PrimeEnergy Resources (PNRG) Q3 2024 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2024 was $53.13 million, up from $22.22 million year-over-year, driven by increased oil production and higher oil prices, despite lower gas and NGL prices.

• Completed 56 new horizontal wells in 2024, investing $141 million, with additional investments planned for 2025 and beyond.

• Maintained a strong balance sheet and liquidity, with a focus on horizontal development in West Texas and Oklahoma.

Financial highlights

• Total revenues for the nine months ended September 30, 2024 were $177.3 million, up from $96.1 million year-over-year.

• Oil, gas, and NGL sales rose 117.5% to $164.7 million for the nine months, reflecting higher production volumes.

• Net income per diluted share was $20.93 for the nine months, compared to $8.49 in the prior year period.

• Cash flow from operations was $92.0 million for the nine months, up from $70.7 million year-over-year.

• Capital expenditures totaled $98.4 million for the nine months ended September 30, 2024.

Outlook and guidance

• Plans to invest over $300 million in horizontal development in West Texas from 2024 through 2027, with 30 new wells in 2025 and 21 more in 2026-2027.

• Additional Wolfcamp D drilling could add 36 locations and $94 million in investment potential.

• Capital program may be adjusted based on commodity prices, cash flows, and market conditions.