PrimeEnergy(PNRG) - 2024 Q4 - Annual Report

Financial Performance - The company reported a net income of $55.4 million for 2024, or$31.43 per share, compared to $28.1 million, or$15.19 per share for 2023, reflecting production increases offset by commodity price decreases [238]. - Oil, NGL, and gas sales increased by $115 million, or 107.01$223.1 million for the year ended December 31, 2024, from $107.7 million for the year ended December 31, 2023 [239]. - Total oil and gas revenue increased by$115.3 million, or 107.01%, to $223.042 million for the year ended December 31, 2024, from$107.742 million for the year ended December 31, 2023 [242]. - Crude oil production increased by 1,412,000 barrels, or 123.43%, to 2,556,000 barrels for the year ended December 31, 2024, from 1,144,000 barrels for the year ended December 31, 2023 [240]. - Natural gas production increased by 3,639 MMcf, or 88.18%, to 7,766 MMcf for the year ended December 31, 2024, from 4,127 MMcf for the year ended December 31, 2023 [240]. - Average price received for crude oil decreased by $1.04 per barrel, or 1.35$75.80 for the year ended December 31, 2024, from $76.84 for the year ended December 31, 2023 [242]. - Average price received for natural gas decreased by$1.49 per Mcf, or 77.6%, to $0.43 for the year ended December 31, 2024, from$1.92 for the year ended December 31, 2023 [242]. - Depreciation, depletion, and amortization increased by $45.5 million, or 147.0$76.5 million for the year ended December 31, 2024, from $31.0 million for the year ended December 31, 2023 [246]. - Interest expense increased by$1.0 million, or 189.0%, to $1.5 million for the year ended December 31, 2024, from$0.5 million for the year ended December 31, 2023 [249]. - Tax expense increased to $15.8 million for the year ended December 31, 2024, from$6.1 million for the year ended December 31, 2023 [250]. - Field service income decreased by $4.5 million, or 29.5$10.9 million for the year ended December 31, 2024, from $15.4 million for the year ended December 31, 2023 [244]. Cash Flow and Investments - Net cash provided by operating activities for the year ended December 31, 2024, was$115.9 million, an increase from $109.0 million in the prior year [224]. - The company invested$113 million in 48 horizontal wells in West Texas during 2024, with significant participation in drilling and completing new wells [232]. - The company expects to invest approximately $60 million in 22 new horizontal wells in the Midland Basin of West Texas in 2025 [234]. - The company has a stock repurchase program, spending$13.4 million in 2024 and $7.5 million in 2023, with expectations for continued spending in 2025 [237]. - The company’s capital budget for 2025 is reflective of commodity prices and is based on expected cash flows, with any deficiencies expected to be funded by borrowings [228]. Liquidity and Debt - The company has a credit facility totaling$300 million, with a borrowing base of $115 million, and as of April 8, 2025, had$17.5 million in outstanding borrowings [229]. - The company’s liquidity is primarily sourced from cash generated from operations and available capacity under its revolving credit facility [223]. Strategic Goals - The company’s strategy includes acquiring income-producing assets to build stockholder value through consistent growth in its oil and gas reserve base [216]. - The company sold 120 net mineral acres and 10 surface acres for gross proceeds of $1,386,000 in 2024, and divested 37 producing and two saltwater injection wells, reducing future plugging liability [235].