PrimeEnergy Reports Strong Oil Prices Offset Negative Natural Gas Prices
PrimeEnergy Resources Corporation reported its second quarter and first half results for 2026. The company's net income was $6.5 million, or $4.06 per basic share, in the second quarter of 2026 compared to $3.2 million, or $1.94 per basic share, in the same period last year. For the first six months of 2026, PrimeEnergy reported a net income of $10.9 million, or $6.72 per basic share, down from $12.4 million, or $7.37 per basic share, in the first half of 2025.
The company's second quarter results were impacted by negative natural gas prices in the Permian Basin, with an average realized price of negative $3.53 per Mcf, resulting in a loss of $9.2 million. However, strong oil prices provided a significant offset, with PrimeEnergy realizing an average oil price of $98.85 per barrel, up from $56.96 per barrel in the second quarter of 2025.
PrimeEnergy ended the quarter with $28.7 million in cash and no bank debt. The company continued to repurchase shares, purchasing 31,290 shares during the quarter for approximately $5.5 million. PrimeEnergy's Board also authorized the repurchase of an additional 300,000 shares.
The company is currently drilling 24 horizontal wells in Martin and Upton Counties, with first production expected in the fourth quarter of 2026. For 2026, PrimeEnergy expects to invest approximately $52 million in 28 horizontal wells.