Riley Exploration Permian, Inc. (REPX) presents a negative liquidation recovery posture as of March 31, 2026. MFFAIS reports a cash liquidation value of -$453M, liquid liquidation value of -$396M, and operating liquidation value of -$388M, consistent with the balance sheet structure described below. Total assets of $1.18B are dominated by oil and gas properties ($1.02B net, comprising $1.18B proved and $156M unproved before accumulated DD&A of $364M). Under the liquidation lens, E&P proved properties are haircut to 50-70% of book value, yielding a recoverable range of approximately $510-$715M against total liabilities of $627M at face value. The liability stack is straightforward: $241M total long-term debt (Credit Facility $107M drawn plus $140M Senior Notes due April 2028, with $20M current), ARO of $63M ($60M noncurrent), deferred tax liability of $63M, current derivative liabilities of $78M, plus $244M of other current liabilities including $57M revenue payable and $44M accrued liabilities. The derivative liability position shifted materially this quarter: current derivative liabilities surged from approximately $3M to $78M, and noncurrent derivative liabilities stand at $15M, for a net derivative liability of $91M. This was driven by a $115M non-cash mark-to-market loss on oil price swaps as crude prices rallied. While derivative liabilities reverse at settlement (and the company elected the balance sheet method for interim tax recognition specifically to handle this), they sit at face value in a liquidation scenario. The $63M ARO is a liquidation-day obligation at full face value; plugging and abandonment costs do not extinguish on windup. Commitments and contingencies are material: the company has 15-year gas purchase agreements with Targa in New Mexico (in-service expected before year-end 2026), a 5-year gas gathering commitment with Targa in Texas, a 15-year water disposal agreement with Waterbridge (in-service September 2026 with 7-year minimum volume commitment), a 10-year natural gas tolling obligation to RPC Power, and an $8M remaining equity funding commitment to RPC Power. These volume and delivery obligations do not terminate on liquidation and represent contingent liabilities not captured on-balance-sheet. The filing does not separately tag the dollar quantum of these volume commitments in XBRL; they appear only in MD&A/footnote prose. Working capital deficit widened to -$181M from -$68M a year earlier, driven primarily by the derivative liability mark. Cash on hand is $16M. The April 2026 credit facility redetermination increased the borrowing base to $425M (commitments held at $400M), with $293M undrawn capacity at quarter-end. Senior Notes mature April 2028; springing maturity on the credit facility was shortened to 91 days ahead of the Senior Notes, effectively extending credit facility maturity to January 2028. Net loss for Q1 2026 was -$70M, dominated by the $127M derivative loss. Oil production grew 29% YoY to 1,814 MBbls, while gas and NGL revenues turned negative due to Waha basis blowout and GP&T cost allocation. A New Mexico midstream outage (commenced March 28, 2026, continuing post-quarter) adds operational uncertainty.
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