PrimeEnergy Corporation Announces Yearend Drilling And Financial Results

PrimeEnergy Corporation (NASDAQ: PNRG) announced today the following audited results for the years ended December 31, 2012 and 2011:
  Year Ended December 31,
2012   2011  

Increase/ (Decrease)
Revenues (In 000’s) $ 120,979 $ 127,080 $ (6,101 )
Net Income (In 000’s) $ 15,056 $ 4,811 $ 10,245
Earnings per Common Share:
Basic $ 5.74 $ 1.75 $ 3.99
Diluted $ 4.48 $ 1.38 $ 3.10
Shares Used in Calculation of:
Basic EPS 2,624,335 2,747,732 (123,397 )
Diluted EPS 3,359,579 3,479,434 (119,855 )

Total assets at December 31, 2012 were $228,086,000 compared to $185,035,000 at December 31, 2011. In 2012, PrimeEnergy participated in drilling 39 wells of which 38 wells were successfully completed. Proved reserves at December 31, 2012 were 13,085,000 barrels of oil, 5,786,000 barrels of natural gas liquids and 40,446,000 thousand cubic feet of natural gas; or 25,612,000 barrels of oil equivalent (“Boe”) with 57% of these reserves developed as compared to 17,752,000 Boe and 77% of these reserves developed at December 31, 2011. During 2012, the Company repurchased 191,309 shares of its common stock and as of March 26, 2013 has 2,454,219 shares outstanding.

The decrease in revenues as compared to 2011 was largely due to gains on derivative instruments associated with early settlement transactions and recovery of gas transportation revenues recognized in 2011. The increase in net income in 2012 was primarily due to decreased depreciation and depletion expenses and decreases in net income attributable to non-controlling interests partially offset by the decrease in revenues and an increase in lease operating and income tax expenses.

Oil and gas production and the average prices received (excluding gains and losses from derivatives) for the years ended December 31, 2012 and 2011 were as follows:
  Year Ended December 31,
2012   2011  

Increase / (Decrease)
Barrels of Oil Produced 745,000 628,000 117,000
Average Price Received $ 89.67 $ 90.04 $ (0.37 )
Oil Revenue (In 000’s) $ 66,830 $ 56,544 $ 10,286  
 
MMcf of Gas Produced 4,715 5,000 (285 )
Average Price Received $ 4.45 $ 6.38 $ (1.93 )
Gas Revenue (In 000’s) $ 21,004 $ 31,885 $ (10,881 )
 
Total Oil & Gas Revenues (In 000’s)

$

87,834

$

88,429

$

(595

)

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 237.

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.

Copyright Business Wire 2010

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