Primeenergy (PNRG) AI Stock Analysis

• Market Cap: $288.65M
• Dividend Yield: N/A
• Average Volume (3M): 19.54K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.10
• Revenue Growth: 91.49%
• EPS Growth: 106.37%
• Country: US
• Employees: 78
• Sector: Energy
• Sector Strength: 55
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 22.00
• Shares Outstanding: 1,672,470
• 10 Day Avg. Volume: 22,656
• 30 Day Avg. Volume: 19,539
• PEG Ratio: 0.07
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.39
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Primeenergy's overall stock score reflects a combination of strong financial fundamentals and a potentially undervalued stock, offset by technical indicators suggesting caution. The company's low leverage and solid equity positions signal financial stability, but operational inefficiencies and high capital expenditures warrant attention. The current bearish trend in technical analysis suggests investor caution, although the stock's valuation could appeal to long-term investors seeking value opportunities.

Primeenergy Business Overview & Revenue Model

Company Description

PrimeEnergy Resources Corporation (PNRG) is an independent oil and natural gas company engaged in the acquisition, development, and production of oil and natural gas properties. The company primarily operates in the United States, focusing on regions with proven reserves to optimize its extraction activities. PrimeEnergy employs advanced technologies and strategic partnerships to enhance its production capabilities while adhering to environmental and regulatory standards.

How the Company Makes Money

PrimeEnergy generates revenue through the exploration, development, and sale of oil and natural gas. The company leverages its assets by acquiring and developing properties with significant resource potential. Its primary revenue streams include the sale of crude oil, natural gas, and natural gas liquids. PrimeEnergy's earnings are significantly influenced by market prices for oil and natural gas, production volumes, and operational efficiencies. Additionally, strategic joint ventures and partnerships with other energy companies can enhance its exploration and production capabilities, contributing to its overall financial performance.

Primeenergy Financial Statement Overview

Summary

Primeenergy is performing well with strong growth and profitability, evidenced by high margins and effective cost management. The balance sheet is stable with low leverage, crucial for sustainability in the fossil fuels industry. However, negative free cash flow poses a risk that requires monitoring.

Income Statement

Primeenergy's income statement reflects strong profitability with a gross profit margin of 58.89% and a net profit margin of 27.89% in TTM. The company achieved significant revenue growth of 71.71% compared to the previous annual report. The EBIT margin stands at 41.98%, and the EBITDA margin is 60.41%, indicating efficient cost management and operational performance. Despite the strong growth trajectory, attention should be paid to potential industry fluctuations.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of 59.00%, suggesting a solid capital structure. The debt-to-equity ratio is low at 0.02, indicating minimal leverage and financial risk. Return on equity (ROE) is robust at 28.94%, highlighting effective shareholder returns. The balance sheet is stable, but maintaining low debt levels is crucial in the capital-intensive fossil fuels industry.

Cash Flow

Primeenergy's cash flow statement indicates a decrease in free cash flow to -$14.81 million in TTM, a concern that needs addressing. However, the operating cash flow to net income ratio is 2.21, demonstrating strong cash generation relative to profit. The free cash flow to net income ratio is negative, which could signal potential liquidity challenges if not managed properly.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
123.13M	125.09M	79.61M	58.42M	104.82M
	Gross Profit
41.40M	48.11M	13.90M	-1.79M	19.76M
	EBIT
25.07M	28.11M	3.48M	-16.81M	4.14M
	EBITDA
66.42M	56.18M	29.80M	27.20M	40.28M
	Net Income Common Stockholders
28.10M	48.66M	2.10M	-2.36M	3.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.06M	26.54M	10.35M	996.00K	1.01M
	Total Assets
288.57M	247.14M	210.91M	200.48M	229.37M
	Total Debt
284.00K	11.00M	36.00M	38.75M	53.50M
	Net Debt
-11.06M	-15.54M	25.65M	37.76M	52.48M
	Total Liabilities
127.62M	106.78M	111.82M	102.49M	126.00M
	Stockholders Equity
160.95M	140.35M	99.09M	97.12M	100.11M
Cash Flow		Free Cash Flow
-4.76M	17.15M	7.89M	5.86M	9.16M
	Operating Cash Flow
109.02M	33.13M	28.62M	16.38M	27.21M
	Investing Cash Flow
-105.70M	15.47M	-19.25M	339.00K	-13.47M
	Financing Cash Flow
-18.80M	-32.40M	-18.00K	-16.74M	-19.04M

Primeenergy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 169.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNRG, the sentiment is Negative. The current price of 169.87 is below the 20-day moving average (MA) of 186.49, below the 50-day MA of 196.75, and below the 200-day MA of 173.86, indicating a neutral trend. The MACD of -8.44 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 54.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PNRG.

Primeenergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFR	66 Neutral	$349.61M	4.00	15.87%	―	135.04%	―
EGY	66 Neutral	$357.91M	6.20	11.79%	7.31%	5.26%	-1.52%
SD	61 Neutral	$349.17M	5.55	13.57%	4.62%	-15.94%	2.90%
PNRG	61 Neutral	$288.65M	7.84	30.45%	―	91.49%	106.37%
GPRK	60 Neutral	$359.68M	3.82	50.82%	8.57%	-12.66%	-7.08%
Sector *	56 Neutral	$7.14B	3.56	-6.61%	5.99%	>-0.01%	-50.21%
CLNE	44 Neutral	$331.47M	―	-11.54%	―	-2.19%	16.69%