Riley Exploration Permian, Inc.
Riley Exploration Permian, Inc. is a U.S. independent oil and natural gas company focused on horizontal drilling in the Permian Basin. Its operations center on producing crude oil, natural gas, and natural gas liquids from conventional oil-saturated and liquids-rich formations, with acreage concentrated in West Texas and southeastern New Mexico.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSales of crude oil produced from the company's Permian Basin acreage.
Sales of produced natural gas, net of gathering and transportation costs.
Sales of natural gas liquids extracted during gas processing.
Gathering, processing, transportation, and gas purchase commitments tied to production handling.
Products
Reported · share of revenue- Oil Reserves99.4 %
- Natural Gas Liquids Reserves0.6 %
Source: 10-K FY2024, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
The company sells its oil, natural gas, and NGL production to a small number of purchasers and midstream counterparties rather than to end consumers. These buyers take title to produced hydrocarbons and provide market access, transportation, processing, and in some cases purchase commitments that are essential to monetizing output.
Buy the company's oil production and provide the main monetization channel for upstream output.
Buy gas and NGL volumes, often through processing and marketing arrangements tied to midstream infrastructure.
Provide gathering, processing, transportation, tolling, and gas purchase services that enable sales.
Strategy
Riley Permian’s strategy is to develop horizontal oil and liquids-rich gas assets in the Permian Basin and convert reserves into long-term cash flow. Management emphasizes capital efficiency, asset optimization, selective development opportunities, and complementary growth that expands scale while preserving balance-sheet flexibility.
The company’s value creation depends on converting acreage and reserves into production efficiently.
Takeaway, processing, and transportation terms directly affect realized prices and operating flexibility.
Upstream development is capital intensive and requires funding for drilling, acquisitions, and commitments.
Geography
Operations are concentrated in the Permian Basin, especially Yoakum County, Texas and Eddy County, New Mexico. The company’s revenue is tied to U.S. hydrocarbon markets, while operational performance depends heavily on regional takeaway capacity, processing infrastructure, water handling, and labor availability in West Texas and southeastern New Mexico.
Risks
The business is exposed to commodity price volatility, regional infrastructure constraints, and concentration in a single producing basin. It also faces purchaser concentration, produced-water regulation, and execution risk tied to drilling, midstream buildout, and capital-intensive development.
- Commodity price volatilityImpact: HighLikelihood: High
Oil, gas, and NGL revenues depend on market prices and production volumes.
Exposure: All hydrocarbon sales
- Purchaser concentrationImpact: HighLikelihood: High
A few buyers account for most revenue, increasing counterparty and credit risk.
Exposure - Permian Basin infrastructure constraintsImpact: HighLikelihood: High
Pipeline, processing, and transportation bottlenecks can delay or limit sales.
Exposure: West Texas and southeastern New Mexico operations
- Capital-intensive drilling and developmentImpact: HighLikelihood: High
The company must continually invest to replace depleting reserves and sustain output.
Exposure: All upstream development
- Produced-water and seismic regulationImpact: MediumLikelihood: High
Restrictions on disposal wells and water handling can increase costs and limit activity.
Exposure: Permian Basin operations
Accounting
Judgemental itemsGathering, processing, and transportation costs are netted against sales, affecting realized pricing and comparability.
Impact: Can materially change reported gas and NGL margins
Commodity derivative gains and losses are excluded from product sales and reported elsewhere.
Impact: Affects comparability of operating revenue and cash flow
Purchase accounting relies on reserve, price, cost, and discount-rate assumptions.
Impact: Can increase DD&A and affect future impairment risk
Upstream accounting depends on estimated proved reserves and production profiles.
Impact: Drives DD&A and asset valuation
Long-term volume, tolling, and capital commitments affect future cash needs and disclosures.
Impact: Important for liquidity and contractual obligation analysis
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Last updated: 24/09/2026