So, yeah, let's go ahead and get started. The next company to present is Riley Permian, an independent oil and gas company focused on development of oil-rich formations in the northwest shelf of the Permian Basin. Here to present for Riley Permian is Philip Riley, their Chief Financial Officer and Executive Vice President. So Philip.
Thank you.
We can advance your slide with the remote.
Thank you. Thank you. Good morning. Thanks for coming out so early today. All right, I'll be presenting from our public presentation that's available on our website, so no need to take photos. We'll have our standard forward-looking statements here. There'll be some risks and so forth of what I'm saying. I hope to go through this pretty quickly today. We've got a short presentation, probably 10 slides, maybe a third or half as long as some others. I think that's because we have a pretty straightforward and compelling story. We've got a concentrated position of high-quality inventory. We've been growing. We've got a track record of growth on an absolute and per-share basis for production, reserves, and cash flow. We're returning capital to shareholders directly through dividends, a little bit through buybacks, and even indirectly through debt paydown.
I think we have a few catalysts that are interesting that the market may not be picking up on. A few quick stats here. We are celebrating our 10-year anniversary this summer. We were founded in 2016. We went public about five years ago. We have a $1 billion, maybe $1.1 billion enterprise value today. We have a large amount of undeveloped inventory, maybe 300 locations-320 locations net. That is probably over 500 gross. We have low leverage, about 1x EBITDA, and we sell mostly oil. We operate in two areas, but it is really a single geologic setting. Our legacy asset is called Champions. That is in Yoakum County, Texas. That is there in the dark green there. This is something that we started in 2015, 2016, and that is producing out of the San Andres.
Then we have a newer asset that we put together over the last few years in New Mexico that we call Red Lake. That is producing out of a combination of zones, often called the Yeso Trend, primarily Blinebry and Paddock, but then also San Andres as well. What we like about this and really how we have built our company is from a technical, geophysical, geologic, scientifically driven basis first. This is not shale. It is a conventional rock, but it is not your grandmother's conventional of old and tired vertical wells. It is a conventional rock that we like because the permeability is better, porosity is better, oil saturation is better, and it allows for just a better production trend over time, which I will get into here. But we do produce these wells horizontally and with a sizable frack.
It is really the similar playbook of going into fields that could be developed better with the modern technology. In Texas, we have been there for about 10 years. It is where probably two-thirds to three-quarters of our production is today. We are excited to have that. It has been a great producer the whole time. Then we are excited to have built this New Mexico asset as well. We have done that through a series of acquisitions. But really, the acquisitions were mostly undeveloped, or I would say primarily undeveloped. It came with a bunch of inventory, and that is how we have really liked to grow our company, is we have developed the locations and grown production that way. I think probably three-quarters of our production has come just through that organic development there. The future, though, is more and more going to be New Mexico.
On the future locations, about three-quarters of those are in New Mexico, and so we are excited to get after that. We think they have very similar producing dynamics. The Texas is slightly deeper, maybe 5,000 ft-6,000 ft, whereas New Mexico can kind of be 4,000 ft-5,000 ft deep. So between the depth, that is probably half or less than half as deep as your deeper basin there. So you are right on what we call the Northwest shelf. The basin drops in right after that. So you have a much shallower well. It is a lower drill cost. Then with the type of rock I was describing, this carbon rock requires a smaller frack. So you have a less expensive frack as well, which really sets you up for some nice economics. This is probably the most important slide in the deck.
What we are trying to portray here is that we are not going after the highest initial production rates. Thankfully, I think a lot of the industry has moved on from 24-hour IPs, but you still see certain people talking about these where you shake up the champagne bottle and you see some quick burst of something. Most of the energy industry has moved on from that. We do not have the highest rates here, but our wells decline slower, and that is key. This middle chart I think is really interesting. What really matters is just how much oil you are making over time, right? On a cumulative basis, especially on a per foot basis, our wells can be a 1.5 mi Long.
We like to normalize things to a similar length, but on a cumulative basis, we really believe that our wells surpass the best of Midland and Delaware wells after roughly two years and a half, three years. This is not our data. This is Enverus data, arguably the industry gold standard. This is looking at all wells from the last six years, thousands and thousands of wells. Our cumulative production is more than a standard Wolfcamp well. What that relates to, you combine those producing properties with the lower well costs, and you just get better returns. We have got really attractive discounted kind of DROI. We like this metric of just what you return over time, not just IRR, but multiples of your money is where you can really count it. Very simply, we have grown production every year.
We have grown it on a per share basis as well. We think that matters. If the shareholders are not participating in the growth, then you are leaving something behind there. This is through 2025. If I were to put 2026 on there, we have got some guidance. I think you would see another roughly 30% growth here year-over-year for this coming year, which is pretty exciting and also differentiating. We have also got a track record of returning capital to shareholders. We have been paying a dividend since about 2018, to be honest, several years before going public. Every year since going public, we have been raising the dividend every year, and we plan to do that going forward. We keep it flat for about four quarters, and then the trend has been to raise it in the fall there.
At the end of last year, we started a share buyback program. We have got $100 million authorized to do that. We spent about $5 million of it, and we plan to use that opportunistically going forward. Finally, debt reduction. We think it is prudent to keep a good balance sheet. While that is not a direct return of capital, if we got a billion-dollar asset value and are paying down $200 million of debt, then inevitably the equity shareholders are enjoying that benefit there. I will just mention very briefly, there is a lot of data on this page. We had a good second quarter. I think the theme of it was that we had a really busy development quarter. We had about $87 million of CapEx. That is a lot for us. It was a big quarter.
It's really providing an interesting tailwind for the rest of the year, and frankly, 2027. I'd say that's probably your first catalyst that I think is potentially being discounted by the market. I think it's standard for markets to discount the future cash flow, a forward year cash flow. The further out that is, the more it gets discounted. But the velocity of growth is high enough. I think it's pretty interesting. You're going to see quite a bit of it show up even this third quarter as we guided to, and that provides this tailwind to next year. I think that's a pretty interesting aspect that people may not pick up on. We did have a few setbacks in the quarter. I just want to pause and talk through a few of those.
This area of the upper Delaware area where we're focused, it's lacking some infrastructure in gas takeaway. I think we've all seen a lot of news with some of the big pipes taking the dry residue gas out of the basin and down to the Gulf Coast. That's providing better prices for Waha, and we're thankful for that, and hopefully we'll benefit from that. In addition to that, you've got honestly some constraints on what we call wet gas. So pre-process. The residue pipes, so that's after it's gone through the processing, and it's making its way to the Gulf Coast, dry residue gas. But from the field, you also need sufficient infrastructure. I think the pace of development between the northern Delaware pushing up into this region, and then us, along with some neighbors developing, we've really pushed the limits of some of the infrastructure.
Recognizing that, we started this project last year to build what we call a wet gas pipeline, 40 mi or 50 mi within the region to get it to different processing networks. We actually sold that project to Targa at the end of last year, and they're now finishing the building of that. That should be coming online here in the fourth quarter. But prior to then, we have had some disruptions, some constraints in the region. You glance here at the breakdown of second quarter. We averaged 21,000 bpd for the quarter. But you disaggregate that, and you can see, in April, we were only at 17,000 bpd, whereas in June, we're 40% higher. 40% higher in the same quarter at 24,000 bpd.
We wanted to highlight that both to demonstrate what held us back in the second quarter and for your second catalyst, we're pretty excited about this pipe coming on because it allows for less constrained growth. You can see where we're guiding to for the quarter, 25,000 bpd. These are pretty big jumps from month to month at that level. Another thing we did in the quarter were quite a few workovers. This is some of the most capital-efficient work you can do to bring on barrels. Workovers are going to be significantly less capital-intensive than drilling a full well. We bought an asset in the spring of last year called Silverback from EnCap. We're thrilled with it.
We underwrote to levels that we are now exceeding by 50%-60%, thanks to the observation of opportunity and the grit and tenacity of our engineers, who can recognize all these places they could be doing workovers on these wells and really got that production up. Honestly, we are kind of flat to where we bought it, which is pretty amazing in an industry where you are declining all the time.
We are very thankful for that. Again, this has been really capital efficient in what we are doing there. I think we are always trying new things. We have got some new ways we are doing clean outs, which is just another way to kind of push the boundary on keeping costs low and squeezing every barrel out of the ground. I will not go through this here. I will just point here, a couple different ways to look at cash flow.
You have got an EBITDA metric here and a free cash flow at various oil prices. I think we will be thrilled with any of these. Right now, we happen to be kind of to the right half of the page, which is convenient. On the free cash flow, we are excited about the coming quarters. Frankly, we are even more excited about next year. If I kind of sum it up, I think we are in a unique spot. We are growing.
We are excited about the catalysts. I think if I kind of rattle those off, I think Targa Resources coming on in a couple months is really going to set us up for nice growth. I think you are going to see us shift more activity to New Mexico. I think the market might be honestly discounting some of the New Mexico just because we have not done too much of it.
I think the more you see us do that, the more the data gets collected by Enverus and such, I think you will see that those results really compete with some of the very best wells in the basin. Enverus has said as much. It is the lowest cost play in America. I think that is interesting. I think another catalyst is the fact that because with the velocity of our growth, even within the year, each quarter that rolls by, I think will be interesting in that discount factor kind of accretes down just a little bit in that the market says, "Okay, I see what you have done now. Now I only need to give you credit for this incremental amount." I think that is another aspect. Then finally, we are going to clean up our balance sheet. We have got a pretty clean leverage profile.
We have got some senior notes that we are going to most likely retire here in a couple months. Not a big deal, but just going to clean those up. Those are higher coupon and we will retire those in a few months. I think that will make the story that much simpler. In any event, I appreciate your time this morning. We are going to be in a breakout room, so we would welcome any participants to keep talking about it. Thank you so much.
Go ahead. Yeah, if you'd like to ask any questions of Philip, they'll be in the Blake breakout room.