PrimeEnergy Resources Corp. Files Q3 2024 10-Q

TL;DR

PRIMEENERGY RESOURCES CORP Q3 2024 10-Q FILED. CHECK FINANCIALS.

AI Summary

PrimeEnergy Resources Corp. filed its 10-Q for the period ending September 30, 2024. The company, based in Houston, TX, operates in the crude petroleum and natural gas sector. Key financial details and operational updates for the third quarter of 2024 are presented in this filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational status of PrimeEnergy Resources Corp., crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — As a company in the volatile oil and gas sector, its financial performance is subject to commodity price fluctuations and regulatory changes.

Key Players & Entities

• PRIMEENERGY RESOURCES CORP (company) — Filer
• 20240930 (date) — Period of Report
• 20241114 (date) — Filing Date
• Houston, TX (location) — Business Address

FAQ

Key Financial Figures

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

Filing Documents

• pnrg20240930_10q.htm (10-Q) — 941KB
• ex_746352.htm (EX-31.1) — 12KB
• ex_746353.htm (EX-31.2) — 12KB
• ex_746354.htm (EX-32.1) — 5KB
• ex_746355.htm (EX-32.2) — 5KB
• 0001437749-24-035107.txt ( ) — 3705KB
• pnrg-20240930.xsd (EX-101.SCH) — 29KB
• pnrg-20240930_def.xml (EX-101.DEF) — 191KB
• pnrg-20240930_lab.xml (EX-101.LAB) — 205KB
• pnrg-20240930_pre.xml (EX-101.PRE) — 214KB
• pnrg-20240930_cal.xml (EX-101.CAL) — 34KB
• pnrg20240930_10q_htm.xml (XML) — 446KB

—Financial Information

Part I—Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets – September 30, 2024 and December 31, 2023 1 Consolidated Statements of Income – For the three and nine months ended September 30, 2024 and 2023 2 Consolidated Statements of Equity – For the three and nine months ended September 30, 2024 and 2023 3 Consolidated Statements of Cash Flows – For the nine months ended September 30, 2024 and 2023 4

Notes to Consolidated Financial Statements – September 30, 2024

Notes to Consolidated Financial Statements – September 30, 2024 5-9

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 10-19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 19

Controls and Procedures

Item 4. Controls and Procedures 19

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 20

Risk Factors

Item 1A. Risk Factors 20

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 20

Reserved

Item 4. Reserved 20

Other Information

Item 5. Other Information 20

Exhibits

Item 6. Exhibits 21

Signatures

Signatures 23 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 Item 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS PRIMEENERGY RESOURCES CORPORATION CONSOLIDATED BALANCE SHEETS (Thousands of dollars, except share data) September 30, 2024 December 31, 2023 Unaudited ASSETS Current Assets Cash and cash equivalents $ 1,582 $ 11,061 Accounts receivable, net 34,304 20,301 Prepaid obligations 1,133 376 Other current assets 5 38 Total Current Assets 37,024 31,776 Property and Equipment Oil and gas properties at cost 754,703 659,792 Less: Accumulated depletion and depreciation ( 448,881 ) ( 406,913 ) 305,822 252,879 Field and office equipment at cost 14,642 26,955 Less: Accumulated depreciation ( 12,603 ) ( 23,715 ) 2,039 3,240 Total Property and Equipment, Net 307,861 256,119 Other Assets 703 673 Total Assets $ 345,588 $ 288,568 LIABILITIES AND EQUITY Current Liabilities Accounts payable $ 42,177 $ 15,424 Accrued property cost 7,133 33,264 Accrued liabilities 18,057 15,349 Due to related parties 28 80 Current portion of asset retirement and other long-term obligations 630 692 Total Current Liabilities 68,025 64,809 Long-Term Bank Debt 3,000 0 Asset Retirement Obligations 14,578 14,707 Deferred Income Taxes 55,313 47,236 Other Long-Term Obligations 834 866 Total Liabilities 141,750 127,618 Commitments and Contingencies Equity Common stock, $ .10 par value; 2024 and 2023: Authorized: 2,810,000 shares, outstanding 2024: 1,726,970 ; shares outstanding 2023: 1,820,100 shares 281 281 Paid-in capital 7,555 7,555 Retained earnings 258,796 205,669 Treasury stock, at cost; 2024: 1,083,030 shares; 2023: 989,900 shares ( 62,794 ) ( 52,555 ) Total Equity 203,838 160,950 Total Liabilities and Equity $ 345,588 $ 288,568 The accompanying Notes are an integral part of these Consolidated Financial Statements 1 PRIMEENERGY RESOURCES CORPORATION CONSOLIDATED STATEMENTS OF I NCOME – Unaudited

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 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 September 30, 2024, and December 31, 2023, the consolidated results of operations, cash flows and equity for the nine months ended September 30, 2024, and 2023. As of September 30, 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. 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. New Pronouncements Issued But Not Yet Adopted: In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)," which expands disclosures around a public entity's costs and expenses of specific items (i.e. employee compensation, DD&A), requires the inclusion of amounts that are req

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