PrimeEnergy Resources (PNRG) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $19.7 million, up 95.6% year-over-year; six-month net income reached $31.1 million, up 170% year-over-year.

• Revenue for Q2 2024 was $64.8 million, an 81.5% increase from Q2 2023, driven by higher oil production and prices.

• 56 new horizontal wells completed or expected in 2024 with $141 million invested; further investments planned for 2025-2027.

• Maintains strong liquidity with $10 million outstanding and $105 million available under a $115 million credit facility as of August 14, 2024.

• Sold non-core assets in New Mexico and Texas, exiting New Mexico operations.

Financial highlights

• Q2 2024 net income: $19.7 million ($11.08/share basic), up from $10.1 million ($5.35/share) in Q2 2023; six-month net income: $31.1 million ($17.31/share basic), up from $11.5 million ($6.14/share) in 2023.

• Q2 2024 revenue: $64.8 million, up from $35.7 million in Q2 2023; six-month revenue: $107.8 million, up from $58.5 million.

• Oil, gas, and NGL sales for the first half of 2024 rose 130% to $100.7 million.

• Oil production for Q2 2024: 695,000 barrels at $80.91/bbl, up 134% in volume and 14.6% in price year-over-year.

• Cash flow from operations for the first half of 2024 was $52.4 million, up from $35.4 million in 2023.

Outlook and guidance

• Expects to complete 56 new horizontal wells in 2024 with $141 million invested; plans $84 million for 30 additional wells in 2025 and $69 million for 21 wells in 2026-2027.

• Identified 21 future horizontal locations in West Texas for 2026-2027.

• Capital budget for 2024 is based on available cash flows, with flexibility to adjust spending as needed.

• Additional drilling and development plans depend on cash flow and credit facility availability.

• No current plans for new derivative contracts unless required by lenders or for price stability.