Riley Exploration Permian, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant developments in revenue, profitability, and strategic initiatives. The company, focused on oil and natural gas operations in Texas and New Mexico, experienced total revenues of $307.5 million for the nine months, an increase from $275.2 million in the same period of 2023. For the third quarter, total revenues were $108.3 million, slightly down from $108.9 million year-over-year.
Net income for the third quarter surged to $25.7 million, compared to $8.6 million in the prior year, while net income for the nine months reached $78.0 million, up from $73.6 million. Basic net income per share for the third quarter was $1.22, a notable increase from $0.44 in 2023. The nine-month basic net income per share rose to $3.79 from $3.74.
Oil sales for the third quarter were $105.3 million, a marginal increase from $104.5 million in 2023, driven by a 10% increase in production volume, despite a 9% decrease in realized prices. Natural gas sales fell to $102.3 million from $107.7 million, primarily due to lower realized prices. For the nine-month period, oil revenues increased by 15% to $308.6 million, while natural gas revenues decreased by $3.0 million.
The company made strategic moves, including the acquisition of oil and natural gas properties in Eddy County, New Mexico, for $19.1 million in May 2024, and the establishment of a joint venture, RPC Power, which became operational in September 2024. This venture aims to utilize produced natural gas for power generation, with a total investment of $22.5 million as of September 30, 2024.
Riley Exploration also recorded a $30.2 million impairment charge related to the discontinuation of its Enhanced Oil Recovery (EOR) Project. The company’s total debt decreased to $288.6 million from $356.0 million at the end of 2023, with a significant reduction in outstanding borrowings under its Credit Facility.
Operating expenses increased, with lease operating expenses for the third quarter rising to $18.5 million from $16.9 million in 2023, attributed to higher production volumes and workover expenses. General and administrative expenses also rose due to increased share-based compensation.
The company declared dividends totaling approximately $23.2 million for the nine months ended September 30, 2024, up from $20.4 million in the same period of 2023. As of September 30, 2024, Riley Exploration had a working capital deficit of $31.9 million, with cash on hand of $13.3 million and $245 million available under its Credit Facility.
About Riley Exploration Permian, Inc.
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