Riley Exploration Permian Reports Strong 2025 Performance and Raises 2026 Production Outlook

Riley Exploration Permian, Inc. (REPX) reported full-year 2025 results, showcasing a strong operational and financial performance amid elevated U.S. crude prices. The company achieved average daily production of 79,000 barrels of oil equivalent (BOE/d), up 8% year-over-year, driven by continued drilling efficiency and optimization in the Permian Basin. Adjusted EBITDA for the year reached $348 million, reflecting improved margins and disciplined cost controls. The company's 2026 guidance signals continued growth, with production forecasted to range between 88,000 and 90,000 BOE/d, representing a 12% increase from 2025 levels. Capital expenditure is expected to rise to $310 million, primarily allocated to drilling and completions in key areas including Reeves and Culberson counties. This investment underscores Riley’s commitment to long-term reserve growth and operational scalability. The guidance comes as global crude prices remain elevated, with the West Texas Intermediate (CL=F) benchmark trading near $78 per barrel in early 2026. The company emphasized that sustained production growth will be supported by a focus on low-cycle-cost wells, with average drilling times improved by 15% compared to prior years. Additionally, Riley reported a reduction in cash operating costs to $24.10 per BOE, further enhancing profitability. Market participants are closely monitoring REPX’s trajectory, particularly amid broader sector trends. The stock is expected to benefit from growing investor confidence in U.S. shale producers with clear capital discipline and scalable production models. Larger integrated players such as ExxonMobil (XOM) and Occidental Petroleum (OXY) are also watching Permian Basin developments, as production trends from independents like Riley can influence overall U.S. supply forecasts.