Key Highlights

  • Third-quarter Revenue jumped 88% (calculated) to USD 201.2 million from USD 106.9 million, and Operating Income reached USD 106.7 million compared with USD 28.9 million.
  • A USD 99.8 million derivative loss turned the company to a net loss of USD 2.4 million, or USD 0.11 per share, from Net Income of USD 16.3 million, or USD 0.77 per share.
  • Daily output increased to 42,022 barrels of oil equivalent from 32,337, and the realized oil price rose to USD 83.63 per barrel from USD 63.94.
  • All USD 130 million of Senior Notes were prepaid on October 5, 2026, and a Dividend of USD 0.42 per share was declared.

Stronger Prices and Volumes Run Into a Hedging Charge

Riley Exploration Permian (NYSEAMERICAN:REPX) is an independent oil and gas producer that drills horizontal wells in the Permian Basin. It submitted its Quarterly Report on November 4, 2026, covering the period ended September 30, 2026. Oil and gas sales reached USD 201.2 million, supported by oil volumes of 25,435 barrels per day compared with 18,370 and a higher realized oil price. Beneath operating income, the net loss on Derivatives came to USD 99.8 million against a gain of USD 1.9 million. Of that amount, USD 71.6 million was a non-cash loss on unsettled contracts that the filing ties to forward price curves, while about USD 28.2 million was a cash loss on settled contracts (calculated). Production and ad valorem taxes totaled USD 12.8 million, and depletion, depreciation, amortization and accretion came to USD 32.5 million.

Settled Hedges Pull the Realized Price Below Market

Counting derivative settlements, the realized oil price was USD 71.61 per barrel instead of USD 83.63, a gap of USD 12.02 (calculated). A year earlier, the settled price was USD 65.17 against an unhedged USD 63.94. Natural Gas and NGL prices were close to zero after gathering, processing and transportation costs, at USD 0.27 per Mcf and USD 5.08 per barrel. Lease operating expenses rose to USD 34.2 million from USD 26.9 million, and capital expenditures reached USD 53.1 million compared with USD 18.0 million. Net interest expense fell to USD 6.7 million from USD 9.6 million. Nine-month net income was USD 14.5 million, or USD 0.68 per diluted share, against USD 75.4 million, or USD 3.56 per share a year earlier.

Senior Notes Prepaid With Credit Facility Borrowings

On October 5, 2026, Riley Exploration Permian (NYSEAMERICAN:REPX) voluntarily prepaid the USD 130 million of Senior Notes at 100% of principal, using its credit facility, and expects a non-cash loss on Debt extinguishment of about USD 4.7 million. As of October 29, 2026, borrowings under the amended credit agreement stood at USD 245 million, leaving USD 205 million available. The board declared a USD 0.42 Dividend per share payable November 11, 2026, up from USD 0.40 for the prior quarter. Weighted shares were about 20.9 million, shareholders' Equity was USD 626.2 million, and nine-month dividends totaled about USD 26.1 million. Commodity prices remain volatile, and further derivative marks could move earnings.

Where Things Stand

Yes, on a net basis. Riley Exploration Permian (NYSEAMERICAN:REPX) earned USD 106.7 million from operations, but a USD 99.8 million derivative loss, mostly non-cash, turned net income into a USD 2.4 million loss. Hedges also held the realized oil price to USD 71.61 per barrel. The next markers are how forward oil prices move the hedge book and the effect of replacing notes with credit facility debt.