PrimeEnergy Resources Corporation reported its financial results for the first quarter of 2026, revealing a net income of $4.3 million, or $2.67 per share, a decline from $9.1 million, or $5.40 per share, in the same period of 2025. The decrease in profitability is attributed to a 16.3% drop in total revenues, which fell to $39.5 million from $47.2 million year-over-year. This decline was primarily driven by reduced sales volumes and lower prices for natural gas liquids and natural gas, despite a slight increase in oil revenue due to higher production levels.
In terms of operational performance, PrimeEnergy's oil production increased by 8.1% to 494,000 barrels, while natural gas production rose by 7.4% to 2.566 million Mcf. However, the average price received for natural gas plummeted by 115.9% to a negative $0.40 per Mcf, leading to a significant revenue loss in that segment. The company also reported a decrease in natural gas liquids revenue, which fell by 39.3% to $5.2 million. Overall, the company's production expenses increased slightly to $9.7 million, reflecting the costs associated with the additional wells brought online in West Texas.
PrimeEnergy's balance sheet showed total assets of $322.3 million as of March 31, 2026, a slight decrease from $323.9 million at the end of 2025. The company maintained a strong liquidity position with cash and cash equivalents rising to $19.4 million, up from $7.4 million at the end of the previous year. Current liabilities also increased marginally to $38.7 million, while total liabilities decreased to $104.9 million. The company’s equity rose to $217.4 million, reflecting retained earnings growth.
Strategically, PrimeEnergy continues to focus on horizontal drilling in the Permian Basin, with plans to invest approximately $52 million in 28 horizontal wells throughout 2026. The company has identified significant resource potential in its acreage, with expectations of drilling up to 100 future horizontal wells. As of March 31, 2026, PrimeEnergy had no outstanding borrowings under its $300 million credit facility, which has a current borrowing base of $115 million. The company is committed to maintaining financial flexibility and may adjust its capital program based on market conditions and cash flow.
Looking ahead, PrimeEnergy's management remains cautious about the volatility of commodity prices, which can significantly impact cash flow and operational decisions. The company plans to continue utilizing derivative instruments to manage price risks and is focused on preserving liquidity while pursuing growth opportunities in its core areas. The outlook for 2026 includes ongoing development in Texas and Oklahoma, with a strategic emphasis on maximizing the value of its existing assets while exploring potential acquisitions to enhance its portfolio.
About PRIMEENERGY RESOURCES CORP
PrimeEnergy Resources Corporation is an independent oil and natural gas company focused on acquiring, developing, and producing hydrocarbons primarily in Texas and Oklahoma. It operates numerous wells, emphasizes horizontal drilling, and invests heavily in the Midland Basin. The company manages well-servicing operations, owns select assets, and seeks to expand reserves through strategic acquisitions, all while navigating complex environmental and regulatory frameworks.
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