Riley Exploration Permian Q2 revenue nearly doubles, oil output up 40%

Overview

• U.S. oil and gas producer's Q2 revenue nearly doubled yr/yr to $166 mln

• Net income for Q2 rose to $87 mln, with oil production up 40% yr/yr

• Company raised 2026 oil production guidance, now implying 30% annual growth

Outlook

• Company raises full-year 2026 oil production guidance to 22.5-23.5 MBbls/d, up about 30% y/y

• Company expects Q3 2026 oil production of 25.1-26.1 MBbls/d and total output of 40.5-41.5 MBoe/d

• Riley Permian sees 2026 capital expenditures of $230-242 mln and total investments of $239-252 mln

Result Drivers

• PRODUCTION GROWTH - Co said oil production was near the high end of guidance, driven by execution of its growth strategy

• OPERATIONAL DISRUPTIONS - Co said gas processing and midstream constraints in New Mexico led to temporary well shut-ins and reduced production

• NEGATIVE GAS PRICES - Co said realized natural gas prices were negative due to regional pipeline constraints

Company press release: ID:nPn3VxvJGa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Riley Exploration Permian Inc is $51.00, about 51.5% above its August 4 closing price of $33.66

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Aug 3 - War-fueled oil rally set to lift shale profits to highest since 2022

• Aug 5 - Shale producer APA beats second-quarter profit estimates

• Aug 3 - Diamondback rides on higher oil prices to top profit estimates, raise output forecast

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)