Riley Exploration Permian tumbles on stock offering

Riley Exploration Permian

04/04/2024 12:45

** Riley Exploration Permian's  REPX.N  shares down 17.1% at
$27.80 premarket as follow-on offering prices
    ** REPX on course for biggest one-day pct drop since June
2021, if losses hold
    ** Oil and gas producer announces 2.1 mln shares, including
1.4 mln sold by existing investors, at $27
    ** Offering price represents 19.5% discount to stock's last
close
    ** Co to use net proceeds from its sale of 700,000 shares
for general purposes, including financing pending acquisition of
acreage in New Mexico and repay borrowings under revolving
credit facility
    ** PE firms Bluescape Resources and Yorktown Partners
selling combined 1.4 mln shares, reducing their stakes to 21.4%
and 12%, respectively, per SEC prospectus filing
    ** Co has 20.4 mln shares outstanding and ~13 mln shares of
free float, per LSEG
    ** Through Weds close, REPX had gained 23% YTD
    ** Truist Secs and Roth Capital are jt bookrunners for stock
offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))