Riley Exploration Permian, Inc. (NYSE: REPX)

Riley Permian is a growth oriented independent oil and natural gas company focused on horizontal drilling of conventional oil saturated and liquids rich formations in the Permian Basin that produce long term cash flows. The majority of its acreage is located in Yoakum County, Texas and Eddy County, New Mexico. The company seeks to enhance the rate of return on invested capital, generate sustainable free cash flow, maintain a strong and flexible balance sheet and maximize returns to shareholders. It pursues this strategy by identifying attractive development opportunities, optimizing its assets and pursuing complementary growth that increases scale and meets its financial objectives.

Riley Permian generates revenue from the sale of its oil, natural gas and natural gas liquids production. The company extracts natural gas liquids from its gas stream during processing and sells the three products separately. Revenues are reported net of gathering, processing and transportation costs, which are allocated across natural gas and natural gas liquids based on revenue. Sales are made to energy marketers, utilities and other purchasers under short term contracts.

Riley Permian operates in the highly competitive Permian Basin where numerous independent and major oil and gas companies pursue similar drilling and production activities. The company differentiates itself through its concentrated acreage position in Yoakum County, Texas and Eddy County, New Mexico, its focus on generating sustainable free cash flow and its disciplined capital allocation. It employs a hedging program using derivative contracts to manage commodity price volatility and maintains a flexible balance sheet with available borrowing capacity under its credit facility.

Riley Permian sells its oil, natural gas and natural gas liquids to a variety of purchasers including energy traders utilities and downstream processors. The specific names of its customers are not disclosed in the filing but the company typically transacts under short term agreements that reflect prevailing market prices.