Primeenergy (PNRG) AI Stock Analysis

• Market Cap: $271.41M
• Dividend Yield: N/A
• Average Volume (3M): 46.57K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.29
• Revenue Growth: -6.03%
• EPS Growth: -54.59%
• Country: US
• Employees: 78
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 4.38
• Shares Outstanding: 1,635,000
• 10 Day Avg. Volume: 47,302
• 30 Day Avg. Volume: 46,572
• PEG Ratio: 0.07
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 1.66
• P/FCF Ratio: -116.26
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 2.04
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $185.00 ▲(6.19% Upside)

Primeenergy's overall stock score is driven by its strong financial position and improving cash flow generation, despite challenges in revenue and profit margins. Technical analysis indicates short-term bullish momentum but warns of potential overbought conditions. Valuation is fair, though the lack of a dividend yield may deter some investors.

Positive Factors

Strong Profitability

A high EBITDA margin indicates efficient operations and strong profitability, which supports long-term financial health and competitive positioning.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to navigate industry cycles and invest in growth opportunities.

Strong Cash Generation

Strong cash generation relative to net income ensures liquidity and the ability to fund operations and investments without relying on external financing.

Negative Factors

Declining Revenue Growth

Declining revenue growth can signal challenges in market expansion or competitive pressures, potentially impacting future earnings and market share.

Decline in Free Cash Flow

A sharp decline in free cash flow growth limits financial flexibility, affecting the company's ability to invest in new projects or return capital to shareholders.

Decreasing Net Profit Margin

A decrease in net profit margin, although still robust, may indicate rising costs or pricing pressures, affecting overall profitability and competitive edge.

Primeenergy Business Overview & Revenue Model

Company Description

Primeenergy (PNRG) is an independent energy company primarily engaged in the exploration, development, and production of oil and natural gas. Operating predominantly in the United States, Primeenergy focuses on utilizing advanced technologies to enhance recovery from its diverse portfolio of oil and gas assets. The company is dedicated to sustainable practices while meeting the growing energy demands across various sectors.

How the Company Makes Money

Primeenergy generates revenue primarily through the sale of crude oil and natural gas. The company's revenue model is anchored in the extraction and production of hydrocarbons from its operational fields. Key revenue streams include the direct sale of produced oil and gas to refineries and utility companies, as well as participation in joint ventures that allow for shared production costs and risk mitigation. Additionally, Primeenergy may engage in hedging strategies to protect against volatile price fluctuations in the energy market. Strategic partnerships with other energy firms and service providers also contribute to its earnings, enhancing operational efficiencies and expanding market reach.

Primeenergy Financial Statement Overview

Summary

Primeenergy demonstrates a strong financial position with efficient operations and low leverage. The balance sheet is solid with minimal financial risk, and cash flow generation is improving significantly. However, challenges exist with declining revenue and profit margins, which need attention.

Income Statement

Primeenergy's income statement shows a mixed performance. The TTM gross profit margin is strong at 39.5%, indicating efficient cost management. However, the net profit margin has declined to 12.8% from 23.7% in the previous year, reflecting reduced profitability. The revenue growth rate is negative at -10.6%, suggesting a contraction in sales, which is a concern. Despite these challenges, the company maintains a healthy EBITDA margin of 61.6%, showcasing robust operational efficiency.

Balance Sheet

The balance sheet is solid, with a very low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity is healthy at 12.2%, although it has decreased from the previous year's 27.3%, suggesting reduced profitability. The equity ratio is strong, reflecting a stable financial structure with significant equity backing.

Cash Flow

Cash flow analysis reveals a substantial improvement in free cash flow, with a growth rate of 945.2%, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is robust at 2.4, reflecting strong cash flow relative to net income. However, the free cash flow to net income ratio is relatively low at 0.18, suggesting that a smaller portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	196.05M	233.89M	123.13M	93.27M	82.42M	52.44M
Gross Profit	49.86M	87.70M	40.72M	16.29M	22.52M	-7.77M
EBITDA	122.02M	149.95M	66.42M	87.97M	32.97M	27.20M
Net Income	25.20M	55.40M	28.10M	48.66M	2.10M	-2.32M
Balance Sheet
Total Assets	332.02M	324.62M	288.57M	247.14M	210.91M	200.48M
Cash, Cash Equivalents and Short-Term Investments	3.69M	2.55M	11.06M	26.54M	10.35M	996.00K
Total Debt	2.20M	8.26M	3.90M	11.00M	36.00M	38.75M
Total Liabilities	118.23M	121.70M	127.62M	106.78M	111.82M	102.49M
Stockholders Equity	213.78M	202.93M	160.95M	140.35M	99.09M	97.12M
Cash Flow
Free Cash Flow	19.65M	-3.33M	-4.76M	17.15M	7.89M	5.86M
Operating Cash Flow	108.45M	115.91M	109.02M	33.13M	28.62M	16.38M
Investing Cash Flow	-88.09M	-114.99M	-105.70M	15.47M	-19.25M	339.00K
Financing Cash Flow	-18.25M	-9.43M	-18.80M	-32.40M	-18.00K	-16.74M

Primeenergy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 174.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNRG, the sentiment is Neutral. The current price of 174.22 is above the 20-day moving average (MA) of 173.58, above the 50-day MA of 162.03, and above the 200-day MA of 167.10, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 8.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PNRG.

Primeenergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNRG	71 Outperform	$271.41M	15.88	12.07%	―	-6.03%	-54.59%
EGY	68 Neutral	$376.37M	13.32	5.65%	7.20%	-23.00%	-68.20%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SJT	61 Neutral	$263.81M	-959.32	-10.79%	―	-99.78%	-103.13%
TBN	53 Neutral	$567.01M	-10.51	-13.73%	―	―	―
WTI	47 Neutral	$230.60M	-1.57	―	2.41%	-6.92%	-126.24%