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Shares of PrimeEnergy Resources Corporation PNRG have lost 8.3% since reporting 2024 results. This compares with the S&P 500 index’s 2.2% decline over the same time frame. Over the past month, the stock has plunged 17% compared with the S&P 500’s 3.8% fall.
Revenues & Earnings Surge Y/Y Amid Strong Production Growth
For the year ended Dec. 31, 2024, PrimeEnergy reported total revenues of $237.8 million, up 79% from $132.8 million in 2023. Net income nearly doubled to $55.4 million from $28.1 million the previous year. This translated into basic earnings per share of $31.43, a 107% year-over-year upsurge from $15.19, and diluted earnings per share of $21.95, up from $10.77.
Revenue growth was driven by a significant increase in oil and natural gas liquids (NGL) production volumes. Oil production skyrocketed 123% year over year to 2.56 million barrels, while NGL volumes soared 112% to 1.28 million barrels. Although the average realized oil price slipped 1.4% to $75.80 per barrel and natural gas prices plummeted 77.6% to $0.43 per Mcf, the volume increases more than offset these price declines. Total oil and gas revenues upsurged 107% to $223 million, with oil contributing the bulk of the gain at $193.7 million.
PrimeEnergy Corporation Price, Consensus and EPS Surprise
PrimeEnergy Corporation price-consensus-eps-surprise-chart | PrimeEnergy Corporation Quote
Investment Returns Evident in Key Operational Metrics
PrimeEnergy's capital spending in 2024 totaled $113 million, with 48 horizontal wells drilled — 47 in Reagan County and one in Upton County, TX. The company collaborated with operators such as Double Eagle, Civitas and Pioneer on these developments. The largest investments included $66 million with Double Eagle and $46.7 million with Civitas. Production ramp-up from these wells played a major role in lifting overall output.
The company’s proved reserves at the year-end stood at 26.5 million barrels of oil equivalent, including 10.6 million barrels of oil, 8.3 million barrels of NGLs and 45.8 billion cubic feet of natural gas. While proved developed reserves grew significantly, proved undeveloped reserves declined, indicating successful conversion of reserves into production.
Management Emphasizes Balanced Growth & Liquidity
Management reiterated its commitment to financial discipline, emphasizing that the 2025 capital budget would be aligned with projected cash flows. Any shortfall is expected to be funded through borrowings under its revolving credit facility. As in past years, PrimeEnergy remains open to asset sales or joint ventures to enhance liquidity. In 2024, the company raised $4.2 million from asset sales and reinvested $3.9 million into new acreage acquisitions in West Texas.