Primeenergy (PNRG) AI Stock Analysis

• Market Cap: $287.98M
• Dividend Yield: N/A
• Average Volume (3M): 64.43K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.12
• Revenue Growth: 22.97%
• EPS Growth: -19.37%
• Country: US
• Employees: 78
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.33
• Shares Outstanding: 1,649,000
• 10 Day Avg. Volume: 62,064
• 30 Day Avg. Volume: 64,429
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.65
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 2.60
• 1Y Price Target: $180.00
• Price Target Upside: 4.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $180.00 ▲(4.44% Upside)

Primeenergy's strong financial performance, particularly its profitability and low leverage, are key strengths. However, technical indicators suggest caution, and declining revenue and cash flow growth are risks. The stock's valuation appears reasonable, supporting a moderate overall score.

Primeenergy Business Overview & Revenue Model

Company Description

PrimeEnergy Resources Corporation, an independent oil and natural gas company, through its subsidiaries, engages in acquiring, developing, and producing oil and natural gas properties in the United States. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support operations, site-preparation, and construction services for oil and gas drilling and reworking operations. The company operates approximately 710 active wells and owns non-operating interests in approximately 822 additional wells primarily in Oklahoma and Texas. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. The company was incorporated in 1973 and is headquartered in Houston, Texas.

How the Company Makes Money

Primeenergy generates revenue primarily through the sale of crude oil and natural gas. The company engages in exploration and production activities, which involve drilling for oil and gas in various regions, thereby creating a significant revenue stream from the extraction and sale of these resources. Additionally, Primeenergy may enter into joint ventures and partnerships with other energy firms, sharing both the risks and rewards associated with exploration and production. The company also benefits from favorable pricing in the energy markets, as fluctuations in oil and natural gas prices can significantly impact its revenues. Furthermore, Primeenergy's investment in technology and efficient operational practices helps reduce costs and increase profitability, contributing to its overall earnings.

Primeenergy Financial Statement Overview

Summary

Primeenergy demonstrates strong profitability and financial stability, with impressive margins and low leverage. However, challenges include declining revenue growth and free cash flow, which could impact future financial flexibility.

Income Statement

Primeenergy's income statement shows strong profitability with a high EBITDA margin of 64.12% TTM, indicating efficient operations. However, the revenue growth rate has declined by 9.28% TTM, which is a concern. The gross profit margin improved to 50.24% TTM, reflecting better cost management. Despite the net profit margin decreasing slightly to 21.84% TTM, it remains robust, suggesting solid bottom-line performance.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.048 TTM, indicating low leverage and financial stability. The return on equity is impressive at 26.68% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 63.23% TTM, highlighting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth by 83.05% TTM, which is a concern. However, the operating cash flow to net income ratio is healthy at 1.93 TTM, indicating strong cash generation relative to net income. The free cash flow to net income ratio is low at 0.10 TTM, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.01M	233.89M	123.13M	137.10M	82.42M	52.44M
Gross Profit	101.33M	87.70M	40.72M	48.11M	13.90M	-1.79M
EBITDA	140.28M	149.22M	66.42M	56.18M	29.80M	27.20M
Net Income	36.72M	55.40M	28.10M	48.66M	2.10M	-2.32M
Balance Sheet
Total Assets	343.03M	324.62M	288.57M	247.14M	210.91M	200.48M
Cash, Cash Equivalents and Short-Term Investments	2.36M	2.55M	11.06M	26.54M	10.35M	996.00K
Total Debt	12.77M	4.13M	284.00K	11.00M	36.00M	38.75M
Total Liabilities	137.78M	121.70M	127.62M	106.78M	111.82M	102.49M
Stockholders Equity	205.25M	202.93M	160.95M	140.35M	99.09M	97.12M
Cash Flow
Free Cash Flow	1.88M	-3.33M	-4.76M	17.15M	7.89M	5.86M
Operating Cash Flow	93.36M	115.91M	109.02M	33.13M	28.62M	16.38M
Investing Cash Flow	-87.25M	-114.99M	-105.70M	15.47M	-19.25M	339.00K
Financing Cash Flow	-5.76M	-9.43M	-18.80M	-32.40M	-18.00K	-16.74M

Primeenergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 172.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 172.35 is above the 20-day moving average (MA) of 163.09, above the 50-day MA of 163.30, and below the 200-day MA of 181.71, indicating a neutral trend. The MACD of 4.07 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 63.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNRG.

Primeenergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGY	72 Outperform	448.31M	11.69	7.58%	5.90%	-2.71%	-54.82%
PNRG	71 Outperform	$287.98M	11.74	18.75%	―	22.97%	-19.37%
BRY	66 Neutral	310.41M	62.11	0.76%	3.01%	-40.96%	―
SJT	61 Neutral	275.46M	-1,737.14	―	―	-99.72%	-101.28%
WTI	53 Neutral	290.74M	-2.60	108.78%	2.03%	-11.53%	-342.58%
TBN	39 Underperform	246.67M	-10.34	―	―	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%