PrimeEnergy Resources Corporation (PNRG) Announces Yearend Production and Financial Results
PrimeEnergy reported significant declines in production and revenue for the year ended December 31, 2020. The company produced 733,000 barrels of oil, a decrease of 41% from 1,242,000 barrels in 2019. Average oil prices fell 30.9% to $38.02 per barrel, resulting in oil revenues dropping 59.2% to $27,865,000. Natural gas production also declined, contributing to an overall 56% decrease in total oil and gas revenue, which amounted to $36,973,000. The company ended the year with a net loss of $2,316,000 and an EPS of $(1.16).
- Reduction of revolving credit facility by $16.5 million.
- Oil production dropped by 41% from 2019.
- Average oil price received decreased by $17.02 per barrel, a 30.9% decline.
- Total oil and gas revenue fell by 56% to $36,973,000.
- Net loss for 2020 was $2,316,000 compared to a profit in 2019.
Oil and gas production and the average prices received (excluding gains and losses from derivatives) for the years ended December 31, 2020 and 2019, were as follows:
|
2020 |
2019 |
Increase/
|
Increase/
|
|||||||||
Barrels of Oil Produced |
|
733,000 |
|
1,242,000 |
|
(509,000 |
) |
(41.00 |
)% |
||||
Average Price Received |
$ |
38.02 |
$ |
55.04 |
$ |
(17.02 |
) |
(30.90 |
)% |
||||
Oil Revenue (In 000’s) |
$ |
27,865 |
$ |
68,366 |
$ |
(40,501 |
) |
(59.20 |
)% |
||||
Mcf of Gas Sold |
|
3,381,000 |
|
4,397,000 |
|
(1,016,000 |
) |
(23.10 |
)% |
||||
Average Price Received |
$ |
1.24 |
$ |
1.49 |
$ |
(0.25 |
) |
(16.60 |
)% |
||||
Gas Revenue (In 000’s) |
$ |
4,202 |
$ |
6,539 |
$ |
(2,337 |
) |
(35.70 |
)% |
||||
Barrels of Natural Gas Liquids Sold |
|
437,000 |
|
574,000 |
|
(137,000 |
) |
(23.90 |
)% |
||||
Average Price Received |
$ |
11.22 |
$ |
15.87 |
$ |
(4.65 |
) |
(29.30 |
)% |
||||
Natural Gas Liquids Revenue (In 000’s) |
$ |
4,906 |
$ |
9,110 |
$ |
(4,204 |
) |
(46.10 |
)% |
||||
Total Oil & Gas Revenue (In 000’s) |
$ |
36,973 |
$ |
84,015 |
$ |
(47,042 |
) |
(56.00 |
)% |
||||
Proved reserves at December 31, 2020 were 4,468,000 barrels of oil, 3,045,000 barrels of natural gas liquids and 17,530,000 thousand cubic feet of natural gas; or 10,435,000 barrels of oil equivalents. During 2020, we reduced our revolving credit facility by
|
Year Ended December 31, |
||||||||||
|
|
2020 |
|
|
2019 |
Increase /
|
|||||
Revenues (In 000’s) |
$ |
58,421 |
|
$ |
104,824 |
$ |
(46,403 |
) |
|||
Net (Loss) Income (In 000’s) |
$ |
(2,316 |
) |
$ |
3,476 |
$ |
(5,792 |
) |
|||
Earnings per Common Share: |
|
|
|
||||||||
Basic |
$ |
(1.16 |
) |
$ |
1.72 |
$ |
(2.88 |
) |
|||
Diluted |
$ |
(1.16 |
) |
$ |
1.25 |
$ |
(2.41 |
) |
|||
Shares Used in Calculation of: |
|
|
|
||||||||
Basic EPS |
|
1,994,425 |
|
|
2,019,502 |
|
|||||
Diluted EPS |
|
1,994,425 |
|
|
2,780,735 |
|
|||||
PrimeEnergy is an independent oil and gas company actively engaged in acquiring, developing and producing oil and gas, and providing oilfield services, primarily in Texas and Oklahoma. 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.
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FAQ
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