OKLAHOMA CITY, Oct. 7, 2021 /PRNewswire/ -- Riley Exploration
Permian, Inc. (NYSE American: REPX) ("Riley Permian", the
"Company", "we" or "our") today announced updates related to its
enhanced oil recovery (EOR) pilot project and its upcoming
dividend.
The Company executed two agreements, effective October 7, 2021, related to its EOR pilot
project. The Company entered into an agreement with the Cortez
Pipeline Company relating to the connection and establishment of a
delivery point for Riley Permian on the Cortez Pipeline at its
Champions assets in Yoakum County,
Texas. Cortez owns and
operates a pipeline system originating in or near Cortez, Colorado and traversing the states of
New Mexico and Texas for the transportation of carbon dioxide
(CO2). Riley Permian also entered into an agreement with
Kinder Morgan CO2 Company LLC, an affiliate of
Kinder Morgan, Inc. (together with
Kinder Morgan CO2 Company, LLC "Kinder Morgan"), one of the largest energy
infrastructure companies in North
America, relating to the purchase and sale of CO2
from Kinder Morgan. Riley Permian
will purchase CO2 from Kinder
Morgan, which will be delivered to Riley Permian's
properties via its planned connection to the Cortez Pipeline.
Separately, Riley Permian announced today that its Board of
Directors has declared a cash dividend on the Company's common
stock in the amount of $0.31 per
share. The dividend is payable on November
4, 2021 to stockholders of record as of the close of
business on October 21, 2021.
Bobby Riley, Riley Permian's
Chairman and CEO, commented, "We're pleased to announce these
positive developments. We're excited to work with such respectable
industry players as Kinder Morgan
and the Cortez Pipeline Company and to continue to advance our EOR
pilot project. This pipeline connection and purchase agreement
represents the first step for Riley Permian in gaining direct
access to a wider network of CO2 pipeline infrastructure and to CO2
source product. Related to the operations of this project, we've
begun the drilling of vertical injection wells in the field, and
we're laying water and gas line infrastructure, according to plans
previously disclosed. Finally, the approximate 10% increase in our
dividend is a testament to the continued execution of our business
plan and return of capital to shareholders."
About Riley Exploration Permian, Inc.
Riley
Permian is an independent oil and natural gas company focused on
steadily growing its reserves, production and cash flow per share
through the acquisition, exploration, development and production of
oil, natural gas, and natural gas liquids in the Permian Basin. For
more information please visit www.rileypermian.com.
About Kinder Morgan,
Inc.
Kinder Morgan, Inc.
(NYSE: KMI) is one of the largest energy infrastructure companies
in North America. Access to
reliable, affordable energy is a critical component for improving
lives around the world. We are committed to providing energy
transportation and storage services in a safe, efficient, and
environmentally responsible manner for the benefit of people,
communities and businesses we serve. We own an interest in or
operate approximately 83,000 miles of pipelines and 144 terminals.
Our pipelines transport natural gas, renewable fuels, refined
petroleum products, crude oil, condensate, CO2 and other products,
and our terminals store and handle various commodities including
gasoline, diesel fuel, chemicals, ethanol, metals and petroleum
coke. Learn more about our renewables initiatives on the low
carbon solutions page at www.kindermorgan.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR"
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This press release contains forward-looking statements within
the meaning of federal securities laws. All statements, other than
historical facts, that address activities that the Company assumes,
plans, expects, believes, intends or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. The forward-looking statements are
based on management's current beliefs, based on currently available
information, as to the outcome and timing of future events,
including the current industry and macroeconomic conditions,
commodity price volatility, production levels, the impact of the
recent presidential and congressional elections on energy and
environmental policies and regulations, any other potential
regulatory actions (including those that may impose production
limits in the Permian Basin), the impact and duration of the
ongoing COVID-19 pandemic, acquisitions and sales of assets, future
dividends, production, drilling and capital expenditure plans, need
for financing, competitive position, growth potential, severe
weather conditions (including the impact of the recent severe
winter storms on production volumes), impact of impairment charges,
price and availability of CO2, and effects of hedging arrangements.
These forward-looking statements involve certain risks and
uncertainties that could cause the results to differ materially
from those expected by the management of the Company.
These forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from those anticipated, including, but not limited to, the risk
that the Company may reduce, suspend or totally eliminate dividend
payments in the future, whether variable or fixed, due to
insufficient liquidity or other factors, potential adverse
reactions or changes to the business or operations of the Company
resulting from the recently completed merger, including the
Company's future financial condition, results of operations,
strategy and plans; changes in capital markets and the ability of
the Company to finance operations in the manner expected; the risk
that the Company's EOR and CCUS projects may not perform as
expected or produce the anticipated benefits; the risks of oil and
gas activities; and the fact that operating costs and business
disruption may be greater than expected following the consummation
of the merger.
Additional factors that could cause results to differ materially
from those described above can be found in Riley Permian's Annual
Report on Form 10-K for the year ended December 31, 2020 and in its subsequently filed
Quarterly Reports on Form 10-Q, as well as in the Registration
Statement on Form S-4 filed by the Company with the SEC and
declared effective by the SEC on February 2,
2021, each of which is on file with the SEC and available
from the Company's website at www.rileypermian.com under
the "Investor" tab, and in other documents the Company files with
the SEC.
The forward-looking statements in this press release are made as
of the date hereof and are based on information available at that
time. The Company does not undertake, and expressly disclaims, any
duty to update or revise our forward-looking statements based on
new information, future events or otherwise.
Investor Contact:
Philip Riley
405-438-0126
IR@rileypermian.com
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SOURCE Riley Exploration Permian, Inc.