Riley Exploration Permian, Inc. (REPX) functions as an independent energy company, engaged in the entire process of hydrocarbon extraction—from acquiring properties and ...
Crude oil is a naturally occurring unrefined petroleum product composed of hydrocarbon deposits. Riley Exploration Permian extracts crude oil from the San Andres Formation in Yoakum County, Texas, and Eddy County, New Mexico. The company focuses on horizontal drilling of conventional oil-saturated reservoirs, producing light sweet crude that is sold to refiners and marketers.
Price Range: Varies with benchmark prices (e.g., WTI) typically in the range of $70–$90 per barrel.
Pain Points: Energy demand for mobility, industrial processes, and heating; dependency on imported oil; need for reliable domestic supply.
Solutions: Provides a consistent supply of domestic crude oil that can be refined into essential fuels and products, reducing exposure to foreign supply disruptions and price volatility.
Target Users: Refiners, crude oil marketers, midstream companies, and end-users in transportation, industrial, and residential sectors.
Supply Chain
Exploration and land acquisitionDrilling and completionProduction and gatheringProcessing (stabilization, separation)Transportation via pipeline and truckMarketing and sales to refiners
Natural gas, composed primarily of methane, is produced as a byproduct of oil extraction or from dedicated gas formations. Riley Exploration Permian captures and sells natural gas from its horizontal drilling operations in the Permian Basin. The gas is processed to remove impurities and NGLs before entering pipelines for distribution.
Price Range: Varies with benchmark prices (e.g., Henry Hub) typically in the range of $2–$5 per MMBtu.
Pain Points: Need for cleaner-burning fossil fuel; intermittency of renewables; demand for peaking power plants; industrial heat requirements.
Solutions: Offers a lower-carbon alternative to coal for power generation, provides reliable base-load and peak power, and supplies a versatile fuel for various industries.
Target Users: Electric utilities, local distribution companies (LDCs), industrial manufacturers, LNG export terminals, and commercial consumers.
Supply Chain
Exploration and developmentDrilling and completionProduction and gatheringProcessing (dehydration, compression)Pipeline transportationSales to utilities, LNG exporters, industrial users
Natural gas liquids (NGLs) are hydrocarbons separated from raw natural gas during processing. They include ethane, propane, normal butane, isobutane, and natural gasoline. Riley Exploration Permian's production yields NGLs due to the liquids-rich nature of their Permian Basin reservoirs. These components are sold to fractionators and petrochemical plants.
Price Range: Varies with Mont Belvieu prices; typical composite NGL price $30–$50 per barrel.
Pain Points: Feedstock shortage for petrochemical industry; need for clean-burning cooking and heating fuel; gasoline octane enhancement.
Solutions: Supplies critical feedstocks for the plastics, chemical, and refining industries; provides affordable and portable energy for rural and remote areas.
Target Users: Petrochemical companies, refineries, propane marketers, and industrial users of ethane, propane, and butane.
Supply Chain
Natural gas productionGas gathering and compressionProcessing (cryogenic plant to separate NGLs)Fractionation (splitting into purity products)Pipeline or rail transportSales to petrochemical plants, refiners, propane distributors
