PrimeEnergy Corporation Announces Year-End Drilling and Financial Results

HOUSTON--()--PrimeEnergy Corporation (NASDAQ:PNRG) announced today the following audited results for the years ended December 31, 2013 and 2012:

     
Year Ended December 31,
  2013     2012  

Increase /
(Decrease)

Revenues (In 000’s) $ 125,067 $ 120,979 $ 4,088
Net Income (In 000’s) $ 12,271

$

15,056 $ (2,785 )
Earnings per Common Share:
Basic $ 5.04 $ 5.74 $ (0.70 )
Diluted $ 3.86 $ 4.48 $ (0.62 )
Shares Used in Calculation of:
Basic EPS 2,436,821 2,624,335 (187,514 )
Diluted EPS 3,182,906 3,359,579 (176,673 )
 

Total assets at December 31, 2013 were $242,922,000 compared to $228,086,000 at December 31, 2012. In 2013, PrimeEnergy participated in drilling 23 wells of which all were successfully completed. Proved reserves at December 31, 2013 were 15,753,000 barrels of oil, 5,930,000 barrels of natural gas liquids and 51,400,000 thousand cubic feet of natural gas; or 30,250,000 barrels of oil equivalent (“Boe”) with 47% of these reserves developed as compared to 25,612,000 Boe and 57% of these reserves developed at December 31, 2012. During 2013, the Company repurchased 121,776 shares of its common stock and as of March 24, 2014 has 2,369,552 shares outstanding.

The net increase in revenues as compared to 2012 was largely due to increased commodity prices realized in 2013 and an increase in field service revenues partially offset by gains on derivative instruments recognized in 2012. The decrease in net income in 2013 was primarily due to increases in lease operating and field service expenses partially offset by the increase in revenues, gains on the sale of non-producing and non-core oil and gas interests and non-essential field service equipment and decreased depreciation and depletion expenses.

Oil and gas production and the average prices received (excluding gains and losses from derivatives) for the years ended December 31, 2013 and 2012 were as follows:

     
Year Ended December 31,
  2013     2012  

Increase /
(Decrease)

Barrels of Oil Produced 730,000 745,000 (15,000 )
Average Price Received $ 93.75 $ 89.67 $ 4.08
Oil Revenue (In 000’s) $ 68,446

$

66,830 $ 1,616  
MMcf of Gas Produced 4,897 4,715 182
Average Price Received $ 4.97 $ 4.45 $ 0.52
Gas Revenue (In 000’s) $ 24,339 $ 21,004 $ 3,335  
Total Oil & Gas Revenues (In 000’s)

$

92,785

$

87,834

$

4,951

 
 

PrimeEnergy is an independent oil and gas company actively engaged in acquiring, developing and producing oil and gas, and providing oilfield services, primarily in Texas, Oklahoma, the Gulf of Mexico, West Virginia, New Mexico, Colorado and Louisiana. The Company’s common stock is traded on the Nasdaq Stock Market under the symbol PNRG. If you have any questions on this release, please contact Connie Ng at (713) 735-0000 ext 6416.

This Report contains forward-looking statements that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes", "projects" and "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and are subject to the safe harbors created thereby. These statements are not guarantees of future performance and involve risks and uncertainties and are based on a number of assumptions that could ultimately prove inaccurate and, therefore, there can be no assurance that they will prove to be accurate. Actual results and outcomes may vary materially from what is expressed or forecast in such statements due to various risks and uncertainties. These risks and uncertainties include, among other things, the possibility of drilling cost overruns and technical difficulties, volatility of oil and gas prices, competition, risks inherent in the Company's oil and gas operations, the inexact nature of interpretation of seismic and other geological and geophysical data, imprecision of reserve estimates, and the Company's ability to replace and expand oil and gas reserves. Accordingly, stockholders and potential investors are cautioned that certain events or circumstances could cause actual results to differ materially from those projected.

Contacts

PrimeEnergy Corporation
Connie Ng, 713-735-0000 ext 6416

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Contacts

PrimeEnergy Corporation
Connie Ng, 713-735-0000 ext 6416