Riley Exploration Permian, Inc.

Good day, everyone, and welcome to the Riley Exploration Permian, Inc. second quarter 2026 earnings call. This call is being recorded. At this time, I would like to hand the call over to Mr. Philip Riley, CEO. Please go ahead, sir.

Good morning. Welcome to our conference call covering our second quarter 2026 results. I'm Philip Riley, CFO. Joining me today are Bobby Riley, Chairman and CEO, and John Suter, COO. Yesterday, we published a variety of materials which can be found on our website under the Investors section. These materials and today's conference call contain certain projections and other forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. We'll also reference certain non-GAAP measures. The reconciliations to the appropriate gap measures can be found in our supplemental disclosure on our website. I'll turn the call over to Bobby.

Thank you, Philip. Earlier this year, we outlined our strategy to accelerate development activity and production growth in 2026, and we continued advancing that strategy during the second quarter. Our second quarter development program was the most active in Riley Permian's history. This heightened level of activity, together with production enhancement projects across both assets, helps us deliver oil production near the high end of our guidance range and a June oil production exit rate of 24.4 thousand barrels per day. While the quarter showed 5% sequential oil growth on average, we view the June exit rate as a better representation of the underlying momentum in the business and the foundation for the growth We expect during the second half of the year and into 2027. Importantly, a significant portion of the operational activity completed during the first half of the year has yet to be fully reflected in production. As a result, based upon our current outlook, we are increasing our full-year oil production guidance, which now calls for approximately 30% year-over-year oil production growth. We forecast our largest increase of the year during the third quarter when we expect oil production to increase more than 20% sequentially. Our strong second quarter results were achieved despite midstream constraints during April and May that required temporary well shut-ins and reduced oil production by approximately 2,000 barrels per day. The disruption reinforces the strategic importance of the new high-pressure gathering and trunk line system Thank you for joining us. and improve returns on the capital we've invested. At the same time, continued infrastructure development in New Mexico is expanding our opportunity set and helping unlock a larger portion of our inventory for future development. We are encouraged by the progress made during the first half of the year and remain focused on safely and efficiently converting that activity into production growth during the balance of 2026 and throughout 2027.