PrimeEnergy Resources Corporation Reports Second Quarter and First Half 2025 Results

Rhea-AI Summary

PrimeEnergy Resources Corporation (NASDAQ: PNRG) reported mixed Q2 2025 financial results, with revenue declining to $42.0 million from $64.8 million in Q2 2024. Net income decreased to $3.2 million ($1.33 per diluted share) from $19.7 million ($7.77 per share) year-over-year.

First half 2025 performance showed revenue of $92.0 million and net income of $12.4 million, down from $107.8 million and $31.1 million respectively in 2024. The company maintained strong liquidity with $2.4 million in cash and $115 million available under its credit facility.

Notable developments include the repurchase of 53,000 shares totaling $12.1 million in 2025, and Chairman Charles E. Drimal, Jr.'s voting rights agreements resulting in affiliated shareholders controlling over 80% of voting power.

Positive

• Strong liquidity position with $115 million available under credit facility
• Continued share repurchase program with $12.1 million executed in 2025
• Growth in natural gas and NGL production offsetting oil volume decline
• Consolidated voting control (80%) demonstrates management confidence
• Generated $56.9 million in first half discretionary cash flow

Negative

• Q2 revenue declined 35% year-over-year to $42.0 million
• Q2 net income dropped 84% to $3.2 million from $19.7 million
• First half revenue decreased 15% to $92.0 million
• Lower oil volumes compared to previous year
• Reduced earnings due to lower oil prices

Insights

Financial Analyst

Despite lower oil prices causing revenue and earnings decline, PNRG maintains strong cash flow, continues share repurchases, and strengthens insider control.

PrimeEnergy's Q2 results reveal a significant revenue decline to $42.0 million from $64.8 million in Q2 2024, representing a 35.2% year-over-year decrease. Net income fell more dramatically to $3.2 million from $19.7 million, an 83.8% reduction. Diluted EPS followed this trend, dropping to $1.33 from $7.77.

Despite these declines, the company's first-half discretionary cash flow remained relatively robust at $56.9 million, down just 11.2% from $64.1 million in 2024. This cash generation has supported continued capital returns through share repurchases, with 53,000 shares bought back in 2025 for $12.1 million. The company has now returned $113.5 million to shareholders since the program's inception.

The company maintains solid liquidity with $2.4 million in cash and full access to its $115 million credit facility. This financial flexibility positions PrimeEnergy to weather the challenging commodity price environment while continuing its development program.

A notable governance development is Chairman Charles Drimal's voting rights agreements with outside shareholders, consolidating control of over 80% of voting power among affiliated shareholders. This concentration strengthens insider control and signals long-term commitment from leadership, but potentially reduces the influence of minority shareholders.

The shift toward increased natural gas and NGL production demonstrates the company's adaptation to market conditions and efforts to diversify its revenue streams beyond oil. This strategic pivot could help mitigate future commodity price volatility, though lower-priced natural gas typically generates less revenue per unit than oil.

HOUSTON, Aug. 20, 2025 (GLOBE NEWSWIRE) -- PrimeEnergy Resources Corporation (NASDAQ: PNRG) today announced financial results for the second quarter and first half of 2025. While year-over-year revenue and earnings declined due to lower oil prices, the Company continued to generate solid cash flow, advance its Permian Basin development, and return capital to shareholders.

Key Highlights

• Q2 2025 Revenue: $42.0 million vs. $64.8 million in Q2 2024
• Q2 Net Income: $3.2 million vs. $19.7 million
• Q2 Diluted EPS: $1.33 vs. $7.77
• First Half 2025 Revenue: $92.0 million vs. $107.8 million in 2024
• First Half Net Income: $12.4 million vs. $31.1 million
• First Half Discretionary Cash Flow: $56.9 million vs. $64.1 million
• Share Repurchases: 53,000 shares in 2025, totaling $12.1 million; $113.5 million since program inception. The Company plans to continue repurchases through the remainder of the year.
• Liquidity: $2.4 million cash at quarter-end; $115 million fully available under credit facility.

Shareholder Alignment
In the second quarter of 2025, Chairman, Charles E. Drimal, Jr., entered into voting rights agreements with outside shareholders covering 155,926 shares of common stock. As a result, affiliated shareholders now collectively control over 80% of the Company’s voting power on a fully diluted basis. This consolidation of voting rights underscores continued confidence in PrimeEnergy’s long-term strategy and provides enhanced stability in corporate governance.

“While oil volumes were modestly lower year-over-year, we delivered strong growth in natural gas and NGL production. This shift underscores the strength of our diversified production base and supports greater balance in our revenue streams,” said Charles E. Drimal, Jr., Chairman of PrimeEnergy. “Despite softer commodity prices, our diversified production mix and disciplined capital program continue to support growth and shareholder returns,” said Charles E. Drimal, Jr., Chairman, of PrimeEnergy. “We remain confident in our ability to execute our development program and create long-term value.”

About PrimeEnergy Resources Corporation
PrimeEnergy Resources Corporation, is an independent oil and natural gas company engaged in the acquisition, development, and production of hydrocarbons, primarily in Texas and Oklahoma. The Company’s common stock trades on the NASDAQ under the symbol PNRG.

For investor inquiries, contact:   Connie Ng – (713) 735-0000 ext. 6416

Forward-Looking Statements

This Report contains forward-looking statements that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes", "projects" and "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and are subject to the safe harbors created thereby. These statements are not guarantees of future performance and involve risks and uncertainties and are based on a number of assumptions that could ultimately prove inaccurate and, therefore, there can be no assurance that they will prove to be accurate. Actual results and outcomes may vary materially from what is expressed or forecast in such statements due to various risks and uncertainties. These risks and uncertainties include, among other things, the possibility of drilling cost overruns and technical difficulties, volatility of oil and gas prices, competition, risks inherent in the Company's oil and gas operations, the inexact nature of interpretation of seismic and other geological and geophysical data, imprecision of reserve estimates, and the Company's ability to replace and expand oil and gas reserves. Accordingly, stockholders and potential investors are cautioned that certain events or circumstances could cause actual results to differ materially from those projected.

FAQ

What were PrimeEnergy's (PNRG) Q2 2025 earnings results?

PrimeEnergy reported Q2 2025 revenue of $42.0 million and net income of $3.2 million ($1.33 per diluted share), down from $64.8 million and $19.7 million respectively in Q2 2024.

How much cash does PrimeEnergy (PNRG) have available as of Q2 2025?

PrimeEnergy had $2.4 million in cash and $115 million fully available under its credit facility at the end of Q2 2025.

How many shares did PrimeEnergy (PNRG) repurchase in 2025?

PrimeEnergy repurchased 53,000 shares totaling $12.1 million in 2025, with plans to continue repurchases through the remainder of the year.

What percentage of voting power do affiliated shareholders control in PrimeEnergy (PNRG)?

Following Chairman Charles E. Drimal Jr.'s voting rights agreements, affiliated shareholders now control over 80% of the Company's voting power on a fully diluted basis.

How did PrimeEnergy's (PNRG) first half 2025 performance compare to 2024?

First half 2025 revenue was $92.0 million vs. $107.8 million in 2024, with net income of $12.4 million vs. $31.1 million, and discretionary cash flow of $56.9 million vs. $64.1 million.