PrimeEnergy 2025 Q3 Earnings Net Income Plummets 52.2%

PrimeEnergy (PNRG) reported its fiscal 2025 Q3 earnings on Nov 19, 2025, with results falling significantly below prior-year levels. The company’s revenue and net income both declined sharply, reflecting broader challenges in its core energy segments. Analysts and investors are now scrutinizing the sustainability of its current strategies amid these underwhelming figures.

Revenue

PrimeEnergy’s total revenue dropped 33.8% year-over-year to $45.97 million, driven by a sharp contraction in oil production and flat natural gas liquids output. Oil revenue accounted for the largest portion at $34.81 million, though this marked a 33.8% decline from 2024. Natural gas liquids generated $5.62 million, while field service income and other revenue streams added $2.27 million and $1.31 million, respectively. The segment breakdown underscores the company’s reliance on oil, which now constitutes 75.6% of total revenue.

Earnings/Net Income

The company’s net income plummeted 52.2% to $10.56 million in Q3 2025, compared to $22.08 million in the same period last year. Earnings per share (EPS) also fell 49.2% to $6.41, reflecting the revenue decline and operational challenges. This represents a significant deterioration in profitability, with both metrics failing to meet the robust performance seen in 2024.

Post-Earnings Price Action Review

The strategy of buying PrimeEnergy shares on the date of its revenue raise announcement and holding for 30 days has proven unprofitable over the past three years. Cumulative returns for this approach stand at -26.5%, underscoring the stock’s volatility and poor post-earnings performance. This trend highlights the risks of relying on revenue announcements as a trading signal for PNRG, particularly given the stock’s historical decline in the months following such events.

CEO Commentary

Chairman and CEO Charles E. Drimal, Jr. emphasized the company’s focus on disciplined capital allocation and shareholder alignment during the earnings call. He noted, “Our strong balance sheet and high insider ownership reflect long-term strategic alignment,” while acknowledging the need to navigate natural decline in oil volumes and commodity price volatility. The tone was cautiously optimistic, with Drimal stressing the importance of converting available liquidity into disciplined development.

Guidance

The company provided no explicit forward-looking revenue or EPS targets for the remainder of 2025 but reiterated its commitment to maintaining full availability under its $115 million revolving credit facility. Management highlighted ongoing development in Texas and Oklahoma, with a focus on gas production and capital efficiency. Qualitatively, the guidance emphasized stability in liquidity and cautious optimism about operational efficiencies, though no material upside was projected for key financial metrics.

Additional News

1. Forbes Recognition: PrimeEnergy was ranked #1 in Oil & Gas Operations and #6 overall in Forbes’ 2025 list of America’s Most Successful Small-Cap Companies.

2. Accounting Firm Change: The company announced Withum Smith+Brown, PC as its new independent registered public accounting firm, effective June 27, 2025.

3. Share Repurchases: Year-to-date, PrimeEnergy retired 73,470 shares (~4% reduction), underscoring its commitment to shareholder value through buybacks.