PRIMEENERGY RESOURCES CORP Releases Q3 2024 10-Q Report

PRIMEENERGY RESOURCES CORP, a leading player in the oil and natural gas industry, has released its Form 10-Q report for the third quarter of 2024. The report highlights significant financial and operational achievements, driven by increased production volumes and strategic investments in new wells. Below is a comprehensive summary of the key financial and business highlights from the report.

Financial Highlights

• Total Revenues: $177.27 million, reflecting a significant increase due to additional wells placed on line during the nine months ended September 30, 2024.
• Net Income: $53.13 million for the nine months ended September 30, 2024, compared to $22.22 million for the same period in 2023, driven by increased production and higher oil commodity prices.
• Net Income Per Share (Basic): $29.88 for the nine months ended September 30, 2024, up from $11.95 in the same period in 2023, indicating improved profitability per share.
• Net Income Per Share (Diluted): $20.93 for the nine months ended September 30, 2024, compared to $8.49 for the same period in 2023, reflecting enhanced earnings performance.
• Total Costs and Expenses: $110.19 million for the nine months ended September 30, 2024, up from $68.10 million in the same period in 2023, primarily due to increased production costs and general administrative expenses.
• Income Before Taxes: $67.08 million for the nine months ended September 30, 2024, compared to $28.01 million for the same period in 2023, highlighting improved operational efficiency and revenue growth.

Business Highlights

Revenue Segments

The company reported significant increases in oil, natural gas, and natural gas liquids sales. Oil revenue increased by 135.24% and natural gas liquids revenue by 103.23% for the nine months ended September 30, 2024, compared to the same period in 2023. This growth reflects additional wells placed on line during the period, contributing to higher production volumes and sales figures across these segments. However, gas revenue decreased by 61.89% due to lower average prices received per MCF of gas sold, despite an increase in the volume of gas sold by 81.85%.

Geographical Performance

The company's operations are primarily concentrated in Texas and Oklahoma, with significant activities in the Permian Basin of West Texas and the Mid-Continent region of Oklahoma. In West Texas, the company maintains an acreage position of approximately 17,138 gross acres, focusing on horizontal drilling in the Spraberry, Jo Mill, and Wolfcamp intervals. This region accounted for 90% of the company's total proved reserves as of December 31, 2023. In Oklahoma, the company is focused on developing reserves in Canadian, Kingfisher, Grady, and Garvin counties, managing approximately 45,715 gross acres.

Sales Units

The company reported significant increases in production volumes for oil and natural gas liquids during the nine months ended September 30, 2024. Oil production increased by 131.33% to 1,883,000 barrels, while natural gas liquids production increased by 112.14% to 874,000 barrels.

New Production Launches

In 2024, the company completed 56 new horizontal wells with an investment of approximately $141 million. These wells are primarily located in West Texas. The company is also actively investing or preparing to invest approximately $84 million in another 30 horizontal wells to be drilled and completed in 2025.

Future Outlook

The company anticipates investing more than $300 million in horizontal development in West Texas from January 2024 through December 2027. This includes plans for drilling as many as 190 future horizontal wells across its acreage position in Reagan, Upton, Martin, and Midland counties of Texas. In Oklahoma, the company plans to drill as many as 38 new horizontal wells based on an estimate of four wells per multi-section drilling unit.

SEC Filing: PRIMEENERGY RESOURCES CORP Releases Q3 2024 [ NASDAQ:PNRG ] - 10-Q - Nov. 14, 2024