Riley Exploration Permian (REPX) opened 2026 with Q1 revenue of US$113.9 million and a basic EPS loss of US$3.38, compared with Q1 2025 revenue of US$102.5 million and basic EPS of US$1.36, while trailing 12 month EPS sits at US$2.93 on revenue of US$403.4 million. Over recent quarters, the company has seen revenue move from US$85.4 million in Q2 2025 to US$97.3 million in Q4 2025 and then to US$113.9 million in Q1 2026. Basic EPS shifted from US$1.44 to US$4.04 before the latest quarterly loss, setting up a results season in which investors are likely to focus closely on how margins are holding up beneath these headline swings.

See our full analysis for Riley Exploration Permian.

With the headline numbers on the table, the next step is to see how they line up against the main narratives around Riley Exploration Permian, highlighting where the latest margins and earnings trends support the story and where they start to challenge it.

Loss of US$70.4 million despite higher sales

• Q1 2026 revenue was US$113.9 million, but net income excluding extra items swung to a loss of US$70.4 million, compared with Q4 2025 net income of US$85.4 million on US$97.3 million of revenue.
• Consensus narrative points to infrastructure projects in New Mexico and ERCOT power as future earnings drivers, yet the latest quarter shows near term pressure:
  • Over the last 12 months, net profit was US$61.8 million on US$403.4 million of revenue, which implies a 15.3% net margin versus 23.9% in the prior year period cited in the analysis.
  • At the same time, analysts expect revenue to grow about 9% per year and earnings about 22.4% per year. The recent loss raises the question of whether this margin reset is temporary or a sign that those expectations are demanding.

Trailing EPS of US$2.93 against a volatile year

• Basic EPS over the last 12 months sits at US$2.93, which blends a Q4 2025 EPS of US$4.04 and earlier profitable quarters with the Q1 2026 basic EPS loss of US$3.38 and a one off gain of US$66.5 million included in the trailing period.
• Bulls argue that efficiency gains and infrastructure build out can support higher margins over time, and the trailing figures partly line up with that but also show some friction:
  • Bullish forecasts in the inputs assume earnings growth around 22% per year and higher profit margins, while the trailing net margin in the data is 15.3% and already reflects that one off gain, so underlying profitability is lower than the headline EPS suggests.
  • On the operations side, earlier quarters reference company owned midstream and power projects aimed at reducing costs and improving volumes, which matches the bullish story, but investors still have to reconcile that long term angle with the current loss and margin compression in the reported numbers.

Sustained margin improvement is central to the optimistic view that infrastructure and cost work will translate US$2.93 of trailing EPS into much higher future earnings, so it is worth seeing how that full case is built out in detail 🐂 Riley Exploration Permian Bull Case.

P/E discount and high debt in focus at US$34.23

• At the current share price of US$34.23, the trailing P/E of about 12x compares with a US Oil & Gas industry average of 13.9x and a peer group average of 17.1x, while the DCF fair value in the data is US$232.73 and the company is also described as carrying a high level of debt.
• Bears highlight that heavy investment and higher cost assets could keep returns under pressure, and several figures in the dataset speak directly to those concerns:
  • The last 12 months included a US$66.5 million one off gain, yet net margin over that period is still 15.3% compared with 23.9% a year earlier. This gives bears room to argue that profitability is being squeezed before adjusting for non recurring items.
  • The analysis flags a high debt load alongside significant planned spending on New Mexico midstream and power projects, so even with a DCF fair value of US$232.73 and analyst targets around US$48.00, skeptics can point to leverage and capital commitments as reasons why the P/E discount might persist.

If you are weighing whether the high debt and big project pipeline justify a cautious stance even at a P/E discount, it helps to see how the skeptical case is structured in full 🐻 Riley Exploration Permian Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Riley Exploration Permian on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seeing both the concerns and the optimism laid out like this can feel mixed, so consider weighing the risks and rewards for yourself with the 4 key rewards and 3 important warning signs

See What Else Is Out There

The latest quarter shows a US$70.4 million loss, margin compression from a 15.3% trailing net margin, and concerns about high debt alongside heavy project spending.

If this mix of earnings volatility and leverage feels uncomfortable, you may wish to compare it with companies that score better on financial resilience by checking the solid balance sheet and fundamentals stocks screener (44 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.