Overview

• US oil and gas producer's Q1 net income fell sharply yr/yr amid negative Permian gas prices

• Company remained profitable and generated $24 mln in cash flow despite negative gas prices

• PrimeEnergy repurchased 14,500 shares for $2.6 mln during Q1

Outlook

• PrimeEnergy expects negative natural gas prices in the Permian Basin may persist or worsen in 2026

• Company plans to invest about $52 mln in Permian Basin project during 2026

• PrimeEnergy continues to pursue additional horizontal development opportunities in West Texas and Oklahoma

Result Drivers

• NEGATIVE GAS PRICES - Co said negative natural gas prices in the Permian Basin, caused by pipeline constraints and oversupply, reduced earnings

• OIL-WEIGHTED REVENUES - Diversified production base and oil-weighted revenues helped offset impact of negative gas prices, per co

Company press release: ID:nGNE722Xrn

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$2.67
Q1 Net Income		$4.30 mln

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Primeenergy Resources Corp is $176.00, about 33.6% below its May 19 closing price of $264.90

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