PrimeEnergy Resources reports increased Q2 net income

PrimeEnergy Resources reported second-quarter financial results characterized by a significant increase in net income alongside challenges in natural gas pricing. The company’s quarterly net income rose to $6.5 million, up from $3.2 million in the same period last year. Basic earnings per share reached $4.06, compared to $1.94 in the previous year's quarter.

Stronger oil prices served as a primary driver for the results, with the company realizing an average oil price of $98.85 per barrel, a substantial increase from $56.96 a year prior. This helped offset severe weakness in the natural gas market, specifically within the Permian Basin, where takeaway capacity constraints led to an average realized gas price of negative $3.53 per Mcf. Negative natural gas revenue totaled $9.2 million.

Operationally, PrimeEnergy has begun drilling 24 horizontal wells across Martin and Upton counties. The company maintains a debt-free balance sheet with $28.7 million in cash and continues its share repurchase program.