TLDR PrimeEnergy Q2 net income doubles to $6.5M as stronger oil prices lift results. PNRG rises 0.46% to $196.48 after retreating from a sharp intraday spike. Negative Permian gas prices weig
PrimeEnergy Resources reported stronger second-quarter earnings as higher oil prices offset severe weakness in Permian natural gas pricing. PNRG stock rose 0.46% to $196.48 after retreating from an intraday surge above $215. The company also expanded drilling activity while maintaining a debt-free balance sheet and continuing share repurchases.
PrimeEnergy Resources Corporation, PNRG
PrimeEnergy posted second-quarter net income of $6.5 million, compared with $3.2 million during the same period last year. Basic earnings reached $4.06 per share, up from $1.94 per share in the 2025 quarter. First-half net income declined to $10.9 million from $12.4 million one year earlier.
Strong oil pricing supported quarterly results despite lower production and difficult natural gas market conditions. PrimeEnergy realized an average oil price of $98.85 per barrel, compared with $56.96 one year earlier. Oil revenue reached $40.6 million and provided a major offset against weaker gas revenue.
Natural gas pricing remained a significant drag as Permian Basin takeaway capacity stayed constrained. PrimeEnergy realized an average gas price of negative $3.53 per Mcf during the second quarter.Negative natural gas revenue reached $9.2 million and reduced the benefit from higher oil prices.
PrimeEnergy started drilling 24 horizontal wells across Martin and Upton Counties during the second quarter. The company expects first production from those wells during the fourth quarter of 2026. Its development program remains focused primarily on the Midland Basin region of West Texas.
In Upton County, PrimeEnergy joined Apache in developing 12 wells across several producing formations. The company holds an average ownership interest of about 41.8% in the project. PrimeEnergy expects to invest approximately $34.1 million in the wells and related production facilities.
PrimeEnergy joined Oxyrock in drilling 12 horizontal wells in Martin County. The company expects to spend only about $120,000 on those wells. That smaller commitment will provide additional geological and production information covering several targeted formations.
PrimeEnergy ended June with $28.7 million in cash, up from $7.4 million at the end of 2025. The company also reported no outstanding bank debt at the end of the quarter. Furthermore, its revolving credit facility provided additional financial flexibility for future development spending.
The borrowing base under that credit facility reached $105 million effective August 3, 2026. PrimeEnergy currently has access to the full amount because it carries no outstanding borrowings. That liquidity supports its planned $52 million investment across 28 horizontal wells during 2026.
PrimeEnergy also continued returning capital through its long-running share repurchase program. The company bought 31,290 shares for about $5.5 million during the second quarter. Its board later approved another 300,000 shares, leaving 340,544 shares available for future repurchases.
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