PrimeEnergy Resources Corporation Reports Second Quarter and First Half 2026 Results

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.

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 $34.1 million investment for the Upton program and approximately $120,000 for Martin participation.

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 June 30, 2026, the company reported open NYMEX WTI crude oil swap contracts covering 367,000 barrels at a weighted average price of $74.84 per barrel.

Argus Aug 14 session

+2.75% close to close Open Argus

Details

News Market Reaction – PNRG

In the Aug 14 session, PNRG gained 2.75%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The platform record showed BRY at 1.56% and WTI at 0.84%, while historical news reactions ranged fro...

Analysis

The platform record showed BRY at 1.56% and WTI at 0.84%, while historical news reactions ranged from -7.14% to 7.33%. That backdrop highlights commodity sensitivity; gas exposure warrants monitoring.

Key Figures

Q2 net income: $6.5 million Q2 basic EPS: $4.06 per share First-half net income: $10.9 million +5 more

Q2 net income

$6.5 million

Second quarter 2026 vs. $3.2 million in Q2 2025

Q2 basic EPS

$4.06 per share

Second quarter 2026 vs. $1.94 in Q2 2025

First-half net income

$10.9 million

First six months of 2026 vs. $12.4 million in 2025

Realized oil price

$98.85 per barrel

Second quarter 2026 vs. $56.96 per barrel in Q2 2025

Realized natural gas price

-$3.53 per Mcf

Second quarter 2026 average realized price

Negative natural gas revenue

$9.2 million

Second quarter 2026

Cash and equivalents

$28.7 million

At June 30, 2026

Shares repurchased

31,290 shares for approximately $5.5 million

Second quarter 2026

Historical Context

4 past events · Latest: Jun 11

4 events

1. Jun 11

   Annual meeting results

   24h Move

   +1.9%

   Board authorization for repurchase of additional common shares

2. May 20

   First-quarter earnings

   24h Move

   -7.1%

   Lower earnings amid negative natural gas prices and commodity pressure

3. Apr 16

   Year-end results

   24h Move

   +7.3%

   Lower annual earnings offset by debt-free balance sheet and repurchases

4. Feb 27

   Credit facility amendment

   24h Move

   +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.

Key Terms

borrowing base, horizontal wells, crude oil swap contracts, mcf

4 terms

borrowing base financial

"the borrowing base under the Company’s revolving credit facility was established"

A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.

horizontal wells technical

"drilling commenced on 24 horizontal wells in Martin and Upton Counties"

Horizontal wells are oil or gas boreholes drilled down and then steered to run sideways through a reservoir, exposing a long stretch of rock to the well instead of a single vertical point. For investors they matter because the wider contact with the resource usually increases production and lowers the cost per unit produced, much like slicing through a loaf covers more area than tiny pokes, so companies can generate more revenue with fewer surface locations.

crude oil swap contracts financial

"open NYMEX WTI crude oil swap contracts covering 367,000 barrels"

A crude oil swap contract is a financial derivative where two parties agree to exchange the difference between a fixed price and the market (floating) price of crude oil over a set period, settling the net cash difference rather than exchanging physical barrels. Like buying price insurance or locking in a rate, swaps let producers, consumers, and investors manage exposure to oil price swings and therefore affect cash flows, valuations, and risk on portfolios linked to oil.

mcf technical

"negative natural gas price averaged negative $3.53 per Mcf"

Mcf stands for thousand cubic feet and is a standard unit used to measure natural gas volume. For investors, Mcf translates physical gas production or consumption into a metric that directly affects revenue and valuation—think of it as counting liters of fuel your car used, where higher Mcf usually means more product to sell or higher costs to buy, and changes can signal shifts in supply, demand, or profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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 $6.5 million, or $4.06 per basic share, compared with $3.2 million, or $1.94 per basic share, for the second quarter of 2025. For the first six months of 2026, net income was $10.9 million, or $6.72 per basic share, compared with $12.4 million, or $7.37 per basic share, for the first six months of 2025.

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 $98.85 per barrel, compared with $56.96 per barrel in the second quarter of 2025, while its average realized natural gas price declined to negative $3.53 per Mcf, resulting in negative natural gas revenue of $9.2 million.

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 $6.5 million during the second quarter despite an unusually severe natural gas pricing environment in the Permian Basin. Our realized natural gas price averaged negative $3.53 per Mcf, resulting in more than $9 million of negative natural gas revenue. These conditions continue to reflect growth in Permian associated gas production combined with constrained pipeline takeaway and transportation capacity.”

“Strong oil prices provided a substantial offset. Our average realized oil price increased to $98.85 per barrel from $56.96 per barrel in the second quarter of last year, resulting in oil revenue of $40.6 million despite lower oil production.”

“We ended the quarter with $28.7 million in cash and no bank debt. At the same time, we continued to repurchase shares and advance our development program.”

“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 $5.5 million. In June, our Board authorized the repurchase of an additional 300,000 shares, and we plan to continue repurchases in the third and fourth quarters if we can execute the purchases at opportunistic prices.”

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 41.8% and estimates its investment in the wells and related production facilities at approximately $34.1 million.

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 $120,000 across the 12 wells. This participation represents a relatively small expenditure intended primarily to provide additional geological and production information regarding the area and the potential of these formations.

First production from all 24 wells is currently estimated during the fourth quarter of 2026.

For 2026, PrimeEnergy expects to invest approximately $52 million in 28 horizontal wells. Including approximately $113 million invested during 2024 and $96 million during 2025, the Company expects to have invested approximately $261 million in horizontal development from 2024 through 2026, primarily in the Midland Basin of West Texas.

Liquidity and Share Repurchases

Cash and cash equivalents increased from $7.4 million at December 31, 2025 to $28.7 million at June 30, 2026. The Company had no outstanding bank debt at June 30 and continues to have no outstanding borrowings.

Effective August 3, 2026, the borrowing base under the Company’s revolving credit facility was established at $105 million, all of which is currently available.

During the second quarter, PrimeEnergy repurchased 31,290 shares for approximately $5.5 million, at an average price of $177.48 per share. For the first six months of 2026, the Company repurchased 45,500 shares for approximately $8.1 million.

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 $74.84 per barrel.

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.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did PrimeEnergy (PNRG) perform financially in Q2 2026?

PrimeEnergy reported Q2 2026 net income of $6.5 million, or $4.06 per basic share

Why did PrimeEnergy’s natural gas revenue turn negative in Q2 2026?

PrimeEnergy’s natural gas revenue was negative because its average realized gas price was −$3.53 per Mcf in Q2 2026. According to PrimeEnergy, this led to approximately −$9.2 million in natural gas revenue, driven by Permian associated gas oversupply and pipeline constraints.

What is PrimeEnergy’s cash and debt position as of June 30, 2026 (PNRG)?

PrimeEnergy held $28.7 million in cash and had no outstanding bank debt at June 30, 2026. According to PrimeEnergy, its revolving credit facility borrowing base was set at $105 million effective August 3, 2026, all of which was available.

How much is PrimeEnergy investing in horizontal wells between 2024 and 2026?

PrimeEnergy expects to invest about $261 million in horizontal development from 2024 through 2026. According to PrimeEnergy, this includes approximately $113 million in 2024, $96 million in 2025 and an estimated $52 million in 2026, mainly in the Midland Basin.

What drilling activity is PrimeEnergy (PNRG) undertaking in Martin and Upton Counties?

PrimeEnergy is participating in 24 horizontal wells in Martin and Upton Counties targeting multiple formations. According to PrimeEnergy, it plans to invest about $34.1 million in 12 Upton County wells and roughly $120,000 across 12 Martin County wells, with first production expected in Q4 2026.

What share repurchase actions did PrimeEnergy take in the first half of 2026?

PrimeEnergy repurchased 45,500 shares for approximately $8.1 million in the first half of 2026. According to PrimeEnergy, Q2 2026 repurchases totaled 31,290 shares for about $5.5 million, and the board authorized an additional 300,000 shares for future buybacks.

Does PrimeEnergy (PNRG) have oil price hedges in place for 2026?

PrimeEnergy had open NYMEX WTI crude oil swap contracts on 367,000 barrels at a weighted average price of $74.84 per barrel as of June 30, 2026. According to PrimeEnergy, these swaps provide price protection on a portion of its oil production.