Form 4: Riley Exploration Permian COO John Suter Acquires Restricted Stock and Performance-Based Awards

John Suter, Chief Operating Officer of Riley Exploration Permian, Inc., acquired restricted stock and performance-based restricted stock awards on March 24, 2025, according to a Form 4 filing with the SEC.

Summary

• On March 24, 2025, John Suter, the Chief Operating Officer of Riley Exploration Permian, Inc., acquired 32,205 shares of restricted stock and a performance-based restricted stock award representing a maximum of 27,604 shares.
• The restricted stock was granted under the company's Amended and Restated 2021 Long Term Incentive Plan.
• The restricted stock vests in equal amounts on April 1, 2026, April 1, 2027, and April 1, 2028, subject to certain contingencies.
• The performance-based award vests on April 1, 2028, contingent upon the company's total shareholder return performance relative to its peer group between January 1, 2025, and December 31, 2027.
• The payout for the performance-based award can range from 0% to 200% of the target amount, depending on the achievement of pre-established metrics.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, aligning management incentives with shareholder value. The vesting schedules and performance-based metrics are positive indicators. No immediate financial impact is apparent.

Positives

• The grant of restricted stock and performance-based awards aligns the COO's interests with those of the shareholders.
• The vesting schedules encourage long-term performance and retention.
• The performance-based award incentivizes the achievement of specific total shareholder return targets.

Risks

• The value of the restricted stock is subject to the company's stock price fluctuations.
• The performance-based award may not vest fully if the company does not meet the pre-established performance metrics.
• The vesting of the awards is subject to certain contingencies, which could result in forfeiture.

Future Outlook

The vesting of the restricted stock and performance-based awards is contingent upon continued employment and the achievement of specific performance metrics, aligning executive compensation with long-term shareholder value creation.

Industry Context

The granting of restricted stock and performance-based awards is a common practice in the oil and gas industry to incentivize executives and align their interests with those of shareholders. The specific terms of the awards, such as the vesting schedule and performance metrics, are tailored to the company's specific circumstances and strategic goals.

Comparison to Industry Standards

• Many oil and gas companies use long-term incentive plans, including restricted stock and performance-based awards, to compensate their executives.
• Performance metrics often include total shareholder return (TSR), production growth, and cost control.
• Vesting schedules typically range from three to five years, with some awards subject to accelerated vesting upon certain events, such as a change in control.

Stakeholder Impact

• Shareholders: The awards align executive compensation with shareholder value creation.
• Employees: The awards may motivate other employees through the example set by executive compensation.
• Management: The awards incentivize management to achieve long-term strategic goals.

Key Dates

Keywords

Riley Exploration Permian, REPX, John Suter, restricted stock, performance-based award, Form 4, insider trading, executive compensation, vesting, total shareholder return