Riley Permian Boosts Dividend, Signaling Confidence Amid Market Volatility

OKLAHOMA CITY, OK – January 09, 2026 – Riley Exploration Permian, Inc. (NYSE American: REPX) today signaled strong confidence in its financial standing and commitment to shareholders, announcing that its Board of Directors has approved an increased quarterly cash dividend of $0.40 per share. The move was met with immediate positive sentiment from the market, with shares trading up 2.2% to $26.35 in midday trading.

The dividend is scheduled to be paid on February 5, 2026, to stockholders of record as of the close of business on January 22, 2026. This latest increase represents a continuation of the company’s policy of returning value to its investors and reflects a robust operational and financial footing in the dynamic energy sector.

A Record of Consistent Shareholder Returns

For investors tracking the upstream oil and gas sector, Riley Permian's dividend policy has become a notable example of consistency. This latest $0.40 per share declaration is not an isolated event but rather the continuation of a well-established trend. The company initiated its dividend program in 2021 and has since executed five separate increases over the past five years, demonstrating a sustained ability to generate shareholder value.

This most recent increase brings the annualized dividend to $1.60 per share. It follows a previous raise in July 2025, which took the quarterly payout to $0.38, and an earlier increase to $0.36 per share in early 2024. This steady progression translates to a dividend per share growth rate of 5% over the last year. Looking at a longer-term horizon, the company's three-year dividend growth rate stands at an impressive 20.15%, underscoring a period of significant financial maturation and cash flow generation.

The sustainability of these payments is a key metric for analysts, and Riley Permian's figures appear reassuring. The company's dividend payout ratio, which measures the proportion of earnings distributed as dividends, is reported to be in the range of 28% to 38%. This is comfortably below the energy sector's average payout ratio of 45%, suggesting that the dividend is well-covered by both earnings and cash flows. A lower payout ratio indicates that the company retains substantial capital for reinvestment, debt service, and future growth, providing a buffer against market fluctuations.

Beyond the Payout: A Disciplined Capital Strategy

The dividend increase is a central component of Riley Permian's broader, shareholder-focused capital allocation strategy. The company’s management has publicly prioritized a business model that balances modest, manageable production growth with maintaining a low debt profile and providing a competitive dividend. This disciplined approach is designed to create a predictable portfolio of assets that consistently generate free cash flow.

Further cementing this strategy, the company announced a new share repurchase program in December 2025. The dual approach of dividends and buybacks provides two distinct mechanisms for returning capital to shareholders, offering management flexibility based on market conditions and share valuation. This signals a mature capital allocation framework, where excess cash is deliberately deployed to enhance shareholder equity rather than being channeled exclusively into aggressive, and potentially risky, production growth.

Analysts project that Riley Permian's financial strength will continue, with earnings per share (EPS) expectations for the coming year at $7.06. Should this forecast hold, the dividend payout ratio would fall to an even more conservative 22.7%, further solidifying the dividend's security. The company's recent strategic moves, such as the divestiture of a New Mexico midstream project in late 2025, may also be interpreted as part of this disciplined strategy, allowing it to optimize its asset base and focus on its core upstream operations in the Permian Basin.

Standing Out in the Prolific Permian Basin

In the competitive landscape of the Permian Basin, which spans parts of Texas and New Mexico, Riley Permian has carved out a distinct identity. While many operators focus purely on rapid expansion, Riley Permian's balanced approach allows it to offer a particularly attractive proposition to income-focused investors.

With its latest dividend, the company’s forward dividend yield is approximately 6.0%. This figure is notably compelling when benchmarked against peers, standing 31% higher than the energy sector average of 4.54% and well above the average for the bottom 25% of dividend-paying stocks in the U.S. market. For investors seeking yield in an often-volatile sector, REPX presents a strong case.

This attractive yield is supported by a solid financial foundation. With a market capitalization acessórios of approximately $578.88 million and a price-to-earnings (P/E) ratio of 4.67, the company's valuation metrics suggest it is reasonably priced relative to its earnings. Its balance sheet metrics, including a current ratio of 0.70 and a debt-to-equity ratio of 0.53, reflect a manageable leverage profile that supports its capital return commitments.

Market Confidence and a Positive Outlook

The market’s favorable reaction to the dividend news is reinforced by broader analyst sentiment. Sell-side analysts maintain a consensus "Buy" rating on REPX, with some price targets suggesting a significant upside. Furthermore, the dividend itself has received an 'A' rating for safety, a testament to its strong coverage by earnings and cash flow and the company's consistent payment history.

This external validation aligns with the confidence projected by the company's leadership, who point to a "solid asset base, strong balance sheet and manageable production profile" as the pillars supporting its ability to generate free cash flow. By successfully navigating the complexities of the energy market, Riley Permian has demonstrated that a strategy prioritizing both disciplined growth and robust shareholder returns can not only succeed but also earn the confidence of Wall Street.