Riley Permian (REPX) outlined plans for a 30% year-over-year production increase in 2026, contingent on infrastructure improvements, during the EnerCom Denver Energy Investment Conference on August 18, 2026. The Houston-based explorer, with an enterprise value of roughly $1.0 billion to $1.1 billion, reported second-quarter 2025 average output of 21,000 barrels of oil equivalent per day, up from 17,000 bpd in April and 24,000 bpd in June.
The company’s third-quarter 2025 guidance calls for production to reach 25,000 bpd, supported by ongoing workover operations at the Silverback asset acquired from EnCap in spring 2024. Those operations have boosted output by 50% to 60% above underwritten expectations while maintaining flat overall production since acquisition. Riley Permian operates two core areas in the Permian Basin: the Champions legacy asset in Yoakum County, Texas, which accounts for two-thirds to three-quarters of current production from the San Andres formation, and the newer Red Lake asset in New Mexico, where about three-quarters of future development is concentrated.
Infrastructure constraints in the upper Delaware area limited second-quarter output, particularly for dry residue and wet gas takeaway. Riley Permian sold a 40- to 50-mile wet gas pipeline project to Targa Resources in late 2024, with commissioning expected in the fourth quarter of 2025 to ease bottlenecks. The company’s inventory includes 300 to 320 net undeveloped locations, with horizontal wells extending up to 1.5 miles. Drilling depths range from 4,000 to 5,000 feet in New Mexico to 5,000 to 6,000 feet in Texas.
Riley Permian’s leverage sits at approximately 1.0x EBITDA, and the company plans to retire senior notes in the coming months. Its share repurchase program, authorized for $100 million, has utilized roughly $5 million to date. The stock was trading at $37.10 during the conference, with a trailing P/E of 6.68, a PEG ratio of 0.29, and a dividend yield of 4.31%, following five consecutive years of dividend increases since 2018.
Philip Riley, CFO and EVP, emphasized the company’s high-quality inventory and track record of growth in production, reserves, and cash flow. He described the assets as conventional rock formations with performance exceeding standard Wolfcamp wells in Midland and Delaware basins after 2.5 to 3 years on a per-foot normalized basis. Riley highlighted the upcoming Targa Resources pipeline as a key catalyst for future growth.
