PrimeEnergy Resources Corporation Announces Third Quarter Results

Rhea-AI Summary

PrimeEnergy Resources Corporation (NASDAQ: PNRG) reported unaudited results for the periods ended September 30, 2021, revealing significant challenges. For the three months ended September 30, revenues reached $19,035,000, up from $11,792,000 in 2020, yet the company posted a net income loss of $1,163,000, contrasting with a profit of $6,501,000 during the same period last year. Year-to-date figures also show a decline in net income to a loss of $5,021,000 compared to a profit of $65,000 in 2020. Oil production fell by 10.80%, while average oil prices surged by 64.8%, illustrating mixed financial performance.

Positive

• Total oil and gas revenue increased by 75.2% year-over-year to $46,105,000.
• Average price received for oil rose by 64.8% to $63.28 per barrel.
• Gas revenue saw a significant increase of 225.6%, totaling $7,948,000.

Negative

• Net income decreased to a loss of $1,163,000 for Q3 2021, compared to a profit of $6,501,000 in Q3 2020.
• Year-to-date net income showed a considerable loss of $5,021,000 versus a profit of $65,000 in 2020.
• Oil production dropped by 10.80%, from 538,000 barrels in 2020 to 480,000 barrels in 2021.

HOUSTON--(BUSINESS WIRE)-- PrimeEnergy Resources Corporation (NASDAQ: PNRG) announced today the following unaudited results for the periods ended September 30, 2021 and 2020:

		Three Months Ended September 30,							Nine Months Ended September 30,
		2021				2020			2021				2020
Revenues		$	19,035,000			$	11,792,000		$	47,670,000			$	45,178,000
Net Income		$	(1,163,000	)		$	6,501,000		$	(5,021,000	)		$	65,000
Earnings per Common Share:
Basic		$	(0.58	)		$	3.26		$	(2.52	)		$	0.03
Shares Used in Calculation of:
Basic EPS			1,994,177				1,994,177			1,994,177				1,994,177

Total assets at September 30, 2021 were $202,178 compared to $200,484 at December 31, 2020.

Oil and gas production and the average prices received (excluding gains and losses from derivatives) for the three and nine months ended September 30, 2021 and 2020 were as follows:

Nine months ended September 30,
			2021			2020		Increase / (Decrease)		Increase / (Decrease)
Barrels of Oil Produced			480,000			538,000			(58,000)	(10.80)%
Average Price Received		$	63.28		$	38.41		$	24.88	64.8%
Oil Revenue (In 000’s)		$	30,376		$	20,663		$	9,713	47.0%
Mcf of Gas Sold			2,395,000			2,038,000			357,000	17.5%
Average Price Received		$	3.32		$	1.20		$	2.12	177.1%
Gas Revenue (In 000’s)		$	7,948		$	2,441		$	5,507	225.6%
Barrels of Natural Gas Liquids Sold			298,000			319,000			(21,000)	(6.60)%
Average Price Received		$	26.11		$	10.07		$	16.04	159.3%
Natural Gas Liquids Revenue (In 000’s)		$	7,781		$	3,212		$	4,569	142.2%
Total Oil & Gas Revenue (In 000’s)		$	46,105		$	26,316		$	19,789	75.2%

Three months ended September 30,
		2021			2020		Increase / (Decrease)		Increase / (Decrease)
Barrels of Oil Produced		152,000			160,000			(8,000)	(5.0)%
Average Price Received	$	68.70		$	39.62		$	29.08	73.4%
Oil Revenue (In 000’s)	$	10.442		$	6,339		$	4,103	64.7%
Mcf of Gas Sold		950,000			496,000			454,000	91.5%
Average Price Received	$	4.21		$	2.12		$	2.09	98.5%
Gas Revenue (In 000’s)	$	3,998		$	1,052		$	2,946	280.0%
Barrels of Natural Gas Liquids Sold		103,000			106,000			(3,000)	(2.80)%
Average Price Received	$	35.26		$	13.91		$	21.35	153.5%
Natural Gas Liquids Revenue (In 000’s)	$	3,632		$	1,474		$	2,158	146.4%
Total Oil & Gas Revenue (In 000’s)	$	18,072		$	8,865		$	9,207	103.9%

PrimeEnergy 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. 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 at (713) 735-0000 ext 6416.

Forward-Looking Statements

This Report contains forward-looking statements that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes", "projects" and "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and are subject to the safe harbors created thereby. These statements are not guarantees of future performance and involve risks and uncertainties and are based on a number of assumptions that could ultimately prove inaccurate and, therefore, there can be no assurance that they will prove to be accurate. Actual results and outcomes may vary materially from what is expressed or forecast in such statements due to various risks and uncertainties. These risks and uncertainties include, among other things, the possibility of drilling cost overruns and technical difficulties, volatility of oil and gas prices, competition, risks inherent in the Company's oil and gas operations, the inexact nature of interpretation of seismic and other geological and geophysical data, imprecision of reserve estimates, and the Company's ability to replace and expand oil and gas reserves. Accordingly, stockholders and potential investors are cautioned that certain events or circumstances could cause actual results to differ materially from those projected.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211119005705/en/

Connie Ng, (713) 735-0000 ext 6416

Source: PrimeEnergy Resources

FAQ

What were PrimeEnergy Resources Corporation's Q3 2021 results?

In Q3 2021, PrimeEnergy reported revenues of $19,035,000, a net loss of $1,163,000, and a decline in oil production by 10.80%.

How did PrimeEnergy's net income change in 2021?

Net income for PrimeEnergy in 2021 decreased to a loss of $5,021,000 from a profit of $65,000 in 2020.

What were the key revenue figures for PrimeEnergy in 2021?

Total oil and gas revenue for PrimeEnergy in 2021 reached $46,105,000, a 75.2% increase from the previous year.