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What changed in PRIMEENERGY RESOURCES CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PRIMEENERGY RESOURCES CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+149 added−150 removedSource: 10-K (2026-04-16) vs 10-K (2025-04-15)

Top changes in PRIMEENERGY RESOURCES CORP's 2025 10-K

149 paragraphs added · 150 removed · 118 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeOil Purchasers: DE IV Operating, LLC 44.09 % Civitas Resources Inc... 19.57 % APA Corporation. 11.90 % Gas Purchasers: DE IV Operating, LLC 29.77 % Civitas Resources Inc 21.79 % APA Corporation. 18.64 % Although there are no long-term purchasing agreements with these purchasers, we believe that they will continue to purchase our oil and gas products and, if not, could be readily replaced by other purchasers.
Biggest changeListed below are the percent of the Company’s total oil and gas sales made which represented more than 10% of the Company’s oil and gas sales in the year 2025. 2025 Oil: DE Central Operating, LLC. 53 % Civitas Resources Inc. 12 % APA Corporation. 18 % Natural gas and liquids: DE Central Operating, LLC. 40 % Civitas Resources Inc. 26 % APA Corporation. 15 % Although there are no long-term purchasing agreements with these purchasers, we believe that they will continue to purchase our oil and gas products and, if not, could be readily replaced by other purchasers.
We do not own any refinery or marketing facilities and do not currently own or lease any bulk storage facilities or pipelines other than adjacent to and used in connection with producing wells and the interests in certain gas gathering systems. All of our oil and gas properties and interests are located in the United States.
We do not own any refinery or marketing facilities and do not currently own or lease any bulk storage facilities other than adjacent to and used in connection with producing wells and the interests in certain gas gathering systems. All of our oil and gas properties and interests are located in the United States. .
We did not have any material capital or other non-recurring expenditures in connection with complying with environmental laws or environmental remediation matters in 2024, nor do we anticipate that such expenditures will be material in 2025. Competition and Markets The business of acquiring producing properties and non-producing leases suitable for exploration and development is highly competitive.
We did not have any material capital or other non-recurring expenditures in connection with complying with environmental laws or environmental remediation matters in 2025, nor do we anticipate that such expenditures will be material in 2026. Competition and Markets The business of acquiring producing properties and non-producing leases suitable for exploration and development is highly competitive.
In particular, based on activity west of our acreage in Reagan County, and a recent deep test by Double Eagle on our joint leasehold, we anticipate that proposals will soon be put forward for the drilling of between 36 and 45 new horizontals that will target the Wolfcamp “D” pay zone in Reagan County, and perhaps an additional test well or two in one or more of the other undeveloped pay horizons.
In particular, based on activity west of our acreage in Reagan County, and a recent deep test by Double Eagle on our joint leasehold, we anticipate that proposals could be put forward in the future for the drilling of between 36 and 45 new horizontals that will target the Wolfcamp “D” pay zone in Reagan County, and perhaps an additional test well or two in one or more of the other undeveloped pay horizons.
In Oklahoma, we are focused on the development of our reserves in Canadian, Grady, Kingfisher, Garfield, Major, and Garvin counties where we have approximately 4,113 net leasehold acres in the Scoop/Stack Play.
In Oklahoma, we are focused on the development of our reserves in Canadian, Grady, Kingfisher, Garfield, Major, and Garvin counties where we have approximately 4,015 net leasehold acres in the Scoop/Stack Play.
Of these 48 wells, 32 are 2-mile-long laterals, 14 are 2.5-mile-long laterals, and two are 3-mile-long laterals. In addition to this activity, in June of 2024, we began participation with Apache in the drilling of six additional 3-mile-long laterals in Upton County on our “Mt. Moran” tract.
Of these 48 wells, 32 are 2-mile-long laterals, 14 are 2.5-mile-long laterals, and two are 3-mile-long laterals. In addition to this activity, in June of 2024, we participated with Apache in the drilling of six additional 3-mile-long laterals in Upton County on our “Mt. Moran” tract.
Therefore, in total, since January 2023 and through 2025, the Company will have invested roughly $338 million in horizontal development, primarily in the Midland Basin of West Texas.
Therefore, in total, since January 2023 and through 2025, the Company will have invested roughly $305 million in horizontal development, primarily in the Midland Basin of West Texas.
It is also noteworthy, that since the start of our horizontal development activities in 2012 the Company has invested over $430 million in horizontal drilling in the Midland Basin of West Texas, and $45 million in Oklahoma, predominantly in the Scoop/Stack Play. Additional future drilling activity on our leasehold acreage in West Texas is expected over the next few years.
It is also noteworthy, that since the start of our horizontal development activities in 2012 the Company has invested over $435 million in horizontal drilling in the Midland Basin of West Texas, and $47 million in Oklahoma, predominantly in the Scoop/Stack Play. Additional future drilling activity on our leasehold acreage in West Texas is expected over the next few years.
Of this acreage, we believe 2,355 net leasehold acres hold significant additional resource potential that could support the drilling of as many as 43 new horizontal wells based on an estimate of four wells per multi-section drilling unit, two in the Mississippian and two in the Woodford Shale.
Of this acreage, we believe 2,145 net leasehold acres hold significant additional resource potential that could support the drilling of as many as 34 new horizontal wells based on an estimate of four wells per multi-section drilling unit, two in the Mississippian and two in the Woodford Shale.
Well Operations Our operations are conducted through our principal offices in Houston, Texas, and district offices in Houston and Midland, Texas, and Oklahoma City, Oklahoma. We currently operate 508 wells, including producing, saltwater disposal, injection, and supply wells: 32 through the Houston office, 321 through the Midland office, and 155 through the Oklahoma City office.
Well Operations Our operations are conducted through our principal offices in Houston, Texas, and district offices in Houston and Midland, Texas, and Oklahoma City, Oklahoma. We currently operate 508 wells, including producing, saltwater disposal, injection, and supply wells: 30 through the Houston office, 323 through the Midland office, and 155 through the Oklahoma City office.
Maintaining a strong balance sheet and ample liquidity are key components of our business strategy. In 2025, we will continue our focus on preserving financial flexibility and liquidity as we manage the risks facing our industry.
Maintaining a strong balance sheet and ample liquidity are key components of our business strategy. In 2026, we plan to continue our focus on preserving financial flexibility and liquidity as we manage the risks facing our industry.
Significant Activity As of December 31, 2024, we had net capitalized costs related to proved oil and gas properties of $294 million. Total expenditures for the acquisition, exploration, and development of our properties during 2024 were $119 million as we continue development under the programs discussed above.
Significant Activity As of December 31, 2025, we had net capitalized costs related to proved oil and gas properties of $291 million. Total expenditures for the acquisition, exploration, and development of our properties during 2025 were $75 million as we continue development under the programs discussed above.
In this future activity, we would expect to invest over $100 million. In addition, the Company has identified 20 horizontal locations across our acreage in Upton and Martin counties that could be drilled in this same time frame. These additional 20 wells will require an investment of approximately $64 million.
In this future activity, we have the potential to invest over $100 million. In addition, the Company has identified 37 horizontal locations across our acreage in Upton and Martin counties that could be drilled in this same time frame. These additional 37 wells will require an investment of approximately $87 million.
Three of these wells were completed in late December 2024 and three were completed in January of 2025. All six new “Mt. Moran” wells are producing as of April 1, 2025. In these six Mt. Moran wells, the Company has an average of 51.16% interest and will in total invest approximately $40.5 million.
Three of these wells were completed in late December 2024 and three were completed in January of 2025. All six new “Mt. Moran” wells are producing as of April 1, 2025. In these six Mt. Moran wells, the Company has an average of 51.16% interest and invested approximately $36.3 million.
Employees At December 31, 2024, we had 78 full time employees, 30 of whom were employed at our principal offices in Houston, Texas, at the offices of Prime Operating Company, and EOWS Midland Company, and 48 employees who were primarily involved in our district operations in Midland, Texas and Elmore City and Oklahoma City, Oklahoma.
Employees At December 31, 2025, we had 67 full time employees, 25 of whom were employed at our principal offices in Houston, Texas, at the offices of Prime Operating Company, and EOWS Midland Company, and 42 employees who were primarily involved in our district operations in Midland, Texas and Elmore City and Oklahoma City, Oklahoma.
In West Texas and eastern New Mexico, we maintain an acreage position of approximately 17,138 gross (9,483 net) acres, 89.3% of which are located in Reagan, Upton, and Martin counties of Texas where our current West Texas horizontal drilling activities are focused.
In West Texas and eastern New Mexico, we maintain an acreage position of approximately 16,838 gross (9,420 net) acres, 97.6% of which are located in Reagan, Upton, and Martin counties of Texas where our current West Texas horizontal drilling activities are focused.
In addition, in November of 2024, in Reagan County, we began participating with Double Eagle in 15 “OG” horizontal wells: eight are 2.5-mile-long laterals, and seven are 2-mile-long laterals. In each of these 15 “OG” wells the Company has approximately 23% interest and in total will invest roughly $29 million through completion of production facilities.
In addition, in November of 2024, in Reagan County, we participated with Double Eagle in 15 “OG” horizontal wells: eight are 2.5-mile-long laterals, and seven are 2-mile-long laterals. In each of these 15 “OG” wells the Company has approximately 23% interest and in total invested roughly $23 million.
In total, the Company will invest an estimated $68.5 million in these 21 wells: Six operated by Apache, which were placed on production in March 2025 and the remaining 15, operated by Double Eagle, are to be on production in April 2025.
In total, the Company invested an estimated $59.3 million in these 21 wells: Six operated by Apache, which were placed on production in March 2025 and the remaining 15, operated by Double Eagle, were on production in May 2025.
Proposals may be received on the remaining 2,017 acres, however, rather than participate we may choose to sell the acreage or farm-out, receiving cash and retaining an over-riding royalty interest (ORRI). Regarding the 13 wells drilled in 2023, we chose to farm-out our interest and own an ORRI in these wells.
Proposals may be received on the remaining 1,870 acres, however, rather than participate we may choose to sell the acreage or farm-out, receiving cash and retaining an over-riding royalty interest (ORRI).
In total, therefore, with the $60 million investment in the wells expected to begin drilling in 2025, the $100 million in Wolfcamp “D” development, plus $64 million in 20 additional near-term wells expected to occur in the 2026-2027 timeframe, we anticipate investing approximately $224 million in horizontal drilling in West Texas over the next several years.
In total, therefore, with the $100 million in Wolfcamp “D” development, plus $87 million in 37 additional near-term wells expected to occur in the 2026-2027 timeframe, we have the potential to invest approximately $187 million in horizontal drilling in West Texas over the next several years.
Proved reserves as of December 31, 2024, were 26,512 MBOE which consisted of 76.5% proved developed reserves and 23.5% proved undeveloped reserves. The Company is actively participating in 21 horizontals in West Texas spud in the middle of 2024 that have been drilled in Spraberry and Wolfcamp producing intervals.
Proved reserves as of December 31, 2025, were 28,388 MBOE which consisted of 82.3% proved developed reserves and 17.7% proved undeveloped reserves. The Company participated in 21 horizontals in West Texas spud in the middle of 2024 that have been drilled in Spraberry and Wolfcamp producing intervals.
In particular, under our large acreage position in Reagan County, only the Wolfcamp “A” and “B” intervals have been developed so far, along with a one-well test of the Wolfcamp “D” on one block, which is encouraging.
In particular, under our large acreage position in Reagan County, only the Wolfcamp “A” and “B” intervals have been developed so far, along with a one-well test of the Wolfcamp “D” on one block. 5 In 2023, the Company completed 35 horizontal wells operated by five operators: 32 of these are located in West Texas and three in Oklahoma.
In the second and third quarters of 2025, we are anticipating the start of twenty new horizontals in the Midland Basin of West Texas: 15 wells operated by Double Eagle on our “Full House” tract in Reagan County in which the Company will participate with approximately 31% interest and invest $48.4 million, and five wells operated by ConocoPhillips on our “Schenecker” tract in Martin, County in which we plan to participate for 20.83% interest and invest $11.3 million.
In the second and third quarters of 2025, we participated in fifteen new horizontals in the Midland Basin of West Texas: these 15 wells are operated by Double Eagle on our “Full House” tract in Reagan County in which the Company participated with approximately 27% interest and invested approximately $30.1 million.
The Company’s horizontal development activities in the last two years, along with our projected activity for 2025, can be summarized as follows: in 2023 we invested $96 million in 35 horizontals, in 2024 we invested $113 million in 48 horizontals, and in 2025, we expect to invest $129 million in 43 horizontals.
In total in these 27 wells, we invested approximately $37.3 million. 6 The Company’s horizontal development activities in the last three years, can be summarized as follows: in 2023 we invested $96 million in 35 horizontals, in 2024 we invested $113 million in 48 horizontals, and in 2025, we invested $96 million in 48 horizontals.
By the end of the second quarter of 2025, therefore, the Company will have invested approximately $70 million in these additional 21 horizontal wells. 6 In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; in these, we will participate for approximately 3.125% interest and invest $408,000.
Each of these 15 horizontals were on production as of May 2025 and the Company has invested approximately $59.3 million in these additional 21 horizontal wells. In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; we participated for approximately 3.14% interest and invested $405,000, these wells were completed in May 2025.
We will continue to evaluate prospects for leasehold acquisition and exploration and development operations in areas in which we own interests and are actively pursuing the acquisition of producing properties. To diversify and broaden our asset base, we will consider acquiring the assets or stock in other entities and companies in the oil and gas business.
We attempt to assume the position of operator in all acquisitions of producing properties. We will continue to evaluate prospects for leasehold acquisition and exploration and development operations in areas in which we own interests and are actively pursuing the acquisition of producing properties.
Furthermore, sanctions, import bans and price caps on Russia have been implemented by various countries in response to the ongoing war in Ukraine, further impacting global oil supply. As a result of these and other oil and gas supply constraints, the world has experienced significant increases in energy costs.
Furthermore, sanctions, import bans and price caps on Russia have been implemented by various countries in response to the ongoing war in Ukraine, further impacting global oil supply. In addition, threatened and actual closing of oil shipping routes, including the Strait of Hormuz, have significantly impacted global oil supply.
We believe that our diversified portfolio approach to our drilling activities produces more consistent and predictable economic results than would otherwise be experienced with a less diversified or higher-risk drilling program profile. We attempt to assume the position of operator in all acquisitions of producing properties.
In Kingfisher County, Oklahoma; we participated with approximately 9.95% interest and $1.4 million. 7 In 2025, the Company raised proceeds of $2.2 million from the sale of acreage, and commercial property We believe that our diversified portfolio approach to our drilling activities produces more consistent and predictable economic results than would otherwise be experienced with a less diversified or higher-risk drilling program profile.
Our main objective in making any such acquisitions will be to acquire income-producing assets to increase our net worth and increase our oil and gas reserve base. We presently own producing and non-producing properties located primarily in Texas, and Oklahoma, and through a wholly owned subsidiary, we own a significant amount well-servicing equipment.
We presently own producing and non-producing properties located primarily in Texas, and Oklahoma, and through a wholly owned subsidiary, we own a significant amount well-servicing equipment.
The Company plans to participate with Ovintiv Mid-Continent in the drilling of two 2-mile-long horizontals in Canadian County, Oklahoma with 3.125% interest, investing roughly $408,000 through completion.
Also in 2025, we participated with Ovintiv Mid-Continent in the drilling of two 2-mile- long horizontals in Canadian County, Oklahoma with 3.14% interest, investing roughly $405,000 through completion and with Devon Energy Production in the drilling of two 2-mile-long horizontals in Kingfisher County, Oklahoma with 9.95% Interest and investing roughly $1,439,000.
As we have done historically to preserve or enhance liquidity, we may adjust our capital program throughout the year, divest non-strategic assets, or enter into strategic joint ventures. 5 Horizontal development of our leasehold acreage has continued at a fast pace, particularly in West Texas, where in 2024 we participated with Double Eagle, Pioneer, Civitas, and ConocoPhillips in the drilling and completion of 56 new horizontal wells targeting the Wolfcamp and Spraberry producing intervals.
Horizontal development of our leasehold acreage has continued at a fast pace, particularly in West Texas, where in 2025 we participated with Double Eagle, and Vital in the drilling and completion of 23 new horizontal wells targeting the Wolfcamp and Spraberry producing intervals.
These standards expand upon previously issued NSPS Subparts OOOO and OOOOa published by the EPA in 2012 and 2016, respectively.
These standards expand upon previously issued NSPS Subparts OOOO and OOOOa published by the EPA in 2012 and 2016, respectively. President Trump’s Administration is expected to continue to promulgate new or amended regulations that are supportive of oil and natural gas development.
In addition, in the first quarter of 2025, we began participating in two horizontals with Ovintiv Mid-Continent in Canadian County, Oklahoma with a working interest share of 3.125% interest and will invest approximately $408,000.
In addition, during 2025, we participated in two horizontals developments in Oklahoma. In Canadian County with Ovintiv Mid- Continent we participated with 3.14% interest in two wells and invested approximately $405,000.
President Trump’s Administration has diverged, and is expected to continue to diverge, from the prior Biden Administration’s positions including by promulgating new or amended regulations that are supportive of oil and natural gas development Substantial limitations on GHG emissions could adversely affect demand for the oil and natural gas we produce and lower the value of our reserves.
Substantial limitations on GHG emissions could adversely affect demand for the oil and natural gas we produce and lower the value of our reserves.
In the second and third quarters of 2025, we expect to begin participation in two development projects in West Texas with 20.83% interest in the drilling of five wells in Martin County, operated by ConocoPhillips, and with 31% interest in 15 wells in Reagan County operated by Double Eagle.
In the second half of 2025, we participated in two development projects in West Texas with 8.2% interest in the drilling of eight wells in Midland County, operated by Vital Energy, and with 27% interest in 15 wells in Reagan County operated by Double Eagle. Total investment in these is estimated to be $35.5 million.
There is currently no debt on the shopping center and it has approximately $700,000 of working capital on its balance sheet. Additional Information PrimeEnergy files or furnishes annual, quarterly, and current reports, proxy statements, and other documents with the SEC under the Securities Exchange Act of 1934 (the “Exchange Act”).
In addition, through a wholly owned offshore company, we own a currently idle 60-mile-long pipeline offshore on the shallow shelf of Texas. Additional Information PrimeEnergy files or furnishes annual, quarterly, and current reports, proxy statements, and other documents with the SEC under the Securities Exchange Act of 1934 (the “Exchange Act”).
Removed
In addition, through a wholly owned offshore company, we own a currently idle 60-mile-long pipeline offshore on the shallow shelf of Texas. We also hold a 33.3% interest in a limited partnership that owns a 138,000-square-foot retail shopping center on ten acres in Prattville, Alabama, which is on our books for $40,000 as of December 31, 2024.
Added
As we have done historically to preserve or enhance liquidity, we may adjust our capital program throughout the year, divest non-strategic assets, or enter into strategic joint ventures.
Removed
We, therefore, see significant potential for near-term development of one or more productive intervals in the Wolfcamp “D”, Jo Mill, Lower Sprabbery, and Middle Spraberry. Currently, in Upton County, we are participating with Apache Corporation in six 3-mile-long horizontals that targeted the Upper Wolfcamp and the Jo Mill benches.
Added
In addition to the Reagan County activity, the Company participated in eight “Horseshoe” wells in Midland County with Vital Energy. Drilling activity with these wells began in the second quarter and the wells were put on production during the fourth quarter of 2025. The company has an average of 8.2% interest in these eight wells and invested approximately $5.4 million.
Removed
These six wells were all completed before February 1, 2025, and are producing as of April 1, 2025. The following is a detailed description of the recent and expected near-term drilling activities. In 2023, the Company completed 35 horizontal wells operated by five operators: 32 of these are located in West Texas and three in Oklahoma.
Added
We also participated with Devon Energy Production on two "Evelyn" wells in Kingfisher County, Oklahoma; we participated with approximately 9.95% interest and $1.4 million. These wells were drilled in July 2025 and completed November 2025.
Removed
These 15 horizontals are expected to be on production in mid to late April 2025.
Added
In past 4 years as to farm-out of our interest, we have Horizontal development with ORRI as follows; 11 wells in 2022, 3 wells in 2023, 16 wells in 2024 and 2 wells in 2025.
Removed
In total in these 22 wells, we will invest approximately $60 million.
Added
In 2026, we have plans to participate with Validus Energy II in the drilling of 1 3-mile long horizontal well in Grady County, Oklahoma with 3.47% interest, investing roughly $351,000 through completion, 1 well with Ovintiv Mid-Continent in the drilling of one 2.5-mile long horizontal in Garvin County, Oklahoma with 3.36% interest, investing roughly $291,000 through completion, and one 3-mile long horizontal in Garvin County, Oklahoma with a 2.27% interest, investing roughly $194,000 through completion.
Removed
Also in 2024, the Company earned an ORRI interest in five wells in Canadian County, with an average of 0.9% in each of three wells and 3% in two wells, and earned a 0.034% ORRI in one well in Major County.
Added
To diversify and broaden our asset base, we will consider acquiring the assets or stock in other entities and companies in the oil and gas business. Our main objective in making any such acquisitions will be to acquire income-producing assets to increase our net worth and increase our oil and gas reserve base.
Removed
Total investment in these is estimated to be $48.5 million. 7 In 2024, the Company raised proceeds of $4.2 million from the sale of acreage, producing properties, and an equipment company subsidiary, and we acquired $3.88 million worth of acreage in West Texas for future development.
Added
As a result of these and other oil and gas supply constraints, the world has experienced significant increases in energy costs.
Removed
Listed below are the percent of the Company’s total oil and gas sales made which represented more than 10% of the Company’s oil and gas sales in the year 2024.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese factors and the volatile nature of the energy markets make it impossible to predict with any certainty the future prices of natural gas and oil. If natural gas and oil prices decline significantly for a sustained period of time, the lower prices may adversely affect our ability to make planned expenditures, raise additional capital or meet our financial obligations.
Biggest changeIf natural gas and oil prices decline significantly for a sustained period of time, the lower prices may adversely affect our ability to make planned expenditures, raise additional capital or meet our financial obligations. 16 Financial difficulties encountered by our oil and natural gas purchasers, third-party operators or other third parties could decrease cash flow from operations and adversely affect our exploration and development activities.
While we believe that our use of swap transactions exempt us from certain regulatory requirements, the changes to the swap market due to increased regulation could significantly increase the cost of entering into new swaps or maintaining existing swaps, materially alter the terms of new or existing swap transactions and/or reduce the availability of new or existing swaps.
While we believe that our use of swap transactions exempts us from certain regulatory requirements, the changes to the swap market due to increased regulation could significantly increase the cost of entering into new swaps or maintaining existing swaps, materially alter the terms of new or existing swap transactions and/or reduce the availability of new or existing swaps.
The IRA includes a 1% tax on publicly traded corporations on the fair market value of stock repurchased during any taxable year. Such tax applies to the extent such buybacks exceed $1 million during such year, which buyback value may be offset by other stock issuances. Further, the U.S.
The IRS includes a 1% tax on publicly traded corporations on the fair market value of stock repurchased during any taxable year. Such tax applies to the extent such buybacks exceed $1 million during such year, which buyback value may be offset by other stock issuances. Further, the U.S.
Moreover, cyber and other security threats are constantly evolving, thereby making it more difficult to successfully defend against them or to implement adequate preventative measures. The development and maintenance of these measures requires continuous monitoring as technologies change and security measures evolve.
Moreover, cyber and other security threats are constantly evolving, thereby making it more difficult to successfully defend against them or to implement adequate preventative measures. The development and maintenance of these measures require continuous monitoring as technologies change and security measures evolve.
While the current U.S. administration may diverge from the prior administration’s positions and could withdraw from or otherwise roll back existing GHG emissions regulations, it is not possible at this time to predict exactly which and to what extent such regulations will be modified, and how any such actions may impact our business.
While the current U.S. administration could withdraw from or otherwise roll back existing GHG emissions regulations, it is not possible at this time to predict exactly which and to what extent such regulations will be modified, and how any such actions may impact our business.
Natural gas prices, based on the twelve-month average of the first of the month Henry Hub index price, were $2.13 per MMBTU in 2024 as compared to $2.637 per MMBTU in 2023, and have averaged $3.89 per MMBTU for the first three months of 2025.
Natural gas prices, based on the twelve-month average of the first of the month Henry Hub index price, were $3.39 per MMBTU in 2025 as compared to $2.13 per MMBTU in 2024, and have averaged $3.64 per MMBTU for the first four months of 2026.
Oil prices, based on West Texas Intermediate(WTI) Light Sweet Crude first-of-the-month prices, averaged $75.48 per barrel in 2024 as compared to $78.22 per barrel in 2023, and in the first three months of 2025, the first-of-the-month price has averaged $69.67 per barrel.
Oil prices, based on West Texas Intermediate (WTI) Light Sweet Crude first-of-the-month prices, averaged $65.34 per barrel in 2025 as compared to $75.48 per barrel in 2024, and in the first three months of 2026, the first-of-the-month price has averaged $65.72 per barrel.
Future challenges in the global financial system, including the capital markets, may adversely affect our business and our financial condition. Our ability to access the capital markets may be restricted at a time when we desire, or need, to raise capital, which could have an impact on our flexibility to react to changing economic and business conditions.
Our ability to access the capital markets may be restricted at a time when we desire, or need, to raise capital, which could have an impact on our flexibility to react to changing economic and business conditions.
At the international level, there is a non-binding agreement, the United Nations sponsored “Paris Agreement,” for nations to limit their GHG emissions through individually-determined reduction goals every five years after 2020. In January 2025, President Trump signed an executive order to withdraw the United States from the Paris Agreement.
At the international level, there is a non-binding agreement, the United Nations sponsored “Paris Agreement,” for nations to limit their GHG emissions through individually-determined reduction goals every five years after 2020.
In addition, we may be unable to access the equity or debt capital markets to meet our obligations, including any such debt repayment obligations.
In addition, we may be unable to access the equity or debt capital markets to meet our obligations, including any such debt repayment obligations. We face a variety of hazards and risks that could cause substantial financial losses.
Any delays in payments from such purchasers caused by their financial difficulties, including those resulting from continued volatility in both credit and commodity markets, will have an immediate negative effect on our results of operations and cash flows. 16 Additionally, liquidity and cash flow problems encountered by our working interest co-owners or the third- party operators of our non-operated properties may prevent or delay the drilling of a well or the development of a project.
Any delays in payments from such purchasers caused by their financial difficulties, including those resulting from continued volatility in both credit and commodity markets, will have an immediate negative effect on our results of operations and cash flows.
Financial difficulties encountered by our oil and natural gas purchasers, third-party operators or other third parties could decrease cash flow from operations and adversely affect our exploration and development activities. We derive essentially all of our revenues from the sale of our oil, natural gas and NGLs to unaffiliated third-party purchasers, independent marketing companies and midstream companies.
We derive essentially all of our revenues from the sale of our oil, natural gas and NGLs to unaffiliated third-party purchasers, independent marketing companies and midstream companies.
We have substantial capital requirements, and we may not be able to obtain needed financing on satisfactory terms, if at all. We rely upon access to our revolving credit facility as a source of liquidity for any capital requirements not satisfied by cash flow from operations or other sources.
We rely upon access to our revolving credit facility as a source of liquidity for any capital requirements not satisfied by cash flow from operations or other sources. Future challenges in the global financial system, including the capital markets, may adversely affect our business and our financial condition.
Our working interest co-owners may be unwilling or unable to pay their share of the costs of projects as they become due. In the case of a working interest owner, we could be required to pay the working interest owner’s share of the project costs.
Additionally, liquidity and cash flow problems encountered by our working interest co-owners or the third- party operators of our non-operated properties may prevent or delay the drilling of a well or the development of a project. Our working interest co-owners may be unwilling or unable to pay their share of the costs of projects as they become due.
Removed
Strategic determinations, including the allocation of capital and other resources to strategic opportunities, are challenging, and our failure to appropriately allocate capital and resources among our strategic opportunities may adversely affect our financial condition and reduce our growth rate. Our future growth prospects are dependent upon our ability to identify optimal strategies for our business.
Added
These factors and the volatile nature of the energy markets make it impossible to predict with any certainty the future prices of natural gas and oil.
Removed
In developing our business plan, we considered allocating capital and other resources to various aspects of our businesses including well-development (primarily drilling), reserve acquisitions, exploratory activity, corporate items and other alternatives. We also considered our likely sources of capital.
Added
In the case of a working interest owner, we could be required to pay the working interest owner’s share of the project costs. We have substantial capital requirements, and we may not be able to obtain needed financing on satisfactory terms, if at all.
Removed
Notwithstanding the determinations made in the development of our 2025 plan, business opportunities not previously identified periodically come to our attention, including possible acquisitions and dispositions.
Added
In January 2025, the U.S. initiated the process of withdrawing from the Paris Agreement in January 2025 and completed its withdrawal in January 2026, after previously reentering it in February 2021.
Removed
If we fail to identify optimal business strategies, or fail to optimize our capital investment and capital raising opportunities and the use of our other resources in furtherance of our business strategies, our financial condition and growth rate may be adversely affected.
Removed
Moreover, economic or other circumstances may change from those contemplated by our 2025 plan, and our failure to recognize or respond to those changes may limit our ability to achieve our objectives. We face a variety of hazards and risks that could cause substantial financial losses.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAt year-end 2024, the Company had 6,224 MBOE of proved undeveloped reserves attributable to 33 undeveloped wells, 18 of which were in the process of being drilled or completed at year-end and 15 of which are slated for drilling in the third quarter of 2025. 32 The estimated future net revenue (using current prices and costs as of those dates) and the present value of future net revenue (at a 10% discount for estimated timing of cash flow) for our proved developed and proved undeveloped oil and gas reserves at the end of each of the three years ended December 31, 2024, are summarized as follows (in thousands of dollars): Proved Developed Proved Undeveloped Total As of December 31, Future Net Revenue Present Value 10 Of Future Net Revenue Future Net Revenue Present Value 10 Of Future Net Revenue Future Net Revenue Present Value 10 Of Future Net Revenue Present Value 10 Of Future Income Taxes Standardized Measure of Discounted Cash flow 2022 $ 320,146 $ 192,688 $ 200,790 $ 118,081 $ 520,936 $ 310,769 $ 66,233 $ 244,536 2023 $ 314,415 $ 213,281 $ 253,959 $ 138,679 $ 568,374 $ 351,960 $ 73,912 $ 278,048 2024 $ 389,266 $ 280,595 $ 111,451 $ 65,030 $ 500,716 $ 345,626 $ 72,581 $ 273,045 The PV10 Value represents the discounted future net cash flows attributable to our proved oil and gas reserves before income tax, discounted at 10%.
Biggest changeThe estimated future net revenue (using current prices and costs as of those dates) and the present value of future net revenue (at a 10% discount for estimated timing of cash flow) for our proved developed and proved undeveloped oil and gas reserves at the end of each of the three years ended December 31, 2025, are summarized as follows (in thousands of dollars): Proved Developed Proved Undeveloped Total As of December 31, Future Net Revenue Present Value 10 Of Future Net Revenue Future Net Revenue Present Value 10 Of Future Net Revenue Future Net Revenue Present Value 10 Of Future Net Revenue Present Value 10 Of Future Income Taxes Standardized Measure of Discounted Cash flow 2023 $ 314,415 $ 213,281 $ 253,959 $ 138,679 $ 568,374 $ 351,960 $ 73,912 $ 278,048 2024 $ 389,266 $ 280,595 $ 111,451 $ 65,030 $ 500,716 $ 345,626 $ 72,581 $ 273,045 2025 $ 389,328 $ 268,440 $ 57,261 $ 20,405 $ 446,589 $ 288,845 $ 62,662 $ 226,183 The PV10 Value represents the discounted future net cash flows attributable to our proved oil and gas reserves before income tax, discounted at 10%.
Since January 1, 2023, we have not filed any estimates of our oil and gas reserves with, nor were any such estimates included in any reports to, any federal authority or agency, other than the Securities and Exchange Commission. District Information The following table represents certain reserves and well information as of December 31, 2024.
Since January 1, 2024, we have not filed any estimates of our oil and gas reserves with, nor were any such estimates included in any reports to, any federal authority or agency, other than the Securities and Exchange Commission. District Information The following table represents certain reserves and well information as of December 31, 2025.
The members of our districts consist of degreed engineers and geologists with over twenty-five years of industry experience and between ten and twenty-five years of experience managing our reserves.
The members of our districts consist of degreed engineers with over twenty-five years of industry experience and between ten and twenty-five years of experience managing our reserves.
In particular, based on activity west of our acreage in Reagan County, and a recent deep test by Double Eagle on our joint leasehold, we anticipate that proposals will soon be put forward for the drilling of between 36 and 45 new horizontals that will target the Wolfcamp “D” pay zone in Reagan County and perhaps an additional test well or two in one or more of the other undeveloped pay horizons.
In particular, based on activity west of our acreage in Reagan County, and a recent deep test by Double Eagle on our joint leasehold, we anticipate that proposal could soon be put forward for the drilling of between 36 and 45 new horizontals that will target the Wolfcamp “D” pay zone in Reagan County and perhaps an additional test well or two in one or more of the other undeveloped pay horizons.
Principal producing intervals are in the Robberson, Avant, Skinner, Sycamore, Bromide, McLish, Hunton, Mississippian, Oswego, Red Fork, and Chester formations at depths ranging from 1,100 to 10,500 feet. The average net daily production in our Mid-Continent Region in 2024 was 806 Boe.
Principal producing intervals are in the Robberson, Avant, Skinner, Sycamore, Bromide, McLish, Hunton, Mississippian, Oswego, Red Fork, and Chester formations at depths ranging from 1,100 to 10,500 feet. The average net daily production in our Mid-Continent Region in 2025 was 962 Boe.
The oil and gas in this basin are produced primarily from five intervals; the Upper and Lower Spraberry, the Wolfcamp, the Strawn, and the Atoka, at depths ranging from 6,700 feet to 11,300 feet. This region is managed from our office in Midland, Texas.
West Texas Region Our West Texas activities are concentrated in the Permian Basin in Texas. The oil and gas in this basin are produced primarily from five intervals; the Upper and Lower Spraberry, the Wolfcamp, the Strawn, and the Atoka, at depths ranging from 6,700 feet to 11,300 feet. This region is managed from our office in Midland, Texas.
Oil field support is provided for drilling and workover operations both to third-party operators as well as for our own operated wells and locations. 34 At year-end 2024, the Company was participating with Double Eagle in the drilling or completion of 15 horizontal wells in Reagan County, Texas with an average of 23% interest, and participating with Apache Corporation in six wells in Upton County, Texas with 51.2% interest.
Oil field support is provided for drilling and workover operations both to third-party operators as well as for our own operated wells and locations. 34 During 2024, the Company participated with Double Eagle in the drilling or completion of 15 horizontal wells in Reagan County, Texas with an average of 23% interest, and participating with Apache Corporation in six wells in Upton County, Texas with 51.2% interest.
The following table sets forth the exploratory and development drilling experience with respect to wells in which we participated during the three years ended December 31, 2024. 2024 2023 2022 Gross Net Gross Net Gross Net Exploratory: Oil — — — — — — Gas — — — — — — Dry — — — — — — Development: Oil 59 18.74 35 8.37 8 0.76 Gas — — — — — — Dry — — — — — — Total: Oil 59 18.74 35 8.37 8 0.76 Gas — — — — — — Dry — — — — — — 59 18.74 35 8.37 8 0.76 Oil and Gas Production As of December 31, 2024, we had ownership interest in the following number of gross and net producing oil and gas wells (1) .
The following table sets forth the exploratory and development drilling experience with respect to wells in which we participated during the three years ended December 31, 2025. 2025 2024 2023 Gross Net Gross Net Gross Net Exploratory: Oil — — — — — — Gas — — — — — — Dry — — — — — — Development: Oil 27 4.9 59 18.74 35 8.37 Gas — — — — — — Dry — — — — — — Total: Oil 27 4.9 59 18.74 35 8.37 Gas — — — — — — Dry — — — — — — 27 4.9 59 18.74 35 8.37 Oil and Gas Production As of December 31, 2025, we had ownership interest in the following number of gross and net producing oil and gas wells (1) .
Actual volumes produced, prices received and costs incurred may vary significantly from the SEC case. Natural gas prices, based on the twelve-month average of the first-of-the-month Henry Hub index price, were $2.13 per MMBtu in 2024 as compared to $2.64 per MMBtu in 2023 and $6.36 per MMBtu in 2022.
Actual volumes produced, prices received and costs incurred may vary significantly from the SEC case. Natural gas prices, based on the twelve-month average of the first-of-the-month Henry Hub index price, were $3.39 per MMBtu in 2025 as compared to $2.13 per MMBtu in 2024 and $2.64 per MMBtu in 2023.
We maintain an acreage position of approximately 17,138 gross (9,484 net) acres in the Permian Basin in West Texas, primarily in Reagan, Upton, Martin, and Midland counties and believe this acreage has significant resource potential for horizontal drilling in the Spraberry, Jo Mill, and Wolfcamp intervals.
We maintain an acreage position of approximately 16,838 gross (9,420 net) acres in the Permian Basin in West Texas, primarily in Reagan, Upton, Martin, and Midland counties and believe this acreage has significant resource potential for horizontal drilling in the Spraberry, Jo Mill, and Wolfcamp intervals.
Also in Reagan County, we participated with Civitas in 14 horizontals on the “Christi” tract, carrying an average of 39% interest and investing roughly $46.7 million. Also in 2024, in Upton County, we participated with Pioneer Natural Resources in one 2-mile-long horizontal with 3.94% interest, investing approximately $425,700.
Also in Reagan County, we participated with Civitas in 14 horizontals on the “Christi” tract, carrying an average of 39% interest and investing roughly $46.7 million. Also in 2024, in Upton County, we participated with Pioneer Natural Resources in one 2-mile-long horizontal with 3.94% interest, investing approximately $425,700. At year-end 2024, the Company participated in 21 horizontals in West Texas.
Oil prices, based on the West Texas Intermediate (WTI) Light Sweet Crude first-of-the-month average spot price, were $75.48 per barrel in 2024 as compared to $78.22 per barrel in 2023, and $93.67 per barrel in 2022.
Oil prices, based on the West Texas Intermediate (WTI) Light Sweet Crude first-of-the-month average spot price, were $65.34 per barrel in 2025 as compared to $75.48 per barrel in 2024, and $78.22 per barrel in 2023.
Mid-Continent Region Our Mid-Continent activities are concentrated in central Oklahoma. This region is managed from our office in Oklahoma City, Oklahoma. As of December 31, 2024, we had 359 producing wells (159 net) in the Mid-Continent area, of which 117 wells are operated by us.
Mid-Continent Region Our Mid-Continent activities are concentrated in central Oklahoma. This region is managed from our office in Oklahoma City, Oklahoma. As of December 31, 2025, we had 677 producing wells (125 net) in the Mid-Continent area, of which 117 wells are operated by us.
This region is managed from our office in Houston, Texas. Principal producing intervals are in the Wilcox, Hackberry, and Yegua formations at depths ranging from 6,000 to 12,000 feet. We had 73 producing wells (24 net) in the Gulf Coast region as of December 31, 2024, of which 28 wells are operated by us.
This region is managed from our office in Houston, Texas. Principal producing intervals are in the Wilcox, Hackberry, and Yegua formations at depths ranging from 6,000 to 12,000 feet. We had 96 producing wells (19 net) in the Gulf Coast region as of December 31, 2025, of which 26 wells are operated by us.
“Net” production is net after royalty interests of others are deducted and is determined by multiplying the gross production volume of properties in which we have an interest by the percentage of the leasehold, mineral or royalty interest owned by us. 2024 2023 2022 Oil (barrels) 2,556,000 1,144,000 939,000 NGL (barrels) 1,284,000 606,000 417,000 Gas (Mcf) 7,766,000 4,127,000 3,325,000 The following table sets forth our average sales prices together with our average production costs per unit of production for the three years ended December 31, 2024. 2024 2023 2022 Average sales price per barrel of oil $ 75.80 $ 76.84 $ 96.70 Average sales price per barrel of NGL $ 20.25 $ 19.64 $ 35.70 Average sales price per Mcf of natural gas $ 0.43 $ 1.93 $ 5.54 Average production costs per net equivalent barrel of oil (1) $ 9.29 $ 12.98 $ 16.07 (1) Net equivalent barrels are computed at a rate of 6 Mcf per barrel and costs exclude production taxes.
“Net” production is net after royalty interests of others are deducted and is determined by multiplying the gross production volume of properties in which we have an interest by the percentage of the leasehold, mineral or royalty interest owned by us. 2025 2024 2023 Oil (barrels) 2,286,000 2,556,000 1,144,000 NGL (barrels) 1,650,000 1,284,000 606,000 Gas (Mcf) 9,825,000 7,766,000 4,127,000 The following table sets forth our average sales prices together with our average production costs per unit of production for the three years ended December 31, 2025. 2025 2024 2023 Average sales price per barrel of oil $ 63.32 $ 75.80 $ 76.84 Average sales price per barrel of NGL $ 15.32 $ 20.25 $ 19.64 Average sales price per Mcf of natural gas $ 0.76 $ 0.43 $ 1.93 Average production costs per net equivalent barrel of oil (1) $ 8.07 $ 9.29 $ 12.98 (1) Net equivalent barrels are computed at a rate of 6 Mcf per barrel and costs exclude production taxes.
Our Engineering Data manager, the technical person primarily responsible for overseeing the preparation of reserves estimates, has over thirty years of experience, holds a Bachelor degree in Geology and an MBA in finance. See Part II, Item 8 “Financial Statements and Supplementary Data”, for additional discussions regarding proved reserves and their related cash flows.
Our Engineering manager, the technical person primarily responsible for overseeing the preparation of reserves estimates, holds a Bachelor degree in Petroleum Engineering and has over thirty years of experience in the oil and gas industry. See Part II, Item 8 “Financial Statements and Supplementary Data”, for additional discussions regarding proved reserves and their related cash flows.
A net well is the sum of the fractional working interests owned in gross wells. 30 The following table shows our net production of oil, NGL and natural gas for each of the three years ended December 31, 2024.
Gross Net Producing Wells (1) 1,032 427 (1) A gross well is a well in which a working interest is owned. A net well is the sum of the fractional working interests owned in gross wells. 30 The following table shows our net production of oil, NGL and natural gas for each of the three years ended December 31, 2025.
As of December 31, 2024, we had 543 wells (274 net) in the West Texas area, of which 315 wells are operated by us. Principal producing intervals are in the Spraberry, Wolfcamp, and San Andres formations at depths ranging from 4,200 to 12,500 feet. The average net daily production in our West Texas Region at year-end 2024 was 13,749 Boe.
As of December 31, 2025, we had 791wells (281 net) in the West Texas area, of which 317 wells are operated by us. Principal producing intervals are in the Spraberry, Wolfcamp, and San Andres formations at depths ranging from 4,200 to 12,500 feet. The average net daily production in our West Texas Region at year-end 2025 was 14,152 Boe.
Developed Undeveloped Total Gross Net Gross Net Gross Net Leasehold acreage 84,153 24,832 - - 84,153 24,832 Mineral fee acreage 1,640 117 19,257 417 20,897 534 Total 85,793 24,949 19,257 417 105,050 25,366 Total Net Undeveloped Acreage Expiration In the event that production is not established, or we take no action to extend or renew the terms of our leases, our net undeveloped acreage that will expire over the next three years, as of December 31, 2024, is zero acres for the year ending December 31, 2025, zero in 2026, and zero acres in 2027. 31 Reserves All of our interests in proved developed and undeveloped oil and gas properties have been evaluated by Ryder Scott Company, L.P. for each of the three years ended December 31, 2024.
Developed Undeveloped Total Gross Net Gross Net Gross Net Leasehold acreage 81,510 24,561 - - 81,510 24,561 Mineral fee acreage 1,640 117 19,257 417 20,987 534 Total 83,150 24,678 19,257 417 102,407 25,095 Total Net Undeveloped Acreage Expiration In the event that production is not established, or we take no action to extend or renew the terms of our leases, our net undeveloped acreage that will expire over the next three years, as of December 31, 2025, is zero acres for the year ending December 31, 2026, zero acres in 2027, and zero acres in 2028. 31 Reserves All of our interests in proved developed and undeveloped oil and gas properties have been evaluated by Ryder Scott Company, L.P. for each of the three years ended December 31, 2025.
The following table summarizes our oil and gas reserves at each of the respective dates: Reserve Category Proved Developed Proved Undeveloped Total As of December 31, Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBoe) Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBoe) Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBoe) 2022 4,143 2,497 22,277 10,353 3,028 1,833 9,030 6,366 7,171 4,330 31,307 16,719 2023 5,757 3,676 24,749 13,558 6,254 5,156 24,470 15,488 12,011 8,832 49,219 29,046 2024 7,444 6,597 37,489 20,288 3,166 1,670 8,326 6,224 10,610 8,267 45,815 26,512 (a) In computing total reserves on a barrels of oil equivalent (Boe) basis, gas is converted to oil based on its relative energy content at the rate of six Mcf of gas to one barrel of oil and NGLs are converted based upon volume; one barrel of natural gas liquids equals one barrel of oil.
The following table summarizes our oil and gas reserves at each of the respective dates: Reserve Category Proved Developed Proved Undeveloped Total As of December 31, Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBoe) Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBoe) Oil (MBbls) NGLs (MBbls) Gas (MMcf) Total (MBoe) 2023 5,757 3,676 24,749 13,558 6,254 5,156 24,470 15,488 12,011 8,832 49,219 29,046 2024 7,444 6,597 37,489 20,288 3,166 1,670 8,326 6,224 10,610 8,267 45,815 26,512 2025 7,432 6,981 53,786 23,377 2,822 1,063 6,756 5,011 10,254 8,044 60,542 28,388 (a) In computing total reserves on a barrels of oil equivalent (Boe) basis, gas is converted to oil based on its relative energy content at the rate of six Mcf of gas to one barrel of oil and NGLs are converted based upon volume; one barrel of natural gas liquids equals one barrel of oil.
At year-end 2023, 23 of these wells had been completed and the remaining 34 were completed in 2024. In those wells completed in 2023 the Company invested approximately $42.8 million and in the 34 remaining West Texas wells completed in 2024, the total investment, including central facilities, was approximately $81.3 million.
In those wells completed in 2023 the Company invested approximately $42.8 million and in the 34 remaining West Texas wells completed in 2024, the total investment, including central facilities, was approximately $81.3 million.
Currently, we are monitoring the drilling and near-term completion plans of a new well drilled by Ventex Operating, on acreage in the Segno field of Polk County, Texas where the Company farmed-out its 55% leasehold rights for cash and a 5.53% over-riding royalty interest (ORRI).
We are monitoring the production from a new well drilled by Ventex Operating, on acreage in the Segno field of Polk County, Texas where the Company farmed-out its 55% leasehold rights for cash and a 5.53% over-riding royalty interest (ORRI). The well was cased in February 2025 and placed on production in May 2025.
At year-end 2024, the Company was participating in 21 horizontals in West Texas. Of these 21 wells, six are located in Upton County, operated by Apache Corporation; three of the six were completed by year-end and three were completed after the first of the year and all were brought online in April, 2025.
Of these 21 wells, six are located in Upton County, operated by Apache Corporation; three of the six were completed by year-end and three were completed after the first of the year and all were brought online in May, 2025.
On December 31, 2024, we had 2,643 MBoe of proved reserves in the Mid-Continent area, representing 10% of our total proved reserves. We maintain an acreage position of approximately 45,715 gross (10,102 net) acres in this region, primarily in Canadian, Kingfisher, Grant, Major, and Garvin counties.
On December 31, 2025, we had 1,401 MBoe of proved reserves in the Mid-Continent area, representing 4.94% of our total proved reserves. We maintain an acreage position of approximately 43,837 gross (10,062 net) acres in this region, primarily in Canadian, Kingfisher, Grant, Major, and Garvin counties.
In addition, the Company has identified 20 horizontal locations across our acreage in Upton and Martin counties that could be drilled in this same time frame. These additional 20 wells will require an investment of approximately $64 million.
In this future activity, we have the potential to invest in excess of $100 million. In addition, the Company has identified 37 horizontal locations across our acreage in Upton and Martin counties that could be drilled in this same time frame. These additional 37 wells will require an investment of approximately $87 million.
On December 31, 2024, we had 23,383 MBoe of proved reserves in the West Texas area, or 88.3% of our total proved reserves.
On December 31, 2025, we had 21,544 MBoe of proved reserves in the West Texas area, or 93.54% of our total proved reserves.
In total, therefore, with approximately $60 million to be invested in the various wells drilling or to begin drilling in 2025, the $100 million in Wolfcamp “D” development, and the $64 million in 20 other near-term wells expected in the 2026-2027 timeframe, we anticipate investing approximately $224 million in horizontal drilling in West Texas over the next several years.
In total, therefore, with the $100 million in Wolfcamp “D” development, and the $87 million in 37 other near-term wells expected in the 2026-2027 timeframe, we have the potential to invest approximately $187 million in horizontal drilling in West Texas over the next several years.
All twenty of these West Texas horizontals were completed in 2023 and online in the second quarter of that year. In 2023, the Company partnered with four operators in the drilling of 57 horizontal wells: 54 of these located in West Texas and three located in Oklahoma.
In 2023, the Company partnered with four operators in the drilling of 57 horizontal wells: 54 of these located in West Texas and three located in Oklahoma. At year-end 2023, 23 of these wells had been completed and the remaining 34 were completed in 2024.
In Canadian County, Oklahoma, we have agreed to participate with Ovintiv Mid-Continent in the drilling of two 2-mile-long horizontal wells which were spud in early March 2025. Our share of these wells will be 3.125% and the total investment will be on the order of $408,000.
In Canadian County, Oklahoma, we have participated with Ovintiv Mid-Continent in the drilling of two 2-mile-long horizontal wells that was spud in early March 2025 and completed in May 2025. Our share of these wells is approximately 3.14% and the total investment is approximately $405,000.
Future drilling activity on our leasehold acreage in West Texas is expected in the next few years as well.
In total, we spent approximately $59.3 million in these 21 horizontals and their associated facilities. Future drilling activity on our leasehold acreage in West Texas is expected in the next few years as well.
The remaining 15 of the 21 wells, located on our “OG” tracts and operated by Double Eagle, were in the process of being drilled or completed at year-end and are expected to be on production by June 2025.
The remaining 15 of the 21 wells, located on our “OG” tracts and operated by Double Eagle, were on production by September 2025.
Average net daily production in our Gulf Coast Region at year-end 2024 was 143 Boe. At December 31, 2024, we had 452 MBoe of proved reserves in the Gulf Coast region, which represented 1.7% of our total proved reserves.
Average net daily production in our Gulf Coast Region at year-end 2025 was 161Boe. At December 31, 2025, we had 429 MBoe of proved reserves in the Gulf Coast region, which represented 1,51% of our total proved reserves. We maintain an acreage position of over 7,003 gross (4,532 net) acres in this region, primarily in Colorado, Newton, and Polk counties.
Wing #85 wells in the Segno field of Polk County, Texas, at an expense of approximately $341,000 in total. Other than these recompletions, we currently have no operated wells in the process of being drilled, no waterfloods in the process of being installed and no other related activities of material importance.
The Wing #16 was recompleted to the Wilcox A in 2025 at an approximate expense of $500,000. Gas lift valves have been installed with testing currently under way. Other than these recompletions, we currently have no operated wells in the process of being drilled, no waterfloods in the process of being installed and no other related activities of material importance.
Gulf Coast Mid- Continent West Texas Other Total Proved Reserves as of December 31, 2024 (MBoe) Developed 452 2,643 17,159 35 20,288 Undeveloped — — 6,224 — 6,224 Total 452 2,643 23,383 35 26,512 Average Net Daily Production (Boe per day) 143 806 13,749 9 14,707 Gross Productive Wells (Working Interest and ORRI Wells) 124 518 652 219 1,513 Gross Productive Wells (Working Interest Only) 73 359 543 75 1,050 Net Productive Wells (Working Interest Only) 24 159 274 4 461 Gross Operated Productive Wells 28 117 315 — 460 Gross Operated Water Disposal, Injection and Supply wells 4 38 6 — 48 33 In West Texas, we have a field service group to service our operated wells and locations as well as third-party operators in the area.
Gulf Coast Mid- Continent West Texas Other Total Proved Reserves as of December 31, 2025 (MBoe) Developed 429 1,401 21,544 3 23,377 Undeveloped - - 5,011 - 5,011 Total 429 1,401 26,555 3 28,388 Average Net Daily Production (Boe per day) 161 962 14,152 3 15,278 Gross Productive Wells (Working Interest and ORRI Wells) 96 677 791 72 1,636 Gross Productive Wells (Working Interest Only) 67 362 592 11 1,032 Net Productive Wells (Working Interest Only) 19 125 281 1 427 Gross Operated Productive Wells 26 117 317 - 460 Gross Operated Water Disposal, Injection and Supply wells 4 38 6 - 48 33 In West Texas, we have a field service group to service our operated wells and locations as well as third-party operators in the area.
Average oil, NGL and gas prices received including the impact of derivatives were: 2024 2023 2022 Average sales price per barrel of oil $ 75.80 $ 76.33 $ 87.77 Average sales price per barrel of NGL $ 20.25 $ 19.64 $ 35.70 Average sales price per Mcf of natural gas $ 0.43 $ 1.93 $ 4.44 Acreage The following table sets forth the approximate gross and net undeveloped acreage in which we have leasehold and mineral interests as of December 31, 2024.
Acreage The following table sets forth the approximate gross and net undeveloped acreage in which we have leasehold and mineral interests as of December 31, 2025.
Removed
Gross Net Producing Oil Wells (1) 789 33 Producing Gas Wells (1) 206 384 (1) A gross well is a well in which a working interest is owned.
Added
At year-end 2024, the Company had 6,224 MBOE of proved undeveloped reserves attributable to 33 undeveloped wells. 32 In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; we participated for approximately 3.14% interest and invested $405,000, these wells were completed in May 2025.
Removed
In 2022, the Company participated in eight horizontal wells that were drilled and completed; four located in Irion County, West Texas, operated by SEM Operating Company, in which we have 10.13% interest, and four located in Canadian County, Oklahoma, operated by Ovintiv Mid-Continent, Inc., in which we have an average 9% interest.
Added
In the second and third quarters of 2025, we participated in fifteen new horizontals in the Midland Basin of West Texas: these 15 wells are operated by Double Eagle on our “Full House” tract in Reagan County in which the Company participated with approximately 27% interest and invested approximately $30.1 million.
Removed
Our investment in these eight wells was approximately $4 million and all were brought on production in August of 2022. In addition, the Company added reserves through 15 wells in which we have various minor over-riding royalty interest. Eight of these wells are located in West Texas and seven are located in Oklahoma.
Added
In addition to the Reagan County activity, the company participated in eight “Horseshoe” wells in Midland County with Vital Energy. Drilling activity with these wells began in the second quarter and the wells were put on production during the fourth quarter of 2025. The company has an average of 8.2% interest in these eight wells and invested approximately $5.4 million.
Removed
At year-end 2022, the Company had 6,366 Mboe of proved undeveloped reserves attributable to 20 horizontal wells, located in West Texas that before year-end were in the process of being drilled by three separate operators: In Martin County, five 2.5-mile-long horizontal wells were being drilled in which the Company has 20.83% interest and an expected capital investment of $12.1 million; In Reagan County, the Company was participating in 10 two-mile horizontals operated by Hibernia Energy III (now Civitas Resources) in which the Company has a 25% interest and required approximately $25.6 million in investment and was also participating with Double Eagle (DE IV) in five two-mile-long horizontals with slightly less than 50% interest, carrying a net capital outlay of $23.4 million.
Added
We also participated with Devon Energy Production on two "Evelyn" wells in Kingfisher County, Oklahoma; we participated with approximately 9.95% interest and $1.4 million. These wells were drilled in July 2025 and completed November 2025. In total in these 27 wells, we invested approximately $37.3 million. At year-end 2025, the Company participated in 27 horizontals in West Texas and Oklahoma.
Removed
We maintain an acreage position of over 7,468 gross (4,699 net) acres in this region, primarily in Colorado, Newton, and Polk counties. In October of 2024, on the San Pedro Ranch in Dimmit County, Texas, we finished plugging-out all of our wells, removing all surface equipment, and reclaiming the land.
Added
Of these 27 wells, twenty three of the wells are located in West Texas and the remaining four in Oklahoma. The West Texas wells consisted of eight wells located in Midland County and 15 wells located in Reagan County. The four wells in Oklahoma were located in Canadian and Kingfisher Counties with each county having two wells.
Removed
With assistance from an operator in the area, we were able to do so at minimal expense to the Company. By plugging out our wells on this property we were able to extinguish about $2.7 million in future plugging liability.
Added
At year-end 2025, the Company had 5,011 MBOE of proved undeveloped reserves attributable to 37 undeveloped wells.
Removed
The well was cased in February 2025 and the operator intends to test one or more prospective intervals in the well. As of March 31, 2025, the Gulf Coast region has plans to recomplete three producing wells: the Wing #16, the Sarah F. Wing #80, and the Sarah F.
Added
Currently, the well is producing 800 Mcfd and 32 Bopd. The Gulf Coast region has plans to recomplete two producing wells: Sarah F. Wing #80 and the Sarah F. Wing #85 wells in the Segno field of Polk County, Texas, at an expense of approximately $300,000 in total.
Removed
Also in Canadian County, we had a small ORRI in four wells drilled in the first quarter of 2025 by Camino Natural Resources. West Texas Region Our West Texas activities are concentrated in the Permian Basin in Texas.
Added
We also participated with Devon in Kingfisher County, Oklahoma to drill two 2-mile-long horizontal wells that were spud July 2025 and completed in November 2025. Our share of these wells is approximately 9.95% and total investment of approximately $1,439,000.
Removed
Three of the six Apache wells were completed by year-end and are categorized in the reserve report as proved developed non-producing and the other three, along with the 15 wells operated by Double Eagle, are categorized as proved undeveloped. In total, we expect to spend approximately $69.4 million in these 21 horizontals and their associated facilities.
Added
In 2026, we have plans to participate with Validus Energy II in the drilling of one 3-mile long horizontal well in Grady County, Oklahoma with 3.47% interest, investing roughly $351,000 through completion, one well with Ovintiv Mid-Continent in the drilling of one 2.5-mile long horizontal in Garvin County, Oklahoma with 3.36% interest, investing roughly $291,000 through completion, and one 3-mile long horizontal in Garvin County, Oklahoma with a 2.27% interest, investing roughly $194,000 through completion.
Removed
In this future activity, we would expect to invest in excess of $100 million.
Removed
The Company is currently participating with 3.125% interest in two wells in Canadian County, Oklahoma, Operated by Ovintiv Mid-Continent, and plans to spend $408,000, Also, in 2025 we plan to join Double Eagle in the drilling of 15 wells in Reagan County, Texas with 31% interest, investing roughly $48.3 million, and in Martin County, Texas we plan to participate with Conoco-Phillips in the drilling of five wells with 20.8% interest, investing roughly 11.3 million.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThrough December 31, 2024, a total of 3,837,986 shares have been repurchased under this program for $103,416,456 at an average price of $26.95 per share. The stock repurchase program has no specific term. Additional purchases of shares may occur as market conditions warrant.
Biggest changeThrough December 31, 2025, a total of 3,913,956 shares have been repurchased under this program for $116,968,950 at an average price of $29.89 per share. 36 PART II — OTHER INFORMATION Item 6. RESERVED
Item 5. MARKET FOR REGISTRANT ’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is listed and principally traded on the Nasdaq Stock Market under the ticker symbol “PNRG”. As of April 8, 2025 there were 189 registered holders of the common stock.
Item 5. MARKET FOR REGISTRANT ’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is listed and principally traded on the Nasdaq Stock Market under the ticker symbol “PNRG”. As of April 13, 2026 there were 176 registered holders of the common stock.
The following table details the Company’s purchases of shares for the three months ended December 31, 2024 . 2024 Month Total Number of Shares Purchased Average Price Paid per share Maximum Number of Shares That May Yet Be Purchased Under The Program at Month-End (1) October 9,500 $ 153.52 171,014 November 1,200 $ 200.49 169,814 December 7,800 $ 191.02 162,014 Total/Average 18,500 $ 172.38 (1) In December 1993, we announced that the Board of Directors authorized a stock repurchase program whereby we may purchase outstanding shares of the common stock from time-to-time, in open market transactions or negotiated sales.
The following table details the Company’s purchases of shares for the three months ended December 31, 2025 . 2025 Month Total Number of Shares Purchased Average Price Paid per share Maximum Number of Shares That May Yet Be Purchased Under The Program at Month-End(1) October 6,000 $ 142.51 90,044 November 2,500 $ 146.65 87,544 December 1,500 $ 176.80 86,044 Total/Average 10,000 $ 148.69 (1) In December 1993, we announced that the Board of Directors authorized a stock repurchase program whereby we may purchase outstanding shares of the common stock from time-to-time, in open market transactions or negotiated sales.
Removed
We expect future purchases will be funded with internally generated cash flow or from working capital. 36 PART II — OTHER INFORMATION Item 6. RESERVED

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeOther Information 43 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 43 PART III Item 10. Directors, Executive Officers and Corporate Governance 44 Item 11. Executive Compensation 44 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 44 Item 13. Certain Relationships and Related Transactions, and Director Independence 44 Item 14.
Biggest changeOther Information 44 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 44 PART III Item 10. Directors, Executive Officers and Corporate Governance 45 Item 11. Executive Compensation 45 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 45 Item 13. Certain Relationships and Related Transactions, and Director Independence 45 Item 14.
Principal Accountant Fees and Services 44 PART IV Item 15. Exhibits and Financial Statement Schedules 45
Principal Accountant Fees and Services 45 PART IV Item 15. Exhibits and Financial Statement Schedules 46

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

28 edited+12 added−7 removed38 unchanged
Biggest changeIn the second and third quarters of 2025, we are anticipating the start of twenty new horizontals in the Midland Basin of West Texas: 15 wells operated by Double Eagle on our “Full House” tract in Reagan County in which the Company will participate with approximately 31% interest and invest $48.4 million, and five wells operated by ConocoPhillips on our “Schenecker” tract in Martin, County in which we plan to participate for 20.83% interest and invest $11.3 million.
Biggest changeIn the second and third quarters of 2025, we participated in fifteen new horizontals in the Midland Basin of West Texas: these 15 wells are on production as of September 2025 and are operated by Double Eagle on our “Full House” tract in Reagan County in which the Company participated with approximately 27% interest and invested approximately $30.1 million.
As we have done historically to preserve or enhance liquidity, we may adjust our capital program throughout the year, divest assets, or enter into strategic joint ventures. 38 The Company maintains a Credit Agreement with a maturity date of December 20, 2028, providing for a credit facility totaling $300 million, with a borrowing base of $115 million.
As we have done historically to preserve or enhance liquidity, we may adjust our capital program throughout the year, divest assets, or enter into strategic joint ventures. The Company maintains a Credit Agreement with a maturity date of December 20, 2028, providing for a credit facility totaling $300 million, with a borrowing base of $115 million.
We believe that, because of the additional reserves resulting from the successful wells and our record of reserve growth in recent years, we will be able to access sufficient additional capital through bank financing. Maintaining a strong balance sheet and ample liquidity are key components of our business strategy.
We believe that, because of the additional reserves resulting from the successful wells and our record of reserve growth in recent years, we will be able to access sufficient additional capital through bank financing. 38 Maintaining a strong balance sheet and ample liquidity are key components of our business strategy.
For 2025, we will continue our focus on preserving financial flexibility and liquidity as we manage the risks facing our industry. Our 2025 capital budget is reflective of commodity prices and has been established based on an expectation of available cash flows, with any cash flow deficiencies expected to be funded by borrowings under our revolving credit facility.
For 2026, we will continue our focus on preserving financial flexibility and liquidity as we manage the risks facing our industry. Our 2026 capital budget is reflective of commodity prices and has been established based on an expectation of available cash flows, with any cash flow deficiencies expected to be funded by borrowings under our revolving credit facility.
In Reagan County, the Company joined Double Eagle in drilling and completing 33 new horizontal wells: on the “Honey RF” tract we completed 12 horizontals each being two-mile-long laterals, and participated with 50% interest investing $37 million; on the “Prime West” tract we have 50% interest in six wells and invested $20.5 million; on both the “Kramer” and “O’Bannion” tracts we participated in six horizontals, each with an average 8.3% interest and we invested approximately $7.8 million; and on the “Pink Floyd” tract we have less than 1% interest in two wells in which we invested approximately $174,900; and on our“Studley AV” tract we participated with Double eagle in testing the Wolfcamp “D” interval; in this well we have about 6.3% interest and invested approximately $600,000.
In Reagan County, the Company joined Double Eagle in drilling and completing 33 new horizontal wells: on the “Honey RF” tract we completed 12 horizontals each being two-mile-long laterals, and participated with 50% interest investing $37 million; on the “Prime West” tract we have 50% interest in six wells and invested $20.5 million; on both the “Kramer” and “O’Bannion” tracts we participated in six horizontals, each with an average 8.3% interest and we invested approximately $7.8 million; and on the “Pink Floyd” tract we have less than 1% interest in two wells in which we invested approximately $174,900; and on our “Studley AV” tract we participated with Double eagle in testing the Wolfcamp “D” interval; in this well we have about 6.3% interest and invested approximately $600,000.
The next borrowing base review is scheduled for June 2025. Our oil and gas properties are pledged as collateral for the line of credit and we are subject to certain financial and operational covenants defined in the agreement. We are currently in compliance with these covenants and expect to be in compliance over the next twelve months.
The next borrowing base review is scheduled for June 2026. Our oil and gas properties are pledged as collateral for the line of credit and we are subject to certain financial and operational covenants defined in the agreement. We are currently in compliance with these covenants and expect to be in compliance over the next twelve months.
Also in Reagan County, we participated with Civitas in 14 horizontal wells on the “Christi” tract, carrying an average of 39% interest and investing roughly $46.7 million. Also in 2024, in Upton County, we participated with Pioneer Natural Resources in one 2-mile-long horizontal with 3.94% interest, investing approximately $425,700.
Also in Reagan County, we participated with Civitas in 14 horizontal wells on the “Christi” tract, carrying an average of 39% interest and investing roughly $46.7 million. Also in 2024, in Upton County, we participated with Pioneer Natural Resources in one 2-mile-long horizontal with 3.94% interest, investing approximately $425,800.
Of these 48 wells, 32 are 2-mile-long laterals, 14 are 2.5-mile-long laterals, and two are 3-mile-long laterals. In addition to this activity, in June of 2024, we began participation with Apache in the drilling of six additional 3-mile-long laterals in Upton County on our “Mt. Moran” tract.
Of these 48 wells, 32 are 2-mile-long laterals, 14 are 2.5-mile-long laterals, and two are 3-mile-long laterals. In addition to this activity, in June of 2024, we participated with Apache in the drilling of six additional 3-mile-long laterals in Upton County on our “Mt. Moran” tract.
Workover rig services, hot oil treatments, saltwater hauling and disposal represent the bulk of our field service operations. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Workover rig services, hot oil treatments, water hauling and salt water disposal represent the bulk of our field service operations. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Net cash provided by operating activities for the year ended December 31, 2024, was $115.9 million compared to $109.0 million in the prior year. Excluding the effects of significant unforeseen expenses or other income, our cash flow from operations fluctuates primarily because of variations in oil and gas production and prices or changes in working capital accounts.
Net cash provided by operating activities for the year ended December 31, 2025, was $96.7 million compared to $115.9 million in the prior year. Excluding the effects of significant unforeseen expenses or other income, our cash flow from operations fluctuates primarily because of variations in oil and gas production and prices or changes in working capital accounts.
In addition, in November of 2024, in Reagan County, we began participating with Double Eagle in 15 “OG” horizontal wells: eight are 2.5-mile-long laterals, and seven are 2-mile-long laterals. In each of these 15 “OG” wells the Company has approximately 23% interest and in total will invest roughly $29 million through completion of production facilities.
In addition, in November of 2024, in Reagan County, we participated with Double Eagle in 15 “OG” horizontal wells: eight are 2.5-mile-long laterals, and seven are 2-mile-long laterals. In each of these 15 “OG” wells the Company has approximately 23% interest and in total invested roughly $23 million through completion of production facilities.
Field service expense decreased $2.6 million, or 22.4% to $9.1 million for the year ended December 31, 2024 from $11.7 million for the year ended December 31, 2023. Field service expenses primarily consist of wages and vehicle operating expenses. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
Field service expense decreased $2.9 million, or 32.0% to $6.2 million for the year ended December 31, 2025 from $9.1 million for the year ended December 31, 2024. Field service expenses primarily consist of wages and vehicle operating expenses. These changes reflect decreases in equipment utilization related to the sale of Eastern Oil Well Service Company, effective August 31, 2024.
As of the quarter ended December 31, 2024, the Company had $4 million in outstanding borrowings and $111 million in availability. Accordingly, the Company had no swap agreements in place for oil and natural gas. Development and Other Activities The Company’s activities include development and exploratory drilling.
As of the quarter ended December 31, 2025, the Company had zero in outstanding borrowings and $115 million in availability. Accordingly, the Company had no swap agreements in place for oil and natural gas. Development and Other Activities The Company’s activities include development and exploratory drilling.
Three of these wells were completed in late December 2024 and three were completed in January of 2025. All six new “Mt. Moran” wells are producing as of April 1, 2025. In these six Mt. Moran wells, the Company has an average of 51.16% interest and will in total invest approximately $40.5 million.
Three of these wells were completed in late December 2024 and three were completed in January of 2025. All six new “Mt. Moran” wells are producing as of April 1, 2025. In these six Mt. Moran wells, the Company has an average of 51.16% interest and in total invested approximately $36.3 million.
Interest expense increased $1.0 million, or 189.0% to $1.5 million for the year ended December 31, 2024 from $0.5 million for the year ended December 31, 2023. This increase reflects the higher interest and fee rates combined with borrowings throughout the twelve months of 2024 under our revolving credit agreement.
Interest expense increased $0.7 million, or 44.3% to $2.2 million for the year ended December 31, 2025 from $1.5 million for the year ended December 31, 2024. This increase reflects the higher interest and fee rates combined with borrowings throughout the twelve months of 2025 under our revolving credit agreement.
As of April 8, 2025, the Company had $17.5 million in outstanding borrowings and $97.5 million in availability under this facility. The bank reviews the borrowing base semi-annually and, at its discretion, may decrease or propose an increase to the borrowing base relative to a re-determined estimate of proved oil and gas reserves.
As of April 15, 2026, the Company had no outstanding borrowings and $115 million in availability under this facility. The bank reviews the borrowing base semi-annually and, at its discretion, may decrease or propose an increase to the borrowing base relative to a re-determined estimate of proved oil and gas reserves.
Tax expense of $15.8 million and $6.1 million were recorded for the years ended December 31, 2024 and 2023, respectively. The change in our income tax provision was primarily due to the increase in pre-tax income for the year ended December 31, 2024.
Tax expense of $4.2 million and $15.8 million were recorded for the years ended December 31, 2025 and 2024, respectively. The change in our income tax provision was primarily due to the decrease in pre-tax income for the year ended December 31, 2025.
Oil, NGL and gas sales increased $115 million, or 107.01% to $223.1 million for the year ended December 31, 2024 from $107.7 million for the year ended December 31, 2023. Crude oil, NGL and natural gas sales vary due to changes in volumes of production sold and realized commodity prices.
Oil, NGL and gas sales decreased $45.5 million, or 20.4% to $177.5 million for the year ended December 31, 2025 from $223 million for the year ended December 31, 2024. Crude oil, NGL and natural gas sales vary due to changes in volumes of production sold and realized commodity prices.
Our realized prices at the well head decreased an average of $1.04 per barrel, or 1.35% on crude oil, increased an average of $0.61 per barrel, or 3.11% on NGL and decreased $1.49 per Mcf, or 77.6% on natural gas during 2024 as compared to 2023.
Our realized prices at the well head decreased an average of $12.48 per barrel, or 16.5% on crude oil, decreased an average of $4.93 per barrel, or 24.4% on NGL and increased $0.33 per Mcf, or 77.3% on natural gas during 2025 as compared to 2024.
Our crude oil production increased by 1,412,000 barrels, or 123.43% to 2,556,000 barrels for the year ended December 31, 2024 from 1,144,000 barrels for the year ended December 31, 2023. Our NGL production increased by 678,000 or 111.88% to 1,284,000 for the year ended December 31, 2024 from 606,000 barrels for the year ended December 31, 2023.
Our crude oil production decreased by 270,000 barrels, or 10.6% to 2,286,000 barrels for the year ended December 31, 2025 from 2,556,000 barrels for the year ended December 31, 2024. Our NGL production increased by 366,000 or 28.5% to 1,650,000 for the year ended December 31, 2025 from 1,284,000 barrels for the year ended December 31, 2024.
The following table summarizes the primary components of production volumes and average sales prices realized for the years ended December 31, 2024 and 2023 (excluding realized gains and losses from derivatives).
The changes in crude oil, NGL and natural gas production volumes are a result of new wells placed in production offset by the natural decline of existing properties. 40 The following table summarizes the primary components of production volumes and average sales prices realized for the years ended December 31, 2025 and 2024 (excluding realized gains and losses from derivatives).
In total in these 22 wells, we will invest approximately $60 million. 39 During 2024, to supplement cash flow and finance our future drilling programs, the Company sold 120 net mineral acres and 10 surface acres in Midland and Ector counties, Texas. For these, we received $1,386,000 in gross proceeds.
During 2025, to supplement cash flow and finance our future drilling programs, the Company sold 76 net mineral acres in Glasscock County, Texas. For these mineral acres, we received $950,000 in gross proceeds.
Results of Operations 2024 and 2023 Compared We reported a net income of $55.4 million for 2024, or $31.43 per share, compared to $28.1 million, or $15.19 per share for 2023. The current year net income reflects production increases offset by commodity price decreases. The significant components of income and expense are discussed below.
Results of Operations 2025 and 2024 Compared We reported a net income of $26.3 million for 2025, or $15.85 per share, compared to $55.4 million for 2024, or $31.43 per share for 2024.
In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; in these, we will participate for approximately 3.125% interest and invest $408,000.
By the end of 2025, therefore, the Company has invested approximately $59.3 million in these additional 21 horizontal wells. 39 In early March 2025, Ovintiv Mid-Continent spud two “Jennifer 1407” wells in Canadian County, Oklahoma; in these, we participated with approximately 3.14% interest and invested $405,000, these wells were completed in May 2025.
Depreciation, depletion, and amortization increased $45.5 million, or 147.0% to $76.5 million for the year ended December 31, 2024 from $31.0 million for the year ended December 31, 2023. These increases reflect the expense related to the new wells placed on production during the twelve months ended December 31, 2024.
Depreciation, depletion, and amortization decreased $0.8 million, or 1.0% to $75.7 million for the year ended December 31, 2025 from $76.5 million for the year ended December 31, 2024. General and administrative expense decreased $0.5 million, or 2.7% to $18.4 million for the year ended December 31, 2025 from $18.9 million for the year ended December 31, 2024.
The Company has a stock repurchase program in place, spending under this program in 2024 and 2023 was $13.4 million and $7.5 million, respectively. The Company expects continued spending under the stock repurchase program in 2025.
The Company has a stock repurchase program in place, spending under this program in 2025 and 2024 was $13.6 million and $13.4 million, respectively. Since 1990, including pursuant to the stock repurchase program authorized by the Board of Directors in December 1993, the Company has repurchased 6,071,995 shares at an average price of $20.16 per share.
These changes reflect the cost savings related to wells that have been plugged offset by rising service costs and additional costs related to the new wells that have been placed on production. Field service income decreased $4.5 million or 29.5% to $10.9 million for the year ended December 31, 2024 from $15.4 million for the year ended December 31, 2023.
This decrease reflect the lower oil and natural gas liquid revenues partially offset by higher gas revenues during the year. Field service income decreased $2.5 million or 25.3% to $8.4 million for the year ended December 31, 2025 from $10.9 million for the year ended December 31, 2024.
Our natural gas production increased by 3,639 MMcf, or 88.18% 7,766 MMcf for the year ended December 31, 2024 from 4,127 MMcf for the year ended December 31, 2023. The changes in crude oil, NGL and natural gas production volumes are a result of new wells placed in production offset by the natural decline of existing properties.
Our natural gas production increased by 2,059 MMcf, or 26.5% to 9,825 MMcf for the year ended December 31, 2025 from 7,766 MMcf for the year ended December 31, 2024.
Removed
These 15 horizontals are expected to be on production in mid to late April 2025. By the end of the second quarter of 2025, therefore, the Company will have invested approximately $70 million in these additional 21 horizontal wells.
Added
These 15 horizontals were on production in May 2025.
Removed
In addition, we divested 37 producing and two saltwater injection wells in various counties of New Mexico and Texas. These divestments have extinguished a substantial amount in future plugging liability. Also in 2024, we sold our South Texas oil field services company, Eastern Oil Well Service, for proceeds of $2.8 million.
Added
In addition to the Reagan County activity, the company participated in eight “Horseshoe” wells in Midland County with Vital Energy. Drilling activity with these wells began in the second quarter and the well were put on production during the fourth quarter of 2025. The Company has an average of 8.2% interest in these eight wells and invested approximately $5.4 million.
Removed
Included with this sale were extensive oil field service equipment and transport trucks, as well as two commercial saltwater disposal wells. Acquisitions in 2024, entailed the purchase of 381 net leasehold acres in West Texas for approximately $3.9 million.
Added
We also participated with Devon Energy Production on two "Evelyn" wells in Kingfisher County, Oklahoma; we participated with approximately 9.95% interest and $1.4 million. These wells were drilled in July 2025 and completed November 2025. In total in these 27 wells, we invested approximately $37.3 million.
Removed
Years ended December 31, Increase / Increase / 2024 2023 (Decrease) (Decrease) Barrels of Oil Produced 2,556,000 1,144,000 1,412,000 123.43 % Average Price Received $ 75.80 $ 76.84 $ (1.04 ) (1.35 )% Oil Revenue (In 000’s) $ 193,737 $ 87,906 $ 105,831 120.39 % Mcf of Gas Sold 7,766,000 4,127,000 3,639,000 88.18 % Average Price Received $ 0.43 $ 1.92 $ (1.49 ) (77.60 )% Gas Revenue (In 000’s) $ 3,309 $ 7,935 $ (4,626 ) (58.30 )% Barrels of Natural Gas Liquids Sold 1,284,000 606,000 678,000 111.88 % Average Price Received $ 20.25 $ 19.64 $ 0.61 3.11 % Natural Gas Liquids Revenue (In 000’s) $ 25,996 $ 11,901 $ 14,095 118.44 % Total Oil & Gas Revenue (In 000’s) $ 223,042 $ 107,742 $ 115,300 107.01 % Oil, Natural Gas and NGL Derivatives We do not apply hedge accounting to any of our commodity based derivatives, thus changes in the fair market value of commodity contracts held at the end of a reported period, referred to as mark-to-market adjustments, are recognized as unrealized gains and losses in the accompanying condensed consolidated statements of operations.
Added
In 2026, we have plans to participate with Validus Energy II in the drilling of one 3-mile long horizontal well in Grady County, Oklahoma with 3.47% interest, investing roughly $351,000 through completion, one well with Ovintiv Mid-Continent in the drilling of one 2.5-mile long horizontal in Garvin County, Oklahoma with 3.36% interest, investing roughly $291,000 through completion, and one 3-mile long horizontal in Garvin County, Oklahoma with a 2.27% interest, investing roughly $194,000 through completion.
Removed
As oil and natural gas prices remain volatile, mark-to-market accounting treatment creates volatility in our revenues. 40 The following table summarizes the results of our derivative instruments for the years ended December 2024 and 2023: Years ended December 31, 2024 2023 Oil derivatives - realized gains (losses) $ 0 $ 179 Oil derivatives – unrealized gains 0 -- Total gains (losses) on oil derivatives $ 0 $ 179 Natural gas derivatives – realized gains (losses) 0 235 Natural gas derivatives – unrealized gains 0 -- Total gains (losses) on natural gas derivatives $ 0 $ 235 Total gains (losses) on oil and natural gas $ 0 $ 414 Prices received for the years ended December 31, 2024 and 2023, respectively, including the impact of derivatives were: 2024 2023 Increase / (Decrease) Increase / (Decrease) Oil Price $ 75.80 $ 76.33 $ (0.53 ) (0.69 )% Gas Price $ 0.43 $ 1.93 $ (1.50 ) (77.72 )% NGL Price $ 20.25 $ 19.64 $ 0.61 3.11 % Oil and gas production expense increased $15.8 million, or 49.6% to $47.7 million for the year ended December 31, 2024 from $31.9 million for the year ended December 31, 2023.
Added
A limited partnership, in which the company has interest, sold a retail shopping center located in Prattville, Alabama, distributing $1.2 million to the Company from the proceeds of the sale.
Removed
General and administrative expense increased $3.2 million, or 21.0% to $18.8 million for the year ended December 31, 2024 from $15.6 million for the year ended December 31, 2023. This increase is primarily due to employee compensation, benefits and other corporate costs.
Added
The Company has also repurchased 769,500 options at an average price of $0.79 per option. Under the current stock repurchase program authorized by the Board of Directors in December 1993, 86,044 shares remain available for repurchase. Over time, these repurchases have meaningfully reduced the Company’s shares outstanding from approximately 7.6 million shares in 1987 to approximately 1.6 million shares currently.
Removed
Gain on sale and exchange of assets of $3.7 million for the year ended December 31, 2024 consists of sales of net mineral and surface acres in various locations in Texas and Oklahoma as well as the sale of our South Texas oilfield service company, Eastern Oil Well Service.
Added
The Company believes that this sustained reduction in share count has contributed significantly to long-term per-share value creation for all shareholders. As a result of the reduction in shares outstanding over time, the ownership percentage of certain long-term stockholders, including the Chairman and Chief Executive Officer, Charles Drimal, has increased. Mr.
Added
Drimal has not materially increased his ownership through open market purchases; rather, his ownership percentage has increased primarily as a result of the decrease in the number of shares outstanding. As of December 31, 2025, Mr. Drimal beneficially owns, including the effect of stock options and voting arrangements, approximately 55.4% of the Company’s fully diluted shares.
Added
The Board of Directors regularly reviews and evaluates the Company’s capital allocation priorities. In doing so, the Board considers a variety of factors, including market conditions, the Company’s financial position, liquidity, and the impact of repurchases on the Company’s stockholder base. The Company expects continued spending under the stock repurchase program in 2026.
Added
Years ended December 31, Increase / Increase / 2025 2024 (Decrease) (Decrease) Barrels of Oil Produced 2,286,000 2,556,000 (270,000 ) (10.6 )% Average Price Received $ 63.32 $ 75.80 $ (12.48 ) (16.5 )% Oil Revenue (In 000’s) $ 144,749 $ 193,737 $ (48,988 ) (25.3 )% Mcf of Gas Sold 9,825,000 7,766,000 2,059,000 26.5 % Average Price Received $ 0.76 $ 0.43 $ 0.33 77.3 % Gas Revenue (In 000’s) $ 7,490 $ 3,309 $ 4,181 126.4 % Barrels of Natural Gas Liquids Sold 1,650,000 1,284,000 366,000 28.5 % Average Price Received $ 15.32 $ 20.25 $ (4.93 ) (24.4 )% Natural Gas Liquids Revenue (In 000’s) $ 25,274 $ 25,996 $ (722 ) (2.8 )% Total Oil & Gas Revenue (In 000’s) $ 177,513 $ 223,042 $ (45,529 ) (20.4 )% Oil and gas production expense decreased $2.7 million, or 5.7% to $45.0 million for the year ended December 31, 2025 from $47.7 million for the year ended December 31, 2024.
Added
These changes reflect fewer workover related costs in 2025 offset by increases in service rates related to recurring lease operating expenses. Production and ad valorem taxes decreased $2.1 million, or 17.7% to $10.0 million for the year ended December 31, 2025 from $12.1 million for the year ended December 31, 2024.
Added
This decrease is primarily related lower to employee compensation, benefits and other corporate costs. Interest and other income of $1.54 million for the ended December 31, 2025 includes distributions from Alabama Shopping Center Associates limited partnership, generated by the partnership's sale of the Prattville, Alabama center.

Other PNRG 10-K year-over-year comparisons