REPX - Riley Takes Advantage Of Low Valuations To Build Asset Base

2025-05-29 23:37:42 ET

Summary

• Riley Exploration Permian is a Permian pure-play with strong production growth, a 5.7% dividend yield, and a compelling valuation at 4.6x P/E.
• Strategic acquisitions and infrastructure investments, like the Silverback II deal and New Mexico gas pipeline, will unlock production and boost long-term earnings.
• Robust hedging for 2025, low breakeven costs, and expanding power JVs support cash flow and dividend safety despite near-term pricing headwinds.
• Management's focus on acquiring undervalued assets and building reserves positions, REPX for both short-term income and long-term capital appreciation.

Investment Thesis

Riley Exploration Permian ( REPX ) is a Permian pure player, with a 60-40 oil-gas split for production. Across 78,600 acres, and a planned acquisition of an additional 47,000, REPX is guiding toward output of 26.4 Mboe/d (thousand barrels of oil equivalent per day) at the midpoint or a 17.3% increase year over year....

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