PrimeEnergy Resources Corporation reported its financial results for the third quarter and the first nine months of 2025, revealing a significant decline in revenue and profitability compared to the same periods in 2024. For the three months ended September 30, 2025, the company generated total revenues of $45.97 million, down 33.77% from $69.46 million in the prior year. Net income for the quarter was $10.56 million, or $6.41 per share, compared to $22.08 million, or $12.63 per share, in the same quarter of 2024. For the nine-month period, revenues decreased by 21.41% to $138.01 million, with net income falling to $22.93 million, or $13.75 per share, from $53.13 million, or $29.88 per share, in 2024.
The decline in revenue was primarily attributed to lower oil prices, which saw a decrease of 30.25% in oil revenue to $101.65 million for the nine months ended September 30, 2025. In contrast, natural gas revenue increased significantly, reflecting a 286.91% rise to $8.04 million, driven by a substantial increase in sales volume. The company reported selling 1.56 million barrels of oil, a decrease of 17.05%, while natural gas sales volumes increased by 41.17% to 7.10 million Mcf. The average price received for oil fell to $65.08 per barrel, down from $77.39, while the average price for natural gas surged to $1.13 per Mcf from $0.41.
Operationally, PrimeEnergy has continued to focus on its development activities, particularly in the Permian Basin of West Texas, where it holds significant acreage. The company reported a total of 543 wells in the West Texas area, with plans for further horizontal drilling. In 2025, PrimeEnergy expects to invest approximately $98 million in 44 horizontal wells, building on its previous investments of $113 million in 2024 and $96 million in 2023. The company is also actively pursuing acquisitions to enhance its asset base and has maintained a strong balance sheet, with no outstanding borrowings under its credit facility as of September 30, 2025.
In terms of liquidity, PrimeEnergy's cash and cash equivalents increased to $3.69 million from $2.55 million at the end of 2024. The company has a credit facility with a borrowing base of $115 million, which it has not utilized as of the reporting date. The company’s strategy includes maintaining financial flexibility and ample liquidity to navigate the volatile commodity price environment. Looking ahead, PrimeEnergy remains focused on developing its reserves and may adjust its capital program based on market conditions and available cash flows. The company is also evaluating potential acquisitions to further diversify its asset 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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