PrimeEnergy Reports $4.3M Q1 Income, $24M Cash Flow Despite –$0.40/Mcf
PrimeEnergy reported first-quarter net income of $4.3 million ($2.67 per share) and generated $24 million in cash flow despite realized gas prices averaging –$0.40 per Mcf. The company finished the quarter debt-free with full access to its $115 million credit facility, repurchased 14,500 shares at $180.81 and plans a $52 million Permian drilling investment.
1. Q1 Financial Results
PrimeEnergy reported first-quarter 2026 net income attributable to common stockholders of $4.3 million, or $2.67 per basic share, compared to $9.1 million, or $5.40 per share in Q1 2025, while generating approximately $24 million in cash flow available for development activities and other corporate purposes.
2. Pricing Environment and Production
Realized natural gas prices averaged –$0.40 per Mcf in the Permian Basin due to pipeline takeaway constraints and oversupply, resulting in negative gas revenues; the company’s oil-weighted portfolio and disciplined cost structure enabled it to remain profitable under these conditions.
3. Liquidity and Capital Deployment
The company ended the quarter debt-free with $19.4 million in cash, full access to its $115 million revolving credit facility, repurchased 14,500 shares at an average price of $180.81 per share, and plans to invest $52 million in Apache-led Permian Basin drilling commencing June 2026.