r/valueinvesting
Riley Exploration Permian, Inc. $REPX
$REPX trades near liquidation value with strong production growth and buybacks, offering a margin of safety for long-term oil bulls.
- Trades near PDP liquidation value (~$34) with base case intrinsic value of $44-$48.
- Strong production growth guided at 30% for 2025 and 25% for 2026.
- Solid balance sheet with 1.0x leverage and $100M authorized buyback.
- Primary risk is commodity price volatility; it is an oil call, not a bond.
$REPX trades at PDP liquidation value (\~$34) despite 30% production growth in 2025, 25% guided for 2026, 147 MMBoe reserves, 1.0× leverage, and $100M buyback authorised. Base case intrinsic value $44–48. Bull case $56–61. Biggest risk is commodity price this is an oil call, not a bond. For anyone with a long horizon and a view on $60+ Permian crude, the margin of safety seems nice.
I have used comitatus valuation engine, not an investment advice!
So weird to see this company randomly on Reddit when it’s been a large part of my portfolio for a few years.
It’s a good choice. There is a lot to like in the valuation.