Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

Riley Exploration Permian / Equity Bottom-Up

<ul><li>Riley’s conventional asset base on the Northwest Shelf portion of the Permian Basin positions the company to efficiently allocate capital to grow the underlying reserve and production base while generating free cash flow that can be used to maintain a conservative balance sheet and support the common stock dividend.</li><li>Our modeling suggests that Riley could convert more than 50% of FY24/FY25 discretionary cash flow into free cash flow.</li><li>Our modeling suggests that estimated FY24/FY25 free cash flow provides more than 4.0x coverage of the current dividend </li></ul>

Riley’s conventional asset base on the Northwest Shelf portion of the Permian Basin positions the company to efficiently allocate capital to grow the underlying reserve and production base while generating free cash flow that can be used to maintain a conservative balance sheet and support the common stock dividend.Our modeling suggests that Riley could convert more than 50% of FY24/FY25 discretionary cash flow into free cash flow.Our modeling suggests that estimated FY24/FY25 free cash flow provides more than 4.0x coverage of the current dividend 

Riley Exploration Permian, Inc. -  Efficient Growth Results in High Free Cash Flow Conversion