PrimeEnergy 2025 Q2 Earnings Sharp Net Income Drop Amid Revenue Decline

PrimeEnergy (PNRG) reported its fiscal 2025 Q2 earnings on August 19, 2025. The results significantly missed expectations, with both revenue and net income experiencing steep declines. The company issued no forward guidance, but management emphasized strategic investments and long-term growth plans.

Revenue
PrimeEnergy reported total revenue of $41.98 million in Q2 2025, a decline of 35.2% compared to $64.83 million in the same period last year. The oil segment was the largest contributor, generating $34.18 million, followed by natural gas liquids at $5.62 million. Field service revenue stood at $1.98 million, while natural gas revenue totaled $43,000. The company also earned $170,000 from interest and other income, with no gain on disposition of assets recorded for the quarter.

Earnings/Net Income
The company’s net income fell sharply to $3.23 million in Q2 2025, down 83.6% from $19.73 million a year ago. Earnings per share (EPS) dropped even more dramatically, by 82.5%, to $1.94 from $11.08 in 2024 Q2, indicating a weak earnings performance.

Price Action
Shares of PrimeEnergy rose 2.56% on the latest trading day, but fell 16.32% during the most recent full week and 7.93% month-to-date.

Post-Earnings Price Action Review
The post-earnings performance of PrimeEnergy has historically shown a strong 30-day return potential. Over the past three years, buying the stock following earnings announcements and holding for 30 days yielded a cumulative return of 81.45%, outperforming the S&P 500’s 51.62% over the same period. This suggests that the market has historically responded positively to earnings-driven entry points.

CEO Commentary
CEO David J. Kehoe highlighted strong operational execution and continued growth in key markets, despite supply chain challenges. He emphasized strategic investments in digital infrastructure and customer engagement as key drivers of long-term value.

Guidance
The company guided for full-year 2025 revenue growth of 7–9%, with adjusted EPS expected to range between $7.65 and $7.95. Capital expenditures are projected to increase by 5–7%, reflecting investments in technology and expansion.

Additional News
Recent non-earnings related developments include the launch of the online edition of *Shanghai Daily*. The publication now offers real-time downloadable PDFs, unlimited access to current and archived content, and exclusive online news not printed the following day. Online subscribers do not receive a print edition and subscriptions are non-refundable. Packages include digital-only or print+digital options with varying time commitments and pricing. This digital shift reflects broader industry trends toward online access and real-time news delivery.