Primeenergy (PNRG) AI Stock Analysis

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Primeenergy

(NASDAQ:PNRG)

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Rating:80Outperform

Price Target:$242.00▲(5.99% Upside)

Action:reiterated

Date:09/25/26

The score is primarily supported by strong financial performance—minimal leverage and strong TTM operating/free cash flow—partly offset by cyclical volatility in revenues and margins. Technicals are moderately constructive with price above key longer-term averages but mixed near-term momentum. Valuation appears reasonable at ~12.93x earnings, while the credit facility borrowing base reduction is a modest event risk with limited immediate impact given no borrowings.

Positive Factors

Exceptionally low leveragePrimeEnergy’s exceptionally conservative capital structure limits solvency risk and preserves financial flexibility. Minimal debt should reduce interest burdens, support resilience during energy downturns, and leave the company better positioned to fund development or withstand commodity-price volatility.

Negative Factors

Cyclical revenue and margin volatilityLarge year-to-year swings make PrimeEnergy’s earnings power less predictable over a multi-month horizon. Profitability below the 2024 peak indicates that strong margins are not assured, which can complicate planning, capital allocation, and the durability of returns.

Primeenergy (PNRG) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $361.36M
Dividend Yield: ―
Average Volume (3M): 81.63K
Price to Earnings (P/E): 15.0
Beta (1Y): 0.59
Revenue Growth: -19.15%
EPS Growth: -28.59%
Country: US
Employees: 67
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

Primeenergy Business Overview & Revenue Model

Company Description

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-p...

How the Company Makes Money

PrimeEnergy primarily makes money by producing and selling crude oil, natural gas, and natural gas liquids (NGLs) from its portfolio of properties. Revenue is generated when hydrocarbons produced from wells in which the company owns a working interes...

Primeenergy Financial Statement Overview

Summary

Strong overall financial health driven by an exceptionally conservative balance sheet (debt-to-equity ~0.007) and robust TTM cash generation (operating cash flow ~$98.3M; free cash flow ~$51.0M with cash flow ~3.0x net income). The main constraint is cyclicality and variability: revenue and margins have swung materially year to year and profitability is below the 2024 peak.

Income Statement

76Positive

Balance Sheet

92Very Positive

Cash Flow

83Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Dec 2021
Income Statement
Total Revenue	176.29M	185.91M	233.89M	123.13M	93.27M	82.42M
Gross Profit	75.35M	49.00M	87.70M	40.72M	16.29M	22.52M
EBITDA	96.87M	108.45M	149.22M	66.42M	87.97M	32.97M
Net Income	24.82M	26.31M	55.40M	28.10M	48.66M	2.10M
Balance Sheet
Total Assets	315.32M	323.89M	324.62M	288.57M	247.14M	210.91M
Cash, Cash Equivalents and Short-Term Investments	28.73M	7.42M	2.55M	11.06M	26.54M	10.35M
Total Debt	1.47M	3.88M	8.26M	3.90M	11.00M	36.00M
Total Liabilities	96.90M	108.21M	121.70M	127.62M	106.78M	111.82M
Stockholders Equity	218.43M	215.69M	202.93M	160.95M	140.35M	99.09M
Cash Flow
Free Cash Flow	51.01M	20.78M	-3.33M	-4.76M	17.15M	7.89M
Operating Cash Flow	98.33M	96.73M	115.91M	109.02M	33.13M	28.62M
Investing Cash Flow	-48.33M	-74.31M	-114.99M	-105.70M	15.47M	-19.25M
Financing Cash Flow	-23.64M	-17.55M	-9.43M	-18.80M	-32.40M	-18.00K

Primeenergy Technical Analysis

Technical Analysis SentimentPositive

Last Price228.33

Price Trends

50DMA211.15Positive

100DMA198.36Positive

200DMA203.25Positive

Market Momentum

MACD4.43Negative

RSI65.96Neutral

STOCH97.37Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNRG, the sentiment is Positive. The current price of 228.33 is above the 20-day moving average (MA) of 213.93, above the 50-day MA of 211.15, and above the 200-day MA of 203.25, indicating a bullish trend. The MACD of 4.43 indicates Negative momentum. The RSI at 65.96 is Neutral, neither overbought nor oversold. The STOCH value of 97.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNRG.

Primeenergy Risk Analysis

Primeenergy disclosed 29 risk factors in its most recent earnings report. Primeenergy reported the most risks in the "Production" category.

Finance & Corporate7
Tech & Innovation1
Legal & Regulatory6
Production8
Ability to Sell4
Macro & Political3

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

2 New Risks

1.Increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our Environmental, Social and Governance ("ESG") policies may impose additional costs on us or expose us to additional risks.Q4, 2023

2.Changes to the U.S. federal tax laws could adversely affect our financial position, results of operations and cash flow.Q4, 2023

Primeenergy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

PNRG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNRG	80Outperform	$361.36M	15.01	11.47%	―	-19.15%	-28.59%
ANNA	69Neutral	$166.67M	12.70	21.37%	―	554.95%	―
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPSN	64Neutral	$195.63M	-32.98	-2.92%	3.87%	53.71%	-204.13%
REI	57Neutral	$372.57M	-1.30	-28.80%	―	-3.15%	-416.57%
AMPY	52Neutral	$177.02M	8.54	5.13%	―	-23.70%	30.67%
GTE	42Neutral	$400.86M	-1.57	-122.23%	―	2.69%	-289.33%

* Energy Sector Average

Performance Comparison

PNRG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
PNRG	Primeenergy	228.33	93.18	68.95%
GTE	Gran Tierra Energy Inc	11.33	7.81	221.88%
AMPY	Amplify Energy Corp.	4.27	-0.41	-8.76%
REI	Ring Energy Inc	1.43	0.48	50.21%
EPSN	Epsilon Energy Ltd.	6.46	1.80	38.72%
ANNA	Aleanna, Inc.	2.49	-0.85	-25.45%

Primeenergy Corporate Events

Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance

PrimeEnergy Updates Credit Facility Borrowing Base Agreement

Positive

Aug 4, 2026

On August 3, 2026, PrimeEnergy Resources Corporation amended its borrowing base agreement with Citibank, N.A., reducing the borrowing base on its credit facility from $115 million to $105 million. As of March 31, 2026, and continuing through the date...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 25, 2026

Primeenergy AI Stock Analysis