Riley Exploration Permian, Inc.REPX
Riley Exploration Permian, Inc. Segments Disclosure
Segments
The Company’s oil and gas exploration and production activities are solely focused in the U.S. For financial reporting purposes, the Company aggregates our operating segments into one reporting segment due to the similar nature of these operations.
The Chief Operating Decision Maker ("CODM") function is a critical aspect of segment reporting, as defined by the FASB under the Accounting Standards Codification (ASC) 280. The CODM is responsible for making key operating decisions and
assessing the performance of the Company. The CODM function at the Company is collectively performed by a committee consisting of the Chief Executive Officer ("CEO"), Chief Financial Officer ("CFO"), Chief Operating Officer ("COO"), and Chief Accounting Officer ("CAO").
The CEO is the highest-ranking executive in the Company and is primarily responsible for the overall strategic direction and operational performance. The CEO's role in the CODM function includes setting long-term goals, making high-level decisions about policy and strategy, and ensuring that the Company's activities align with the overall corporate objectives.
The CFO oversees all of the financial activities of the Company, including financial planning, risk management, record-keeping, and financial reporting. In the CODM function, the CFO plays a crucial role in analyzing financial data, assessing financial performance, and making recommendations for resource allocation and investment decisions.
The COO is responsible for the day-to-day operations of the Company. This includes managing the operational aspects of the business, ensuring efficiency, and implementing the strategies set by the CEO. The COO's involvement in the CODM function includes monitoring performance, optimizing operational processes, and addressing any operational challenges that may arise.
The CAO oversees the accounting functions of the Company, ensuring compliance with accounting standards and regulations. In the CODM function, the CAO is responsible for providing accurate and timely financial information for the business, ensuring that the financial data is reliable and consistent and providing insight into the potential accounting complications of transactions. The CAO also plays a key role in internal controls and financial reporting.
Together, the CEO, CFO, COO, and CAO form a collaborative team that functions as the CODM. They meet regularly to review performance, discuss strategic and operational issues, and make informed decisions that drive the Company's success. This collective approach ensures that all aspects of the business are considered, from strategic direction and financial health to operational efficiency and regulatory compliance.
The CODM uses consolidated net income as a key metric to guide decisions regarding capital allocation. By assessing consolidated net income, the CODM gains insight into the overall financial health of the organization, allowing for more informed decisions on where to direct capital expenditures. Additionally, consolidated net income is used to monitor financial performance by comparing budgeted projections to actual results, helping the CODM identify variances, adjust strategies and ensure that resources are being effectively deployed across various operational areas.
The following table presents consolidated net income, the significant measure of profit and loss used by the CODM, as well as total assets, capital expenditures, and our equity method investment for the Company's single reportable segment:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total Revenues | $ | 391,980 | $ | 410,181 | $ | 375,047 | ||||||||||||||
| Less: | ||||||||||||||||||||
Lease operating expenses | 87,506 | 71,463 | 58,817 | |||||||||||||||||
Production and ad valorem taxes | 29,052 | 29,428 | 25,559 | |||||||||||||||||
Exploration costs | 361 | 2,595 | 4,165 | |||||||||||||||||
Depletion, depreciation, amortization and accretion | 93,183 | 74,900 | 65,055 | |||||||||||||||||
Impairment of oil and natural gas properties | 1,214 | 11,317 | 9,760 | |||||||||||||||||
Other impairments | 1,607 | 30,158 | — | |||||||||||||||||
Administrative Costs | 31,472 | 26,551 | 26,569 | |||||||||||||||||
Stock-based compensation expense | 9,130 | 8,138 | 6,833 | |||||||||||||||||
Other segment items(1) | 5,176 | 1,936 | 6,396 | |||||||||||||||||
Interest expense, net of capitalized interest(2) | 32,040 | 35,204 | 32,049 | |||||||||||||||||
Interest income | (676) | (866) | (233) | |||||||||||||||||
| (Gain) loss on derivatives, net | (36,259) | 1,665 | (6,193) | |||||||||||||||||
| Loss from equity method investment | 886 | 721 | 218 | |||||||||||||||||
Gain on midstream sale | (71,675) | — | — | |||||||||||||||||
Income tax expense | 48,123 | 28,074 | 34,461 | |||||||||||||||||
Segment net income(3) | $ | 160,840 | $ | 88,897 | $ | 111,591 | ||||||||||||||
| Total assets | $ | 1,169,578 | $ | 993,501 | $ | 945,711 | ||||||||||||||
Capital expenditures(4) | $ | 120,162 | $ | 108,320 | $ | 135,804 | ||||||||||||||
| Equity method investment | $ | 36,188 | $ | 22,811 | $ | 5,620 | ||||||||||||||
_____________________
(1)Other segment items include transaction costs and cost of contract services - related parties.
(2)Interest expense is shown gross of, or prior to the effect of interest income.
(3)There are no reconciling items between net income presented in our consolidated statements of operations and segment net income.
(4)Capital expenditures are accrual (activity-based) before acquisitions.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.