Riley Exploration Permian, Inc. REPX is seeing hovering earnings estimates as oil costs stay elevated because of the Iran Conflict. This Zacks Rank #1 (Sturdy Purchase) is anticipated to develop earnings by 32% this 12 months however stays an affordable inventory.
Riley Permian is an unbiased oil and pure gasoline driller centered on the Permian Basin. The vast majority of its acreage is situated in Yoakum County, Texas, and Eddy County, New Mexico.
It’s a small cap producer with a market cap of $721 million. It goals to generate sustainable free money stream and maximize returns to shareholders.
Riley Permian Pays an Enticing Dividend
On Apr 15, 2026, Riley Perman introduced its Board of Administrators had accredited a $0.40 per share dividend payable on Could 13, 2026, to stockholders of document as of Apr 29, 2026.
That is an annual dividend of $1.60 per share, which is yielding a beneficiant 4.8%.
Analysts Elevate Riley Permian Earnings Estimates as Oil Soars
Riley Permian will report its first quarter 2026 outcomes on Could 6, 2026, after the market closes. However analysts have already been elevating estimates as WTI oil soared because of the Iran Conflict. The struggle began on the finish of Feb 2026 so it would influence each the primary and second quarter outcomes.
It seems that oil costs will stay larger for longer and this implies larger earnings for most of the North American oil producers, together with Riley Permian.
Two estimates have been revised larger for 2026 within the final 30 days which has pushed the Zacks Consensus Estimate as much as $6.84 from $4.13. That’s earnings progress of 32% as the corporate made $5.18 final 12 months.
Analysts are bullish about 2027 as properly. Two estimates have been revised larger for 2027 within the final month, pushing the Zacks Consensus as much as $8.65. That’s one other 26.4% in earnings progress.
Right here’s what it appears to be like like on the value and consensus chart. Oil producers had been fighting low oil costs in the previous few years however now there’s a pointy reversal larger within the earnings consensus.
Picture Supply: Zacks Funding Analysis
Shares of Riley Permian Promote Off: Is it on Sale?
When the Iran Conflict started, traders poured into the North American oil producer shares as a result of the value of oil was hovering over $100 a barrel. The shares soared.
However over the previous few weeks, most of the shares, together with Riley Permian, have bought off on each discuss of a reopening of the Strait of Hormuz.
Right here’s the one-month chart of Riley Permian in comparison with the S&P 500 ETF (VOO).
Picture Supply: Zacks Funding Analysis
Riley Permian is dust low-cost. It has a ahead price-to-earnings (P/E) ratio of simply 4.9. A P/E beneath 10 is taken into account dust low-cost and beneath 5 means the Road is giving it away.
Different valuations are low-cost as properly. It has a price-to-book (P/B) ratio of simply 1.2. A P/B beneath 3.0 often signifies worth.
Along with paying a dividend, the corporate introduced a $100 million share repurchase program within the fourth quarter of 2025. It purchased again $4 million in shares beneath that program in Jan 2026.
In the event you’re on the lookout for a technique to play larger oil costs and need a North American producer which is shareholder pleasant, then Riley Permian needs to be in your brief listing.
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This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
