Consistent Growth to Drive Shareholder Returns
|52 Week Range||$15.53-$36.00|
|Avg. Daily Vol. (30 day)||38,874|
|Shares Out (MM)||20.2|
|Market Cap (MM)||$644.9|
|Insiders Own %||32.4%|
|Enterprise Value ($MM)||$675.0|
|Revenue TTM (MM)||$300.9|
|Annual Dividend/Yield||$1.36 / 4.3%|
|Fiscal Year End||December|
- We hosted a fireside chat with senior leadership of Riley Exploration Permian on October 12, 2022. Participants included Riley President Kevin Riley and Chief Financial Officer Philip Riley.
- Riley’s strategy to deliver shareholder returns is built around reinvesting a portion of cash flow to grow production and proved reserves and paying a consistent dividend to shareholders.
- Riley owns ~26,000 net acres on the Northwest Shelf portion of the Permian Basin in Yoakum County, Texas where it is developing the conventional San Andres Formation with horizontal wells. San Andres horizontal wells have a shallower production decline than unconventional shale wells affording a lower capital-intensive growth opportunity.
- CO2 injection is set to commence in 4Q22 on a new enhanced oil recovery (EOR) pilot project. An oil production response is anticipated six to 12 months from first injection.
- The conventional asset base underpins Riley’s ability to drive consistent organic production and proved reserve growth in support of EBITDAX and the dividend.
- On October 10, Riley announced a 10% increase in the quarterly dividend to $0.34 per share from $0.31 per share. The annual dividend yield is 4.3%.
- A conservative financial posture is a key element to the shareholder return strategy. The annualized leverage ratio sits well below 1.0x.
- Access WTR’s fireside chat on demand.
Riley Exploration Permian is a growth-oriented independent oil and natural gas company focused on the acquisition, exploration, development, and production of oil, natural gas, and NGLs. The company’s primary activity targets the modern horizontal development drilling of the prolific conventional-reservoir San Andres Formation, a shelf margin deposit dolomite on the Northwest Shelf portion of the Permian Basin. Most of Riley’s acreage is located on large, contiguous blocks in Yoakum County, Texas. The company’s homepage is www.rileypermian.com.
We hosted a fireside chat with senior leadership of Riley Exploration Permian on October 12, 2022. Participants included Riley President Kevin Riley and Chief Financial Officer Philip Riley.
Jeff Robertson: Thank you for joining us today. My name is Jeff Robertson. I am the Managing Director of Natural Resources with Water Tower Research. I would like to welcome you to today’s fireside chat with Riley Exploration Permian. Joining us today from the company are Kevin Riley, President, and Phillip Riley, Chief Financial Officer. I will note that the last names are coincidental, as there is not a familial relationship between Kevin and Philip.
Today’s discussion may include forward-looking statements. Participants can find Riley’s disclosures regarding such statements in the company’s latest corporate presentation which can be found under the Events and Presentation section of the Investor Relations tab on Riley’s homepage. With that bit of housekeeping out of the way, we can dive into the conversation. Kevin and Philip, thank you for taking the time to join us today.
Kevin Riley: Thank you for having us.
Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.
WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...