Riley Exploration Permian, Inc. (NYSE:REPX) Q4 2023 Earnings Conference March 7, 2024 10:00 AM ET

Company Participants

Philip Riley - CFO and EVP of Strategy

Bobby Riley - Chairman and CEO

Conference Call Participants

Neal Dingmann - Truist Securities

Jeffrey Robertson - Water Tower Research

Noel Parks - Tuohy Brothers

Gary Kennedy - Kennedy Trust Investments

Operator

Welcome to the Riley Exploration Permian’s Fourth Quarter 2023 Earnings Conference Call. At this time, participants are in a listen-only mode with a question-and-answer session to follow at the end of the presentation.

I will now hand the call over to Philip Riley, Chief Financial Officer for introductions. Mr. Riley, please go ahead.

Philip Riley

Good morning. Welcome to our conference call covering the fourth quarter 2023 results. I'm Philip Riley, CFO. Joining me today is Bobby Riley, Chairman and CEO.

Yesterday, we published a variety of materials which can be found on our website under the Investors section. These materials and today's conference call contain certain projections and other forward-looking statements within the meaning of the Federal Securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. We'll also reference certain non-GAAP measures. Reconciliations to the appropriate GAAP measures can be found in our supplemental disclosure on our website.

I'll now turn the call over to Bobby.

Bobby Riley

Thank you, Philip. And thank you again to everyone for joining us on today's call. Yesterday, at the close of the market, we announced the results of our fourth quarter and full year 2023. I'm pleased to report that 2023 was another outstanding year for Riley Permian. I'm going to discuss some of the high points for the year, our operations highlights and then turn the call over to Philip. We encourage questions and discussion at the end of our call today.

Our overall net oil production increased by 49% year-over-year to 13.2 MBoe per day and total net equivalent production by 62% year-over-year to 18.6 MBoe per day. Riley achieved a 22% year-over-year organic growth in net oil production, excluding the New Mexico acquisition. Proved reserves increased reaching 108 million Boe, an increase of 39% year-over-year, and Proved Developed Producing Reserves reached 60 million Boe, increasing 23% year-over-year.

We generated $246 million of adjusted EBITDAX, $207 million of operating cash flow from continuing operations, and $70 million of free cash flow. We continue to invest in our business with total cash capital expenditures before acquisitions of $136 million, corresponding to a reinvestment rate of 66% of cash flow from operations. We remain committed to returning value to our shareholders, most recently paying our 20th consecutive quarterly dividend totaling $28 million for the year. We remain focused on creating long term value for our shareholders and delivering sustainable growth for years to come.