REI - Riley Exploration Permian Offers 6.6% Dividend Offbeat Operations

2024-01-22 10:44:26 ET

Summary

• Riley Exploration Permian is a $448 million market cap company paying a 6.6% annualized dividend. It drills horizontal wells—focusing on waterfloods—in conventional formations (not shales) in the Northwest Shelf.
• The company’s heavy combined insider and private equity (67.9% total) ownership could mean outside investors have little say.
• The quarterly dividend of $0.36/share is payable February 8 for holders as of January 25.

Riley Exploration Permian ( REPX ) presents a conundrum. It offers a relatively rich dividend (6.6% annualized). Indeed, for short-term traders, the company's quarterly $0.36/share dividend is payable February 8, 2024, to stockholders of record January 25, 2024.

However, most of its equity (68%) is held by insiders or private equity companies, leaving third-party investors with little control. Three of the company's six executive positions-including CEO and CFO-are held by Riley family members and its audit governance sub-score is a relatively poor 9, with 10 as the worst....

For further details see: