FANG - Riley Permian: This Growing E&P Looks Good If You Can Stomach The Volatility
2024-06-03 17:51:12 ET
Summary
- Riley Exploration Permian, Inc. is a small independent oil and gas exploration company operating in the Permian Basin of West Texas.
- Riley Exploration Permian has a strong free cash flow generation and pays a dividend yield of 4.93%.
- Despite its small size and lower dividend yield compared to peers, Riley Exploration Permian has been growing its dividend at a decent pace and is trading at an attractive valuation.
- The company has managed to double its production and funds from operations over the past two years, but the stock price has declined.
- The company is positioned to continue its growth trajectory over the remainder of this year.
Riley Exploration Permian, Inc. ( REPX ) is an independent oil and gas exploration & production company that operates in the resource-rich Permian Basin of West Texas. The company is nowhere near the size of many of its peers, as it only controls approximately 58,000 net acres and produced approximately 20,400 barrels of oil equivalent per day in the first quarter of 2024:
The company’s market capitalization is also not especially large compared to other companies in the Permian Basin:
| Company Name |
| Market Capitalization |
| Enterprise Value |
| Riley Exploration Permian |
| $629.8 |
| $965.41 |
| Diamondback Energy ( FANG ) |
| $35,540 |
| $42,530 |
| Devon Energy ( DVN ) |
| $31,050 |
| $36,580 |
| Matador Resources ( MTDR ) |
| $7,920 |
| $10,090 |
| Vital Energy ( VTLE ) |
| $1,700 |
| $3,520 |
| Ovintiv ( OVV ) |
| $13,790 |
| $20,900 |