Riley Exploration Permian, Inc. (REPX) operates as a growth-oriented, independent oil and natural gas company. The company focuses on horizontal drilling of conventional oil-saturated and liquids-rich formations. The majority of the company’s acreage is located in Yoakum County, Texas and Eddy County, New Mexico.
Acquisitions
On May 7, 2024, the company completed the acquisition of oil and natural gas properties in the Yeso trend of the Permian Basin in Eddy County, New Mexico.
Properties
Th...
Riley Exploration Permian, Inc. (REPX) operates as a growth-oriented, independent oil and natural gas company. The company focuses on horizontal drilling of conventional oil-saturated and liquids-rich formations. The majority of the company’s acreage is located in Yoakum County, Texas and Eddy County, New Mexico.
Acquisitions
On May 7, 2024, the company completed the acquisition of oil and natural gas properties in the Yeso trend of the Permian Basin in Eddy County, New Mexico.
Properties
The Permian Basin is an oil and natural gas producing area located in West Texas and the adjoining area of Southeastern New Mexico covering an area approximately 250 miles wide and 300 miles long, and encompasses several sub-basins, including the Delaware Basin, Midland Basin, Central Basin Platform and Northwest Shelf.
The company’s acreage is primarily located on large contiguous blocks in Yoakum County, Texas, which represents the company’s Champions field and in Eddy County, New Mexico, which represents its Red Lake field acquired in the 2023 and 2024 New Mexico Acquisitions. Riley Permian’s acreage in Yoakum County offsets legacy Permian Basin San Andres fields, including the Wasson and Brahaney fields. In Eddy County, New Mexico, the company’s acreage offsets legacy Permian Basin Abo, Yeso, and San Andres fields, including the Red Lake and Loco Hills fields, which have been producing since horizontal development in the area began in 2007 and 2008.
As of December 31, 2024, the company had 58,270 net acres. The company operated 96% of its net production for the year ended December 31, 2024, and hade an average working interest of 91% in its operated wells. The company’s average net daily production during the year ended December 31, 2024, was approximately 22,546 Boe/d.
The company operated 96% of its production for the year ended December 31, 2024. As operator, the company designs and manages the development of its wells and supervises operation and maintenance activities on a day-to-day basis. Independent contractors engaged by the company provides all of the equipment and personnel associated with these activities. The company has two fields that represent 15% or more of the company's total reserves: Champions field and Red Lake field.
Marketing and Customers
The company markets the majority of the production from properties it operates for both its account and the account of the other working interest owners in these properties.
The company sells its production at market prices and to a relatively small number of purchasers, as is customary in the exploration, development and production business. The company's purchaser contracts include marketing provisions with its purchasers to market the company's production. For the year ended December 31, 2024, one purchaser accounted for 70% of the company's revenue purchased. For the year ended December 31, 2024, an additional purchaser accounted for 10% or more of the company's revenues.
Gathering and Transportation
At its Champions field in Texas, the company transports the majority of its crude oil, natural gas and NGLs through Stakeholder Midstream, LLC (‘Stakeholder’). Transporting crude oil through a pipeline offers the benefits of reducing truck traffic and related emissions, as well as typically lower transportation costs as compared to alternatives for transportation by trucking. At the company's Red Lake field in New Mexico, it transports all of its crude oil to a few purchasers. The company's natural gas and NGLs are gathered through one midstream provider. This midstream provider also treats and processes all of the company's natural gas and NGLs.
Regulation of the Oil and Natural Gas Industry
With regard to REPX’s physical sales of these energy commodities, REPX is required to observe anti-market manipulation laws and related regulations enforced by FERC under the EP Act of 2005 and under the Commodity Exchange Act (CEA), and regulations promulgated thereunder by the Commodity Futures Trading Commission (CFTC).
More significant existing environmental and occupational health and safety laws and regulations, as amended from time to time, to which REPX's business operations are subject to include the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ('CERCLA'), also known as the 'Superfund' law, and comparable state laws; the Resource Conservation and Recovery Act ('RCRA') and analogous state laws; the Federal Clean Water Act ('CWA') and comparable state laws; the Oil Pollution Act of 1990; the U.S. Safe Drinking Water Act ('SDWA') and analogous state laws; the Federal Clean Air Act ('CAA') and comparable state laws; and the Endangered Species Act ('ESA') and (in some cases) comparable state laws.
In addition, the EPA has adopted rules requiring the monitoring and reporting of GHG emissions from specified onshore and offshore oil and natural gas production sources in the United States on an annual basis, which include certain of REPX’s operations.
REPX is subject to the requirements of the Occupational Safety and Health Act ('OSHA') and comparable state statutes whose purpose is to protect the health and safety of workers. In addition, the OSHA hazard communication standard, the Emergency Planning and Community Right-to-Know Act, the general duty clause and Risk Management Planning regulations promulgated under section 112(r) of the CAA and comparable state statutes and any implementing regulations require that REPX organizes and/or discloses information about hazardous materials used or produced in REPX's operations and that this information be provided to employees, state and local governmental authorities and citizens.