Tue, Apr 15, 9:07 PM (11 days ago)
**PrimeEnergy Resources Corporation (PNRG) 2024 Annual Report Summary** **Financial Performance:** - **Revenue:** $223.1 million (up 107.01% from 2023) - **Net Income:** $55.4 million (up from $28.1 million in 2023) - **Earnings per Share (EPS):** $31.43 (basic) and $21.95 (diluted) - **Operating Expenses:** $166.6 million (up from $98.6 million in 2023) - **Capital Expenditures:** $119 million (up from $113.8 million in 2023) **Strategic Overview:** - **Focus Areas:** Texas and Oklahoma, with significant horizontal drilling activities in the Midland Basin. - **Reserves:** 26,512 MBOE (up from 29,046 MBOE in 2023), with 76.5% proved developed reserves. - **Production:** 2,556,000 barrels of oil, 1,284,000 barrels of NGL, and 7,766,000 Mcf of gas. **Future Outlook:** - **2025 Capital Budget:** Reflects current commodity prices and expected cash flows, with potential adjustments based on market conditions. - **Drilling Plans:** Continued focus on horizontal drilling in West Texas and Oklahoma, with 43 horizontals planned for 2025. - **Risk Factors:** Volatility in commodity prices, regulatory changes, and operational risks. **Risk Factors:** - **Commodity Price Volatility:** Significant fluctuations in oil and gas prices can impact financial performance. - **Regulatory Risks:** Changes in environmental and energy policies can affect operations and costs. - **Operational Risks:** Drilling and production activities involve inherent risks, including mechanical failures and environmental impacts. **Financial Condition:** - **Liquidity:** Strong balance sheet with ample liquidity, supported by cash flows from operations and a revolving credit facility. - **Debt:** $4 million in outstanding borrowings under the revolving credit facility, with $111 million in availability. - **Market Position:** Listed on Nasdaq under the ticker "PNRG," with 1,708,470 shares outstanding as of April 8, 2025. **Market Position Changes:** - **Major Customers:** Significant sales to DE IV Operating, LLC, Civitas Resources Inc., and APA Corporation. - **Competitive Landscape:** Intensely competitive, with major and independent oil and gas companies vying for desirable properties and resources. **Summary:** PrimeEnergy Resources Corporation reported strong financial performance in 2024, driven by increased production and strategic drilling activities. The company faces risks related to commodity price volatility, regulatory changes, and operational challenges. However, with a robust financial condition and a strategic focus on high-return drilling projects, PrimeEnergy is well-positioned to navigate these challenges and continue its growth trajectory.