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On Friday, Truist Securities updated its outlook on Riley Exploration Permian Inc. (NYSE:REPX), increasing the stock’s price target to $53.00 from the previous $50.00. The firm maintained its Buy rating on the shares of the oil and gas company.

The adjustment in the price target comes as Riley Exploration Permian demonstrates a unique capability to boost production by more than 10% while simultaneously reducing capital expenditure (CAPEX) by over 10% this year. Truist Securities forecasts that the company will continue to execute a consistent operational program, concentrating on the same regions as in recent quarters.

According to the analyst from Truist Securities, the operational and capital efficiencies in this year’s program are expected to lead to a significant year-over-year (YOY) increase in free cash flow (FCF). The generated FCF is projected to be allocated towards further shareholder returns and debt repayment.

The firm’s anticipation of a similar performance in the upcoming year was a key factor in the decision to upgrade the price target. The new stock target of $53.00 per share reflects the positive expectations for Riley Exploration Permian’s financial and operational trajectory.

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