PrimeEnergy Resources Corp. Files Q1 2024 10-Q

TL;DR

PRIMEENERGY RESOURCES CORP Q1 2024 10-Q FILED. CHECK FINANCIALS.

AI Summary

PrimeEnergy Resources Corp. reported its first quarter 2024 results for the period ending March 31, 2024. The company's financial performance for the first three months of 2024 is detailed in this 10-Q filing. Specific financial figures and operational highlights for the quarter are available within the document.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for PrimeEnergy Resources Corp., crucial for understanding the company's current operational health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks highlighted.

Key Numbers

• 2024-01-01 — Q1 2024 Start Date (Beginning of the first fiscal quarter of 2024)
• 2024-03-31 — Q1 2024 End Date (End of the first fiscal quarter of 2024)
• 2023-01-01 — Q1 2023 Start Date (Beginning of the first fiscal quarter of 2023)
• 2023-03-31 — Q1 2023 End Date (End of the first fiscal quarter of 2023)

Key Players & Entities

• PRIMEENERGY RESOURCES CORP (company) — Filer
• 20240331 (date) — Reporting Period End Date
• 20240517 (date) — Filing Date
• HOUSTON (location) — Business Address City
• DE (location) — State of Incorporation

FAQ

Key Financial Figures

• $0.10 — e on which registered Common Stock, $0.10 par value PNRG NASDAQ Indicate by

Filing Documents

• pnrg20230930_10q.htm (10-Q) — 703KB
• ex_618658.htm (EX-31.1) — 12KB
• ex_618659.htm (EX-31.2) — 13KB
• ex_618660.htm (EX-32.1) — 5KB
• ex_618661.htm (EX-32.2) — 5KB
• 0001437749-24-017481.txt ( ) — 3144KB
• pnrg-20240331.xsd (EX-101.SCH) — 27KB
• pnrg-20240331_def.xml (EX-101.DEF) — 185KB
• pnrg-20240331_lab.xml (EX-101.LAB) — 193KB
• pnrg-20240331_pre.xml (EX-101.PRE) — 207KB
• pnrg-20240331_cal.xml (EX-101.CAL) — 32KB
• pnrg20230930_10q_htm.xml (XML) — 311KB

—Financial Information

Part I—Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets – March 31, 2024 and December 31, 2023 1 Consolidated Statements of Income – For the three months ended March 31, 2024 and 2023 2 Consolidated Statements of Equity – For the three months ended March 31, 2024 and 2023 3 Consolidated Statements of Cash Flows – For the three months ended March 31, 2024 and 2023 4

Notes to Consolidated Financial Statements – March 31, 2024

Notes to Consolidated Financial Statements – March 31, 2024 5-8

Management's Discussion and Analysis of Financial Conditions and Results of Operation

Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operation 9-17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 17

Controls and Procedures

Item 4. Controls and Procedures 17

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 18

Risk Factors

Item 1A. Risk Factors 18

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 18

Reserved

Item 4. Reserved 18

Other Information

Item 5. Other Information 18

Exhibits

Item 6. Exhibits 19

Signatures

Signatures 20 Definitions of Certain Terms and Conventions Used Herein Within this Report, the following terms and conventions have specific meanings: Measurements. "Bbl " means a standard barrel containing 42 United States gallons. "BOE " means a barrel of oil equivalent and is a standard convention used to express oil and gas volumes on a comparable oil equivalent basis. Gas equivalents are determined under the relative energy content method by using the ratio of six thousand cubic feet of gas to one Bbl of oil or natural gas liquid. "BOEPD " means BOE per day. "Btu " means British thermal unit, which is a measure of the amount of energy required to raise the temperature of one pound of water one degree Fahrenheit. "MBbl " means one thousand Bbls. "MBOE " means one thousand BOEs. "Mcf " means one thousand cubic feet and is a measure of gas volume. "MMcf " means one million cubic feet. Indices. "Brent " means Brent oil price, a major trading classification of light sweet oil that serves as a benchmark price for oil worldwide. "WAHA " is a benchmark pricing hub for West Texas gas. "WTI " means West Texas Intermediate, a light sweet blend of oil produced from fields in western Texas and is a grade of oil used as a benchmark in oil pricing. General terms and conventions. "DD&A " means depletion, depreciation and amortization. "ESG " means environmental, social and governance. "GAAP " means accounting principles generally accepted in the United States of America. "GHG " means greenhouse gases. "LNG " means liquefied natural gas. "NGLs " means natural gas liquids, which are the heavier hydrocarbon liquids that are separated from the gas stream; such liquids include ethane, propane, isobutane, normal butane and natural gasoline. "NYMEX " means the New York Mercantile Exchange. "OPEC " means the Organization of Petroleum Exporting Countries. "PrimeEnergy " or the "Company" means PrimeEnergy Resources Corporation and its subsidiaries. "Proved

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS PRIMEENERGY RESOURCES CORPORATION CONSOLIDATED BALANCE SHEETS – Unaudited (Thousands of dollars, except share data) March 31, 2024 December 31, 2023 ASSETS Current Assets Cash and cash equivalents $ 1,750 $ 11,061 Accounts receivable, net 29,534 20,301 Prepaid obligations 791 376 Other current assets 38 38 Total Current Assets 32,113 31,776 Property and Equipment Oil and gas properties at cost 713,352 659,792 Less: Accumulated depletion and depreciation ( 416,964 ) ( 406,913 ) 296,388 252,879 Field and office equipment at cost 27,298 26,955 Less: Accumulated depreciation ( 23,984 ) ( 23,715 ) 3,314 3,240 Total Property and Equipment, Net 299,702 256,119 Other Assets 1,081 673 Total Assets $ 332,896 $ 288,568 LIABILITIES AND EQUITY Current Liabilities Accounts payable $ 11,595 $ 15,424 Accrued property cost 61,945 33,264 Accrued liabilities 13,754 15,349 Due to related parties 44 80 Current portion of asset retirement and other long-term obligations 1,138 692 Total Current Liabilities 88,476 64,809 Long-Term Bank Debt 4,000 - Asset Retirement Obligations 14,649 14,707 Deferred Income Taxes 55,523 47,236 Other Long-Term Obligations 828 866 Total Liabilities 163,476 127,618 Commitments and Contingencies Equity Common stock, $ .10 par value; 2024 and 2023: Authorized: 2,810,000 shares, outstanding 2024: 1,790,245 ; outstanding 2023: 1,820,100 shares 281 281 Paid-in capital 7,555 7,555 Retained earnings 216,988 205,669 Treasury stock, at cost; 2024: 1,019,755 shares; 2023: 989,900 ( 55,404 ) ( 52,555 ) Total Equity 169,420 160,950 Total Liabilities and Equity $ 332,896 $ 288,568 The accompanying Notes are an integral part of these Consolidated Financial Statements 1 PRIMEENERGY RESOURCES CORPORATION CONSOLIDATED STATEMENTS OF I NCOME – Unaudited Thre

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (1) Basis of Presentation: The accompanying condensed consolidated financial statements of PrimeEnergy Resources Corporation ("PrimeEnergy" or the "Company") have not been audited by independent public accountants. Pursuant to applicable Securities and Exchange Commission ("SEC") rules and regulations, the accompanying interim financial statements do not include all disclosures presented in annual financial statements and the reader should refer to the Company's Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying interim consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company's consolidated balance sheets as of March 31, 2024, and December 31, 2023, the consolidated results of operations, cash flows and equity for the three months ended March 31, 2024, and 2023. As of March 31, 2024, PrimeEnergy's significant accounting policies are consistent with those discussed in Note 1—Description of Operations and Significant Accounting Policies of its consolidated financial statements contained in PrimeEnergy's Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Certain amounts presented in prior period financial statements have been reclassified for consistency with current period presentation. The results for interim periods are not necessarily indicative of annual results. For purposes of disclosure in the consolidated financial statements, subsequent events have been evaluated through the date the statements were issued. (2) Acquisitions and Dispositions In the first quarter of 2024, the Company sold 48 net acres in Lea County, New Mexico, along with minor working interest in 23 wells, receiving gross proceeds of $ 375,600 , and early in the second quarter of 2024, the Company has sold an additional 12 net acres in Lea County for procee

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