PrimeEnergy Resources Corporation reported its financial results for the first quarter of 2025, revealing a net income of $9.1 million, or $5.40 per share, compared to $11.3 million, or $6.27 per share, in the same period of 2024. The company's total revenues increased by 21.02% to $50.1 million, driven by a significant rise in natural gas sales, which surged to $6.0 million from $1.4 million year-over-year. However, oil revenues decreased slightly to $32.7 million from $33.3 million, reflecting a decline in average oil prices despite increased production volumes.
The company's operational metrics showed a notable increase in natural gas production, which rose by 106.57% to 2.39 million Mcf, while oil production increased by 6.03% to 457,000 barrels. The overall production expenses also saw a rise, increasing by 4.26% to $9.5 million, attributed to the additional wells brought online in West Texas. The depreciation, depletion, and amortization expenses nearly doubled to $20.4 million, reflecting the increased production base and capital expenditures associated with new wells.
Strategically, PrimeEnergy has been active in expanding its operational footprint, particularly in the Permian Basin of West Texas, where it holds approximately 17,138 gross acres. The company is focused on horizontal drilling, with plans to invest $118 million in 38 horizontal wells in 2025. This follows a trend of significant investment in horizontal drilling, with $327 million allocated since January 2023. The company also reported a gain of $619,000 from the sale of a workover rig, indicating ongoing efforts to optimize its asset portfolio.
As of March 31, 2025, PrimeEnergy's total assets stood at $339.3 million, up from $324.6 million at the end of 2024. The company’s equity increased to $205 million, reflecting retained earnings growth. The company continues to maintain a strong liquidity position, with $2.1 million in cash and $108.5 million available under its credit facility, which has a borrowing base of $115 million. The management remains optimistic about future operations, emphasizing the potential for further development in both existing and new drilling locations, while also navigating the challenges posed by fluctuating commodity prices and market conditions.
About PRIMEENERGY RESOURCES CORP
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