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.
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