PrimeEnergy Resources Corporation Reports Second Quarter and First Half 2026 Results
Rhea-AI Summary
PrimeEnergy Resources (NASDAQ: PNRG) reported second quarter 2026 net income of $6.5 million ($4.06 per basic share), up from $3.2 million ($1.94 per share) a year earlier, while first-half 2026 net income was $10.9 million, down from $12.4 million in 2025.
Second-quarter results reflected an average realized oil price of $98.85/bbl (vs. $56.96/bbl in Q2 2025), generating $40.6 million of oil revenue despite lower oil production, but were offset by an average realized natural gas price of −$3.53/Mcf, producing negative natural gas revenue of $9.2 million.
PrimeEnergy ended June 30, 2026 with $28.7 million in cash, no bank debt and a $105 million undrawn borrowing base. The company is drilling 24 horizontal wells in Martin and Upton Counties, expects first production in Q4 2026, plans $52 million of 2026 horizontal investment, and has repurchased 45,500 shares year-to-date, with authorization for an additional 300,000 shares.
Positive
- Q2 2026 net income $6.5 million vs. $3.2 million in Q2 2025
- Average realized oil price rose to $98.85/bbl from $56.96/bbl
- Cash balance increased to $28.7 million from $7.4 million year-end 2025
- No outstanding bank debt and $105 million revolving credit borrowing base available
- Share repurchases 45,500 shares for ~$8.1 million in first half 2026
- Horizontal development investment ~$261 million expected 2024–2026, focused on Midland Basin
Negative
- First-half 2026 net income $10.9 million vs. $12.4 million in first-half 2025
- Average realized natural gas price −$3.53/Mcf, causing −$9.2 million natural gas revenue in Q2 2026
- Oil production volume was lower year-over-year despite higher realized prices
News Explained
The incremental disclosure is a $34.1 million Upton commitment and 367,000 barrels of WTI swaps alongside already-commenced drilling.
PrimeEnergy reports that drilling had commenced on 24 horizontal wells in Martin and Upton Counties, with an estimated
The Upton estimate covers 12 wells and related production facilities, while the Martin participation covers 12 wells and is described as primarily providing additional geological and production information.
Separately, as of
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 11 | Annual meeting results | Positive | +1.9% | Board authorization for repurchase of additional common shares |
| May 20 | First-quarter earnings | Negative | -7.1% | Lower earnings amid negative natural gas prices and commodity pressure |
| Apr 16 | Year-end results | Neutral | +7.3% | Lower annual earnings offset by debt-free balance sheet and repurchases |
| Feb 27 | Credit facility amendment | Positive | +3.4% | Borrowing base reaffirmed with lower interest rate margins |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Historical reactions were positive for corporate and financing updates, while the prior quarterly earnings release drew a negative reaction.
Key Terms
borrowing base financial
horizontal wells technical
crude oil swap contracts financial
mcf technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
HOUSTON, Aug. 14, 2026 (GLOBE NEWSWIRE) -- PrimeEnergy Resources Corporation (NASDAQ: PNRG) (“PrimeEnergy” or the “Company”) today reported financial and operating results for the three and six months ended June 30, 2026.
PrimeEnergy reported second quarter 2026 net income of
Second quarter results reflected strong oil prices offset in part by significantly negative natural gas prices in the Permian Basin. The Company realized an average oil price of
Second Quarter 2026 Highlights
- Net income of
$6.5 million , compared with$3.2 million in the second quarter of 2025 $28.7 million in cash and no outstanding bank debt at June 30, 2026- Repurchased 31,290 shares during the quarter for approximately
$5.5 million - Board authorized the repurchase of an additional 300,000 shares
- Drilling commenced on 24 horizontal wells in Martin and Upton Counties, with first production currently expected during the fourth quarter of 2026
Management Commentary
Charles E. Drimal, Jr., Chairman and Chief Executive Officer of PrimeEnergy, commented:
“PrimeEnergy reported net income of
“Strong oil prices provided a substantial offset. Our average realized oil price increased to
“We ended the quarter with
“During the second quarter, drilling commenced on 24 horizontal wells in Martin and Upton Counties. The Upton County development represents the principal capital commitment, while our participation in the 12 Martin County wells requires only a small expenditure and is intended primarily to obtain additional geological and production data on the area. First production from the 24 wells is currently expected during the fourth quarter.”
“We also continued our long-standing share repurchase program, purchasing 31,290 shares during the quarter for approximately
Development Activity
In Upton County, the Company is participating with Apache in 12 horizontal wells targeting the Jo Mill, Lower Spraberry and Wolfcamp A formations. PrimeEnergy has an average ownership interest of approximately
In Martin County, the Company is participating in 12 horizontal wells being drilled by Oxyrock targeting the Jo Mill, Middle Spraberry and Barnett formations. The Company expects to invest only approximately
First production from all 24 wells is currently estimated during the fourth quarter of 2026.
For 2026, PrimeEnergy expects to invest approximately
Liquidity and Share Repurchases
Cash and cash equivalents increased from
Effective August 3, 2026, the borrowing base under the Company’s revolving credit facility was established at
During the second quarter, PrimeEnergy repurchased 31,290 shares for approximately
On June 10, 2026, the Board authorized the repurchase of an additional 300,000 shares. At June 30, 2026, 340,544 shares remained available for future repurchase.
The Company plans to continue repurchases in the third and fourth quarters if it can execute the purchases at opportunistic prices.
As of June 30, 2026, the Company also had open NYMEX WTI crude oil swap contracts covering 367,000 barrels at a weighted average price of
PrimeEnergy Resources Corporation is an independent oil and natural gas company actively engaged in acquiring, developing and producing oil and natural gas and providing oilfield services, primarily in Texas and Oklahoma. The Company’s common stock is traded on the Nasdaq Stock Market under the symbol PNRG.
If you have any questions on this release, please contact:
Connie Ng – (713) 735-0000 ext. 6416
Forward-Looking Statements
This release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements include statements regarding expected drilling and development activity, anticipated capital expenditures, timing of first production, future commodity prices and regional natural gas pricing, future stock repurchases, available liquidity and future development opportunities.
These statements are based on the Company’s current expectations, assumptions, estimates and projections and involve risks and uncertainties that could cause actual results to differ materially from those anticipated, including commodity price volatility, regional pipeline and transportation constraints, drilling and completion results, operating costs, regulatory developments, geopolitical events, changes in supply and demand, weather, access to capital and other risks described in the Company’s filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this release. The Company undertakes no duty to publicly update these statements except as required by law.
