Company Summary: PrimeEnergy Resources Corporation

Business Overview

• Type: Independent oil and natural gas company
• Founded: March 1973
• Incorporation: Delaware
• Primary Focus: Acquiring, developing, and producing oil and natural gas
• Location: All properties and interests are located in the United States

Operations & Properties

• Main Areas of Operation:

  • Texas: Primarily West Texas, including the Midland Basin and Reagan, Upton, Martin, and Midland counties
  • Oklahoma: Central Oklahoma, including Canadian, Kingfisher, Grant, Major, and Garvin counties

• Produced & Non-Producing Properties: Primarily in Texas and Oklahoma

• Operations:

  • Owns and operates 508 wells (including oil, saltwater disposal, injection, and supply wells)
  • Owns well-servicing equipment and provides well support and drilling services
  • Operates a field service group in West Texas with nine workover rigs and supporting trucks

• Additional Assets:

  • West Virginia: 12.5% overriding royalty interest in over 30,000 acres (development not yet begun)
  • Offshore Pipeline: Owns an idle 60-mile-long offshore pipeline on Texas shallow shelf via a wholly owned offshore company
  • Real Estate: 33.3% interest in a 138,000 sqft retail shopping center in Prattville, Alabama (book value of $40,000 at 12/31/2024)
  • Other asset: Limited partnership ownership in a retail shopping center in Alabama with approximately $700,000 working capital

Customers & Revenue

• Major Customers (2024):
  • DE IV Operating, LLC: 44.09% of oil sales, 29.77% of gas sales
  • Civitas Resources Inc.: 19.57% of oil sales, 21.79% of gas sales
  • APA Corporation: 11.90% of oil and 18.64% of gas sales
• Revenue (2024):
  • Total oil, natural gas, and NGL sales: approximately $223 million
• Employees:
  • Total: 78 full-time employees
  • Locations: 30 employees at Houston offices and subsidiaries; 48 employees in Midland, Texas and Oklahoma City for district operations

Financial Highlights (2024)

• Net Income: $55.4 million
• Earnings Per Share:
  • Basic: $31.43
  • Diluted: $21.95
• Market Capitalization (Market value of voting stock held by non-affiliates): approximately $66.4 million
• Shares Outstanding (as of April 8, 2025): 1,672,470 shares
• Total Capitalized Costs (as of Dec 31, 2024): $294 million in proved oil and gas properties
• Total proved reserves (end of 2024): 26,512 MBOE (Million Barrels of Oil Equivalent), with 76.5% proved developed

Business Strategy & Activities

• Focus on responsible development via horizontal drilling
• Target high-performance reservoirs, mainly in West Texas and Oklahoma
• Investment in horizontal wells (e.g., 48 wells in 2024, with continued activity planned through 2025 and beyond)
• Emphasis on maintaining financial flexibility with a capital budget involving borrowings and asset divestments
• Actively participating in numerous drilling projects and acquisitions to expand reserves and production

Key Points

• Largest production area: West Texas, with 88.3% of proved reserves
• Other notable regions: Oklahoma (10% of reserves), Gulf Coast (Texas) (1.7% of reserves)
• Significant development activity ongoing, with projections to invest over $224 million in horizontal drilling in West Texas over several years

Summary:
PrimeEnergy Resources Corporation is a U.S.-based independent oil and natural gas producer, primarily active in Texas and Oklahoma. It owns a diversified portfolio of producing wells, undeveloped reserves, pipeline assets, and real estate interests. The company relies on horizontal drilling, with a focus on the Midland Basin, and maintained a net income of $55.4 million in 2024 with revenues of approximately $223 million. It employs 78 full-time employees and has a market value of around $66.4 million.