PrimeEnergy Resources (PNRG) Q2 2026 earnings summary

Executive summary

• Net income for the six months ended June 30, 2026 was $10.9 million, down from $12.4 million year-over-year, with basic EPS of $6.72 versus $7.37 in 2025; Q2 net income was $6.5 million, up from $3.2 million in Q2 2025.

• Strong oil prices offset negative natural gas prices, with oil revenue of $40.6 million despite lower production.

• Lower oil and NGL production was partially offset by higher realized prices and increased natural gas production, though gas prices were negatively impacted by Permian Basin pipeline constraints.

• Drilling commenced on 24 horizontal wells in Martin and Upton Counties, with first production expected in Q4 2026.

• The company invested $52 million in 28 horizontal wells in 2026, continuing a multi-year focus on horizontal development in West Texas and Oklahoma.

Financial highlights

• Total revenues for the six months ended June 30, 2026 were $81.9 million, down from $92.0 million year-over-year.

• Oil, gas, and NGL sales for the six months were $77.8 million, a 10.6% decrease from $87.1 million in 2025.

• Average realized oil price rose to $98.85 per barrel from $56.96 per barrel year-over-year.

• Average realized natural gas price declined to negative $3.53 per Mcf, resulting in negative natural gas revenue of $9.2 million.

• Cash and cash equivalents at June 30, 2026 were $28.7 million, up from $7.4 million at year-end 2025.

Outlook and guidance

• The 2026 capital budget is $52 million, focused on horizontal drilling, with future activity dependent on commodity prices and cash flows.

• First production from 24 new wells in Martin and Upton counties is expected in Q4 2026.

• Total horizontal development investment from 2024–2026 expected to reach $261 million.

• The company anticipates potential investment of $187 million in West Texas horizontal drilling over the next several years.

• Plans to continue share repurchases in the third and fourth quarters of 2026.