HOUSTON and OKLAHOMA
CITY, May 21, 2024 /PRNewswire/ -- Conduit
Power, LLC ("Conduit") and Riley Exploration Permian, Inc. ("Riley
Permian") today announced that they entered into definitive
agreements to expand the scope of their joint venture, RPC Power,
LLC ("RPC Power"), to build new power generation and storage assets
for the sale of energy and ancillary services to ERCOT, the
Texas power grid operator.
RPC Power was created in March
2023 to own and operate power generation assets that use
Riley Permian's produced natural gas to power its oilfield
operations in Yoakum County,
Texas. The expanded scope will enable RPC Power to initiate
sales of dispatchable power and related services to ERCOT, with
plans for 100MW of natural gas fueled generation and battery energy
storage systems across multiple facilities in West Texas. The facilities are targeted for
commercial operations throughout 2025.
In conjunction with the agreements, Conduit will operate the
facilities and dispatch power into ERCOT through its qualified
scheduling entity. Riley Permian increased its ownership in RPC
Power from 35% to 50% and has agreed to sell up to 10 MMcf/d of
natural gas to RPC Power as feedstock supply for the generation
facilities.
"Our JV expansion at RPC Power represents a significant
milestone for our company, and we are proud to build upon our
successful partnership with Riley Permian," said Travis Windholz, Conduit Managing Director.
"Conduit's decentralized generation approach and focus
on modularity prioritizes grid resiliency, flexibility and
profitability in a rapidly changing power landscape. Additionally,
replacing inefficient legacy generation with more efficient mobile
engine technology helps lower emissions on the grid and further
enables energy transition."
Riley Permian CFO Philip Riley
added, "We're excited for this new phase of our power development
effort with Conduit. This project aims to capitalize on
West Texas market dynamics
including abundant, associated natural gas production, gas
midstream egress limitations and shortfalls of dispatchable,
reliable power. We see an opportunity to achieve value uplift with
our natural gas, diversify our revenue mix and invest in power
markets with attractive fundamentals."
Advisors
Sidley Austin LLP served as legal advisor for
Conduit and Kirkland & Ellis LLP served as legal advisor for
Riley Permian.
About Conduit Power
Conduit Power builds and operates
distributed power generation resources. Conduit, through its
Conduit Core and Conduit Edge solutions, allows customers to
co-locate power generation near their operations and to sell power
to the market, as a producer. Conduit is a portfolio company of
Grey Rock Investment Partners. For more information, please visit
www.conduitpower.co.
About Riley Permian
Riley Permian is a
growth-oriented, independent oil and natural gas company focused on
the acquisition, exploration, development and production of oil,
natural gas, and natural gas liquids. For more information, please
visit www.rileypermian.com.
About Grey Rock Investment Partners
Grey Rock
Investment Partners is a private equity firm with more than
$1.0 billion in asset value across
its private equity fund platform. The firm invests across the
energy value chain with private equity funds focusing on
investments in natural resources, carbon capture, industrial
electrification, and power optimization. For more information,
please visit www.grey-rock.com.
Media Contacts:
Conduit Power
Bevo Beaven
Bevo@Redbirdpr.com
720-666-5064
Riley Permian
Rick D'Angelo
IR@rileypermian.com
405-438-0126
Cautionary Statement Regarding Forward Looking
Information:
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The statements contained in this release that are not
historical facts are forward-looking statements that represent
management's beliefs and assumptions based on currently available
information. Forward-looking statements include any statements
regarding the expected timetable, the results, effects, benefits
and synergies of the transaction, future opportunities, future
financial performance and condition, guidance and any other
statements regarding Riley Permian's and Conduit's future
expectations, beliefs, plans, objectives, financial conditions,
assumptions or future events or performance. Forward-looking
statements do not consider the effects of future legislation or
regulations. Forward-looking statements include all statements that
are not historical facts and can be identified by the use of
forward-looking terminology such as the words "believes,"
"intends," "may," "should," "anticipates," "expects," "could,"
"plans," "estimates," "projects," "targets," "forecasts" or
comparable terminology and the negatives thereof or by discussions
of strategy or trends. You should not place undue reliance on these
forward-looking statements. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions.
Moreover, Riley Permian and Conduit operate in a very competitive
and rapidly changing environment. New risks emerge from time to
time. It is not possible to predict all risks, nor can the impact
of all factors on the transaction or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements, be assessed. Although the parties believe that the
plans, intentions and expectations reflected in or suggested by the
forward-looking statements made in this release are reasonable,
there can be no assurance that these plans, intentions or
expectations will be achieved or occur, and actual results could
differ materially and adversely from those anticipated or implied
by the forward-looking statements.
Among the factors that could cause actual future results to
differ materially are those associated with general economic and
business conditions; the risk that this project may not perform as
expected or produce the anticipated benefits; changes in commodity
prices; changes in the costs and results of operations; higher
inflation and related impacts; material reductions in corporate
liquidity and access to debt markets; uncertainties about estimates
of reserves; changes in government environmental policies and other
environmental risks; increased burden and/or inability to comply
with existing or future energy regulations, requirements or
standards, including those imposed by ERCOT; the availability of
drilling equipment and the timing of production; tax consequences
of business transactions; public health crises, such as pandemics
(including coronavirus (COVID-19)) and epidemics, and any related
government policies and actions and the effects of such public
health crises on the oil and natural gas industry, pricing and
demand for oil and natural gas and supply chain logistics; the
competitiveness of alternate-energy sources or product substitutes;
development of large carbon capture and offset markets; regional
supply and demand factors, any delays, curtailment delays or
interruptions of production, and any governmental order, rule or
regulation that may impose production limits; cost and availability
of gathering, pipeline, refining, transportation and other
midstream and downstream activities; risks relating to operations,
including development drilling and testing results and performance
of acquired properties and newly drilled wells; risks associated
with concentration of operations in one major geographic area;
legislative or regulatory changes, including initiatives related to
hydraulic fracturing, emissions, and disposal of produced water,
which may be negatively impacted by regulation or legislation; the
ability to receive drilling and other permits or approvals and
rights-of-way in a timely manner (or at all), which may be
restricted by governmental regulation and legislation; and risks
related to litigation. Additional risks and assumptions that could
cause results to differ materially from those described above can
be found in Riley Permian's 2023 Annual Report on Form 10-K and in
subsequent filings with the Securities Exchange Commission ("SEC"),
which are also available from its website at www.rileypermian.com
under the "Investor" tab, and in other documents Riley Permian
files with the SEC.
The forward-looking statements in this press release are made as
of the date hereof and are based on information available at that
time. Neither Riley Permian, Conduit, nor Grey Rock undertake, and
expressly disclaim, any obligation or duty to update or revise any
forward-looking statements based on new information, future events
or otherwise.
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SOURCE Riley Exploration Permian, Inc.