PrimeEnergy Q2 net income more than doubles on higher oil prices - PNRG News | RalliesPrimeEnergy Q2 net income more than doubles on higher oil prices
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PNRG• Outlook
- Company expects first production from 24 horizontal wells in Q4 2026
- PrimeEnergy plans to invest about $52 mln in 28 horizontal wells in 2026
- Company plans to continue share repurchases in Q3 and Q4 if prices are favorable
Overview
- US oil and gas producer's Q2 net income and EPS rose yr/yr, driven by higher oil prices
- Company repurchased 31,290 shares in Q2; board authorized repurchase of 300,000 more shares
- Drilling commenced on 24 horizontal wells, with first production expected in Q4 2026
Result Drivers
- Negative gas prices - Co said negative natural gas prices in the Permian Basin resulted in more than $9 mln of negative natural gas revenue
- Higher oil prices - Co said average realized oil price rose to $98.85/bbl from $56.96/bbl a year ago, offsetting lower oil production
Key Details and Analyst Coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Basic EPS | | $4.06 | |
| Q2 Net Income | | $6.50 mln | |
- The one available analyst rating on the shares is "sell"
- The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
- Wall Street's median 12-month price target for Primeenergy Resources Corp is $160.00, about 18.2% below its August 13 closing price of $195.59
- The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 9 three months ago
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