Riley Exploration Permian’s first quarter results were characterized by robust production and disciplined capital allocation, driving a positive market response. Management attributed the outperformance to higher well productivity, particularly in Texas, and operational efficiencies that allowed the company to exceed production guidance while spending less than planned. CEO Bobby Riley highlighted that these results were achieved with “minimal downtime,” even as weather events disrupted the broader Permian region. Additionally, the company’s focus on capital efficiency and the successful implementation of cost-saving initiatives, such as chemical program changes in New Mexico, helped offset inflationary pressures and support margin resilience.
Is now the time to buy REPX? Find out in our full research report (it’s free for active Edge members).
Riley Exploration Permian (REPX) Q1 CY2026 Highlights:
- Revenue: $113.9 million vs analyst estimates of $109.1 million (11.2% year-on-year growth, 4.4% beat)
- Adjusted EPS: $1.02 vs analyst expectations of $1.10 (7.3% miss)
- Adjusted EBITDA: $59.97 million vs analyst estimates of $67 million (52.7% margin, 10.5% miss)
- Operating Margin: 38.3%, down from 48.3% in the same quarter last year
- Market Capitalization: $788.6 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Riley Exploration Permian’s Q1 Earnings Call
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Derrick Whitfield (Texas Capital) asked if current activity levels could be further increased amidst favorable market conditions. CEO Bobby Riley responded that, given current efficiencies and sustained pricing, the company could add more wells, but would only adjust if prices dropped significantly.
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Derrick Whitfield (Texas Capital) inquired about the timing and likelihood of achieving midstream earn-out payments. CFO Philip Riley stated they have “line of sight” for the first payment in early 2027, contingent on New Mexico well completions and steady production.
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Neal Dingmann (William Blair) questioned how negative gas and NGL prices influence growth decisions. Riley answered that, despite frustration with gas prices, oil returns remain strong enough to sustain current growth plans, and infrastructure is sufficient for near-term needs.
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Jeffrey Robertson (Water Tower Research) sought clarity on the drivers behind production uplift—timing or well performance. CEO Bobby Riley and COO John Suter explained it was a combination, with wells both brought on faster and performing above expectations, especially with longer lateral designs.
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Nicholas Pope (ROTH Capital) asked about cost differences between Texas and New Mexico wells and the impact on capital allocation. Suter detailed that New Mexico wells are about $1 million more expensive per lateral due to technical factors, but ongoing testing may lower these costs over time.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will be monitoring (1) the pace of drilling and completions in Texas and the resulting production ramp, (2) progress on the Targa gas pipeline and its impact on New Mexico volumes, and (3) cost management efforts, particularly around chemical programs and drilling efficiencies. Additional focus will be placed on the successful commercialization of the ERCOT power projects, which could further diversify revenue streams.
Riley Exploration Permian currently trades at $35.87, up from $33.42 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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