In a recent transaction, Bryan H. Lawrence, a director at Riley Exploration Permian, Inc. (NYSE American:REPX), has sold a significant amount of the company's stock. On April 8, 2024, Lawrence sold a total of 700,000 shares of common stock at an average price of $25.515 per share, resulting in a total transaction value of $17,860,500.
The sale was conducted as part of an underwritten public offering, with the public offering price set at $27.00 per share of Riley Exploration Permian's common stock, before accounting for an underwriting discount of $1.485 per share. Following the transaction, Lawrence's direct and indirect holdings in the company have been adjusted, with various footnotes indicating disclaimers of beneficial ownership except to the extent of pecuniary interest.
It is noted that the shares sold were indirectly owned through different partnerships and entities. For instance, some of the shares were owned by Riley Exploration Group, LLC, controlled by Yorktown Energy Partners IX, L.P. and Yorktown Energy Partners X, L.P., with Lawrence being a member and manager within the general partnerships that control these entities. Other shares were directly owned by Yorktown Energy Partners VIII, L.P., Yorktown Energy Partners XI, L.P., and Yorktown Energy Partners X, L.P., with Lawrence also holding managerial roles in these partnerships.
Riley Exploration Permian, Inc. is an oil and natural gas company based in Oklahoma City, specializing in the exploration and production within the Permian Basin. The company's stock is publicly traded, and this recent transaction provides investors with insight into the trading activities of its directors.
Investors often monitor insider transactions as they may provide signals about the company's current valuation and future prospects. The sale by a director can be a routine part of financial and estate planning, or it may reflect the director's view on the company's valuation. However, the specific reasons for Lawrence's sale have not been disclosed beyond the details provided in the SEC filing.
The transaction was formally filed with the Securities and Exchange Commission on April 10, 2024, and the details are publicly accessible for review.
InvestingPro Insights
As investors digest the news of Bryan H. Lawrence's notable share sale in Riley Exploration Permian, Inc. (NYSE American:REPX), the company's recent performance metrics provide additional context. According to InvestingPro data, Riley Exploration Permian has demonstrated a robust revenue growth of 16.57% over the last twelve months as of Q4 2023, with an even more impressive quarterly revenue growth of 27.91% in Q4 2023. This financial vigor is further evidenced by a substantial gross profit margin of 77.35%.
On the valuation front, the company's P/E Ratio stands at a moderate 5.37, suggesting a potentially attractive valuation relative to earnings. However, the PEG Ratio, which adjusts the P/E for growth, is negative at -0.09, potentially indicating market expectations of future earnings growth are low or negative.
Amidst this financial backdrop, InvestingPro Tips highlight that Riley Exploration Permian has raised its dividend for three consecutive years, showcasing a commitment to returning value to shareholders. The company also boasts a strong return over the last three months, with a price total return of 28.54%. These positive signals are tempered by the stock experiencing a significant drop over the last week, and the fact that short-term obligations exceed liquid assets, which could suggest liquidity concerns.
For those seeking a deeper dive into the company's prospects, additional InvestingPro Tips available on the platform indicate analysts are predicting profitability for the company this year, and the company has been profitable over the last twelve months. Interested investors can explore these insights further and benefit from a total of 7 additional InvestingPro Tips by visiting https://www.investing.com/pro/REPX. To enhance your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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