Riley Permian sells midstream assets to Targa for $111M cash; up to $60M earnout

Riley Exploration Permian, Inc.

Sold Dovetail Midstream (natural gas gathering in Eddy County, NM) for ~$111M cash, subject to adjustments.
Potential earnout of up to $60M over 5 years based on volume thresholds.
Proceeds to reduce credit facility borrowings and pay taxes/transaction costs.
Separate sale of compressor station assets for ~$10M expected to close in Q1 2026.
CEO Bobby Riley: transaction provides flow assurance, allows focus on upstream assets and recent Silverback acquisition.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Riley Exploration Permian, Inc. entered into Purchase Agreement with Targa Northern Delaware LLC valued at approximately $111 million (effective 2025-12-03).

Action: entry
Agreement: asset purchase
Counterparty: Targa Northern Delaware LLC
Value: approximately $111 million
Effective: 2025-12-03

Exact text from the filing

On December 3, 2025 (the “Closing Date”), Riley Exploration - Permian, LLC. (“REP LLC”), a wholly-owned subsidiary of Riley Exploration Permian, Inc. (“REPX,” together with REP LLC, hereinafter referred to as the “Company”), entered into a purchase and sale agreement (the “Purchase Agreement”) with Targa Northern Delaware LLC (“Buyer”), pursuant to which the Company sold to Buyer all of the membership interests in Dovetail Midstream, LLC, a wholly owned subsidiary of the Company that holds certain midstream infrastructure projects in Eddy County, New Mexico, for an aggregate cash purchase price of approximately $111 million, subject to customary purchase price adjustments

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Riley Exploration Permian, Inc. filing history →

Source: SEC EDGAR

accession 0001001614-25-000061

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