PrimeEnergy Resources Corporation reported significant financial growth for the fiscal year ending December 31, 2024, with net income reaching $55.4 million, or $31.43 per share, compared to $28.1 million, or $15.19 per share, in 2023. The company's total oil, natural gas, and NGL sales surged by 107% to $223.1 million, up from $107.7 million the previous year. This increase was driven by a substantial rise in production volumes, particularly in crude oil, which saw a 123% increase to 2.56 million barrels, and NGL production, which rose by 112% to 1.28 million barrels. However, the average realized prices for crude oil and natural gas experienced declines, with crude oil prices averaging $75.80 per barrel, down from $76.84, and natural gas prices plummeting to $0.43 per Mcf from $1.93.
In terms of operational developments, PrimeEnergy continued its aggressive horizontal drilling strategy, investing $113 million in 48 new horizontal wells in West Texas during 2024. The company participated in drilling activities primarily in Reagan County, where it collaborated with operators like Double Eagle and Civitas. As of December 31, 2024, the company reported proved reserves of 26,512 MBOE, with 76.5% classified as proved developed reserves. The company also maintained a strong balance sheet, with a borrowing base of $115 million under its credit facility, providing ample liquidity for ongoing and future projects.
Strategically, PrimeEnergy has focused on enhancing its asset base through acquisitions and divestitures. In 2024, the company raised $4.2 million from the sale of non-core assets, including acreage and a subsidiary, while acquiring $3.88 million worth of new acreage in West Texas. The company’s operational footprint spans approximately 17,138 gross acres in West Texas, with significant potential for future drilling, particularly in the Wolfcamp and Spraberry formations. The company anticipates investing approximately $224 million in horizontal drilling over the next few years, targeting additional wells in both West Texas and Oklahoma.
As of December 31, 2024, PrimeEnergy employed 78 full-time staff, with operations concentrated in Texas and Oklahoma. The company’s operational strategy emphasizes maintaining a strong balance sheet and financial flexibility, allowing it to adapt to market conditions and capitalize on new opportunities. Looking ahead, PrimeEnergy plans to continue its focus on horizontal drilling and may adjust its capital program as necessary to preserve liquidity and respond to market dynamics. The company remains committed to its growth strategy while navigating the challenges posed by fluctuating commodity prices and regulatory environments.
About PRIMEENERGY RESOURCES CORP
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