In a remarkable display of market confidence, shares of Riley Exploration Permian, Inc. (REPX) surged to a 52-week high, touching a price level of $36.25. This peak represents a significant milestone for the company, reflecting a period of sustained growth amidst fluctuating market conditions. While REPX celebrates this high-water mark, another energy sector player, Tengasco, has also been making waves with an impressive 1-year change, boasting a 34.57% increase. The energy sector's resilience, underscored by these figures, continues to capture investor interest as companies like REPX and Tengasco navigate the challenges and opportunities of the current economic landscape.
In other recent news, Riley Exploration Permian reported robust growth in its third quarter of 2024, underscoring the company's financial and operational achievements. The company declared a 15th consecutive dividend, increased by 6% to $0.38 per share, and reduced its debt by $35 million. The 2024 drilling campaign resulted in a 6% increase in net production and an 11% rise in equivalent production.
Riley Exploration Permian's free cash flow facilitated a 6% dividend increase, while debt reduction highlighted the company's financial discipline. The company's production exceeded forecasts, with net production and equivalent production increasing by 6% and 11% respectively. The company's operating cash flow reached $72.1 million, with the year's free cash flow totaling $99 million.
These recent developments also include a projected 14%-15% year-over-year oil production growth for 2024, mainly driven by organic development. Riley Exploration Permian anticipates a 14%-15% oil production growth for the full year 2024 compared to 2023. The company's fourth-quarter capital expenditure guidance has been reduced, and future guidance for 2025 is focused on sustaining growth amid price volatility.
InvestingPro Insights
Riley Exploration Permian's recent surge to a 52-week high is further supported by InvestingPro data, which reveals a robust financial performance. The company's P/E ratio of 6.31 suggests that it may be undervalued relative to its earnings, particularly when considering its PEG ratio of 0.53, indicating potential for growth at a reasonable price. REPX's strong market position is also reflected in its impressive revenue growth of 15.3% over the last twelve months, with a healthy gross profit margin of 76.35%.
InvestingPro Tips highlight that REPX has raised its dividend for 4 consecutive years, offering a current dividend yield of 4.24%. This consistent dividend growth, coupled with a strong return over the last three months, aligns with the company's recent stock performance mentioned in the article. The stock's momentum is further evidenced by its trading near its 52-week high, as noted in both the article and the InvestingPro Tips.
For investors seeking a deeper understanding of REPX's potential, InvestingPro offers 10 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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