Financial Analysis

"Commitments and Contingencies Legal Matters Due to the nature of the Company's business, the Company may at times be subject to claims and legal actions. The Company accrues liabilities when it is probable that future costs will be incurred, and such costs can be reasonably estimated. Such accruals are based on developments to date and the Companys estimates of the outcomes of these matters. The Company did not recognize any material liability for legal matters as of September 30, 2025, or December 31, 2024. Management believes it is remote that the impact of such matters will have a materially adverse effect on the Companys financial position, results of operations, or cash flows. Environmental Matters The Company is subject to various federal, state and local laws and regulations relating to the protection of the environment. These laws, which are often changing, regulate the discharge of materials into the environment and may require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. The Company had no material environmental liabilities as of September 30, 2025, or December 31, 2024. Contractual Commitments The Company is a party to a gas gathering, treating and processing agreement with our primary midstream counterparty in Texas. Under the terms of the agreement, the Company agreed to deliver an annual minimum volume during the contract term. As of September 30, 2025, approximately …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Long-Term Debt The following table summarizes the Company's outstanding debt: September 30, 2025 December 31, 2024 (In thousands) Credit Facility $ 225,000 $ 115,000 Senior Notes Principal $ 150,000 $ 165,000 Less: Unamortized discount (1) 5,704 7,547 Less: Unamortized deferred financing costs (1) 2,254 2,959 Total Senior Notes $ 142,042 $ 154,494 Total debt $ 367,042 $ 269,494 Less: Current portion of long-term debt (2) 20,000 20,000 Total long-term debt $ 347,042 $ 249,494 ___________________ (1) Unamortized discount and unamortized deferred financing costs are attributable to and amortized over the term of the Senior Notes. (2) As of September 30, 2025, and December 31, 2024, the current portion of long-term debt reflects $20 million due on the Senior Notes over the next twelve months. Credit Facility As of September 30, 2025, Riley Exploration - Permian, LLC (""REP LLC""), as borrower, and the Company, as parent guarantor, are parties to a credit agreement with Truist Bank and certain lenders party thereto, as amended, which provides for a Credit Facility with a borrowing base of $400 million. On December 13, 2024, the Company entered into the sixteenth amendment to the Credit Facility to, among other things, extend the stated maturity date from April 2026 to December 2028 (or if any Senior Notes are then outstanding, the date that is 181 days prior to the earliest stated maturity date of such Senior Notes, in this case October 2027) and increased the borrowing base from …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents oil and natural gas sales, net disaggregated by product: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Oil and natural gas sales: Oil sales, net $ 108,051 $ 105,303 $ 292,564 $ 308,648 Natural gas sales, net (721) (1,170) (11) (1,464) NGL sales, net (478) (1,794) 2,150 (78) Total oil and natural gas sales, net (1) $ 106,852 $ 102,339 $ 294,703 $ 307,106 _____________________ (1) The Company's oil, natural gas and NGL sales are presented net of gathering, processing and transportation costs. The costs, related to natural gas and NGLs, at times exceeded the price received and resulted in negative average realized prices.

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Fair Value Measurements The FASB has established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy consists of three broad levels. Level 1 inputs are the highest priority and consist of unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for an asset or liability. The carrying values of financial instruments comprising cash, payables, receivables and advances from joint interest owners approximate fair values due to the short-term maturities of these instruments and are classified as Level 1 in the fair value hierarchy. The carrying value reported for the Credit Facility approximates fair value because the underlying instruments are at interest rates which approximate current market rates. The fair value of the Senior Notes is based on estimates of current rates available for similar issuances with similar maturities and is classified as Level 2 in the fair value hierarchy. The oil and natural gas properties acquired and ARO assumed in the Silverback Acquisition and 2024 New Mexico Asset Acquisition in addition to the fair value of assets and liabilities when considered for impairment are considered Level 3 measurements. Assets and Liabilities Measured on a Recurring Basis The fair values of commodity derivatives and interest rat …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes The components of the Company's consolidated provision for income taxes from operations are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Current income tax (benefit) expense: Federal $ (1,750) $ 3,091 $ 11,719 $ 13,620 State 236 283 1,670 1,169 Total current income tax (benefit) expense $ (1,514) $ 3,374 $ 13,389 $ 14,789 Deferred income tax expense: Federal $ 5,207 $ 3,034 $ 7,873 $ 7,088 State 1,124 625 1,498 1,644 Total deferred income tax expense $ 6,331 $ 3,659 $ 9,371 $ 8,732 Total income tax expense $ 4,817 $ 7,033 $ 22,760 $ 23,521 A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Tax at statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Nondeductible compensation 1.5 % (0.6) % 0.8 % 0.3 % Share-based compensation 0.2 % (1.1) % (0.1) % (0.3) % State income taxes, net of federal benefit 5.1 % 2.2 % 2.5 % 2.2 % Tax Credit (3.0) % % (0.6) % % Other (4.3) % % (0.9) % % Effective income tax rate 20.5 % 21.5 % 22.7 % 23.2 % The Company's federal income tax returns for the years subsequent to December 31, 2020, remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2019. The Company currently believes that all other …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this standard provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid. This ASU is effective for the Company prospectively to all annual periods beginning after December 15, 2024. The Company does not expect this standard to have a material impact on our disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40) Reporting Comprehensive Income-Expense Disaggregation Disclosures, which broadens the disclosures required for certain costs and expenses in the Companys annual and interim consolidated financial statements. This ASU is effective prospectively for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact to disclosures related to our annual report for fiscal year 2027. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Transactions with Related Parties RPC Power In January 2023, the Company entered into a 10-year agreement with RPC Power, which provides for the conversion of specified quantities of the Companys produced natural gas to electricity to power a portion of our oilfield operations in our Champions field (""Tolling Agreement""). The Tolling Agreement was amended and restated in June 2024 (""A&R Tolling Agreement"") primarily to reflect the new in-service date of September 2024. The Company also entered into a 10-year agreement (Asset Optimization Agreement) in January 2023 that requires RPC Power to provide operational expertise on the implementation and management of the power generating assets subject to the A&R Tolling Agreement for a monthly fee of $20 thousand. In May 2024, the Company entered into the Second Amended and Restated Limited Liability Company Agreement (A&R LLC Agreement) to expand the scope of our joint venture to include the constructing, owning and operating of additional new power generation and storage assets, for the sale of energy and ancillary services to ERCOT (""Merchant Deal""). In May 2024, the Company entered into a 10-year natural gas supply agreement (""Supply Agreement"") with RPC Merchant LLC, a wholly owned subsidiary of RPC Power (""RPC Merchant""), to supply natural gas to fuel the natural gas generators under the Merchant Deal. The Company's commitment under the Supply Agreement is contingent upon project start-up which is expect …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Segments The Companys oil and gas exploration and production activities are solely focused in the U.S. For financial reporting purposes, the Company aggregates our operating segments into one reporting segment due to the similar nature of these operations. The following table presents consolidated net income, the significant measure of profit and loss used by the CODM, as well as total assets, capital expenditures and our equity method investment for the Company's single reportable segment: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In thousands) Total Revenues $ 106,852 $ 102,339 $ 294,703 $ 307,486 Less: Lease operating expenses 26,874 18,532 64,085 51,793 Production and ad valorem taxes 8,278 7,002 21,074 21,407 Exploration costs 217 375 273 439 Depletion, depreciation, amortization and accretion 27,214 20,722 65,915 55,971 Impairment of oil and natural gas properties 1,214 Other impairments 30,158 30,158 Administrative Costs 9,922 5,879 23,559 17,862 Share-based compensation expense 2,688 1,720 6,742 6,693 Other segment items (1) 2,797 473 4,723 1,506 Interest expense, net of capitalized interest (2) 9,804 9,018 23,915 27,385 Interest income (198) (229) (477) (672) Gain on derivatives, net (1,920) (24,217) (14,790) (6,781) Loss from equity method investment 19 210 267 235 Income tax expense 4,817 7,033 22,760 23,521 Segment net income (3) $ 16,340 $ 25,663 $ 75,443 $ 77,969 Total assets $ 1,191,338 $ 997,875 $ 1,191,338 $ 997,875 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Significant Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Actual results may differ significantly from the Companys estimates. Any effects on the Companys business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include, but are not limited to, estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, accrued capital expenditures and operating expenses, ARO, the fair value determination of acquired assets and assumed liabilities, certain tax accruals and the fair value of derivatives. Accounts Receivable, net A …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Shareholders' Equity Dividends For the three months ended September 30, 2025, and 2024, the Company declared quarterly dividends on our common stock totaling approximately $8.4 million and $8.1 million, respectively. For the nine months ended September 30, 2025, and 2024, the Company declared quarterly dividends on its common stock totaling approximately $24.9 million and $23.2 million, respectively. Share-Based Compensation The Company's stockholders approved the Amended and Restated 2021 Long Term Incentive Plan (the ""A&R LTIP"") which authorized up to 2,337,022 shares of common stock that may be granted as awards under the A&R LTIP. In March 2025, the Company introduced performance-based restricted stock awards in addition to time-based restricted stock awards to further align the compensation of the Company's executive officers with the long-term growth and the interests of its shareholders. Performance-based restricted stock awards represent 30% of total executive award value and may be earned based on the Companys achievement of total shareholder return relative to its peer group during the applicable three-year performance period. Payouts for the executive officers can range from 0% to 200% of the target and have cliff-vesting after three years. As a result, the Company has reduced the remaining shares available to be granted as awards under the A&R LTIP by 168,406 shares (the full 200%), which assumes the highest percentage payout for the performance-bas …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Dividend Declaration On October 7, 2025, the Board of Directors of the Company declared a cash dividend of $0.40 per share of common stock payable on November 6, 2025 to our shareholders of record at the close of business on October 21, 2025.

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