REPX

Riley Exploration Permian ($REPX): Major Shareholder's $351K Purchase Contrasts Executive Selling as Production Forecast Jumps 15%

04/01/2025 18:48

A major shareholder of Riley Exploration Permian ($REPX) has recently made a significant stock purchase, marking a notable contrast to the consistent selling pattern demonstrated by company executives over the past several months. On March 31, 2025, major shareholder Alvin Gerald Libin purchased 12,000 shares at $29.32 per share, totaling approximately $351,840. The transaction was conducted through 2624063 Alberta Ltd., which is wholly owned indirectly by Libin. This purchase involved a change in beneficial ownership from Balmon Investments Ltd. to 2624063 Alberta Ltd. This buying activity stands in stark contrast to the consistent selling pattern exhibited by company executives in recent months. CEO Bobby Riley has conducted multiple large-scale stock sales from June 2024 through February 2025, most recently selling 15,000 shares at $33.33 per share for approximately $500,000 on February 10, 2025. Similarly, CIO Corey Neil Riley sold 3,500 shares at $27.51 per share for about $96,285 on March 10, 2025. $REPX's stock price showed strong momentum from November 2024 through mid-January 2025, reaching as high as $36.73 on January 17. However, it subsequently underwent a correction, falling to around $27 in early March before recovering to close at $29.17 as of March 31, 2025. Riley Exploration Permian is an independent energy company specializing in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company focuses on horizontal development of the San Andres formation in the Northwest Shelf of the Permian Basin. The company's financial position appears solid overall. For the six months ended June 30, 2024, Riley reported revenue of $205.147 million and net income of $52.306 million. Total assets stood at $993.50 million, with a debt-to-equity ratio of 52.8% and an interest coverage ratio of 5.5x. Particularly noteworthy is the company's steadily increasing production outlook. In a presentation released on March 5, 2025, Riley projected first-quarter total net production of 24.5-24.9 MBOE/d (thousand barrels of oil equivalent per day), a significant increase from the fiscal year 2024 outlook of 21.0-22.5 MBOE/d announced in June 2024. This production growth is expected to positively impact the company's future revenue and profitability. While the oil and natural gas industry has experienced volatility due to geopolitical tensions and supply chain issues, energy demand remains robust. The Permian Basin, in particular, stands as one of the most productive oil regions in the United States, and $REPX's strategic positioning in this area could provide a long-term competitive advantage. The discrepancy between the major shareholder's recent purchase and the executives' selling pattern can be interpreted in various ways. Executive sales may occur for personal asset diversification, tax planning, or simply as natural monetization of equity compensation plans. Conversely, the major shareholder's purchase may signal confidence in the company's long-term value and a belief that the current share price is undervalued. Investors should closely monitor additional insider trading patterns in the coming months, along with the company's ability to meet production targets and upcoming second-quarter performance. Particularly, any additional purchases by major shareholders or changes in executive selling patterns could provide important indicators of internal outlook. While the increasing production forecast and recent shareholder purchase serve as positive indicators, investors should maintain a balanced approach considering the continued executive selling and industry volatility.

You can receive notifications when news is published.