Riley Exploration Permian, Inc. 8-K

What Happened
Riley Exploration Permian, Inc. (through its subsidiary Riley Exploration - Permian, LLC) announced the completion of a sale of its midstream business units to Targa Northern Delaware LLC. The company sold all membership interests in Dovetail Midstream, LLC for approximately $111 million (subject to customary adjustments) and sold certain compressor station assets for approximately $10 million plus reimbursement of $1.4 million of capital improvements. The initial closing occurred on December 3, 2025, and a second closing took place on December 24, 2025. The Purchase Agreement was previously filed (redacted for confidential, non‑material information).

Key Details

• Buyer: Targa Northern Delaware LLC.
• Assets sold: 100% membership interests in Dovetail Midstream, LLC (midstream infrastructure in Eddy County, NM) and specified compressor station assets.
• Consideration: ~$111 million for Dovetail; ~$10 million for compressor assets; plus $1.4 million reimbursement of capital improvements at the second closing. All amounts subject to customary purchase price adjustments.
• Closings: Initial closing on Dec 3, 2025; Second closing on Dec 24, 2025.
• Financial disclosure: Unaudited pro forma condensed consolidated financial statements giving effect to the sale were filed as Exhibit 99.1.

Why It Matters
The transaction removes the company’s Dovetail midstream assets from its consolidated holdings and converts those operations into cash consideration, with pro forma financials filed to show the impact on the company’s balance sheet and results. Investors should note the timing and amounts of the closings and the availability of the unaudited pro forma statements to assess how the sale affects Riley Exploration Permian’s financial position and operations going forward.