The strong production growth and raised guidance reinforce the growth narrative, but the EPS miss and elevated workover costs caution against chasing the stock. Watch Q3 production ramp and margin improvement as midstream constraints ease; the Targa pipeline in-service in Q4 2026 is a key catalyst.
Price Chart
Executive Summary
Riley Permian reported Q2 2026 revenue of $166M (beat consensus $157.1M by 5.6%) but adjusted EPS of $1.54 missed the $1.63 estimate by 5.5%, reflecting higher workover costs and derivative losses. Production grew strongly YoY (+41% Boe/d) and the company raised full-year oil production guidance to imply ~30% YoY growth, offsetting the EPS miss but keeping the story growth-oriented.
Key Financial Metrics
Key Facts
- Revenue $165.85M vs consensus $157.1M (beat 5.6%)
- Adjusted diluted EPS $1.54 vs consensus $1.63 (miss 5.5%)
- Total Q2 production 34.3 MBoe/d (oil 21.2 MBbls/d), up 41% from 24.4 MBoe/d a year ago
- Revised full-year 2026 oil production guidance higher, implying ~30% YoY growth
- Operating cash flow $63.5M vs $33.6M YoY; Total Free Cash Flow $6M
- Q3 2026 oil production guided to 25.1-26.1 MBbls/d (up >20% sequentially)
- Net debt-to-Adjusted EBITDAX 1.0x; increased debt $26M to fund capex
- Temporary midstream constraints in New Mexico reduced Q2 production ~1.9 MBbls/d
Financial Impact
Revenue beat by $8.8M; EPS miss by $0.09; raised production guidance supports growth but higher capex and costs pressure margins
Risk Factors
- Waha natural gas basis differentials remain deeply negative due to pipeline constraints
- Midstream outages or delays in Targa infrastructure could cap production growth
- Higher-than-expected capex may pressure free cash flow and leverage
- Crude oil price volatility and derivative settlement losses
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302844189 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 12d ago | Press Release | $47.00 $51.10 | ▲ +8.72% | ▲ +9.74% | $54.18 (+15.28%) |
Oct 7, 2026 19d ago | 8-K | $44.64 $47.00 | ▲ +5.29% | ▲ +5.56% | $54.18 (+21.37%) |
Sep 22, 2026 4w ago | Institutional Cluster | $40.20 $39.79 | ▼ −1.02% | ▲ +0.17% | $54.18 (+34.78%) |
Aug 12, 2026 10w ago | Insider Cluster | $35.91 $37.42 | ▲ +4.21% | ▲ +4.65% | $54.18 (+50.88%) |
Aug 5, 2026 11w ago | Press Release | $34.07 $35.49 | ▲ +4.17% | ▲ +2.96% | $54.18 (+59.03%) |
Jul 15, 2026 14w ago | Press Release | $34.28 $36.17 | ▲ +5.51% | ▲ +6.49% | $54.18 (+58.05%) |
Jun 12, 2026 19w ago | Institutional Cluster | $35.26 $32.82 | ▼ −6.92% | ▼ −7.59% | $54.18 (+53.66%) |
Jun 11, 2026 19w ago | Institutional Cluster | $34.53 $33.51 | ▼ −2.95% | ▼ −3.39% | $54.18 (+56.91%) |
May 13, 2026 23w ago | 8-K | $36.38 $37.52 | ▲ +3.13% | ▲ +3.85% | $54.18 (+48.93%) |
May 12, 2026 23w ago | Insider Cluster | $36.15 $38.77 | ▲ +7.25% | ▲ +7.39% | $54.18 (+49.88%) |
US Market Status
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