Riley Exploration Permian, Inc. REPX is seeing soaring earnings estimates as oil prices remain elevated due to the Iran War. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 32% this year but remains a cheap stock.
Riley Permian is an independent oil and natural gas driller focused on the Permian Basin. The majority of its acreage is located in Yoakum County, Texas, and Eddy County, New Mexico.
It’s a small cap producer with a market cap of $721 million. It aims to generate sustainable free cash flow and maximize returns to shareholders.
Riley Permian Pays an Attractive Dividend
On Apr 15, 2026, Riley Perman announced its Board of Directors had approved a $0.40 per share dividend payable on May 13, 2026, to stockholders of record as of Apr 29, 2026.
This is an annual dividend of $1.60 per share, which is yielding a generous 4.8%.
Analysts Raise Riley Permian Earnings Estimates as Oil Soars
Riley Permian will report its first quarter 2026 results on May 6, 2026, after the market closes. But analysts have already been raising estimates as WTI oil soared due to the Iran War. The war started at the end of Feb 2026 so it will impact both the first and second quarter results.
It appears that oil prices will remain higher for longer and this means higher earnings for many of the North American oil producers, including Riley Permian.
Two estimates have been revised higher for 2026 in the last 30 days which has pushed the Zacks Consensus Estimate up to $6.84 from $4.13. That’s earnings growth of 32% as the company made $5.18 last year.
Analysts are bullish about 2027 as well. Two estimates have been revised higher for 2027 in the last month, pushing the Zacks Consensus up to $8.65. That’s another 26.4% in earnings growth.
Here’s what it looks like on the price and consensus chart. Oil producers had been struggling with low oil prices in the last few years but now there’s a sharp reversal higher in the earnings consensus.
Image Source: Zacks Investment Research
Shares of Riley Permian Sell Off: Is it on Sale?
When the Iran War began, investors poured into the North American oil producer stocks because the price of oil was soaring over $100 a barrel. The stocks soared.
But over the last few weeks, many of the stocks, including Riley Permian, have sold off on every talk of a reopening of the Strait of Hormuz.
Here’s the one-month chart of Riley Permian compared to the S&P 500 ETF (VOO).
Image Source: Zacks Investment Research
Riley Permian is dirt cheap. It has a forward price-to-earnings (P/E) ratio of just 4.9. A P/E under 10 is considered dirt cheap and under 5 means the Street is giving it away.
Other valuations are cheap as well. It has a price-to-book (P/B) ratio of just 1.2. A P/B under 3.0 usually indicates value.
In addition to paying a dividend, the company announced a $100 million share repurchase program in the fourth quarter of 2025. It bought back $4 million in shares under that program in Jan 2026.
If you’re looking for a way to play higher oil prices and want a North American producer which is shareholder friendly, then Riley Permian should be on your short list.
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