Riley PermianGevo

Riley Permian vs Gevo

Riley Permian and Gevo Inc are compared on this page, detailing business models, financial performance, and market context in clear, neutral language suitable for readers in a British-English context....

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Investment Analysis

Pros

  • Riley Permian has achieved significant production growth, with oil production up 21% quarter-over-quarter and 19% year-over-year in Q3 2025.
  • The company maintains a strong operational margin of 59% Adjusted EBITDAX despite a slight decline from the prior quarter.
  • Riley Permian is expanding its midstream operations and power generation projects, diversifying its revenue streams beyond upstream oil and gas.

Considerations

  • The company missed earnings per share expectations in Q3 2025, reporting $0.77 versus an expected $1.16.
  • Cash flow margins have declined from 66% to 59%, indicating some pressure on operational efficiency.
  • An increased capital expenditure budget for 2025 adds execution risk, especially given the integration of the recent Silverback acquisition.
Gevo

Gevo

GEVO

Pros

  • Gevo is a renewable fuels company focusing on sustainable biofuels and has strategic importance in low-carbon energy transition trends.
  • The company benefits from growing governmental and regulatory support for decarbonisation and green energy mandates.
  • Gevo has partnerships and off-take agreements with major corporations emphasizing sustainable fuel supply, enhancing its market reach potential.

Considerations

  • Gevo continues to face execution risks related to scaling up commercial production from pilot and demonstration projects.
  • The company’s financials reflect ongoing capital intensity with negative or low profitability amid high development costs.
  • Market volatility in carbon credit prices and regulatory uncertainties could impact near-term revenue visibility and cash flows.

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