Neal Dingmann, an analyst from Truist Financial, maintained the Buy rating on Riley Exploration Permian (REPX – Research Report). The associated price target is $50.00.
Neal Dingmann has assigned a Buy rating to Riley Exploration Permian’s stock (REPX) due to a multitude of factors. One of the key reasons is that Riley continues to efficiently operate in the Permian program despite occasional infrastructure-related issues. The forecast predicts the company’s growth in production by low double digits, while the annual capital expenditure is expected to fall sequentially. Additionally, REPX has been able to expand operations through a blend of effective organic operations and beneficial external transactions.
Moreover, Dingmann is influenced by Riley Exploration Permian’s ability to generate substantial production that is expected to continue to increase while reducing expenditure in the coming year. The company’s focus on conventional assets, unique in the largely US shale environment today, has well economics that remain competitive with peers. REPX also tends to experience less competition for its oilfield services, resulting in lower operating costs than in high demand areas. Lastly, the anticipation of future incremental free cash flow allowing for more debt repayment and additional production also contributes to the Buy rating. The company’s current dividend yield of almost 6% is seen as more than adequate for a small cap E&P.
Dingmann covers the Energy sector, focusing on stocks such as APA, Crescent Energy Company Class A, and Civitas Resources. According to TipRanks, Dingmann has an average return of 29.7% and a 72.40% success rate on recommended stocks.
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Riley Exploration Permian (REPX) Company Description:
Tengasco, Inc. operates as an independent oil and gas company. It explores, develops and produces domestic oil and natural gas reserves. The firm also deals with well drilling activities. The company was founded in 1916 and is headquartered in Greenwood Village, CO.
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