REPX - Earnings call transcript Q1 2024 | Riley Exploration Permian, Inc.

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Operator

Good day, everyone, and welcome to the Riley Exploration Permian, Inc.'s First Quarter 2024 Earnings Conference Call.

At this time, I would like to hand the call over to Mr. Philip Riley. Please go ahead, sir.

Philip Riley

Good morning. call first conference XXXX our to covering quarter the results. Welcome Riley, CFO. Philip I'm

Joining and Riley, Bobby me is today Chairman CEO.

We'll materials the Yesterday, we found section. differ also contains under uncertainties be of and the subject other federal be that which disclosure materials, certain GAAP in may materially to from and conference forward-looking results implied appropriate These those certain our risks on The Investors statements to these projections published a found are measures. on securities variety actual statements. our laws. of reference statements non-GAAP the in supplemental reconciliations or call expressed cause today's website. in to meaning within our can the website can These measures

the Bobby. turn now to over call I'll

Bobby Riley

was and quarter for you growth us with previously I'm in of the everyone to plan, oil disclosed for Philip, call. at results year-over-year another you, the our in first report targeting announced to CapEx. thank of outstanding XXXX deliver the joining And Yesterday, again our that Riley XXXX. we market, close today's a on on to quarter QX Thank operating track pleased we are Permian. reduction

previous saw increase a net thousand Our production oil an compared quarter, to average per X% the day. reaching barrels XX.X of

growth year-over-year per our remaining towards achieving in Looking occur the barrels expect we XX.X targets. and work day, of stabilize our to thousand ahead and QX XX.X we incremental to majority guidance, as we're range forecasting our this to a quarters for the period of

year. and to in our X/X wells, net rig resume drilling which in projected March drilled approximately plan an From we the operational total the for released standpoint, of operations June. We X represents

uncompleted of have brought wells efficiency us portion achieved has in X rig advancements year online during late improvements the double-digit volume completed rely wells, and technologies team X X while and or Our period, We benefiting streamlined growth. for delivering to on DUCs, processes. but a These the single still from from by adopting a allowed drilling drilled cutting-edge wells significant XXXX.

Blinebry, we adding this County, week, expand by operating of New held legacy our The New but in optionality high-quality enhances acquisition acquisition acreage Furthermore, total by the contiguous horizontal New Mexico inventory will Paddock XX% through This the formations. wells largely disposal such in of acres. announced will footprint net Tuesday saltwater valuable underdeveloped our bolt-on vertical primarily across On providing includes in XX,XXX the optimize our the existing footprint. closed Mexico. our Eddy operations is drilling acquisition as Glorieta by development This wells. is Yeso which production trend, existing locations, and previously including infrastructure Mexico

creating years To on and this, of shareholders prioritizes objectives, form our and capital capital come. return balance while growth also long-term and strategy to discipline for delivering our value growth to focused on remain dividends. in predictable our to strengthen to We for sheet our resources commitment the sustainable the shareholders allocate achieve support delivering to

and we us, well our remain beyond. plan the are XXXX of and opportunities we in to ahead, Looking positioned about front excited execute

continue to shareholders. will our efficiency We creation value control and for excellence, to drive operational capital long-term focus on cost

our turn Philip provide over the now to more on I'll that, call With to details results. financial

Philip Riley

you, Thank Bobby.

the largest before as settled X% driver quarter. despite First despite December, legacy oil our swaps generally some by in off hedges X% of quarter lower prices flow quarter-over-quarter was increased and during quarter-over-quarter strong operating lower-priced capital improvement cash rolled working The prices.

led this year-end, $XX which loss book in lower the and higher contributed income than which increases combined volume derivatives and quarter turn In us cash of million cost to price $X.X ended the net production, a flow the Oil drives at to reductions improvement. noncash quarter. about

with reversed is lower we As flip of partially of with less one today, settled frequently The focus infrequently quarter the oil has noncash net correspond ultimate derivatives flop on amounts and values prices. that reasons by dynamic already income.

an was that and development basis larger CapEx by CapEx drive year for on The the cash larger Reinvestment rate occurred basis. was XX% not flow operating plan. cash-to-accrual upstream of cash that success ratio CapEx driven including infrastructure of a XX% this accrual into prepayments, on yet on quarter for some will had full work and

We this to in Free flow but quarter, is flow there prior free years. flow the of cash with representing continued operating cash declined metric concern converted cash quarter-over-quarter, first XX% from no there. improvement

use flow First, would then In companies accrual cash while CapEx, by flow have of CapEx. especially a we cash for this had calculation light dynamic. cash of free accrual 'XX, the we XX% quarter we increased fourth our If many quarter's used CapEx, had use CapEx cash opposite free quarter-over-quarter.

encourage focus quarter. of single a cash regularly we observers Second, a X-quarter to measure over on flow free

it We'll turn now for Thank back you. operator to questions. the

Bobby Riley

Thank you, Philip.

Truist will from Capital. question We take from now Neal Dingmann a

Neal Dingmann

a or how throughout could bit more should And but maybe what pretty terms the throughout the cut on And how if Maybe terms year we things. might oil impact in Just you acquisition, production? little Bobby, this year? of volumes this? even incremental the the you Maybe Phil on maybe about think talk wondering guidance? added positive? of to in about it impact on

Philip Riley

of X/Xs only is can a Philip. about That producing about XXX year. The I day. for so that, the ago, barrels of get with couple a the closed this you benefit sure. acquisition, days start Yes, Neal, it's really

a XXX divide that the maybe that average day by year, So over year. when you adds a barrels full

over the So it's of dealing some with what of we're dynamic is the year. averages

get in kind the X for high the right here. as there, to describing, we midpoint that range to XX.X XX.X, held the year, flat, To we guidance you Bobby So quarters -- range. of on gave, disclosed XX.X for guidance gets for the end, smack it the to of remaining middle if was and to if that XX.X you use previously we'd have reach average the all

of think it's pretty year. we So a full representative

we mix existing horizontal non-op inventory, few small this of and don't the that contributors to mostly drill which -- some then for of inventory do plan like there We smaller existing vertical. The underdeveloped production some a kind is year. horizontal it

the that's I So production color ranges. our on how the, affects it guess,

general, It's idea answer saltwater us decade need about And of excited We both we Does got think for that even question? gets a we also operations. can there. such in non-op the wells such. maintaining then that roughly this inventory, of neighbors In some we're frankly, like it. they and valuable our we the and use disposal as that partners fees the infrastructure charge our

Neal Dingmann

back just you does. able and cost like availability side. that when It And services? certainly go, availability. you're hear. you a just good Yes, you seems let choose. like just number could bring seems It or a on oilfield seems a talk lot maybe bit on just to one, Bobby, the the it talk rig then follow-up, bulk, It have, rig did, of the you It's to maybe, flexibility about

was wondering I So case? just -- the that is

on side, And then it? cost in the just see you all secondly, what OFS

Bobby Riley

Yes, take that. is Neal, Bobby. this I'll

same to drill So that a have and drill, of contractor yes, that's of the our partners them we're there then area wells. relationship offset And some bring we great in releasing area. but keep in to in with to batch drilling able a the the

applications, more to days more TD, go moves and we pad from cetera. efficiencies we -- has spud of cost rig drilling type et have to on As it on lower

want that where really Otherwise, side, be. those a pumping so bids softer falling So the in we're pricing. are to getting more pressure costs we competitive them seeing on market we're and

that acquisitions want have they mergers maintain and talked for dynamic their some us. of as more we occurred. pricing frac about that up larger freed these think market I and of They're a aggressively services share. lot teams It's services to

can in market. taking we're So right of as advantage that that now we

Neal Dingmann

flexibility. I the love Yes,

Operator

Our the Capital. comes White from line question Instructions] next from [Operator John of ROTH

John White

Congratulations on closing Mexico New your acquisition.

Philip Riley

you, Thank John.

John White

in the put you ask RPC I Power the in $X.X funding In current the release, you completes project. project. wanted to million, another the for press about effect, said

funding. that's field So you the the the work actual on infrastructure? describe would in out How the

Bobby Riley

we're We've I megawatts XX time for had right kind power just say of there We're XX we'd of installing over where thought and out on Yes. the receiving schedule megawatts there. be. We're now would we're up us we some stuff self-distribute use total of that allows to to our generators second design. of all package basically getting get wells. into which all network, to private of us power our currently tied to our

XXX% by of So probably I end be should operational that operationally, think, summer.

way And base our with I that excited our think about load. power. And really other opportunities producing so at far, least we're might opportunity, coming see we're looking that we then at

John White

and will project this when running, power your fully your needs up it's how or electricity of And satisfy? much

Bobby Riley

Yes.

be And now infrastructure what laid basically out County it's we of almost we Yoakum in our there, that's designed utilize wells we in it call and power practically There demand network self-generating. -- XXX%. place. X that will first we're X of So the meter, able be on majority isolated our that's on Champions. When XXX% to an still we'll or be but that self-providing the might

John White

your similar on And does opportunity the New Mexico properties? exists

Bobby Riley

It does.

going As the we're instead of into New grid. we looking our Mexico, meters requirements forward, building infrastructure individual in and back are out tying at

We won't it's and It do forward. what get so from point that out network water of or to But time going primary with term, our the little gen infrastructure if time. all the probably are there definitely a has take systems provider drilling and we be the our that term. out. our a that we in will this own of year, bit installing, the on into that I well. but tie we do at establishing there we're We don't can long that's it's eventually know But as schedules still operation, it's same use laying private doing to and

Operator

from Tower Instructions] Research. the Water [Operator comes question from Jeff Our of line Robertson next

Jeffrey Robertson

or to might on to been gas of natural the Philip, selling own the relatively a price? supplying alternative, just into Champions you at venture, have up your grid impact the to which To the follow economic Bobby produced power the try low the power acreage quantify can compared

Bobby Riley

Yes.

the trying we're what on produce to the that's the is we that margins basically area. in So do hydrocarbons increase

And negative, has to time know, residue production, our gas to take as the baseload sometimes baseload in Waha or that as we're residue gas to power able So offset little value our and no you goes gensets us. operations. because our

the So revenues since partner JV from and XX% individual somewhat the cost, from neutral. generating benefit operating from we're will of roughly a probably lease But company power power. the an in it's -- well

Philip Riley

an we're kind now ownership declining, to high-teen right? about. think from. isn't stable a that it's And excited Jeff, This we're so nice of return, but benefit that's XX% that's something type of a return, that well right it's oil we set

Jeffrey Robertson

the to... that of the of source having part comes might reliable other which fair power, return more it from Is a lead just

Bobby Riley

power frequent that end And an of or kind grid we those mean, we're of one some disruptions is because to experiencing extensive cost the wells bring I there primary that there. at money on. reasons amount the was some Absolutely. of were of the of brownouts back

this that's it's the power. reliable -- one again, So for of is reasons doing more main

Jeffrey Robertson

Mexico, New volumes? upgrade assets to wells about need enhance saltwater acquisition much disposal, acquired the to able you activity that to be Do talked either capital in to able you SWD to the area. serve be plus spend that your the handle most maybe and you third-party In those recent or Riley's take

Noel Parks

going coming to requirements think stuff part for those on requirements. we we we're on our our there emergencies make But third I right to could capacity. we're there, focused that. in to be spare disposal for some give want into now, wells our them [indiscernible] look think continue charging the But at some loop most some as like and I lines met would some with XXX% disposal be that to party. own opportunities us tying capacity flow just excess with system sure to are focus Primarily,

Jeffrey Robertson

Either through get some from way you LOE Well, that get process? you as ultimately work benefit some. you --

Bobby Riley

has Yes, we like us that water stay if more gives then the energy less we important basically, this fallback we needs spare to bring gives of to water capacity. less I us is the we that that. see And our it some focuses there, main some third-party in of we well out savings some top ability mean And which to take, sure amount got there. the that, to down redundancy, it so that's et excess one takes moving capacity and hole, of on and water to should. have, wells the some each cetera, us push make that

Operator

that gentlemen, and all Thank for you today's joining. concludes Ladies call.

disconnect. now may You

Riley Exploration Permian (REPX) 9 May 242024 Q1 Earnings call transcript