OKLAHOMA CITY, May 8, 2024 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE:REPX) ("Riley Permian" or the "Company"), today reported financial and operating results for the first quarter ended March 31, 2024. FIRST QUARTER 2024 HIGHLIGHTS Averaged 20.4 MBoe/d of total equivalent production (oil production of 14.2 MBbls/d) Generated $56 million of operating cash flow or $58 million before changes in working capital Incurred total accrual (activity-based) capital expenditures before acquisitions of $26 million and cash capital expenditures before acquisitions of $35 million Generated Free Cash Flow(1) of $23 million Paid dividends of $0.36 per share in the first quarter for a total of $7 million Reduced debt outstanding by $15 million Signed agreement during the first quarter of 2024 and subsequently closed during the second quarter of 2024 on the purchase of oil and natural gas properties in Eddy County, New Mexico MANAGEMENT COMMENTARY "Our Company had a strong start to the year with both operational and financial performance during the first quarter," said Bobby D. Riley, Chief Executive Officer and Chairman of the Board. "We're experiencing improved cycle times and efficiencies in our development activities, leading to measurable cost savings. We continue to prioritize free cash flow generation which allows for debt reduction and direct shareholder return through dividends. Finally, we recently closed on the previously announced acquisition in New Mexico, contiguous to our existing New Mexico assets, which adds valuable development inventory in the region." OPERATIONS UPDATE AND FINANCIAL RESULTS During the first quarter 2024, the Company drilled 7 gross operated horizontal wells, completed 4 gross operated horizontal wells and turned to sales 6 gross operated horizontal wells. The Company averaged oil production of 14.2 MBbls/d, representing an increase of 4% from the prior quarter. The Company averaged total equivalent production of 20.4 MBoe/d (70% oil and 85% liquids). First quarter 2024 revenues totaled $100 million, net cash provided by operating activities (including changes in working capital) was $56 million and net income was $19 million, or $0.94 per diluted share. On a non-GAAP basis, first quarter Adjusted EBITDAX(1) was $70 million, cash flow from operations before changes in working capital(1) was $58 million, Free Cash Flow(1) was $23 million and Adjusted Net Income(1) was $32 million, or $1.61 per diluted share. First quarter 2024 average realized prices, before derivative settlements, were $75.25 per barrel of oil, $0.42 per Mcf of natural gas and $5.97 per barrel of natural gas liquids. The Company reported a $17.1 million loss on derivatives during the first quarter 2024, which includes a $0.1 million realized gain on settlements and a $17.2 million non-cash loss due to changes in the fair value of derivatives. Riley Permian's operating expenses for the first quarter of 2024 include lease operating expense ("LOE") of $17 million, or $9.05 per Boe, cash G&A expense(1) of $5 million, or $2.90 per Boe, and production and ad valorem taxes of $7 million or $3.90 per Boe (7% of revenue). The Company incurred $26 million in total accrued capital expenditures before acquisitions for the first quarter. On a cash basis, the Company had total capital expenditures before acquisitions of $35 million for the quarter. The larger amount of cash capital expenditures relative to accrual basis capital expenditures was partially driven by prepayments for various items, including infrastructure improvements scheduled for the remainder of 2024.  During the first quarter of 2024, the Company made an additional capital contribution of $5.6 million to its joint venture RPC Power LLC, which is anticipated to complete funding needs for the current project. As of March 31, 2024, the Company had invested $11.5 million to date and owned approximately 35% of the joint venture. During the first quarter of 2024, the Company reduced total debt by $15 million, including a principal reduction of $10 million on the Credit Facility and $5 million on the unsecured senior notes. Interest expense during the first quarter was $9 million, of which $8 million was cash interest expense(2). The Company had $342 million of total debt as of March 31, 2024, including $175 million drawn on its Credit Facility with approximately $200 million available for future borrowing, and $167 million of senior unsecured notes, net of discount and deferred financing costs. On a principal basis, the Company had $355 million of total debt, including $180 million principal value of unsecured senior notes. Subsequent to quarter end, the Company completed its semi-annual redetermination of its revolving credit borrowing base. The borrowing base and elected commitments were reaffirmed at $375 million. Shareholders' equity was $435 million as of March 31, 2024. The number of common shares outstanding was 20.4 million as of March 31, 2024. On April 3, 2024, the Company issued 1,015,000 shares of common stock at a par value of $0.001 per share. Net proceeds from the issuance were approximately $25.9 million, after deducting the underwriting discount and commissions. ACQUISITION UPDATE On May 7, 2024, the Company closed on the purchase of oil and natural gas properties in Eddy County, New Mexico for approximately $20.5 million, including preliminary closing adjustments. The acquisition adds approximately 13,900 total net acres and an estimated 20 to 25 net locations suitable for horizontal drilling development. Additionally, the acquisition adds approximately 1.1 MBoe/d of production. ___________________ (1) A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com. (2) Cash interest expense is interest expense excluding amortization of deferred financing costs and discounts.   Selected Operating and Financial Data (Unaudited) Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Select Financial Data (in thousands): Oil and natural gas sales, net $         99,424 $         99,229 $         66,412 Income from Operations $         50,567 $         32,620 $         36,034 Adjusted EBITDAX(1) $         70,146 $         64,447 $         43,508 Cash Flow from Operations $         56,125 $         65,823 $         32,970 Free Cash Flow(1) $         23,308 $         33,298 $           2,295 Production Data, net: Oil (MBbls) 1,289 1,247 893 Natural gas (MMcf) 1,631 1,623 949 Natural gas liquids (MBbls) 293 315 134 Total (MBoe) 1,854 1,833 1,185 Daily combined volumes (Boe/d) 20,374 19,924 13,169 Daily oil volumes (Bbls/d) 14,165 13,554 9,922 Average Realized Prices: Oil ($ per Bbl) $           75.25 $           76.85 $           72.76 Natural gas ($ per Mcf) $             0.42 $             0.66 $             0.55 Natural gas liquids ($ per Bbl) $             5.97 $             7.40 $             6.83 Average Realized Prices, including the effects of derivative settlements(2): Oil ($ per Bbl) $           74.33 $           73.90 $           67.06 Natural gas ($ per Mcf) $             1.20 $             0.73 $             0.55 Natural gas liquids ($ per Bbl)(3) $             5.97 $             7.40 $             6.83 Weighted Average Common Shares Outstanding (in thousands): Basic 19,891 19,815 19,649 Diluted 19,992 20,106 19,910 _____________________ (1) A non-GAAP financial measure as defined and reconciled in the supplemental financial tables available on the Company's website at www.rileypermian.com. (2) The Company's calculation of the effects of derivative settlements includes gains (losses) on the settlement of its commodity derivative contracts. These losses are included under other income (expense) on the Company's condensed consolidated statements of operations. (3) During the periods presented, the Company did not have any NGL derivative contracts in place. 2024 GUIDANCE Riley Permian is providing second quarter detailed guidance and reiterating, previously disclosed full-year 2024 activity guidance based on currently scheduled development activity and current market conditions. The average working interest on gross operated wells drilled is subject to change and may have corresponding impacts on investing expenditures. Total equivalent production estimates, inclusive of production from natural gas and NGLs, may be subject to variability based on natural gas dynamics. Activity, Production, and Investing Guidance Q2 2024 Full-Year 2024 Gross Operated Well Activity Drilled 2-3 21-23 Completed 6-8 22-24 Turned to Sales 4-6 24-26 Net Production Total (MBoe/d) 20.3-21.3 21.0-22.5 Oil (MBbls/d) 14.4-14.8 14.0-15.0 Investing Expenditures by Category (Accrual, in millions)(1) Drilling and Completions and Capital Workovers $22-25 $90-99 Infrastructure, EOR and Other 6-7 19-24 Total E&P $28-32 $109-123 Joint Venture Investment 0 6 Total Investing Expenditures