PrimeEnergy(PNRG) - 2023 Q4 - Annual Report

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$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$16.06 per barrel, or 44.99%, and natural gas prices decreased by $3.62 per Mcf, or 65.34$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$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$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].