Riley Exploration Permian (REPX) is a small independent oil and gas producer focused on the Permian Basin, operating roughly 97,500 net acres across two core areas: the Champions field in Yoakum County, Texas, and the Red Lake field in Eddy County, New Mexico. REPX drills horizontal wells and sells oil at market prices — oil drives nearly all revenue, as natural gas and NGLs consistently generate negative netbacks after gathering and processing costs. REPX operates 96% of its production, giving it direct control over development pace and costs. The company typically runs a single drilling rig, drilling 20–25 gross wells per year, and targets lease operating expenses of ~$8–9/Boe, aided by company-owned water disposal and power infrastructure. Red Lake, built through a series of acquisitions in the Yeso trend starting in 2023, is REPX's primary growth engine but has been constrained by gas takeaway limitations — a serious problem in New Mexico, where flaring is prohibited and gas disruptions directly curtail oil output. To resolve this, REPX is building a ~56-mile, 20-inch high-pressure gas pipeline connecting to Targa's processing network, expected online in mid-2026, which management also sees as a potential source of third-party fee revenue. Beyond upstream, REPX holds a 50% stake in RPC Power, a JV developing behind-the-meter and merchant power generation. REPX hedges a significant portion of oil production and targets a reinvestment rate of roughly 35–45% of operating cash flow, leaving free cash flow for debt reduction, dividends, and infrastructure investment.