrounding areas, reported a mix of achievements and challenges during the period.
Company Overview
Riley Exploration Permian, Inc. is engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company's strategic operations focus on leveraging advanced extraction and production technologies to maximize its output in the Permian Basin, one of the most prolific hydrocarbon-producing regions in the United States.
Q1 2024 Performance Highlights
The company reported a net income of $19 million, or $0.94 per diluted share, for Q1 2024. This performance marks a decrease compared to the previous year's same quarter but shows resilience in a fluctuating market environment. The total revenue for the quarter stood at $100 million, driven by an average oil production of 14.2 MBbls/d and total equivalent production of 20.4 MBoe/d.
Riley Permian also highlighted its operational efficiency improvements, which have led to reduced cycle times and cost savings. Notably, the company generated $56 million in operating cash flow and achieved a free cash flow of $23 million. These financial metrics are crucial as they reflect the company's ability to generate surplus cash that can be used for debt reduction, dividends, or reinvestment into core business activities.
Strategic Acquisitions and Debt Management
During the quarter, Riley Permian continued to execute its growth strategy through strategic acquisitions, including the purchase of oil and natural gas properties in Eddy County, New Mexico. This acquisition enhances the company's development inventory and is expected to contribute positively to future production volumes. Additionally, the company reduced its total debt by $15 million, strengthening its balance sheet and enhancing financial flexibility.