Riley Permian reported fourth‑quarter 2025 revenue of $97.3 million, a 5.8% decline from $102.69 million in the same period a year earlier. Net income rose to $85 million, giving earnings per share of $4.02 and driving a sharp EPS beat of more than $3 per share against consensus estimates of roughly $1. The decline in revenue was offset by a $66 million adjusted EBITDAX and a modest $1 million free cash flow, both largely supported by a one‑time gain on the sale of its midstream assets and a non‑cash derivative gain. The strong earnings beat reflects the company’s ability to generate significant cash from asset disposals while maintaining operational profitability despite lower top‑line growth.
For the full year, Riley Permian generated $392 million in revenue, $161 million in net income, $261 million in adjusted EBITDAX, and $81 million in free cash flow. Debt fell by $120 million, strengthening the balance sheet. The year‑end results demonstrate that the company’s profitability is heavily leveraged by the midstream sale and derivative gains, which also contributed to the substantial net income and EPS growth relative to the prior year.
The midstream asset sale involved the divestiture of Dovetail Midstream LLC for $123 million in cash, with an additional earn‑out potential of up to $60 million. The transaction generated a significant gain that was reflected in the quarter’s earnings and helped reduce long‑term debt, reinforcing the company’s financial position.
Looking ahead, Riley Permian guided for 2026 production of 35.0–37.0 million barrels of oil equivalent per day, with upstream capital expenditures of $49–$57 million and total capex of $55–$65 million. The guidance signals confidence in maintaining production momentum while exercising disciplined capital discipline, even though the company did not provide specific well‑activity numbers for the first quarter.
CEO Bobby Riley described 2025 as a transformational year, noting that the company made “significant progress across key strategic initiatives, including inventory expansion, infrastructure build‑out, and balance‑sheet improvement.” He emphasized that the groundwork laid in 2025 positions Riley Permian for a more active and value‑enhancing development program in 2026 and beyond.
The market reacted strongly to the earnings release, with pre‑market trading showing a 9.34% increase. The surge was driven primarily by the substantial EPS beat, the debt reduction, and the optimistic 2026 guidance, all of which reinforced investor confidence in the company’s execution and future prospects.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.