PrimeEnergy Resources (PNRG) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $4.3 million ($2.67 per share), down from $9.1 million ($5.40 per share) in Q1 2025, reflecting lower production and commodity prices, partially offset by increased oil prices and new wells in West Texas.

• Oil, gas, and NGL sales decreased 16.3% year-over-year to $39.5 million, with oil production up 8.1% but gas and NGL revenues down due to lower prices and volumes.

• Generated $24 million in cash flow despite negative natural gas prices in the Permian Basin.

• Maintained profitability and strong liquidity through oil-weighted revenues and disciplined cost structure.

• The company invested $96 million in 48 horizontal wells in 2025 and plans $52 million for 28 horizontals in 2026, focusing on West Texas and Oklahoma.

Financial highlights

• Revenue for Q1 2026 was $39.5 million, down from $47.2 million in Q1 2025.

• Net income declined to $4.3 million from $9.1 million year-over-year.

• Diluted EPS was $1.82, compared to $3.72 in Q1 2025.

• Q1 2026 EPS was $2.67 per basic share, compared to $5.40 in Q1 2025.

• Operating cash flow for Q1 2026 was $16.1 million, down from $38.2 million in Q1 2025.

• Realized natural gas price averaged negative $0.40 per Mcf, versus $2.52 per Mcf in Q1 2025.

• Ended the quarter with $19.4 million in cash and cash equivalents.

• Depreciation, depletion, and amortization expense decreased 17.9% to $16.7 million.

Outlook and guidance

• 2026 capital budget set at $52 million for 28 horizontal wells, with flexibility to adjust based on commodity prices and cash flow.

• Future drilling in West Texas could require up to $187 million investment over the next several years.

• Expectation that negative natural gas pricing may persist or worsen through 2026 until new pipeline capacity is available.

• No outstanding borrowings under the $115 million credit facility as of May 2026.