Riley Exploration Permian, Inc. (REPX) · Nov 4, 2026 · Earnings

Riley Permian earnings beat as New Mexico infrastructure comes online

Beat — Adjusted EPS $2.66 vs ~$2.22 consensus; revenue $201.2M vs ~$160M consensus

Riley Permian’s Q3 earnings beat consensus, while new New Mexico gas and water infrastructure removes a key growth bottleneck ahead of 2027 drilling.

Riley Permian is a growth-oriented upstream producer in the Northwest Shelf of Texas and New Mexico, trying to convert a large undeveloped inventory into production while fixing New Mexico’s midstream bottlenecks. The quarter shows that Texas is carrying current growth, while newly completed New Mexico infrastructure creates a clearer path to restart development there. The published Q3 adjusted-EPS consensus was roughly $2.22–$2.42, and revenue expectations were around $160 million.

The earnings beat was substantial, not cosmetic. Adjusted EBITDAX reached $117.3 million versus $64.0 million a year ago, while revenue rose to $201.2 million from $106.9 million. Adjusted net income was $56 million, or $2.66 per diluted share, well above the roughly $2.22 consensus. The operational base also expanded: equivalent production rose 30% year over year to 42.0 MBoe/d and oil production rose 38% to 25.4 MBbls/d.

MetricQ3 2026Q3 2025Consensus
Revenue (Financial Data)$201.2M (+88%)$106.9M~$160M
Adjusted EBITDAX (Financial Data)$117.3M (+83%)$64.0M
Adjusted EPS (Earnings Release)$2.66~$2.22
Total free cash flow (Financial Data)$42.4M$25.3M
Equivalent production (Production Data)42.0 MBoe/d (+30%)32.3 MBoe/d
Oil production (Production Data)25.4 MBbls/d (+38%)18.4 MBbls/d

The more important change is operational, especially in New Mexico. The company placed Targa’s new gas gathering and high-pressure trunkline system in service on October 1 and a water-management system on September 15. That directly addresses the processing, takeaway and water-handling constraints that had forced shut-ins and prevented New Mexico wells from returning to development. The near-term production growth still came primarily from Texas: all 33.8 net wells turned to sales year to date were in Texas, while New Mexico had turned none to sales since July 2025. 〔0〕

The balance sheet is more flexible, but not de-risked. Riley reduced debt by $28 million during the quarter, prepaid its $130 million senior notes afterward, and replaced that maturity pressure with revolver borrowings. The amended facility raises the borrowing base to $450 million, extends maturity to October 2030, and leaves $205 million of availability. That improves runway for drilling, but the senior-note repayment was funded with debt rather than cash, so this is refinancing and liquidity improvement—not a major deleveraging event.

The growth runway is becoming more credible, though the biggest upside remains unproven. Riley plans initial San Andres development on Red Lake in the second quarter of 2027 and identifies roughly 400 undeveloped locations, but potential San Andres locations remain subject to spacing, drilling and commercial evaluation. The company’s fourth-quarter guidance calls for production to rise modestly to 42.5–43.5 MBoe/d and 25.5–26.5 MBbls/d of oil, with $76–$88 million of total investments. 〔1〕

Bottom line: This was a clear earnings beat with a meaningful infrastructure milestone behind it. The quarter strengthens Riley’s existing growth story and makes New Mexico execution more believable, although the next leg still depends on converting the new capacity and speculative inventory into actual wells and production.neq

What to watch next

November 5 earnings call; San Andres drilling planned for Q2 2027

Original filing on SEC EDGAR

More Riley Exploration Permian, Inc. news

Riley Permian earnings beat as New Mexico infrastructure comes online | REPX Stock News
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