PRIMEENERGY RESOURCES CORP
For the period ended Dec 31, 2025. Filed Apr 16, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Apr 16, 2026
PNRG$185.64+2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-04-15.
0001437749-25-012086
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2025-12-31; filed 2026-04-16.
0001437749-26-012531
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 46 previous paragraphs and 51 current paragraphs.
24 unchanged; 15 reworded; 10 added; 7 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 3 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
In 2026, we have plans to participate with Validus Energy II in the drilling of one 3-mile long horizontal well in Grady County, Oklahoma with 3.47% interest, investing roughly $351,000 through completion, one well with Ovintiv Mid-Continent in the drilling of one 2.5-mile long horizontal in Garvin County, Oklahoma with 3.36% interest, investing roughly $291,000 through completion, and one 3-mile long horizontal in Garvin County, Oklahoma with a 2.27% interest, investing roughly $194,000 through completion.
Current report
During 2025, to supplement cash flow and finance our future drilling programs, the Company sold 76 net mineral acres in Glasscock County, Texas. For these mineral acres, we received $950,000 in gross proceeds. A limited partnership, in which the company has interest, sold a retail shopping center located in Prattville, Alabama, distributing $1.2 million to the Company from the proceeds of the sale.
Current report
Since 1990, including pursuant to the stock repurchase program authorized by the Board of Directors in December 1993, the Company has repurchased 6,071,995 shares at an average price of $20.16 per share. The Company has also repurchased 769,500 options at an average price of $0.79 per option. Under the current stock repurchase program authorized by the Board of Directors in December 1993, 86,044 shares remain available for repurchase.
Current report
Over time, these repurchases have meaningfully reduced the Company’s shares outstanding from approximately 7.6 million shares in 1987 to approximately 1.6 million shares currently. The Company believes that this sustained reduction in share count has contributed significantly to long-term per-share value creation for all shareholders.
Current report
As a result of the reduction in shares outstanding over time, the ownership percentage of certain long-term stockholders, including the Chairman and Chief Executive Officer, Charles Drimal, has increased. Mr. Drimal has not materially increased his ownership through open market purchases; rather, his ownership percentage has increased primarily as a result of the decrease in the number of shares outstanding. As of December 31, 2025, Mr. Drimal beneficially owns, including the effect of stock options and voting arrangements, approximately 55.4% of the Company’s fully diluted shares.
Current report
The Board of Directors regularly reviews and evaluates the Company’s capital allocation priorities. In doing so, the Board considers a variety of factors, including market conditions, the Company’s financial position, liquidity, and the impact of repurchases on the Company’s stockholder base. The Company expects continued spending under the stock repurchase program in 2026.
Current report
Oil and gas production expense decreased $2.7 million, or 5.7% to $45.0 million for the year ended December 31, 2025 from $47.7 million for the year ended December 31, 2024. These changes reflect fewer workover related costs in 2025 offset by increases in service rates related to recurring lease operating expenses.
Current report
Production and ad valorem taxes decreased $2.1 million, or 17.7% to $10.0 million for the year ended December 31, 2025 from $12.1 million for the year ended December 31, 2024. This decrease reflect the lower oil and natural gas liquid revenues partially offset by higher gas revenues during the year.
Current report
Depreciation, depletion, and amortization decreased $0.8 million, or 1.0% to $75.7 million for the year ended December 31, 2025 from $76.5 million for the year ended December 31, 2024.
Current report
Interest and other income of $1.54 million for the ended December 31, 2025 includes distributions from Alabama Shopping Center Associates limited partnership, generated by the partnership's sale of the Prattville, Alabama center.
Removed paragraphs (7)
Previous report
During 2024, to supplement cash flow and finance our future drilling programs, the Company sold 120 net mineral acres and 10 surface acres in Midland and Ector counties, Texas. For these, we received $1,386,000 in gross proceeds. In addition, we divested 37 producing and two saltwater injection wells in various counties of New Mexico and Texas. These divestments have extinguished a substantial amount in future plugging liability. Also in 2024, we sold our South Texas oil field services company, Eastern Oil Well Service, for proceeds of $2.8 million. Included with this sale were extensive oil field service equipment and transport trucks, as well as two commercial saltwater disposal wells. Acquisitions in 2024, entailed the purchase of 381 net leasehold acres in West Texas for approximately $3.9 million.
Previous report
Oil, Natural Gas and NGL Derivatives We do not apply hedge accounting to any of our commodity based derivatives, thus changes in the fair market value of commodity contracts held at the end of a reported period, referred to as mark-to-market adjustments, are recognized as unrealized gains and losses in the accompanying condensed consolidated statements of operations. As oil and natural gas prices remain volatile, mark-to-market accounting treatment creates volatility in our revenues.
Previous report
The following table summarizes the results of our derivative instruments for the years ended December 2024 and 2023:
Previous report
Prices received for the years ended December 31, 2024 and 2023, respectively, including the impact of derivatives were:
Previous report
Oil and gas production expense increased $15.8 million, or 49.6% to $47.7 million for the year ended December 31, 2024 from $31.9 million for the year ended December 31, 2023. These changes reflect the cost savings related to wells that have been plugged offset by rising service costs and additional costs related to the new wells that have been placed on production.
Previous report
Depreciation, depletion, and amortization increased $45.5 million, or 147.0% to $76.5 million for the year ended December 31, 2024 from $31.0 million for the year ended December 31, 2023. These increases reflect the expense related to the new wells placed on production during the twelve months ended December 31, 2024.
Previous report
Gain on sale and exchange of assets of $3.7 million for the year ended December 31, 2024 consists of sales of net mineral and surface acres in various locations in Texas and Oklahoma as well as the sale of our South Texas oilfield service company, Eastern Oil Well Service.
Reworded paragraphs (15)
Previous wording
Net cash provided by operating activities for the year ended December 31, 2024, was $115.9 million compared to $109.0 million in the prior year. Excluding the effects of significant unforeseen expenses or other income, our cash flow from operations fluctuates primarily because of variations in oil and gas production and prices or changes in working capital accounts. Our oil and gas production will vary based on actual well performance but may be curtailed due to factors beyond our control.
Current wording
Excluding the effects of significant unforeseen expenses or other income, our cash flow from operations fluctuates primarily because of variations in oil and gas production and prices or changes in working capital accounts. Our oil and gas production will vary based on actual well performance but may be curtailed due to factors beyond our control.
Previous wording
The Company maintains a Credit Agreement with a maturity date of December 20, 2028, providing for a credit facility totaling $300 million, with a borrowing base of $115 million. As of April 8, 2025, the Company had $17.5 million in outstanding borrowings and $97.5 million in availability under this facility. The bank reviews the borrowing base semi-annually and, at its discretion, may decrease or propose an increase to the borrowing base relative to a re-determined estimate of proved oil and gas reserves. The next borrowing base review is scheduled for June 2025. Our oil and gas properties are pledged as collateral for the line of credit and we are subject to certain financial and operational covenants defined in the agreement. We are currently in compliance with these covenants and expect to be in compliance over the next twelve months. If we do not comply with these covenants on a continuing basis, the lenders have the right to refuse to advance additional funds under the facility and/or declare all principal and interest immediately due and payable. Our borrowing base may decrease as a result of lower natural gas or oil prices, operating difficulties, declines in reserves, lending requirements or regulations, the issuance of new indebtedness or for other reasons set forth in our revolving credit agreement. In the event of a decrease in our borrowing base due to declines in commodity prices or otherwise, our ability to borrow under our revolving credit facility may be limited and we could be required to repay any indebtedness in excess of the re-determined borrowing base.
Current wording
The Company maintains a Credit Agreement with a maturity date of December 20, 2028, providing for a credit facility totaling $300 million, with a borrowing base of $115 million. As of April 15, 2026, the Company had no outstanding borrowings and $115 million in availability under this facility. The bank reviews the borrowing base semi-annually and, at its discretion, may decrease or propose an increase to the borrowing base relative to a re-determined estimate of proved oil and gas reserves. The next borrowing base review is scheduled for June 2026. Our oil and gas properties are pledged as collateral for the line of credit and we are subject to certain financial and operational covenants defined in the agreement. We are currently in compliance with these covenants and expect to be in compliance over the next twelve months. If we do not comply with these covenants on a continuing basis, the lenders have the right to refuse to advance additional funds under the facility and/or declare all principal and interest immediately due and payable. Our borrowing base may decrease as a result of lower natural gas or oil prices, operating difficulties, declines in reserves, lending requirements or regulations, the issuance of new indebtedness or for other reasons set forth in our revolving credit agreement. In the event of a decrease in our borrowing base due to declines in commodity prices or otherwise, our ability to borrow under our revolving credit facility may be limited and we could be required to repay any indebtedness in excess of the re-determined borrowing base.
Previous wording
Our credit agreement requires us to hedge a portion of our production as forecasted for the PDP reserves included in our borrowing base review engineering reports. The credit agreement requires that as of the last day of any fiscal quarter, if the borrowing base utilization percentage on such a date is less than 15%, then the borrower shall not be required to enter into any swap agreements. As of the quarter ended December 31, 2024, the Company had $4 million in outstanding borrowings and $111 million in availability. Accordingly, the Company had no swap agreements in place for oil and natural gas.
Current wording
Our credit agreement requires us to hedge a portion of our production as forecasted for the PDP reserves included in our borrowing base review engineering reports. The credit agreement requires that as of the last day of any fiscal quarter, if the borrowing base utilization percentage on such a date is less than 15%, then the borrower shall not be required to enter into any swap agreements. As of the quarter ended December 31, 2025, the Company had zero in outstanding borrowings and $115 million in availability. Accordingly, the Company had no swap agreements in place for oil and natural gas.
Previous wording
In 2024, the Company invested $113 million in 48 horizontals in West Texas: 47 of these are located in Reagan County and one is located in Upton County. In Reagan County, the Company joined Double Eagle in drilling and completing 33 new horizontal wells: on the “Honey RF” tract we completed 12 horizontals each being two-mile-long laterals, and participated with 50% interest investing $37 million; on the “Prime West” tract we have 50% interest in six wells and invested $20.5 million; on both the “Kramer” and “O’Bannion” tracts we participated in six horizontals, each with an average 8.3% interest and we invested approximately $7.8 million; and on the “Pink Floyd” tract we have less than 1% interest in two wells in which we invested approximately $174,900; and on our“Studley AV” tract we participated with Double eagle in testing the Wolfcamp “D” interval; in this well we have about 6.3% interest and invested approximately $600,000. Also in Reagan County, we participated with Civitas in 14 horizontal wells on the “Christi” tract, carrying an average of 39% interest and investing roughly $46.7 million. Also in 2024, in Upton County, we participated with Pioneer Natural Resources in one 2-mile-long horizontal with 3.94% interest, investing approximately $425,700. Of these 48 wells, 32 are 2-mile-long laterals, 14 are 2.5-mile-long laterals, and two are 3-mile-long laterals.
Current wording
$37 million; on the “Prime West” tract we have 50% interest in six wells and invested $20.5 million; on both the “Kramer” and “O’Bannion” tracts we participated in six horizontals, each with an average 8.3% interest and we invested approximately $7.8 million; and on the “Pink Floyd” tract we have less than 1% interest in two wells in which we invested approximately $174,900; and on our “Studley AV” tract we participated with Double eagle in testing the Wolfcamp “D” interval; in this well we have about 6.3% interest and invested approximately $600,000. Also in Reagan County, we participated with Civitas in 14 horizontal wells on the “Christi” tract, carrying an average of 39% interest and investing roughly $46.7 million. Also in 2024, in Upton County, we participated with Pioneer Natural Resources in one 2-mile-long horizontal with 3.94% interest, investing approximately $425,800. Of these 48 wells, 32 are 2-mile-long laterals, 14 are 2.5-mile-long laterals, and two are 3-mile-long laterals.
Previous wording
In addition to this activity, in June of 2024, we began participation with Apache in the drilling of six additional 3-mile-long laterals in Upton County on our “Mt. Moran” tract. Three of these wells were completed in late December 2024 and three were completed in January of 2025. All six new “Mt. Moran” wells are producing as of April 1, 2025. In these six Mt. Moran wells, the Company has an average of 51.16% interest and will in total invest approximately $40.5 million. In addition, in November of 2024, in Reagan County, we began participating with Double Eagle in 15 “OG” horizontal wells: eight are 2.5-mile-long laterals, and seven are 2-mile-long laterals. In each of these 15 “OG” wells the Company has approximately 23% interest and in total will invest roughly $29 million through completion of production facilities. These 15 horizontals are expected to be on production in mid to late April 2025. By the end of the second quarter of 2025, therefore, the Company will have invested approximately $70 million in these additional 21 horizontal wells.
Current wording
In addition to this activity, in June of 2024, we participated with Apache in the drilling of six additional 3-mile-long laterals in Upton County on our “Mt. Moran” tract. Three of these wells were completed in late December 2024 and three were completed in January of 2025. All six new “Mt. Moran” wells are producing as of April 1, 2025. In these six Mt. Moran wells, the Company has an average of 51.16% interest and in total invested approximately $36.3 million. In addition, in November of 2024, in Reagan County, we participated with Double Eagle in 15 “OG” horizontal wells: eight are 2.5-mile-long laterals, and seven are 2-mile-long laterals. In each of these 15 “OG” wells the Company has approximately 23% interest and in total invested roughly $23 million through completion of production facilities. These 15 horizontals were on production in May 2025. By the end of 2025, therefore, the Company has invested approximately $59.3 million in these additional 21 horizontal wells.
Previous wording
In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; in these, we will participate for approximately 3.125% interest and invest $408,000. In the second and third quarters of 2025, we are anticipating the start of twenty new horizontals in the Midland Basin of West Texas: 15 wells operated by Double Eagle on our “Full House” tract in Reagan County in which the Company will participate with approximately 31% interest and invest $48.4 million, and five wells operated by ConocoPhillips on our “Schenecker” tract in Martin, County in which we plan to participate for 20.83% interest and invest $11.3 million. In total in these 22 wells, we will invest approximately $60 million.
Current wording
In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; in these, we participated with approximately 3.14% interest and invested $405,000, these wells were completed in May 2025. In the second and third quarters of 2025, we participated in fifteen new horizontals in the Midland Basin of West Texas: these 15 wells are on production as of September 2025 and are operated by Double Eagle on our “Full House” tract in Reagan County in which the Company participated with approximately 27% interest and invested approximately $30.1 million. In addition to the Reagan County activity, the company participated in eight “Horseshoe” wells in Midland County with Vital Energy. Drilling activity with these wells began in the second quarter and the well were put on production during the fourth quarter of 2025. The Company has an average of 8.2% interest in these eight wells and invested approximately $5.4 million. We also participated with Devon Energy Production on two "Evelyn" wells in Kingfisher County, Oklahoma; we participated with approximately 9.95% interest and $1.4 million. These wells were drilled in July 2025 and completed November 2025. In total in these 27 wells, we invested approximately $37.3 million.
Previous wording
The Company has a stock repurchase program in place, spending under this program in 2024 and 2023 was $13.4 million and $7.5 million, respectively. The Company expects continued spending under the stock repurchase program in 2025.
Current wording
The Company has a stock repurchase program in place, spending under this program in 2025 and 2024 was $13.6 million and $13.4 million, respectively.
Previous wording
We reported a net income of $55.4 million for 2024, or $31.43 per share, compared to $28.1 million, or $15.19 per share for 2023. The current year net income reflects production increases offset by commodity price decreases. The significant components of income and expense are discussed below.
Current wording
We reported a net income of $26.3 million for 2025, or $15.85 per share, compared to $55.4 million for 2024, or $31.43 per share for 2024.
Previous wording
Oil, NGL and gas sales increased $115 million, or 107.01% to $223.1 million for the year ended December 31, 2024 from $107.7 million for the year ended December 31, 2023. Crude oil, NGL and natural gas sales vary due to changes in volumes of production sold and realized commodity prices. Our realized prices at the well head decreased an average of $1.04 per barrel, or 1.35% on crude oil, increased an average of $0.61 per barrel, or 3.11% on NGL and decreased $1.49 per Mcf, or 77.6% on natural gas during 2024 as compared to 2023.
Current wording
Oil, NGL and gas sales decreased $45.5 million, or 20.4% to $177.5 million for the year ended December 31, 2025 from $223 million for the year ended December 31, 2024. Crude oil, NGL and natural gas sales vary due to changes in volumes of production sold and realized commodity prices. Our realized prices at the well head decreased an average of $12.48 per barrel, or 16.5% on crude oil, decreased an average of $4.93 per barrel, or 24.4% on NGL and increased $0.33 per Mcf, or 77.3% on natural gas during 2025 as compared to 2024.
Previous wording
Our crude oil production increased by 1,412,000 barrels, or 123.43% to 2,556,000 barrels for the year ended December 31, 2024 from 1,144,000 barrels for the year ended December 31, 2023. Our NGL production increased by 678,000 or 111.88% to 1,284,000 for the year ended December 31, 2024 from 606,000 barrels for the year ended December 31, 2023. Our natural gas production increased by 3,639 MMcf, or 88.18% 7,766 MMcf for the year ended December 31, 2024 from 4,127 MMcf for the year ended December 31, 2023. The changes in crude oil, NGL and natural gas production volumes are a result of new wells placed in production offset by the natural decline of existing properties.
Current wording
Our crude oil production decreased by 270,000 barrels, or 10.6% to 2,286,000 barrels for the year ended December 31, 2025 from 2,556,000 barrels for the year ended December 31, 2024. Our NGL production increased by 366,000 or 28.5% to 1,650,000 for the year ended December 31, 2025 from 1,284,000 barrels for the year ended December 31, 2024. Our natural gas production increased by 2,059 MMcf, or 26.5% to 9,825 MMcf for the year ended December 31, 2025 from 7,766 MMcf for the year ended December 31, 2024. The changes in crude oil, NGL and natural gas production volumes are a result of new wells placed in production offset by the natural decline of existing properties.
Previous wording
Field service income decreased $4.5 million or 29.5% to $10.9 million for the year ended December 31, 2024 from $15.4 million for the year ended December 31, 2023. Workover rig services, hot oil treatments, saltwater hauling and disposal represent the bulk of our field service operations. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Current wording
Field service income decreased $2.5 million or 25.3% to $8.4 million for the year ended December 31, 2025 from $10.9 million for the year ended December 31, 2024. Workover rig services, hot oil treatments, water hauling and salt water disposal represent the bulk of our field service operations. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Previous wording
Field service expense decreased $2.6 million, or 22.4% to $9.1 million for the year ended December 31, 2024 from $11.7 million for the year ended December 31, 2023. Field service expenses primarily consist of wages and vehicle operating expenses. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Current wording
Field service expense decreased $2.9 million, or 32.0% to $6.2 million for the year ended December 31, 2025 from $9.1 million for the year ended December 31, 2024. Field service expenses primarily consist of wages and vehicle operating expenses. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Previous wording
General and administrative expense increased $3.2 million, or 21.0% to $18.8 million for the year ended December 31, 2024 from $15.6 million for the year ended December 31, 2023. This increase is primarily due to employee compensation, benefits and other corporate costs.
Current wording
General and administrative expense decreased $0.5 million, or 2.7% to $18.4 million for the year ended December 31, 2025 from $18.9 million for the year ended December 31, 2024. This decrease is primarily related lower to employee compensation, benefits and other corporate costs.
Previous wording
Interestexpense increased $1.0 million, or 189.0% to $1.5 million for the year ended December 31, 2024 from $0.5 million for the year ended December 31, 2023. This increase reflects the higher interest and fee rates combined with borrowings throughout the twelve months of 2024 under our revolving credit agreement.
Current wording
Interest expense increased $0.7 million, or 44.3% to $2.2 million for the year ended December 31, 2025 from $1.5 million for the year ended December 31, 2024. This increase reflects the higher interest and fee rates combined with borrowings throughout the twelve months of 2025 under our revolving credit agreement.
Previous wording
Taxexpense of $15.8 million and $6.1 million were recorded for the years ended December 31, 2024 and 2023, respectively. The change in our income tax provision was primarily due to the increase in pre-tax income for the year ended December 31, 2024.
Current wording
Tax expense of $4.2 million and $15.8 million were recorded for the years ended December 31, 2025 and 2024, respectively. The change in our income tax provision was primarily due to the decrease in pre-tax income for the year ended December 31, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net cash provided by operating activities for the year ended December 31, 2025, was $96.7 million compared to $115.9 million in the prior year.
Current report — wording carried from elsewhere
In 2024, the Company invested $113 million in 48 horizontals in West Texas: 47 of these are located in Reagan County and one is located in Upton County. In Reagan County, the Company joined Double Eagle in drilling and completing 33 new horizontal wells: on the “Honey RF” tract we completed 12 horizontals each being two-mile-long laterals, and participated with 50% interest investing