Form 4: Riley Exploration Permian Executive Acquires Restricted Stock Awards

Jeffrey Gutman, Chief Accounting Officer of Riley Exploration Permian, receives restricted stock and performance-based restricted stock awards.

Summary

• Jeffrey Gutman, Chief Accounting Officer of Riley Exploration Permian, Inc., filed a Form 4 detailing changes in beneficial ownership.
• On March 24, 2025, Gutman acquired 18,186 shares of restricted stock and 15,588 performance based restricted stock awards under the company's 2021 Long Term Incentive Plan.
• The restricted stock vests in equal amounts on April 1, 2026, April 1, 2027, and April 1, 2028.
• The performance-based restricted stock award vests on April 1, 2028, contingent on the company's total shareholder return performance relative to its peer group between January 1, 2025, and December 31, 2027, with payouts ranging from 0% to 200% of target.

Sentiment

Score: 7

Explanation: The document indicates standard executive compensation practices, aligning management with shareholder interests, which is generally viewed positively.

Positives

• The granting of restricted stock and performance-based awards aligns management's interests with those of shareholders.
• The vesting schedule encourages long-term commitment from the Chief Accounting Officer.

Risks

• The value of the restricted stock is subject to the company's stock price fluctuations.
• The performance-based award is contingent on achieving specific total shareholder return targets, which may not be met.

Future Outlook

The vesting of the restricted stock and performance-based awards is contingent on continued employment and the achievement of performance targets, incentivizing the Chief Accounting Officer to contribute to the company's success.

Industry Context

Granting stock-based compensation is a common practice in the oil and gas industry to attract and retain key personnel and align their interests with those of shareholders.

Comparison to Industry Standards

• Many oil and gas companies use long-term incentive plans, including restricted stock and performance-based awards, to compensate executives.
• The specific terms of these plans, such as vesting schedules and performance metrics, vary depending on the company's size, performance, and strategic goals.
• Peer group comparisons are often used to determine appropriate performance targets for performance-based awards.

Stakeholder Impact

• Shareholders: The awards align management's interests with shareholder value creation.
• Employees: The awards may motivate other employees by demonstrating the company's commitment to rewarding performance.
• Management: The awards provide a financial incentive for the Chief Accounting Officer to contribute to the company's success.

Key Dates

Keywords

Riley Exploration Permian, REPX, Jeffrey Gutman, restricted stock, performance based restricted stock, Form 4, beneficial ownership, insider trading