Toronto, Ontario--(Newsfile Corp. - Le 13 novembre/November 2024) - Pan American Energy Corp. has announced a consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidated common share for every ten (10) pre-consolidated common shares. As a result, the outstanding shares of the company will be reduced to approximately 10,597,923 common shares. The name and symbol will not change. Please note that all open orders will be canceled at the close of business on Novemb ...

Core Viewpoint - Zacks Investment Research has initiated coverage of PrimeEnergy Resources Corporation (PNRG) with a "Neutral" recommendation, highlighting its significant growth and operational efficiency in the oil and gas industry [1] Financial Performance - As of March 31, 2024, PNRG's total assets increased to $332.9 million from $288.6 million at the end of 2023, indicating a strengthened balance sheet [2] - The company reported an 88% year-over-year increase in revenues, reaching $42.99 million, driven by a doubling of production volumes [7] Production and Growth Strategy - PrimeEnergy plans to complete 54 horizontal wells in 2024 with an investment of $140 million, aiming for significant growth in production volumes [3] - The company operates 542 wells, primarily in Texas and Oklahoma, focusing on the Permian Basin and the SCOOP/STACK Play [8] Operational Challenges - Despite strong operational performance, PNRG faces liquidity challenges, with cash reserves dropping to $1.8 million and long-term debt increasing to $4 million as of March 31, 2024 [9] - The company's reliance on traditional extraction methods without significant investments in new technologies may put it at a disadvantage compared to competitors [4] Market Positioning - PrimeEnergy's shares have shown significant volatility, declining in the past six months but performing well over the past year, trading at lower valuation multiples compared to its peers [10]

| | | | Quarter ended March | | 31, | Increase | | Increase | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2024 | | 2023 | | | | | | | Revenues (in thousands) | $ | 42,990 | $ | 22,815 | $ | 20,175 | 88 | % | | Net Income (in thousands) | $ | 11,319 | $ | 1,410 | $ | 9,909 | 703 | % | | Earnings per Common Share: | | | | | | | | | | Basic | $ | 6.27 | $ | 0.75 | $ | 5.52 | 736 | % | | Diluted | $ | 4.41 | $ | 0.53 | $ | 3.88 | 732 | % | | Shares Used in Calculation of: | | | | | | | | | | Bas ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-7406 PrimeEnergy Resources Corporation (Exact name of registrant as specified in its charter) Delaware 84-0637348 (State or other jurisdictio ...

Financial Performance - The company reported a net income of $28.1 million for 2023, or $15.19 per share, compared to $48.7 million, or $24.91 per share for 2022, reflecting production increases offset by commodity price decreases [269]. - Oil, NGL, and gas sales decreased by $16.4 million, or 13.19%, to $107.7 million for the year ended December 31, 2023, from $124.1 million for the year ended December 31, 2022 [270]. - Total oil and gas revenue decreased by $16,376,000, or 13.19%, to $107,742,000 in 2023 from $124,118,000 in 2022 [273]. Production Metrics - Crude oil production increased by 205,000 barrels, or 21.83%, to 1,144,000 barrels for the year ended December 31, 2023, from 939,000 barrels for the year ended December 31, 2022 [271]. - NGL production increased by 189,000 barrels, or 45.32%, to 606,000 barrels for the year ended December 31, 2023, from 417,000 barrels for the year ended December 31, 2022 [271]. - Natural gas production increased by 802 MMcf, or 24.12%, to 4,127 MMcf for the year ended December 31, 2023, from 3,325 MMcf for the year ended December 31, 2022 [271]. - Gas sold increased by 802,000 Mcf, or 24.12%, to 4,127,000 Mcf in 2023 from 3,325,000 Mcf in 2022 [273]. Price Changes - The average realized price for crude oil decreased by $19.86 per barrel, or 20.54%, for 2023 compared to 2022, while NGL prices decreased by $16.06 per barrel, or 44.99%, and natural gas prices decreased by $3.62 per Mcf, or 65.34% [270]. - Average price received for oil decreased by $19.86, or 20.54%, to $76.84 in 2023 from $96.70 in 2022 [273]. - Average price received for gas decreased by $3.62, or 65.34%, to $1.92 in 2023 from $5.54 in 2022 [273]. Expenses and Investments - General and administrative expenses decreased by $4.6 million, or 22.7%, to $15.6 million in 2023 from $20.2 million in 2022 [280]. - Depreciation, depletion, and amortization increased by $3.6 million, or 13.1%, to $31 million in 2023 from $27.4 million in 2022 [279]. - Interest expense decreased by $0.4 million, or 41.0%, to $0.5 million in 2023 from $0.9 million in 2022 [282]. - Tax expense decreased to $6.1 million in 2023 from $10.3 million in 2022, primarily due to a decrease in pre-tax income [282]. - The company invested approximately $91 million in 35 wells during 2023, focusing on horizontal development in West Texas [261]. - For 2024, the company expects to invest $140 million in 54 wells and $95 million in an additional 23 wells in West Texas in 2025 [261]. Stock and Credit Facilities - The company maintains a credit facility totaling $300 million, with a borrowing base of $85 million, and had $4 million in outstanding borrowings as of March 31, 2024 [258]. - The company has a stock repurchase program, spending $7.5 million in 2023 and expects continued spending in 2024 [267]. Field Service Income - Field service income increased by $2.4 million, or 18.5%, to $15.4 million in 2023 from $13.0 million in 2022 [277].

[Definitions of Certain Terms and Conventions Used Herein](index=4&type=section&id=Definitions%20of%20Certain%20Terms%20and%20Conventions%20Used%20Herein) This section defines key measurements and general terms essential for understanding the company's oil and gas operations and financial reporting - Key measurements defined include **Bbl** (standard barrel), **BOE** (barrel of oil equivalent), **BOEPD** (BOE per day), **MBbl** (one thousand Bbls), **MBOE** (one thousand BOEs), **Mcf** (one thousand cubic feet), and **MMcf** (one million cubic feet)[12](index=12&type=chunk) - General terms defined include **DD&A** (depletion, depreciation and amortization), **ESG** (environmental, social and governance), **GAAP** (accounting principles generally accepted in the United States of America), **LNG** (liquefied natural gas), **NGLs** (natural gas liquids), **NYMEX** (New York Mercantile Exchange), **OPEC** (Organization of Petroleum Exporting Countries), and **SEC** (United States Securities and Exchange Commission)[12](index=12&type=chunk)[14](index=14&type=chunk) - Reserve definitions include **Proved reserves** (economically producible with reasonable certainty), **Proved developed reserves** (recoverable through existing wells), and **Proved undeveloped reserves** (recoverable from new wells or major recompletion)[12](index=12&type=chunk)[14](index=14&type=chunk)[99](index=99&type=chunk) [Cautionary Statement Concerning Forward-Looking Statements](index=6&type=section&id=Cautionary%20Statement%20Concerning%20Forward-Looking%20Statements) This section cautions readers that forward-looking statements are subject to significant risks and uncertainties, advising against undue reliance - Forward-looking statements are identified by terms such as 'believes,' 'plans,' 'expects,' 'anticipates,' and are based on current expectations, assumptions, estimates, and projections[16](index=16&type=chunk) - Key risks and uncertainties include **volatility of commodity prices**, product supply and demand, impact of armed conflict, competition, regulatory actions, cost increases, and environmental risks[17](index=17&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, as actual events and results may differ materially from anticipated results[18](index=18&type=chunk) [Part I—Financial Information](index=7&type=section&id=Part%20I%E2%80%94Financial%20Information) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents PrimeEnergy's unaudited consolidated financial statements and notes for the period ended September 30, 2023 [Consolidated Balance Sheets –September 30, 2023 and December 31, 2022](index=7&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's assets, liabilities, and equity as of September 30, 2023, and December 31, 2022 Consolidated Balance Sheets (Thousands) | Metric (Thousands) | Sep 30, 2023 | Dec 31, 2022 | | :----------------- | :----------- | :----------- | | Total Assets | $253,575 | $247,137 | | Total Liabilities | $97,574 | $106,784 | | Total Equity | $156,001 | $140,353 | | Cash & Equivalents | $19,790 | $26,543 | | Long-term bank debt| $— | $11,000 | [Consolidated Statements of Operations – For the three and nine months ended September 30, 2023 and 2022](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the company's financial performance, including revenues, costs, and net income for the periods ended September 30 Consolidated Statements of Operations (Three Months Ended September 30, Thousands) | Metric (Thousands) | 2023 | 2022 | Change | % Change | | :----------------- | :---------- | :---------- | :---------- | :------- | | Total Revenues | $35,360 | $39,314 | $(3,954) | -10.1% | | Total Costs & Exp. | $24,330 | $21,532 | $2,798 | +13.0% | | Income from Ops | $13,132 | $18,276 | $(5,144) | -28.1% | | Net Income | $10,720 | $13,154 | $(2,434) | -18.5% | | Basic EPS | $5.84 | $6.79 | $(0.95) | -14.0% | | Diluted EPS | $4.13 | $4.88 | $(0.75) | -15.4% | Consolidated Statements of Operations (Nine Months Ended September 30, Thousands) | Metric (Thousands) | 2023 | 2022 | Change | % Change | | :----------------- | :---------- | :---------- | :---------- | :------- | | Total Revenues | $87,617 | $100,738 | $(13,121) | -13.0% | | Total Costs & Exp. | $67,672 | $68,808 | $(1,136) | -1.6% | | Income from Ops | $28,151 | $47,260 | $(19,109) | -40.4% | | Net Income | $22,220 | $35,279 | $(13,059) | -37.0% | | Basic EPS | $11.95 | $17.95 | $(6.00) | -33.4% | | Diluted EPS | $8.49 | $12.96 | $(4.47) | -34.5% | [Consolidated Statements of Equity – For the three and nine months ended September 30, 2023 and 2022](index=9&type=section&id=Consolidated%20Statements%20of%20Equity) This section details changes in the company's equity, including retained earnings and treasury stock, for the periods ended September 30 Consolidated Statements of Equity (Thousands) | Metric (Thousands) | Sep 30, 2023 | Dec 31, 2022 | Change | | :----------------- | :----------- | :----------- | :----- | | Total Equity | $156,001 | $140,353 | +$15,648 | | Retained Earnings | $199,786 | $177,566 | +$22,220 | | Treasury Stock | $(51,621) | $(45,049) | $(6,572)| - Net income for the nine months ended September 30, 2023, contributed **$22,220 thousand** to retained earnings[28](index=28&type=chunk) - Treasury stock purchases totaled **$6,572 thousand** for the nine months ended September 30, 2023[28](index=28&type=chunk) [Consolidated Statements of Cash Flows – For the nine months ended September 30, 2023 and 2022](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash flows from operating, investing, and financing activities for the nine months ended September 30 Consolidated Statements of Cash Flows (Nine Months Ended September 30, Thousands) | Metric (Thousands) | 2023 | 2022 | Change | | :----------------- | :---------- | :---------- | :---------- | | Net Cash from Ops | $70,724 | $47,346 | +$23,378 | | Net Cash from Inv | $(59,635) | $7,358 | $(66,993) | | Net Cash from Fin | $(17,842) | $(40,992) | +$23,150 | | Net (Decrease) Inc | $(6,753) | $13,712 | $(20,465) | | Cash End of Period | $19,790 | $24,059 | $(4,269) | - Capital expenditures significantly increased to **$67,069 thousand** in 2023 from **$7,972 thousand** in 2022[31](index=31&type=chunk) - Repayment of long-term bank debt decreased to **$11,270 thousand** in 2023 from **$36,000 thousand** in 2022[31](index=31&type=chunk) [Notes to Consolidated Financial Statements – September 30, 2023](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, significant transactions, debt, and financial instruments - The unaudited interim financial statements are prepared by management, consistent with the 2022 Form 10-K, and include normal recurring adjustments[33](index=33&type=chunk)[34](index=34&type=chunk) - Significant acquisitions and dispositions in 2023 included selling **7.8 surface acres** in Midland County, TX for **$436K**, acquiring **55 net acres** in Reagan County, TX for **$605K**, selling **320 non-core acres** in Reagan County for **$6M**, divesting interest in **39 Oklahoma wells** reducing plugging liability by **~$1.5M**, and acquiring operations of **36 wells** and **114.52 net acres** in Reagan County, TX from DE Permian[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - The company's revolving corporate credit facility has **$300 million** in aggregate loan commitments, with the borrowing base adjusted from **$75 million** to **$60 million** in January 2023, then increased to **$65 million** in July 2023, with no outstanding borrowings as of September 30, 2023, or November 15, 2023[44](index=44&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - The company uses futures, swaps, and options to manage commodity price risk but does not apply hedge accounting, with all derivative instruments expiring in March 2023 and no current intent for future contracts unless required by its bank line of credit[64](index=64&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) Fair Value of Commodity Derivative Contracts (Thousands) | (Thousands of dollars) | Sep 30, 2023 | Dec 31, 2022 | | :--------------------- | :----------- | :----------- | | Commodity derivative contracts (Assets) | $— | $210 | | Commodity derivative contracts (Liabilities) | $— | $(1,190) | | Total derivative instruments | $— | $(980) | [Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operation](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operation) Management discusses financial performance, condition, and operational results, focusing on revenues, expenses, and liquidity [OVERVIEW](index=17&type=section&id=OVERVIEW) This section provides an overview of PrimeEnergy's business, asset portfolio, strategic objectives, and cash flow drivers - PrimeEnergy is an independent oil and natural gas company focused on acquiring, developing, and producing oil and natural gas primarily in Texas and Oklahoma[68](index=68&type=chunk) - The company's asset portfolio includes mature and horizontal oil and gas properties, a **12.5% overriding royalty interest** in West Virginia, well-servicing equipment in Texas, an idle offshore pipeline, land in Oklahoma, and a **33.3% interest** in a retail shopping center in Alabama[68](index=68&type=chunk) - The company's strategy involves actively acquiring producing properties, assuming operator positions, and evaluating leasehold acquisition, exploration, and development to build stockholder value[69](index=69&type=chunk) - Cash flows are dependent on oil and gas prices, success of acquisition and drilling activities, and operational performance, with derivative instruments used to manage commodity price risk, though recent contracts expired in March 2023 with no current intent for future contracts unless required by the bank[70](index=70&type=chunk)[71](index=71&type=chunk) - The company is actively developing non-producing reserves in the Permian Basin of West Texas (**9,266 net acres**, potential for **250+ horizontal wells**) and Oklahoma (**4,113 net acres**, potential for **43 new horizontal wells**)[73](index=73&type=chunk) [District Information](index=18&type=section&id=District%20Information) This section details proved reserves, daily production, and development plans across operating regions, especially West Texas Proved Reserves and Average Net Daily Production (as of Dec 31, 2022) | Region | Proved Reserves (MBoe) | % of Total | Avg Net Daily Production (Boe/day) | | :------------ | :--------------------- | :--------- | :--------------------------------- | | Gulf Coast | 790 | 4.7% | 227 | | Mid-Continent | 2,659 | 16.0% | 897 | | West Texas | 13,257 | 79.3% | 3,257 | | Other | 13 | 0.1% | 4 | | **Total** | **16,719** | **100%** | **4,385** | - The West Texas region, primarily in the Permian Basin, accounts for **79.3% of total proved reserves** and is the primary source of natural gas liquids, with significant potential for additional horizontal drilling[76](index=76&type=chunk)[81](index=81&type=chunk) - In the first three quarters of 2023, the company added **22 completed horizontal wells** in West Texas (15 in Reagan, 5 in Martin, 2 in Upton counties), investing approximately **$78 million** with an average **32.2% working interest**[82](index=82&type=chunk) - Future development plans include participating in **18 additional horizontal wells** in Reagan County (expected production by Feb 2024, **~$27M investment**), **34 more wells** (20 with Double Eagle, 14 with Civitas) in Reagan County (expected production by Q2 2024, **~$84M investment**), and **12 more horizontal wells** in Q1 2024 (**~$48M investment**), totaling approximately **$159 million** in capital commitment by Q1 2024[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [Reserves](index=19&type=section&id=Reserves) This section presents oil and gas reserve estimates, including proved developed and undeveloped reserves, and their PV10 values Oil and Gas Reserves (MBoe) | As of Dec 31, | Proved Developed | Proved Undeveloped | Total Proved | | :------------ | :--------------- | :----------------- | :----------- | | 2020 | 7,214 | 3,221 | 10,435 | | 2021 | 12,252 | — | 12,252 | | 2022 | 10,353 | 6,366 | 16,719 | PV10 Value and Standardized Measure (Thousands) | As of Dec 31, | Proved Developed PV10 | Proved Undeveloped PV10 | Total PV10 | Standardized Measure | | :------------ | :-------------------- | :---------------------- | :--------- | :------------------- | | 2020 | $34,717 | $21,823 | $56,539 | $41,619 | | 2021 | $171,906 | $— | $171,906 | $135,806 | | 2022 | $192,688 | $118,081 | $310,769 | $244,536 | - Reserve estimates are evaluated by Ryder Scott Company, L.P. and overseen by the company's Engineering Data manager, with all reserves located within the continental United States[87](index=87&type=chunk) Average Commodity Prices Used for Reserve Evaluation (12-month average) | Year | Natural Gas (per MMBtu) | Oil (per barrel) | | :--- | :---------------------- | :--------------- | | 2020 | $1.985 | $39.57 | | 2021 | $3.598 | $66.56 | | 2022 | $6.358 | $93.67 | [RECENT ACTIVITIES](index=21&type=section&id=RECENT%20ACTIVITIES) This section highlights recent operational activities, focusing on horizontal drilling and planned capital investments - The company's strategy focuses on developing oil and gas reserves primarily through horizontal drilling, targeting reservoirs with high initial production rates and strong expected returns[103](index=103&type=chunk) - Through the third quarter of 2023, **25 new horizontal wells** have been brought into production, with an approximate total investment of **$78 million**[105](index=105&type=chunk)[108](index=108&type=chunk)[111](index=111&type=chunk) - Planned capital investments for horizontal development over the next several years total approximately **$400 million**, including **$27 million** for 18 wells currently being completed, **$84 million** for 34 near-term development wells, **$143 million** for 35 wells expected to spud in 2024, **$100 million** for 27 drill-sites in 2025-2026, and **$40 million** for additional proved and probable drill-sites[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) [RESULTS OF OPERATIONS:](index=22&type=section&id=RESULTS%20OF%20OPERATIONS%3A) This section analyzes financial results, including net income, sales, production volumes, and expenses for the reporting periods - Net income for the nine months ended September 30, 2023, decreased by **37%** to **$22.2 million** (**$11.95/share**) from **$35.3 million** (**$17.95/share**) in 2022[112](index=112&type=chunk) - Total oil, gas, and NGL sales (excluding derivatives) decreased by **26.4%** to **$75.7 million** for the nine months ended September 30, 2023, compared to **$102.8 million** in 2022[113](index=113&type=chunk) Production Volumes and Average Sales Prices (Nine Months Ended Sep 30) | Metric | 2023 | 2022 | Change | % Change | | :---------------------- | :---------- | :---------- | :---------- | :------- | | Barrels of Oil Produced | 813,561 | 752,500 | +61,061 | +8.1% | | Avg Oil Price Received | $76.14 | $100.39 | $(24.25) | -24.2% | | Mcf of Gas Sold | 2,766,128 | 2,456,800 | +309,328 | +12.6% | | Avg Gas Price Received | $1.97 | $6.01 | $(4.04) | -67.2% | | Barrels of NGLs Sold | 412,487 | 332,400 | +80,087 | +24.1% | | Avg NGLs Price Received | $20.18 | $37.54 | $(17.36) | -46.2% | Production Volumes and Average Sales Prices (Three Months Ended Sep 30) | Metric | 2023 | 2022 | Change | % Change | | :---------------------- | :---------- | :---------- | :---------- | :------- | | Barrels of Oil Produced | 323,188 | 244,500 | +78,688 | +32.2% | | Avg Oil Price Received | $81.69 | $95.72 | $(14.03) | -14.7% | | Mcf of Gas Sold | 1,080,588 | 879,800 | +200,788 | +22.8% | | Avg Gas Price Received | $2.29 | $7.23 | $(4.94) | -68.3% | | Barrels of NGLs Sold | 161,003 | 122,400 | +38,603 | +31.5% | | Avg NGLs Price Received | $19.56 | $34.35 | $(14.79) | -43.1% | - Oil and gas production expense increased by **21.5%** for the three months and **1.4%** for the nine months ended September 30, 2023, reflecting rising service costs and new wells, partially offset by cost savings from plugged wells[116](index=116&type=chunk) - Interest expense decreased by **50.0%** for the nine months and **66.7%** for the three months ended September 30, 2023, due to lower current borrowings under the revolving credit agreement[122](index=122&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=24&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses financial flexibility, cash flow, credit facilities, and capital allocation strategies, including stock repurchases - The company's business strategy emphasizes maintaining a strong balance sheet, ample liquidity, and financial flexibility, with the 2023 capital budget based on expected cash flows and potential credit facility borrowings[124](index=124&type=chunk) - Net cash provided by operating activities and proceeds from property sales for the nine months ended September 30, 2023, was **$78.1 million**, an increase from **$62.7 million** in the prior year[126](index=126&type=chunk) - The company maintains a **$300 million** reserves-based line of credit with a current borrowing base of **$65 million**, with no outstanding borrowings as of November 15, 2023, and the next borrowing base review scheduled for December 2023[130](index=130&type=chunk) - The company spent **$6.6 million** on its stock repurchase program during the first nine months of 2023 and expects continued spending[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, PrimeEnergy is exempt from providing market risk disclosures in this report - The Company is a smaller reporting company and is exempt from providing quantitative and qualitative disclosures about market risk[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2023, with no material changes - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[134](index=134&type=chunk) - There were no material changes in the company's internal control over financial reporting during the first nine months of 2023[135](index=135&type=chunk) [Part II - Other Information](index=26&type=section&id=Part%20II%20-%20Other%20Information) [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period covered by this report - No legal proceedings were reported for the period covered by this report[137](index=137&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, PrimeEnergy is exempt from providing a detailed discussion of risk factors in this report - The Company is a smaller reporting company and is exempt from providing a detailed discussion of risk factors[138](index=138&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities but detailed its ongoing stock repurchase program - There were no unregistered sales of equity securities or purchases of equity securities by the company during the period covered by this report[139](index=139&type=chunk) Stock Repurchase Program (2023 Month-by-Month) | 2023 Month | Number of Shares | Average Price Paid per share | | :-------- | :--------------- | :--------------------------- | | January | 9,500 | $90.36 | | February | 3,000 | $90.32 | | March | 18,940 | $85.44 | | April | 10,560 | $86.21 | | May | 11,000 | $86.69 | | June | 7,500 | $100.35 | | July | 4,000 | $94.00 | | August | 4,000 | $98.09 | | September | 4,000 | $109.73 | | **Total/Average** | **72,500** | **$90.64** | - A total of **4,000,000 shares** have been authorized under the stock repurchase program to date, with **3,717,956 shares** repurchased for **$89,053,479** at an average price of **$23.95 per share** through September 30, 2023[140](index=140&type=chunk) [Item 3. Defaults Upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[141](index=141&type=chunk) [Item 4. Reserved](index=26&type=section&id=Item%204.%20Reserved) This item is reserved and contains no information - This item is reserved and contains no information[141](index=141&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - No other information was reported for this item[141](index=141&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q report, including corporate governance and certifications - Exhibits include corporate governance documents (Certificate of Incorporation, Bylaws), agreements (Non-Statutory Option Agreements, Credit Agreements), Code of Business Conduct and Ethics, and certifications from the CEO and CFO[142](index=142&type=chunk) - XBRL-related documents such as the Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase, and Cover Page Interactive Data File are also filed[142](index=142&type=chunk) [Signatures](index=28&type=section&id=Signatures) This section contains the required signatures of authorized officers, certifying the Form 10-Q filing - The report was signed by Charles E. Drimal, Jr., President and Principal Executive Officer, and Beverly A. Cummings, Executive Vice President and Principal Financial Officer[145](index=145&type=chunk)[146](index=146&type=chunk) - The signing date for the report was November 17, 2023[145](index=145&type=chunk)[146](index=146&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-7406 PrimeEnergy Resources Corporation (Exact name of registrant as specified in its charter) (713) 735-0000 (Registrant's t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the Quarterly Period Ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-7406 PrimeEnergy Resources Corporation (Exact name of registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 84-0637348 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K For the Transition Period From to . is Commission File Number 0-7406 PrimeEnergy Resources Corporation (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) | Delaware | 84-06 ...

Part I [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the period ended September 30, 2022, including balance sheets, statements of operations, equity, and cash flows, along with accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$212,899** | **$210,914** | | Cash and cash equivalents | $24,059 | $10,347 | | Total Property and Equipment, Net | $170,030 | $184,663 | | **Total Liabilities** | **$83,521** | **$111,823** | | Long-Term Bank Debt | $0 | $36,000 | | **Total Equity** | **$129,378** | **$99,091** | - The company significantly increased its cash position to **$24.1 million** and eliminated its long-term bank debt of **$36.0 million** by September 30, 2022[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share amounts) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$101,562** | **$42,292** | **$39,651** | **$17,311** | | Oil sales | $75,546 | $30,376 | $23,403 | $10,442 | | Natural gas sales | $14,762 | $7,948 | $6,359 | $3,998 | | **Income (Loss) from Operations** | **$47,260** | **($5,248)** | **$18,276** | **($872)** | | **Net Income (Loss) Attributable to PrimeEnergy** | **$35,279** | **($5,021)** | **$13,154** | **($1,163)** | | **Diluted EPS** | **$12.96** | **($2.52)** | **$4.88** | **($0.58)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2022 | 2021 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | **$47,346** | **$18,824** | | Net Cash Provided by (Used in) Investing Activities | $7,358 | ($11,190) | | Net Cash (Used in) Financing Activities | ($40,992) | ($5,006) | | **Net Increase in Cash and Cash Equivalents** | **$13,712** | **$2,628** | | Cash and Cash Equivalents at End of Period | $24,059 | $3,624 | - Financing activities in the first nine months of 2022 were primarily driven by the repayment of **$36.0 million** in long-term bank debt and **$5.0 million** in treasury stock purchases[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - During the first three quarters of 2022, the company sold a total of **1,809 net leasehold acres** in Texas and **354 net acres** in Oklahoma, generating gross proceeds of approximately **$15.3 million**[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - On July 5, 2022, the company entered into a new Fourth Amended and Restated Credit Agreement with a maturity date of June 1, 2026, providing a revolving line of credit up to **$300 million** with an initial borrowing base of **$75 million**, with no borrowings outstanding as of September 30, 2022[28](index=28&type=chunk)[29](index=29&type=chunk) - As of September 30, 2022, the company had net derivative liabilities of **$3.67 million**, a reduction from **$5.59 million** at the end of 2021[43](index=43&type=chunk)[46](index=46&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Conditions%20and%20Results%20of%20Operation) Management provides an overview of the company's business, operational focus, and financial performance, detailing its asset base, development plans, reserve information, liquidity position, and a comparative analysis of operating results for 2022 versus 2021, highlighting significant increases in revenue and net income driven by higher commodity prices and production, as well as strategic asset sales and debt repayment [Overview and Strategy](index=14&type=section&id=Overview%20and%20Strategy) - The company is an independent oil and natural gas producer with properties primarily in Texas and Oklahoma, focusing on developing existing properties, actively pursuing acquisitions, and managing commodity price risk through derivatives[50](index=50&type=chunk)[51](index=51&type=chunk) - Existing derivative instruments are set to expire in March 2023, and the company does not intend to enter into new contracts unless required for its bank line of credit[52](index=52&type=chunk)[53](index=53&type=chunk) [District and Reserve Information](index=15&type=section&id=District%20and%20Reserve%20Information) Proved Reserves by Region as of Dec 31, 2021 (MBoe) | Region | Developed | Undeveloped | Total | | :--- | :--- | :--- | :--- | | Gulf Coast | 906 | 0 | 906 | | Mid-Continent | 2,383 | 0 | 2,383 | | West Texas | 8,957 | 0 | 8,957 | | **Total** | **12,252** | **0** | **12,252** | - The West Texas region, primarily in the Permian Basin, holds **73%** of the company's total proved reserves as of year-end 2021 and is the focus of current horizontal drilling activities[56](index=56&type=chunk)[64](index=64&type=chunk) Standardized Measure of Discounted Future Net Cash Flows (in thousands) | As of December 31, | 2021 | 2020 | | :--- | :--- | :--- | | Future Net Revenue | $275,227 | $81,232 | | Present Value of Future Net Revenue (PV10) | $171,906 | $56,539 | | **Standardized Measure (after tax)** | **$135,806** | **$41,619** | [Development and Drilling Activities](index=19&type=section&id=Development%20and%20Drilling%20Activities) - In Q4 2022, the company plans to participate in drilling **15 new horizontal wells** in West Texas and expects to invest approximately **$87 million** in a total of **26 new wells** with completions expected by mid-year 2023[68](index=68&type=chunk) - The company completed an acreage exchange in the Midland Basin, creating a **1,200-acre** contiguous block, then entered a joint development agreement to form a **2,560-acre** AMI, divesting a portion of its interest for **$16.1 million** to fund the drilling of up to **18 new wells**[67](index=67&type=chunk)[98](index=98&type=chunk) - In Oklahoma, the company participated in drilling four horizontal wells in Q2 2022, which were placed on production in August, and believes its **5,800 net acres** in the Scoop/Stack play could support up to **50 new horizontal wells**[100](index=100&type=chunk)[101](index=101&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary sources of liquidity are cash from operations, property sales, and its credit facility, with net cash from operations for the first nine months of 2022 at **$47.3 million**, up from **$18.8 million** in the prior year period[103](index=103&type=chunk) - The company has a **$300 million** credit facility with a current borrowing base of **$75 million**, with no outstanding borrowings as of August 15, 2022[109](index=109&type=chunk) - The company spent **$5.0 million** on its stock repurchase program in the first nine months of 2022 and expects continued spending under the program[114](index=114&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) - The company reported net income of **$35.3 million** for the nine months ended Sep 30, 2022, a significant turnaround from a net loss of **$5.0 million** in the same period of 2021, driven by higher production and commodity prices[115](index=115&type=chunk) Production and Revenue Analysis (Nine Months Ended Sep 30) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Oil Production (Bbls) | 752,500 | 480,000 | 56.8% | | Avg. Oil Price ($/Bbl) | $100.39 | $63.28 | 58.6% | | Oil Revenue (in 000's) | $75,546 | $30,376 | 148.7% | | Gas Production (Mcf) | 2,456,800 | 2,395,000 | 2.6% | | Avg. Gas Price ($/Mcf) | $6.01 | $3.32 | 81.0% | | Gas Revenue (in 000's) | $14,762 | $7,948 | 85.7% | | **Total Oil & Gas Revenue (in 000's)** | **$102,785** | **$46,105** | **122.9%** | - Lease operating expense increased **73.9%** for the nine months of 2022 compared to 2021, primarily due to higher production taxes related to increased commodity prices and workover expenses[119](index=119&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company, as a smaller reporting company, is not required to provide a response for this item - As a smaller reporting company, no response is required for this item[125](index=125&type=chunk) [Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of the end of the reporting period and concluded they were effective, with no material changes to internal controls over financial reporting occurring during the first nine months of 2022 - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[126](index=126&type=chunk) - No changes in internal control over financial reporting occurred during the first nine months of 2022 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[127](index=127&type=chunk) Part II—Other Information [Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings during the period - None[129](index=129&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, PrimeEnergy is not required to provide a response regarding risk factors in its Form 10-Q - As a smaller reporting company, no response is required for this item[130](index=130&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities and provides details of its stock repurchase program, under which it purchased 61,377 shares for approximately $5.0 million during the nine months ended September 30, 2022 Common Stock Purchases (Nine Months Ended Sep 30, 2022) | Period | Number of Shares | Average Price Paid per share | | :--- | :--- | :--- | | **Total** | **61,377** | **$81.33** | - The Board of Directors has authorized a total of **3,700,000 shares** for the stock repurchase program, with **3,615,756 shares** repurchased through September 30, 2022[133](index=133&type=chunk) [Defaults Upon Senior Securities](index=24&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[134](index=134&type=chunk) [Exhibits](index=25&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the 10-Q report, including corporate governance documents, credit agreements, and required certifications by the CEO and CFO - Key exhibits filed with the report include: * Fourth Amended and Restated Credit Agreement (10.22.6) * Certifications of the CEO and CFO pursuant to Rule 13(a)-14(a)/15d-14(a) (31.1, 31.2) * Certifications of the CEO and CFO pursuant to Sarbanes-Oxley Act Section 906 (32.1, 32.2) * Inline XBRL documents (101 series)[136](index=136&type=chunk)