Key Highlights

  • Second quarter 2026 revenue reached $165.9 million, and GAAP net income was $87.4 million, or $4.11 per diluted share.
  • Output averaged 34.3 MBoe per day, and shut-ins from a third-party outage cut an estimated 1.9 MBbls per day.
  • Riley Permian raised 2026 oil guidance and now plans total capital expenditures of $230 million to $242 million.
  • The Board declared a $0.42 per share dividend on October 14, up from $0.40, payable November 11.

Riley Exploration Permian (NYSE American:REPX) shares were trading near their 52-week high at USD 49.61 on October 19, 2026, up 1.91%. The Oklahoma City producer, which operates in Texas and New Mexico, reported second quarter net income of $87.4 million that included a derivative gain, and on October 14 it raised its dividend. The filings also show a third-party outage, a working capital deficit and a legal claim over four wells. One large brokerage has updated its view since the results.

One large brokerage on record since the August results

Truist has acted since the August 5 results. In mid-August it lowered its price target to $41 from $47 and kept its Buy rating. This is the firm's own view, not a forecast by this article.

Second quarter: higher output, a derivative gain and negative gas prices

Oil and natural gas sales, net, were $165.9 million, up from $85.4 million a year earlier. GAAP net income was $87.4 million, or $4.11 per diluted share, against $30.5 million, or $1.44. It included a $33.2 million net derivative gain, made up of a $69.4 million non-cash unrealized gain less $36.2 million of settlement losses. For the first half, net income was $16.9 million after a $93.7 million net derivative loss. Non-GAAP Adjusted EBITDAX was $80.1 million, up from $59.3 million.

Production averaged 34.3 MBoe per day, up from 24.4 a year earlier, and oil output was 21.2 MBbls per day, up from 15.2. The prior-year quarter predates the Silverback acquisition, which closed on July 1, 2025. A third-party facility failure in late March and processing and takeaway limits led to temporary shut-ins in New Mexico in April and May. The company estimates they cut second quarter production by about 1.9 MBbls per day.

Oil sold for $94.28 per barrel before derivatives and $74.25 including settlements. Natural gas and natural gas liquids prices were negative, at $(4.12) per Mcf and $(4.71) per barrel, since gathering, processing and transportation costs at times exceeded the price received.

Debt, buybacks, the dividend and disclosed cautions

Principal debt was $273 million at June 30: $138 million drawn on the credit facility and $135 million of 10.50% senior notes due April 2028. Debt rose $26 million in the quarter, and cash was $20.7 million. The company reported principal debt at 1.0x last twelve months Adjusted EBITDAX, a non-GAAP measure. The borrowing base was raised to $425 million from $400 million on April 30, with $262 million of undrawn capacity, and the company said it complied with all covenants.

Current liabilities of $232.0 million exceeded current assets of $104.3 million. In the first half, the company repurchased 177,408 shares for $4.9 million under a $100 million, 24-month program authorized in December 2025. The $0.42 dividend, up from $0.40, is payable November 11 to holders of record on October 28.

The 10-Q also describes a claim from a purported working interest owner over four wells drilled before the Silverback acquisition. The company is investigating, has sought indemnification from the sellers, recognized no material liability and considers a material adverse effect remote.

Outlook: raised oil guidance and a larger budget

The August 5 revision lifted full-year oil production guidance to 22.5 to 23.5 MBbls per day from 22.0 to 23.0 in May, while total production narrowed to 37.5 to 38.5 MBoe per day from 37.5 to 39.5. Total capital expenditures rose to $230 million to $242 million from $200 million to $220 million.

For the third quarter, the company guided to 25.1 to 26.1 MBbls per day of oil and capital expenditures of $53 million to $65 million. Management expects the year's largest production increase in that quarter. Targa's new gathering and trunkline system in Eddy County, New Mexico, is expected in service in the fourth quarter. These are the company's own estimates. Third quarter results are due November 4 after the market closes.