PrimeEnergy Resources Corporation reported its financial results for the second quarter of 2025, revealing a significant decline in both revenue and net income compared to the same period in 2024. The company generated total revenues of $41.98 million for the three months ended June 30, 2025, down 35.4% from $64.83 million in the prior year. For the first half of 2025, revenues totaled $92.04 million, a decrease of 14.7% from $107.82 million in the same period last year. Net income for the second quarter was $3.23 million, or $1.94 per share, compared to $19.73 million, or $11.08 per share, in the previous year. The decline in revenue was attributed to lower oil prices and a decrease in production volumes.
In terms of operational performance, PrimeEnergy reported a 13.7% decrease in oil production, totaling 600,000 barrels for the second quarter of 2025, while natural gas production increased significantly by 40.2% to 2.42 million Mcf. The average price received for oil fell by 29.6% to $56.96 per barrel, while the average price for natural gas rose dramatically by 152% to $0.02 per Mcf. The company’s natural gas liquids revenue also saw a modest increase, reflecting a 39.05% rise in sales volume. Overall, the company’s total oil and gas revenue decreased by 35.4% to $39.84 million for the quarter.
Strategically, PrimeEnergy has been active in its operational and financial management. The company has focused on horizontal drilling in the Permian Basin, with plans to invest approximately $98 million in 44 horizontal wells in 2025. This follows a total investment of $307 million in horizontal development since January 2023. The company also reported a gain of $619,000 from the sale of a workover rig in early 2025, which is part of its strategy to optimize its asset portfolio. Additionally, PrimeEnergy has maintained a strong liquidity position, with a credit facility providing a borrowing base of $115 million, of which $12 million was drawn as of June 30, 2025.
The company’s balance sheet reflects total assets of $343.03 million, an increase from $324.62 million at the end of 2024. Total liabilities rose to $137.78 million, primarily due to increased long-term bank debt. The equity position improved slightly to $205.25 million, driven by retained earnings growth. PrimeEnergy's management remains cautious about market conditions, particularly the volatility of commodity prices, and plans to adjust its capital expenditures based on cash flow expectations and market dynamics. The company continues to evaluate potential acquisitions to enhance its asset base and operational capabilities.
About PRIMEENERGY RESOURCES CORP
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