PrimeEnergy 2025 Q3 Earnings Net Income Dips 52.2% Amid Revenue Decline

PrimeEnergy (PNRG) reported its fiscal 2025 Q3 earnings on Nov 19th, 2025, with results undershooting expectations. The company’s revenue and net income both declined sharply year-over-year, and its stock price fell 3.51% on the earnings date, signaling investor skepticism.

Revenue

PrimeEnergy’s total revenue plummeted 33.8% to $45.97 million in Q3 2025, driven by a 33.8% decline in oil revenue to $34.81 million and a 73.1% drop in natural gas liquids to $5.62 million. Natural gas revenue contracted further to $1.97 million, while field service income and other revenue totaled $3.58 million. The revenue shortfall reflects natural declines in mature oil assets and weaker commodity prices.

Earnings/Net Income

Net income fell 52.2% to $10.56 million, with EPS declining 49.2% to $6.41. The results highlight margin compression amid lower production volumes and volatile commodity prices. The earnings decline underscores challenges in maintaining profitability despite capital discipline and operational efficiency.

Post-Earnings Price Action Review

The strategy of buying PNRG shares on earnings announcements and holding for 30 days has historically underperformed, with a cumulative return of -26.5% over three years. This poor performance, coupled with a 3.51% price drop on the earnings date, suggests market skepticism about the company’s ability to sustain profitability. Investors may be factoring in risks such as commodity price volatility and asset maturity, which could pressure future earnings.

CEO Commentary Summary

Chairman and CEO Charles E. Drimal, Jr. emphasized disciplined capital allocation and shareholder alignment in Q3 remarks. “We continue to balance disciplined investment with opportunities to return capital to shareholders,” he stated, noting the company’s zero bank debt and $115 million credit facility availability. Drimal highlighted strong insider ownership (56.5% voting control) and year-to-date share repurchases of 73,470 shares (~4% reduction) as evidence of strategic alignment.

Guidance

For 2025, management expects to maintain liquidity through its $115 million credit facility and prioritize development in the Permian Basin. Forward-looking targets include drilling 36–45 new horizontals in Reagan County and expanding operations in Oklahoma’s Scoop and Stack plays. The company aims to convert liquidity into disciplined development while managing commodity price risks.

Additional News

1. Forbes Recognition: PrimeEnergy ranked #1 in Oil & Gas Operations and #6 in Forbes’ 2025 Most Successful Small-Cap Companies, citing strong shareholder returns and operational efficiency.

2. Accounting Firm Change: Effective June 27, 2025, the company appointed Withum Smith+Brown, PC as its new independent auditor, approved by the Audit Committee and Board.

3. Share Repurchases: Year-to-date, PrimeEnergy retired 73,470 shares (~4% reduction), reflecting its focus on capital allocation to shareholders.