Group 1 - PrimeEnergy Resources Corporation has appointed Withum Smith+Brown, PC as its independent registered public accounting firm effective June 27, 2025 [1] - The decision to change auditors was recommended and approved by the Company's Audit Committee and the Board of Directors [1] Group 2 - PrimeEnergy Resources is an independent oil and natural gas company focused on the acquisition, development, and production of hydrocarbons, primarily in Texas [2] - The Company's common stock trades on NASDAQ under the symbol PNRG [2]

Core Insights - Pan American Energy Corp. has appointed Mr. Tasheel Jeerh as a new Board Member, while Paul Gorman steps down as a Director [1][2][3] - The company is focused on the acquisition, exploration, and development of mineral properties, particularly in battery and critical metals in North America [3] Company Developments - Mr. Jeerh brings extensive experience in the energy and minerals sectors, emphasizing strategic growth and resource development [2] - CEO Adrian Lamoureux expressed enthusiasm about Mr. Jeerh's appointment, highlighting the importance of his background for the company's growth plans [3] Project Acquisitions - Pan American has executed an option agreement to acquire a 75% interest in the Big Mack Lithium Project, located 80 km north of Kenora, Ontario, with the potential to earn an additional 15% [4] - The company has also entered into an option agreement with Northern Critical Minerals Corp. to acquire up to a 100% interest in the Tharsis REE Project in the Northwest Territories, which is prospective for rare earth and high field strength elements [4]

Company Overview - Pan American Energy Corp. is an exploration stage company focused on the acquisition, exploration, and development of mineral properties containing battery metals in North America [3]. Debt Settlement Transactions - The company has issued 205,841 common shares at a deemed value of $0.20 per share, totaling $441,168.50 in settlement of accrued and outstanding debt to certain creditors [1]. - All securities issued are subject to a statutory hold period expiring on October 7, 2025, in accordance with Canadian securities legislation [2]. Project Acquisition - The company has executed an option agreement with Magabra Resources to acquire a 75% interest in the Big Mack Lithium Project, located 80 km north of Kenora, Ontario, with the potential to earn an additional 15% interest for a total of 90% [4].

Core Insights - PrimeEnergy Resources Corporation (PNRG) reported a 1.6% increase in shares since Q1 2025 results, outperforming the S&P 500's 1.8% decline during the same period [1] - The company achieved Q1 revenues of $50.1 million, a 16.4% increase from $42.99 million in the prior year, driven by higher natural gas and NGL volumes despite a decline in oil revenues [2] - Net income decreased by 19.3% to $9.1 million, with diluted EPS falling 15.7% to $3.72 due to increased depreciation and interest expenses [2] Production and Revenue Growth - Oil production rose 6% year over year to 457,000 barrels, while natural gas output increased by 106.6% to 2.39 billion cubic feet, and NGL production surged 120.4% to 454,000 barrels [3] - Oil sales decreased by 1.9% to $32.7 million, but natural gas revenues more than quadrupled to $6 million, and NGL revenues increased by 95.4% to $8.5 million, leading to a total oil and gas revenue improvement of 21% year over year [4] Operating Expenses and Margins - Production costs rose 4.3% to $9.5 million, while depreciation, depletion, and amortization expenses nearly doubled to $20.4 million due to expanded asset base [5] - Interest expenses increased by 174.4% to $590,000, reflecting higher debt balances and interest rates [5] Management Commentary - The CFO described the quarter as showing "strong operational momentum," highlighting growth in gas and NGL volumes and ongoing capital returns through share repurchases [6] - Management emphasized the portfolio's resilience to commodity price volatility, supported by a mix of mature reserves and active development areas in Texas [6] Strategic Factors - Performance was influenced by robust development in West Texas, with participation in numerous new horizontal wells leading to production gains, particularly in natural gas and NGLs [7] - Weaker oil and NGL pricing partially offset revenue gains, while increased depreciation and interest costs impacted profitability [7] Guidance and Outlook - The company plans to invest $118 million in 38 horizontal wells in 2025, continuing aggressive capital deployment in the Midland Basin [8] - Management intends to fund capital needs primarily through operating cash flows and a $300 million credit facility, with $108.5 million remaining available [8] Shareholder Returns - In the quarter, PrimeEnergy repurchased 47,970 shares for $9.17 million, continuing its share repurchase program, with a total of $112.6 million returned to shareholders through buybacks [10] - A gain of $619,000 was recorded from the sale of a workover rig, reflecting ongoing portfolio optimization [10] Overall Assessment - Despite a decline in earnings due to increased investment and rising costs, underlying growth in production and revenues, along with continued capital returns, indicate confidence in the company's long-term strategy [11]

Core Insights - PrimeEnergy Resources Corporation reported a 16.4% year-over-year increase in revenue for Q1 2025, driven by growth in oil and gas production [1][6] - Despite a decline in earnings per share compared to Q1 2024, the company emphasized significant shareholder returns and operational momentum [1][4] Financial Performance - Revenue reached $50.1 million, up 16.4% from the previous year [6] - Oil production increased to 457,000 barrels, a rise of 6.0% [6] - Natural gas production surged to 2.39 billion cubic feet (Bcf), marking a 106.6% increase [6] - NGL (Natural Gas Liquids) production rose to 454,000 barrels, up 120.4% [6] - Net income was reported at $9.1 million, a decrease of 19.3% [6] - Diluted earnings per share (EPS) fell to $3.72, down 15.7% [6] Shareholder Returns - The company has returned a total of $112.6 million to shareholders through stock repurchases since initiating its buyback program [3] - In 2025, 47,970 shares were repurchased at a cost of $9.17 million [6] - As of May 19, 2025, the outstanding share count was 2,428,000, including vested options [3] Operational Highlights - The CFO highlighted strong operational momentum with significant growth in natural gas and NGL volumes [4] - Total assets increased to $339.3 million at the end of the quarter, up from $324.6 million as of December 31, 2024 [3]

Reserves and Production - The company reported proved developed reserves of 5,757 MBbls of oil, 3,676 MBbls of NGLs, and 24,749 MMcf of gas for 2023, with total reserves increasing to 13,558 MBoe[52]. - The Gulf Coast region had 452 MBoe of proved reserves, representing 1.7% of total proved reserves as of December 31, 2024[60]. - As of December 31, 2024, the company had 359 producing wells in the Mid-Continent region, with an average net daily production of 806 Boe[63]. - In West Texas, the company had 543 wells, with an average net daily production of 13,749 Boe, representing 88.3% of total proved reserves[65]. - Average net daily production reached 14,707 Boe per day as of December 31, 2024, with 13,749 Boe per day coming from Texas[59]. Financial Performance - The company reported a net income of $9.1 million, or $5.40 per share, for the three months ended March 2025, compared to $11.3 million, or $6.27 per share, for the same period in 2024[71]. - Oil, gas, and NGLs sales increased by 21.02% to $47.2 million for the three months ended March 2025, up from $39.0 million in the same period of 2024[72]. - Production and ad valorem taxes increased by 10.77% to $3.3 million for the first quarter of 2025, reflecting higher gas and natural gas liquid revenues[74]. - Depreciation, depletion, and amortization increased by 97.3% to $20.4 million for the first quarter of 2025, due to increased production from new wells[76]. Capital Expenditures and Investments - The company invested $113 million in 48 horizontal wells in West Texas in 2024, with plans to invest $118 million in 38 horizontal wells in 2025[82]. - The company anticipates investing over $100 million in future drilling activities targeting the Wolfcamp "D" pay zone in Reagan County[70]. - The company has identified 25 horizontal locations across its acreage in Upton and Martin counties that could be drilled in the near term, requiring an investment of approximately $76 million[70]. - The Company aims to maintain a strong balance sheet and ample liquidity, with a capital budget reflective of commodity prices and expected cash flows for 2025[81]. Debt and Credit Facilities - The Company has a reserves-based line of credit totaling $300 million, with a current borrowing base of $115 million[86]. - As of May 14, 2025, the Company's outstanding borrowings under this line are $24.0 million[86]. - The next borrowing base review is scheduled for June 2025, and the bank reviews the borrowing base semi-annually[86]. - The Company is currently in compliance with financial and operational covenants and expects to remain compliant over the next twelve months[86]. - The Company’s oil and gas properties are pledged as collateral for the line of credit[86]. Market Conditions and Future Outlook - Natural gas prices averaged $2.13 per MMBtu in 2024, down from $2.64 per MMBtu in 2023 and $6.36 per MMBtu in 2022[57]. - Oil prices averaged $75.48 per barrel in 2024, compared to $78.22 per barrel in 2023 and $93.67 per barrel in 2022[57]. - Future development plans are contingent on cash flow expectations and the availability of funds from the revolving credit facility[51]. - The ability to borrow under the revolving credit facility may be limited if there is a decrease in the borrowing base due to commodity price declines[86]. - Future drilling and development plans will be based on expected cash flows from operations and availability of funds[85]. - The Company may face a decrease in its borrowing base due to lower natural gas or oil prices, operational difficulties, or declines in reserves[86]. Strategic Initiatives - The company is actively pursuing acquisitions of producing properties to enhance its asset base and stockholder value[46]. - The company has no current derivative contracts and does not plan to enter into new contracts unless necessary for credit stability[48]. - The majority of the Company's capital spending is discretionary and will depend on the assessment of the oil and gas business environment[87]. - The Company is not required to enter into any hedge agreements as the borrowing base utilization percentage is less than 15%[85].

Core Viewpoint - PrimeEnergy Resources Corporation experienced significant revenue and earnings growth in 2024, driven primarily by a substantial increase in oil and natural gas liquids production, despite challenges in natural gas pricing [2][3][8]. Financial Performance - Total revenues for 2024 reached $237.8 million, a 79% increase from $132.8 million in 2023 [2]. - Net income nearly doubled to $55.4 million from $28.1 million year-over-year [2]. - Basic earnings per share rose 107% to $31.43 from $15.19, while diluted earnings per share increased to $21.95 from $10.77 [2]. Production Growth - Oil production surged 123% year-over-year to 2.56 million barrels, and natural gas liquids (NGL) production increased 112% to 1.28 million barrels [3]. - Total oil and gas revenues increased 107% to $223 million, with oil contributing $193.7 million [3]. Operational Investments - Capital spending in 2024 totaled $113 million, with 48 horizontal wells drilled, primarily in Reagan County, Texas [4]. - Major investments included $66 million with Double Eagle and $46.7 million with Civitas [4]. Reserves and Efficiency - Proved reserves at year-end were 26.5 million barrels of oil equivalent, including 10.6 million barrels of oil and 8.3 million barrels of NGLs [5]. - Average production costs per barrel of oil equivalent decreased to $9.29 from $12.98 in 2023, indicating improved cost efficiency [10]. Strategic Focus - Management emphasized a commitment to financial discipline, aligning the 2025 capital budget with projected cash flows and considering asset sales or joint ventures to enhance liquidity [6]. - The company has invested over $430 million in horizontal drilling in the Midland Basin since 2012 and plans to continue this focus [7]. Future Outlook - Expected capital deployment for 2025 is $129 million across 43 horizontal wells, following a consistent increase in annual investments [11]. - PrimeEnergy anticipates further investment of $224 million in horizontal drilling in West Texas over the next few years [11]. Additional Developments - In 2024, PrimeEnergy divested non-core assets for $4.2 million and acquired undeveloped acreage worth $3.88 million in West Texas [12].

Production and Revenue Summary - The company produced 2,556,000 barrels of oil in 2024, a significant increase from 1,144,000 barrels in 2023, representing a 123.43% increase [2] - Oil revenue reached $193,737,000 in 2024, up from $87,906,000 in 2023, marking a 120.39% increase [2] - Gas sold increased to 7,766,000 Mcf in 2024 from 4,127,000 Mcf in 2023, an increase of 88.18% [2] - Total oil and gas revenue for 2024 was $223,042,000, compared to $107,742,000 in 2023, reflecting a 107.01% increase [2] Financial Performance - Total revenues for the year ended December 31, 2024, were $237,796,000, up from $132,810,000 in 2023, an increase of $104,986,000 [3] - Net income for 2024 was $55,404,000, compared to $28,103,000 in 2023, showing an increase of $27,301,000 [3] - Basic earnings per share (EPS) rose to $31.43 in 2024 from $15.19 in 2023, an increase of $16.24 [3] - Diluted EPS increased to $21.95 in 2024 from $10.77 in 2023, an increase of $11.18 [3] Company Overview - The company, PrimeEnergy, is an independent oil and natural gas entity engaged in acquiring, developing, and producing oil and natural gas, primarily in Texas [4]

Financial Performance - The company reported a net income of $55.4 million for 2024, or $31.43 per share, compared to $28.1 million, or $15.19 per share for 2023, reflecting production increases offset by commodity price decreases [238]. - Oil, NGL, and gas sales increased by $115 million, or 107.01%, to $223.1 million for the year ended December 31, 2024, from $107.7 million for the year ended December 31, 2023 [239]. - Total oil and gas revenue increased by $115.3 million, or 107.01%, to $223.042 million for the year ended December 31, 2024, from $107.742 million for the year ended December 31, 2023 [242]. - Crude oil production increased by 1,412,000 barrels, or 123.43%, to 2,556,000 barrels for the year ended December 31, 2024, from 1,144,000 barrels for the year ended December 31, 2023 [240]. - Natural gas production increased by 3,639 MMcf, or 88.18%, to 7,766 MMcf for the year ended December 31, 2024, from 4,127 MMcf for the year ended December 31, 2023 [240]. - Average price received for crude oil decreased by $1.04 per barrel, or 1.35%, to $75.80 for the year ended December 31, 2024, from $76.84 for the year ended December 31, 2023 [242]. - Average price received for natural gas decreased by $1.49 per Mcf, or 77.6%, to $0.43 for the year ended December 31, 2024, from $1.92 for the year ended December 31, 2023 [242]. - Depreciation, depletion, and amortization increased by $45.5 million, or 147.0%, to $76.5 million for the year ended December 31, 2024, from $31.0 million for the year ended December 31, 2023 [246]. - Interest expense increased by $1.0 million, or 189.0%, to $1.5 million for the year ended December 31, 2024, from $0.5 million for the year ended December 31, 2023 [249]. - Tax expense increased to $15.8 million for the year ended December 31, 2024, from $6.1 million for the year ended December 31, 2023 [250]. - Field service income decreased by $4.5 million, or 29.5%, to $10.9 million for the year ended December 31, 2024, from $15.4 million for the year ended December 31, 2023 [244]. Cash Flow and Investments - Net cash provided by operating activities for the year ended December 31, 2024, was $115.9 million, an increase from $109.0 million in the prior year [224]. - The company invested $113 million in 48 horizontal wells in West Texas during 2024, with significant participation in drilling and completing new wells [232]. - The company expects to invest approximately $60 million in 22 new horizontal wells in the Midland Basin of West Texas in 2025 [234]. - The company has a stock repurchase program, spending $13.4 million in 2024 and $7.5 million in 2023, with expectations for continued spending in 2025 [237]. - The company’s capital budget for 2025 is reflective of commodity prices and is based on expected cash flows, with any deficiencies expected to be funded by borrowings [228]. Liquidity and Debt - The company has a credit facility totaling $300 million, with a borrowing base of $115 million, and as of April 8, 2025, had $17.5 million in outstanding borrowings [229]. - The company’s liquidity is primarily sourced from cash generated from operations and available capacity under its revolving credit facility [223]. Strategic Goals - The company’s strategy includes acquiring income-producing assets to build stockholder value through consistent growth in its oil and gas reserve base [216]. - The company sold 120 net mineral acres and 10 surface acres for gross proceeds of $1,386,000 in 2024, and divested 37 producing and two saltwater injection wells, reducing future plugging liability [235].

Industry Overview - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience to navigate effectively [2] Company Analysis - PrimeEnergy Resources Corporation and related companies are analyzed for undervalued opportunities in the oil and gas space [1] - Analysis includes a detailed breakdown of balance sheets, competitive positioning, and development prospects [1] Research Service - Oil & Gas Value Research provides exclusive analysis to members, including insights not published on the free site [1] - A free two-week trial is available for those interested in accessing the full range of research and analysis [1]