Riley Permian Puts $100 Million on the Table to Buy Back Shares

Board authorizes up to $100 million repurchase; press release language and effective date to be inserted

Riley Permian (REPX) said its board has authorized a share repurchase program that allows the company to buy back up to $100 million of its common stock on the NYSE American. The company’s announcement says the repurchase is subject to market conditions and customary regulatory requirements and references forthcoming filings with the SEC.

Reporter note: insert the exact quote from Riley Permian’s press release here in full: [INSERT PRESS RELEASE LANGUAGE HERE]. Also add the effective date of the board authorization as stated in the release: [EFFECTIVE DATE: INSERT]. The company has indicated it will disclose purchases in the required SEC filings (for example, an 8‑K); include the filing reference copied verbatim if provided in the release.

How this $100M program could move REPX shares in the near term

A $100 million buyback from Riley Permian is a clear signal that management wants to return cash to shareholders and shrink the share count. The immediate effects are straightforward: a successful program reduces shares outstanding, which can lift reported earnings per share even if total profit stays the same, and it trims the public float, which tends to reduce shares available to trade.

Reporters should add the latest market figures here: most recent close price: [LATEST CLOSE PRICE]; basic shares outstanding: [SHARES OUTSTANDING]; implied market cap at latest close: [MARKET CAP]. As a quick calculation, a $100 million repurchase equals [100,000,000 ÷ MARKET_CAP × 100 = BUYBACK % OF MARKET CAP] of the company’s market value.

To make this concrete: if Riley Permian’s market cap were roughly $1 billion, a $100 million program would be about a 10% buyback — large enough to have a real impact on EPS and float. If market cap were $500 million, the program would represent roughly 20%, which is aggressive and could materially change the stock’s trading dynamics and liquidity. The actual effect depends on how fast the company executes purchases and at what prices.

Why management may be choosing buybacks now

In the Permian Basin, capital allocation is driven by commodity prices, production growth, and available cash flow. Companies often start buybacks when free cash flow outpaces sensible drilling opportunities or when they want to offset dilution from equity programs.

Key financial pieces to check in Riley Permian’s recent filings: cash and cash equivalents on the balance sheet, operating cash flow and free cash flow trends in the last quarter, and debt levels. If the company is funding the repurchase from spare cash on the balance sheet, the move looks conservative. If management plans to use near‑term cash flow rather than reducing capital spending, it signals confidence in near‑term oil and gas prices. Conversely, using debt to fund buybacks raises risk.

Also consider the sector backdrop: Permian E&P firms have recently used buybacks to return capital when drilling returns lag or when commodity hedges lock in prices. Compare Riley Permian’s program size and timing against peers to see whether this is defensive, opportunistic, or part of a wider trend.

Execution details and the main risks investors should weigh

Repurchase programs differ in how they are run. Open‑market buys are paced based on daily volumes and price; tender offers return shares quickly but require higher cash outlays. Press releases often state that the program can be suspended, amended or discontinued at any time — include the exact phrasing from the company’s release in your copy.

Watch for governance details: limits on insider participation, whether the company will use brokers to execute trades, and any stated time horizon. Required SEC filings (Form 8‑K announcements of the plan and later disclosures of actual purchases) will give the hard specifics.

Main risks: timing the market (buying into a high price), reduced reinvestment in drilling or maintenance if cash is diverted, and the impact of volatile oil and gas prices on the business’s ability to maintain the program. For leveraged firms, adding buybacks can increase balance‑sheet strain if commodity prices fall.

Initial market response and a short monitoring checklist

At the time of the announcement, check intraday price and volume for any sharp move. If you see a spike in price with heavy volume, the market may be pricing in meaningful repurchases; a muted reaction suggests investors view the program as small or conditional.

Journalists and investors should watch these items closely: Riley Permian’s 8‑K on the repurchase, subsequent disclosures of actual daily purchases, any changes in capital‑spending guidance in the next 10‑Q or earnings call, insider trades, and how peers in the Permian are treating buybacks. Those data points will reveal whether this is a one‑time notice or the start of an active campaign to reduce the float.

Sources

• prnewswire.com