Riley Exploration Permian, Inc.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
REPX$41.23+2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001001614-25-000045
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001001614-25-000058
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 105 current paragraphs.
58 unchanged; 28 reworded; 19 added; 10 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Silverback Acquisition
Current report
Oil revenues increased by $2.7 million.
Current report
NGL revenues increased by $1.3 million.
Current report
Our realized NGL prices before GP&T costs decreased by $1.84, which was the result of a $10.65 decrease in the average WTI price. Our realized NGL prices after GP&T costs increased by $3.74 due to higher Permian Basin natural gas prices, partially offset by higher allocated GP&T costs due to increased volumes.
Current report
Nine months ended September 30, 2025, compared to nine months ended September 30, 2024
Current report
Natural gas revenues increased by $1.5 million.
Current report
NGL revenues increased by $2.2 million.
Current report
Our realized NGL prices before GP&T costs decreased by $0.85, which was the result of a $11.27 decrease in the average WTI price. Our realized NGL prices after GP&T costs increased by $1.42 due to higher Permian Basin natural gas prices, partially offset by higher allocated GP&T costs due to increased volumes.
Current report
The Company’s LOE increased by $12.3 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to a $4.0 million increase due to Silverback production and a $5.5 million increase due to higher production in our historical Red Lake field, and a $1.4 million increase in workovers.
Current report
Production and ad valorem taxes increased by $1.3 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to higher revenues across all commodities, as well as a higher percentage of volumes produced in New Mexico, which has a higher tax rate than Texas.
Current report
DD&A expense increased by $6.5 million and $9.9 million for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily due to higher production volumes in our Red Lake field and the Silverback Acquisition.
Current report
Impairments
Current report
Other Impairments
Current report
The Company recognized an impairment charge of $30.2 million for the three and nine months ended September 30, 2024, which consisted of a non-cash impairment charge of $28.9 million and a cash impairment charge of $1.3 million. The impairment charge related to the discontinuation of the Company's EOR project.
Current report
G&A expense increased by $5.0 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to Silverback integration costs, increased headcount, and an increase in incentive compensation accruals.
Current report
Interest expense, net increased by $0.8 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to a higher principal balance under the Credit Facility from the Silverback Acquisition, partially offset by slightly lower interest rates.
Current report
Interest expense, net decreased by $3.3 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to lower principal balances on the Credit Facility during the first half of the year and on the Senior Notes for the nine months ended September 30, 2025.
Current report
The decrease in our effective income tax rate for the three and nine months ended September 30, 2025, was primarily due to the federal marginal well tax credit, partially offset by the Silverback Acquisition increasing our taxable income in New Mexico. The decrease in our current income tax expense for the three and nine months ended September 30, 2025, was primarily due to the enactment of the OBBBA.
Current report
The decrease in net cash provided by operating activities was due to lower revenues and higher operating expenses. Operating expenses increased due to higher production volumes but lower realized prices more than offset the benefits from these higher volumes.
Removed paragraphs (10)
Previous report
Natural gas revenues increased by $0.1 million.
Previous report
Our realized NGL prices increased by $0.85 due to lower allocated gathering and processing costs because of higher Permian Basin natural gas prices.
Previous report
Six months ended June 30, 2025, compared to six months ended June 30, 2024
Previous report
Natural gas revenues increased by $1.0 million.
Previous report
NGL revenues increased by $0.9 million.
Previous report
Our realized NGL prices increased by $0.21 due to lower allocated gathering and processing costs because of higher Permian Basin natural gas prices. Daily NGL volumes increased by 43% due to additional available third-party processing capacity.
Previous report
DD&A expense increased by $2.1 million and $3.5 million for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, primarily due to an increase in production volumes.
Previous report
G&A expense decreased by $1.0 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to a decrease in share-based compensation.
Previous report
Interest expense, net decreased by $1.7 million and $4.1 million for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, primarily due to higher debt balances in 2024.
Previous report
Oil and natural gas revenues decreased $16.9 million due to a $29.7 million decrease from lower realized prices, partially offset by a $12.8 million increase in our oil and natural gas production.
Reworded paragraphs (28)
Previous wording
Inflation continues to be an ongoing concern. Although inflation has moderated somewhat, inflationary pressures remain elevated, which in turn may cause our capital expenditures and operating costs to increase. During inflationary periods, interest rates have historically increased. Increased interest rates could have the effects of raising our cost of capital and the potential for depressing economic growth, either of which (or the combination thereof) could hurt the financial and operating results of our business.
Current wording
Inflation continues to be an ongoing concern. Although inflation has moderated from highs experienced during 2021, inflationary pressures remain elevated or uncertain, which in turn may cause our capital expenditures and operating costs to increase. During inflationary periods, interest rates have historically increased. Increased interest rates could have the effects of raising our cost of capital and the potential for depressing economic growth, either of which (or the combination thereof) could hurt the financial and operating results of our business.
Previous wording
On July 1, 2025, the Company closed on the acquisition of 100% of the ownership interests of Silverback Exploration II, LLC and its subsidiaries for an aggregate purchase price of $142 million, subject to customary purchase price adjustments. The Silverback Acquisition adds approximately 47,000 net acres directly adjacent to and overlapping with the Company's existing core acreage primarily in Eddy County, New Mexico. The Company funded the acquisition with cash on hand and borrowings under our Credit Facility. See Note 4 - Acquisitions of Oil and Natural Gas Properties and Note 16 - Subsequent Events for additional information.
Current wording
On July 1, 2025, the Company closed on the acquisition of 100% of the ownership interests of Silverback. The Silverback Acquisition added approximately 47,000 net acres directly adjacent to and overlapping with the Company's existing core acreage primarily in Eddy County, New Mexico. The Company funded the acquisition with cash on hand and borrowings under our Credit Facility. See Note 4 - Acquisitions of Oil and Natural Gas Properties.
Previous wording
Comparison for the three and six months ended June 30, 2025, and 2024:
Current wording
Comparison for the three and nine months ended September 30, 2025, and 2024:
Previous wording
Our revenues are derived from the sale of our oil and natural gas production, including the sale of NGLs that are extracted from our natural gas during processing. Realized prices and revenues from product sales are a function of the volumes produced, product quality, market prices, gas Btu content, as well as gathering, processing and transportation costs. Gathering, processing and transportation costs are allocated across natural gas and NGLs based on revenue, which leads to heightened fluctuations in such cost allocations across periods. Our revenues from oil, natural gas and NGL sales do not include the effects of derivatives. Our revenues may vary significantly from period to period as a result of changes in the volume of production sold or changes in commodity prices. The following table presents the Company's oil and natural gas sales prior to and net of gathering, processing and transportation costs:
Current wording
Our revenues are derived from the sale of our oil and natural gas production, including the sale of NGLs that are extracted from our natural gas during processing. Realized prices and revenues from product sales are a function of the volumes produced, product quality, market prices, gas Btu content, as well as gathering, processing and transportation costs. Gathering, processing and transportation costs ("GP&T costs") are allocated across natural gas and NGLs based on revenue, which leads to heightened fluctuations in such cost allocations across periods. Our revenues from oil, natural gas and NGL sales do not include the effects of derivatives. Our revenues may vary significantly from period to period as a result of changes in the volume of production sold or changes in commodity prices. The following table presents the Company's oil and natural gas sales prior to and net of GP&T costs:
Previous wording
The Company’s total oil and natural gas revenues, net decreased by $16.9 million. The following tables summarize the effects of price and volume changes on our revenues from oil, natural gas, and NGLs:
Current wording
The Company’s total oil and natural gas revenues, net increased by $4.5 million. The following tables summarize the effects of price, volume and GP&T costs changes on our revenues from oil, natural gas and NGLs (in thousands):
Previous wording
Our realized oil prices decreased by $11.11, which was the result of a $11.57 decrease in the average WTI price. Daily oil volumes increased by 7% due to increased production from new wells turned to sales.
Current wording
Our realized oil prices decreased by $10.01, which was the result of a $10.65 decrease in the average WTI price. Average daily oil volumes increased by 19%, primarily due to increased production in our Red Lake field from an increase in wells turned to sales and the contribution of the Silverback Acquisition.
Previous wording
NGL revenues increased by $0.4 million.
Current wording
Natural gas revenues increased by $0.4 million.
Previous wording
Our realized natural gas prices increased by $0.22, which was the result of a $1.13 increase in the average Henry Hub price, partially offset by higher allocated gathering and processing costs.
Current wording
Our realized natural gas prices before GP&T costs increased by $0.37, which was the result of a $0.92 increase in the average Henry Hub price, partially offset by higher allocated GP&T costs due to increased volumes.
Previous wording
The Company’s total oil and natural gas revenues, net decreased by $19.9 million. The following tables summarize the effects of price and volume changes on our revenues from oil, natural gas, and NGLs:
Current wording
The Company’s total oil and natural gas revenues, net decreased by $12.4 million. The following tables summarize the effects of price, volume and GP&T costs changes on our revenues from oil, natural gas and NGLs (in thousands):
Previous wording
Oil revenues decreased by $20.4 million.
Current wording
Oil revenues decreased by $16.1 million.
Previous wording
Our realized oil prices decreased by $17.08, which was the result of a $17.24 decrease in the average WTI price. Daily oil volumes increased by 3% due to increased production from new wells turned to sales.
Current wording
Our realized oil prices decreased by $10.79, which was the result of a $11.27 decrease in the average WTI price. Daily oil volumes increased by 11%, primarily due to increased production in our Red Lake field from an increase in wells turned to sales and the contribution of the Silverback Acquisition.
Previous wording
Our realized natural gas prices increased by $0.25, which was the result of a $1.56 increase in the average Henry Hub price, partially offset by higher allocated gathering and processing costs.
Current wording
Our realized natural gas prices before GP&T costs increased $1.29, which was the result of a $1.34 increase in the average Henry Hub price, partially offset by higher allocated GP&T costs due to increased volumes.
Previous wording
The Company’s LOE increased by $2.4 million and $4.0 million for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, primarily due to higher production volumes.
Current wording
The Company’s LOE increased by $8.3 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, due to a $4.0 million increase due to Silverback production, a $2.1 million increase due to higher production in our historical Red Lake field, and a $2.0 million increase in workovers.
Previous wording
Production and ad valorem taxes decreased by $1.6 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to lower oil revenues in addition to the reversal of a previously accrued liability related to the Environmental Protection Agency’s waste emission charge that was nullified in the first quarter of 2025.
Current wording
Production and ad valorem taxes decreased by $0.3 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to lower oil revenues in addition to the reversal of a previously accrued liability related to the Environmental Protection Agency’s waste emission charge that was nullified in the first quarter of 2025, partially offset by higher natural gas and NGL revenues.
Previous wording
During the three and six months ended June 30, 2025, the Company recognized a non-cash impairment loss on proved properties of $1.2 million which related to a decrease in fair value of certain properties in New Mexico outside of the Company's acreage in the Red Lake field. There was no impairment loss for the six months ended June 30, 2024.
Current wording
There was no impairment loss during the three months ended September 30, 2025, while the Company recognized a non-cash impairment loss for the nine months ended September 30, 2025, on proved properties of $1.2 million which related to a decrease in fair value of certain properties in New Mexico outside of the Company's acreage in the Red Lake field. There was no impairment loss during the nine months ended September 30, 2024.
Previous wording
G&A expense increased by $0.7 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to an increase in professional services associated with commercial contract negotiations, partially offset by a decrease in share-based compensation.
Current wording
G&A expense increased by $5.7 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to Silverback integration costs, increased headcount, and an increase in professional services.
Previous wording
Transaction costs represent costs incurred on successful or unsuccessful commercial transactions, business combinations or unsuccessful asset acquisitions. The transaction costs of $1.9 million for the three and six months ended June 30, 2025, primarily related to the Silverback Acquisition. During the three and six months ended June 30, 2024, the transaction costs of $0.7 million primarily relate to our RPC Power joint venture.
Current wording
Transaction costs represent costs incurred on successful or unsuccessful commercial transactions, business combinations or unsuccessful asset acquisitions. The transaction costs of $2.8 million and $4.7 million for the three and nine months ended September 30, 2025, are primarily related to the Silverback Acquisition. During the three and nine months ended September 30, 2024, the transaction costs of $0.5 million and $1.1 million relate to our RPC Power joint venture and unsuccessful transactions the Company decided not to pursue further.
Previous wording
Working capital is the difference in our current assets and our current liabilities. Working capital is an indication of liquidity and potential need for short-term funding. The change in our working capital requirements is driven generally by changes in accounts receivable, accounts payable, commodity prices, credit extended to, and the timing of collections from customers, the level and timing of spending for expansion activity, and the timing of debt maturities. Our working capital fluctuates as our drilling and completion activity changes with periods of higher and lower activity. As of June 30, 2025, we had a working capital deficit of $37.8 million compared to a deficit of $54.6 million as of December 31, 2024. The current portion of our Senior Notes, which includes our regularly scheduled principal payments of $5 million per quarter, accounts for $20 million of our working capital deficit as of June 30, 2025, and December 31, 2024. We utilize our Credit Facility and cash on hand to manage the timing of cash flows and fund short-term working capital deficits. At June 30, 2025, we had cash on hand of $14.0 million and $271 million of undrawn capacity under our Credit Facility.
Current wording
Working capital represents the funds available to meet day-to-day operational needs and is the difference in our current assets and our current liabilities. Working capital is an indication of liquidity and potential need for short-term funding. The change in our working capital requirements is driven generally by changes in accounts receivable, accounts payable, commodity prices, credit extended to, and the timing of collections from customers, the level and timing of spending for expansion activity, and the timing of debt maturities. Our working capital fluctuates as our drilling and completion activity changes with periods of higher and lower activity. As of September 30, 2025, we had a working capital deficit of $47.9 million compared to a deficit of $54.6 million as of December 31, 2024. The current portion of our Senior Notes, which includes our regularly scheduled principal payments of $5 million per quarter, accounts for $20 million of our working capital deficit as of September 30, 2025, and December 31, 2024. We utilize our Credit Facility and cash on hand to manage the timing of cash flows and fund short-term working capital deficits. At September 30, 2025, we had cash on hand of $16.5 million and $175 million of undrawn capacity under our Credit Facility.
Previous wording
Net cash provided by operating activities were $84.0 million for the six months ended June 30, 2025, compared to $107.8 million for the six months ended June 30, 2024, and primarily consisted of the following:
Current wording
Net cash provided by operating activities were $147.7 million for the nine months ended September 30, 2025, compared to $179.9 million for the nine months ended September 30, 2024, and primarily consisted of the following:
Previous wording
Net cash flows used in investing activities were $70.5 million for the six months ended June 30, 2025, compared to $87.7 million for the six months ended June 30, 2024, and primarily consisted of the following:
Current wording
Net cash flows used in investing activities were $212.8 million for the nine months ended September 30, 2025, compared to $113.3 million for the nine months ended September 30, 2024, and primarily consisted of the following:
Previous wording
Capital expenditures for oil and natural gas properties decreased by $13.0 million due to fewer wells completed. Construction of our midstream project in New Mexico resulted in additions to midstream property and equipment. Acquisitions of oil and natural gas properties decreased due to the 2024 New Mexico Acquisition. Funds held in escrow increased due to the Silverback Acquisition, which closed on July 1, 2025.
Current wording
Capital expenditures for oil and natural gas properties decreased by $21.1 million due to fewer wells completed. Construction of our midstream project in New Mexico resulted in additions to midstream property and equipment. Net assets acquired in business combinations increased due to the Silverback Acquisition, which closed on July 1, 2025. Acquisitions of oil and natural gas properties decreased due to completing only a small mineral rights acquisition in the current year versus the 2024 New Mexico Acquisition.
Previous wording
Net cash flows used in financing activities were $12.7 million for the six months ended June 30, 2025, compared to $24.5 million for the six months ended June 30, 2024, and primarily consisted of the following:
Current wording
Net cash flows provided by financing activities were $68.5 million for the nine months ended September 30, 2025, compared to net cash flows used in financing activities of $68.6 million for the nine months ended September 30, 2024, and primarily consisted of the following:
Previous wording
Proceeds under our Credit Facility increased primarily to fund the Silverback Acquisition escrow and for general working capital purposes compared to a net repayment position in 2024. The Company also received $25.4 million in net proceeds from the 2024 Equity Offering.
Current wording
Proceeds under our Credit Facility increased primarily to fund the Silverback Acquisition and for general working capital purposes compared to a net repayment position in 2024. The increase was partially of offset by the net proceeds from the 2024 Equity Offering.
Previous wording
The borrowing base under the Company's Credit Facility was $400 million with outstanding borrowings of $129 million and $271 million of available borrowing capacity at June 30, 2025.
Current wording
The borrowing base under the Company's Credit Facility was $400 million with outstanding borrowings of $225 million and $175 million of available borrowing capacity at September 30, 2025.
Previous wording
The Senior Notes had a principal balance of $155 million as of June 30, 2025.
Current wording
The Senior Notes had a principal balance of $150 million as of September 30, 2025.
Previous wording
For the six months ended June 30, 2025, the Company recognized quarterly dividends totaling approximately $16.5 million, with $16.1 million paid in cash and $0.4 million accrued for the holders of unvested restricted stock awards.
Current wording
For the nine months ended September 30, 2025, the Company recognized quarterly dividends totaling approximately $24.9 million, with $24.8 million paid in cash and $0.1 million accrued for the holders of unvested restricted stock awards.
Previous wording
As of June 30, 2025, the Company had a remaining volume commitment of approximately six years with our primary midstream counterparty in Texas. The Company also had natural gas delivery commitments under the A&R Tolling Agreement and the Supply Agreement and a remaining equity commitment under the Second Amendment to the A&R LLC Agreement of $21.5 million to fund our portion of the capital budget for the RPC Power joint venture. Further, the Company entered into a 15-year gas purchase agreement (the "Midstream Gas Purchase Agreement") that required an acreage dedication to a midstream counterparty for a significant portion of our oil and gas assets in New Mexico. This agreement is expected to begin before the end of 2026. As a result of entering into the Midstream Gas Purchase Agreement, the Company is committed to spend approximately $130 million in capital expenditures through 2026 to complete the initial projects of our midstream buildout plan. The Company has incurred approximately $22 million since beginning the midstream project. See Note 15 - Commitments and Contingencies for additional information.
Current wording
As of September 30, 2025, the Company had a remaining volume commitment of approximately six years with our primary midstream counterparty in Texas. The Company also had natural gas delivery commitments under the A&R Tolling Agreement and the Supply Agreement and a remaining equity commitment under the Second Amendment to the A&R LLC Agreement of $13.0 million to fund our portion of the capital budget for the RPC Power joint venture. Further, the Company entered into a 15-year gas purchase agreement that required an acreage dedication to a midstream counterparty for a significant portion of our oil and gas assets in New Mexico. This agreement is expected to begin before the end of 2026. As a result of entering into the Midstream Gas Purchase Agreement, the Company is committed to spend approximately $130 million in capital expenditures through 2026 to complete the initial projects of our midstream buildout plan. The Company has incurred approximately $26.5 million since beginning the midstream project. See Note 15 - Commitments and Contingencies for additional information.
Previous wording
The Company's critical accounting estimates are described in "Critical Accounting Estimates" within "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report. The accounting estimates used in preparing our interim condensed consolidated financial statements for thesix months ended June 30, 2025, are the same as those described in the 2024 Annual Report.
Current wording
The Company's critical accounting estimates are described in "Critical Accounting Estimates" within "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report. The accounting estimates used in preparing our interim condensed consolidated financial statements for thenine months ended September 30, 2025, are the same as those described in the 2024 Annual Report.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Oil revenues decreased by $18.8 million.
Previous report — wording carried elsewhere
Production and ad valorem taxes decreased by $1.0 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily due to lower oil revenues.