OKLAHOMA CITY - Riley Exploration Permian, Inc. (NYSE American: REPX), an independent oil and natural gas company, has priced its public offering of 2.1 million shares of common stock at $27.00 per share. The offering includes 700,000 shares from the company and 1.4 million shares from certain stockholders. The transaction is expected to close around April 8, 2024, subject to standard closing conditions.
The company anticipates gross proceeds of roughly $18.9 million, which will be applied to general corporate activities. These may encompass financing a pending acquisition of around 12,500 net acres in Eddy County, New Mexico, and other potential uses such as debt repayment, capital expenditure funding, and general working capital.
The acquisition, primarily funded by the offering's proceeds, is slated for completion in May 2024. The company will not profit from stockholder sales but will cover associated costs except for underwriting discounts and commissions.
Joint book-running managers for the offering are Truist Securities, Inc. and Roth Capital Partners, with Janney Montgomery Scott LLC and Tuohy Brothers Investment Research, Inc. serving as co-managers. The shares are offered through a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), effective since May 12, 2021. Further details about the offering can be obtained from the SEC's website or directly from the managing firms.
Riley Permian focuses on acquiring, exploring, developing, and producing oil and gas resources. The company's forward-looking statements in the press release reflect current management beliefs and assumptions based on available information. These statements are not guarantees of future performance and are subject to risks, uncertainties, and potential legislation changes.
This press release is informational and does not constitute an offer to sell or a solicitation to buy securities. The information is based on a press release statement. Riley Permian advises investors to consider the risks detailed in its SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic reports available on the SEC's website.
InvestingPro Insights
Riley Exploration Permian, Inc. (NYSE American: REPX) has shown a notable performance in the market, with several key metrics reflecting the company's financial health and investor sentiment. According to real-time data from InvestingPro, the company's Price/Earnings (P/E) ratio stands at an attractive 5.37 as of the last twelve months ending Q4 2023, signaling a potentially undervalued stock compared to industry peers. Additionally, the Price/Book (P/B) ratio is 1.49, suggesting that the stock may be reasonably priced relative to the company's book value.
The company has also exhibited strong revenue growth, with a 16.57% increase over the last twelve months as of Q4 2023 and an even more impressive quarterly revenue growth of 27.91% in Q4 2023. This financial performance is complemented by a robust gross profit margin of 77.35%, which indicates efficiency in managing production and operational costs.
Investors should note the following InvestingPro Tips for REPX: The company has consistently raised its dividend for the past three years, which could appeal to income-focused investors. Moreover, analysts predict that the company will be profitable this year, which is a positive sign for potential growth. However, it's worth noting that two analysts have revised their earnings estimates downwards for the upcoming period, which may warrant further investigation by investors. For those seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/REPX.
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