Gross margins have compressed significantly from a peak of 44.4% in 2024Q3 to 24.8% in 2026Q1, indicating persistent pressure on profitability amidst declining revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 177.85M | 185.91M | 233.89M | 123.13M | 93.27M | 82.42M | 52.44M | 108.97M | 116.86M | 88.92M | 60.36M | 74.86M | 126.87M | 127.04M | 116.99M | 120.32M | 116.59M | 93.94M | 168.98M | 155.74M | 91.95M | 76.24M | 62.25M | 48.43M | 35.39M | 41.91M | 38.78M | 25.16M | 24.3M | 28.6M | 23.1M |
| Revenue Growth % | -26.15% | -20.52% | 89.96% | 32.01% | 13.17% | 57.17% | -51.88% | -6.75% | 31.43% | 47.3% | -19.36% | -41% | -0.13% | 8.59% | -2.76% | 3.2% | 24.11% | -44.41% | 8.5% | 69.38% | 20.61% | 22.47% | 28.54% | 36.86% | -15.57% | 8.07% | 54.14% | 3.55% | -15.04% | 23.81% | 27.62% |
| Cost of Goods Sold | 133.51M | 136.91M | 146.19M | 82.41M | 76.98M | 59.9M | 60.21M | 85.06M | 87.2M | 78.94M | 70.27M | 84.4M | 91.02M | 86.7M | 80.72M | 102.58M | 95.08M | 103.98M | 141.09M | 117.7M | 52.41M | 43.3M | 43.53M | 28.08M | 24.12M | 24.45M | 21.21M | 14.9M | 15.7M | 16.9M | 13.1M |
| COGS % of Revenue | - | 73.64% | 62.5% | 66.93% | 82.53% | 72.67% | 114.82% | 78.06% | 74.62% | 88.78% | 116.41% | 112.75% | 71.74% | 68.25% | 69% | 85.25% | 81.55% | 110.69% | 83.49% | 75.58% | 57% | 56.8% | 69.93% | 57.99% | 68.17% | 58.34% | 54.68% | 59.2% | 64.61% | 59.09% | 56.71% |
| Gross Profit | 44.35M | 49M | 87.7M | 40.72M | 16.29M | 22.52M | -7.77M | 23.91M | 29.66M | 9.98M | -9.9M | -9.54M | 35.85M | 40.33M | 36.27M | 17.74M | 21.51M | -10.04M | 27.89M | 38.04M | 39.54M | 32.94M | 18.72M | 20.34M | 11.26M | 17.46M | 17.58M | 10.27M | 8.6M | 11.7M | 10M |
| Gross Margin % | 24.93% | 26.36% | 37.5% | 33.07% | 17.47% | 27.33% | -14.82% | 21.94% | 25.38% | 11.22% | -16.41% | -12.75% | 28.26% | 31.75% | 31% | 14.75% | 18.45% | -10.69% | 16.51% | 24.42% | 43% | 43.2% | 30.07% | 42.01% | 31.83% | 41.66% | 45.32% | 40.8% | 35.39% | 40.91% | 43.29% |
| Gross Profit Growth % | - | -44.12% | 115.39% | 149.95% | -27.67% | 389.77% | -132.51% | -19.4% | 197.24% | 200.78% | -3.78% | -126.62% | -11.12% | 11.2% | 104.45% | -17.53% | 314.29% | -136% | -26.68% | -3.8% | 20.05% | 75.98% | -8.01% | 80.65% | -35.5% | -0.67% | 71.24% | 19.36% | -26.5% | 17% | 36.99% |
| Operating Expenses | 18.63M | 19.43M | 18.88M | 15.64M | 20.23M | 9.08M | 15.03M | 15.64M | 13.55M | 9.65M | 7.85M | 12.27M | 14.46M | 16.66M | 15.87M | 14.89M | 13.46M | 11.86M | 14.51M | 12.35M | 12.4M | 10.49M | 7.54M | 12.3M | 8.98M | 10.49M | 10.33M | 11.38M | 9.9M | 9.8M | 8.3M |
| OpEx % of Revenue | - | 10.45% | 8.07% | 12.71% | 21.69% | 11.02% | 28.66% | 14.35% | 11.59% | 10.85% | 13% | 16.39% | 11.4% | 13.11% | 13.56% | 12.38% | 11.55% | 12.62% | 8.59% | 7.93% | 13.49% | 13.76% | 12.11% | 25.39% | 25.38% | 25.04% | 26.63% | 45.23% | 40.74% | 34.27% | 35.93% |
| Selling, General & Admin | 18.32M | 18.38M | 18.88M | 15.64M | 20.23M | 9.08M | 15.03M | 15.64M | 13.55M | 9.65M | 7.85M | 12.27M | 14.46M | 16.66M | 15.87M | 14.89M | 13.46M | 11.86M | 14.51M | 12.35M | 12.4M | 10.49M | 7.54M | 5.13M | 4.89M | 5.57M | 4.33M | 5.85M | 2.9M | 3M | 3.3M |
| SG&A % of Revenue | - | 9.89% | 8.07% | 12.71% | 21.69% | 11.02% | 28.66% | 14.35% | 11.59% | 10.85% | 13% | 16.39% | 11.4% | 13.11% | 13.56% | 12.38% | 11.55% | 12.62% | 8.59% | 7.93% | 13.49% | 13.76% | 12.11% | 10.6% | 13.81% | 13.29% | 11.16% | 23.26% | 11.93% | 10.49% | 14.29% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 318K | 1.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.16M | 4.09M | 4.92M | 6M | 5.53M | 7M | 6.8M | 5M |
| Operating Income | 25.71M | 29.58M | 68.82M | 25.07M | -3.94M | 13.44M | -22.8M | 8.27M | 16.11M | 334K | -17.75M | -21.81M | 21.39M | 23.67M | 20.4M | 2.85M | 4.47M | -21.9M | 13.38M | 25.69M | 27.14M | 22.44M | 11.18M | 8.05M | 2.17M | 6.97M | 7.25M | -1.12M | -1.3M | 1.9M | 1.7M |
| Operating Margin % | 14.46% | 15.91% | 29.42% | 20.36% | -4.23% | 16.3% | -43.48% | 7.59% | 13.79% | 0.38% | -29.41% | -29.13% | 16.86% | 18.64% | 17.44% | 2.37% | 3.83% | -23.31% | 7.92% | 16.49% | 29.52% | 29.44% | 17.96% | 16.62% | 6.13% | 16.63% | 18.69% | -4.44% | -5.35% | 6.64% | 7.36% |
| Operating Income Growth % | - | -57.02% | 174.48% | 735.86% | -129.34% | 158.94% | -375.68% | -48.68% | 4724.85% | 101.88% | 18.6% | -201.96% | -9.65% | 16.04% | 615.57% | -36.23% | 120.42% | -263.68% | -47.92% | -5.35% | 20.93% | 100.74% | 38.93% | 271.17% | -68.89% | -3.89% | 749.64% | 14.15% | -168.42% | 11.76% | 41.67% |
| EBITDA | 97.79M | 105.3M | 146.05M | 56.73M | 24.13M | 39.76M | 5.38M | 44.43M | 53.84M | 36.4M | 12.42M | 9.74M | 47.25M | 45.53M | 43.67M | 51.25M | 50.16M | 33.84M | 91.25M | 90.19M | 41.55M | 33.72M | 23.34M | 15.57M | 7.4M | 12.57M | 13.25M | 4.41M | 5.7M | 8.7M | 6.7M |
| EBITDA Margin % | 54.98% | 56.64% | 62.44% | 46.08% | 25.87% | 48.24% | 10.25% | 40.77% | 46.07% | 40.94% | 20.58% | 13.01% | 37.25% | 35.84% | 37.33% | 42.6% | 43.02% | 36.03% | 54% | 57.91% | 45.19% | 44.23% | 37.49% | 32.16% | 20.91% | 29.98% | 34.16% | 17.54% | 23.46% | 30.42% | 29% |
| EBITDA Growth % | -36.17% | -27.9% | 157.43% | 135.16% | -39.33% | 639.48% | -87.9% | -17.49% | 47.91% | 193.04% | 27.51% | -79.38% | 3.78% | 4.27% | -14.79% | 2.18% | 48.21% | -62.91% | 1.17% | 117.08% | 23.23% | 44.48% | 49.86% | 110.46% | -41.12% | -5.15% | 200.25% | -22.58% | -34.48% | 29.85% | 52.27% |
| D&A (Non-Cash Add-back) | 72.08M | 75.72M | 77.23M | 31.66M | 28.07M | 26.32M | 28.18M | 36.16M | 37.73M | 36.07M | 30.17M | 31.55M | 25.86M | 21.86M | 23.27M | 48.4M | 45.69M | 55.74M | 77.87M | 64.51M | 14.41M | 11.27M | 12.16M | 7.53M | 5.23M | 5.6M | 6M | 5.53M | 7M | 6.8M | 5M |
| EBIT | 26.26M | 32.72M | 72.72M | 34.76M | 59.9M | 6.65M | -978K | 8.71M | 21.06M | 41.99M | 11.02M | -16.45M | 46.72M | 24.48M | 25.21M | 11.66M | 11.59M | -27.6M | 14.95M | 27.54M | 30.6M | 42.48M | 11.43M | 8.93M | 2.17M | 6.97M | 7.25M | -1.12M | -1.3M | 1.79M | 1.7M |
| Net Interest Income | -424K | -695K | -1.36M | -118K | -642K | -2.01M | -1.9M | -3.62M | -3.37M | -2.3M | -3.51M | -3.63M | -4.02M | -4.22M | -3.49M | -3.27M | -6.03M | -7.32M | -7.59M | -10.37M | -1.62M | -1.53M | -957K | -834K | -714K | -757K | -1.33M | 0 | -1.3M | 0 | -1M |
| Interest Income | 1.49M | 1.54M | 184K | 417K | 267K | 0 | 0 | 19K | 44K | 7K | 1K | 2K | 0 | 2K | 91K | 446K | 621K | 52K | 381K | 697K | 472K | 0 | 179K | 46K | 52K | 138K | 169K | 0 | 0 | 0 | 0 |
| Interest Expense | 1.91M | 2.23M | 1.55M | 535K | 909K | 2.01M | 1.9M | 3.63M | 3.41M | 2.31M | 3.51M | 3.63M | 4.02M | 4.22M | 3.58M | 3.71M | 6.65M | 7.37M | 7.97M | 11.06M | 2.09M | 1.53M | 1.14M | 880K | 766K | 895K | 1.5M | 0 | 1.3M | 0 | 1M |
| Other Income/Expense | -1.36M | 912K | 2.36M | 9.15M | 62.94M | -8.79M | 19.92M | -3.19M | 1.53M | 39.35M | 25.27M | 2.01M | 21.6M | -3.42M | 1.23M | 5.1M | 815K | -13.07M | -6.83M | -9.21M | 1.37M | 18.51M | -882K | -779K | 32K | 166K | -1.07M | -992K | -600K | -692K | -700K |
| Pretax Income | 24.35M | 30.49M | 71.17M | 34.22M | 58.99M | 4.64M | -2.88M | 5.08M | 17.64M | 39.68M | 7.52M | -19.8M | 42.99M | 20.26M | 21.63M | 7.95M | 5.29M | -34.97M | 6.54M | 16.48M | 28.51M | 40.95M | 10.3M | 8.15M | 2.2M | 7.13M | 6.18M | -2.11M | -1.9M | 1.1M | 1M |
| Pretax Margin % | 13.69% | 16.4% | 30.43% | 27.79% | 63.25% | 5.63% | -5.49% | 4.66% | 15.1% | 44.63% | 12.46% | -26.45% | 33.89% | 15.95% | 18.49% | 6.61% | 4.53% | -37.23% | 3.87% | 10.58% | 31.01% | 53.72% | 16.54% | 16.83% | 6.22% | 17.02% | 15.92% | -8.38% | -7.82% | 3.85% | 4.33% |
| Income Tax | 2.83M | 4.18M | 15.77M | 6.12M | 10.33M | 2.52M | -517K | 1.42M | 2.98M | -7.75M | 2.1M | -6.65M | 13.84M | 6.82M | 6.86M | 1.27M | 1M | -12.3M | 59K | 3.65M | 10.21M | 15M | 3.02M | 2.45M | 443K | 1.72M | 811K | 30K | -200K | 100K | 100K |
| Effective Tax Rate % | 11.63% | 13.7% | 22.16% | 17.88% | 17.51% | 54.2% | 17.95% | 27.97% | 16.88% | -19.54% | 27.92% | 33.58% | 32.2% | 33.66% | 31.7% | 16.04% | 18.96% | 35.19% | 0.9% | 22.13% | 35.81% | 36.62% | 29.36% | 30.02% | 20.14% | 24.12% | 13.13% | -1.42% | 10.53% | 9.09% | 10% |
| Net Income | 21.52M | 26.31M | 55.4M | 28.1M | 48.66M | 2.1M | -2.32M | 3.48M | 14.53M | 42M | 3.44M | -12.78M | 27.05M | 12.27M | 15.06M | 4.81M | 2.75M | -23.68M | 541K | 7.59M | 18.3M | 25.95M | 7.28M | 5.7M | 1.76M | 5.41M | 5.37M | -2.14M | -1.7M | 1M | 900K |
| Net Margin % | 12.1% | 14.15% | 23.69% | 22.82% | 52.18% | 2.55% | -4.42% | 3.19% | 12.43% | 47.23% | 5.71% | -17.08% | 21.32% | 9.66% | 12.87% | 4% | 2.36% | -25.21% | 0.32% | 4.87% | 19.9% | 34.04% | 11.69% | 11.77% | 4.97% | 12.92% | 13.83% | -8.5% | -7% | 3.5% | 3.9% |
| Net Income Growth % | -59.57% | -52.51% | 97.15% | -42.25% | 2219.54% | 190.59% | -166.63% | -76.08% | -65.41% | 1119.45% | 126.94% | -147.27% | 120.41% | -18.5% | 212.95% | 74.75% | 111.63% | -4476.89% | -92.87% | -58.52% | -29.49% | 256.77% | 27.59% | 224.53% | -67.54% | 0.89% | 350.94% | -25.76% | -270% | 11.11% | 80% |
| Net Income (Continuing) | 21.52M | 26.31M | 55.4M | 28.1M | 48.66M | 2.13M | -2.36M | 3.66M | 14.66M | 47.43M | 5.42M | -13.15M | 29.15M | 13.44M | 14.77M | 6.67M | 4.28M | -22.66M | 6.49M | 7.59M | 18.3M | 25.95M | 7.28M | 5.7M | 1.76M | 5.41M | 5.37M | -2.14M | -1.7M | 1M | 900K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 874K | 3.25M | 3.99M | 7.13M | 7.33M | 7.17M | 8.65M | 7.71M | 6.93M | 8.76M | 9.17M | 9.84M | 10.64M | 1.31M | 1.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.08 | 10.86 | 21.95 | 10.77 | 17.95 | 0.76 | -1.16 | 1.25 | 5.11 | 14.18 | 1.13 | -5.53 | 8.68 | 3.86 | 4.48 | 1.38 | 0.75 | -7.79 | 0.14 | 2.02 | 4.50 | 6.27 | 1.70 | 1.31 | 0.40 | 1.18 | 1.08 | -0.48 | -0.38 | 0.19 | 0.17 |
| EPS Growth % | -57.74% | -50.52% | 103.81% | -40% | 2261.84% | 165.52% | -192.8% | -75.54% | -63.96% | 1154.87% | 120.43% | -163.71% | 124.87% | -13.84% | 224.64% | 84% | 109.63% | -5664.29% | -93.07% | -55.11% | -28.23% | 268.82% | 29.77% | 227.5% | -66.1% | 9.26% | 325% | -26.32% | -300% | 11.76% | 88.89% |
| EPS (Basic) | - | 15.85 | 31.43 | 15.19 | 24.91 | 1.05 | -1.16 | 1.72 | 5.11 | 18.99 | 1.50 | -5.53 | 11.45 | 5.04 | 5.74 | 1.75 | 0.94 | -7.79 | 0.18 | 2.50 | 5.52 | 7.64 | 2.04 | 1.56 | 0.47 | 1.39 | 1.26 | -0.48 | -0.38 | 0.22 | 0.17 |
| Diluted Shares Outstanding | 2.37M | 2.42M | 2.52M | 2.61M | 2.71M | 2.74M | 1.99M | 2.78M | 2.84M | 2.96M | 3.05M | 2.31M | 3.12M | 3.18M | 3.36M | 3.48M | 3.66M | 3.04M | 3.82M | 3.93M | 4.07M | 4.14M | 4.28M | 4.35M | 4.39M | 4.59M | 4.97M | 4.45M | 4.47M | 5.26M | 5.71M |
| Basic Shares Outstanding | 1.63M | 1.66M | 1.76M | 1.85M | 1.95M | 1.99M | 1.99M | 2.02M | 2.05M | 2.21M | 2.29M | 2.31M | 2.36M | 2.44M | 2.62M | 2.75M | 2.93M | 3.04M | 3.06M | 3.17M | 3.32M | 3.4M | 3.57M | 3.66M | 3.74M | 3.89M | 4.26M | 4.45M | 4.47M | 4.55M | 5.58M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 37.1% | 62.4% | - | 1010.35% | - | - | - | - | - | - | - | - | - | - | - | - |
Commodity price volatility exposure
As indicated by the provided financial data, PNRG has experienced a sustained period of revenue decline, with the most recent quarterly revenue falling to $41.3 million, representing a significant contraction from the $66.7 million peak observed in 2024Q3, reflecting heightened sensitivity to regional commodity price fluctuations.
The consistent downward trajectory in top-line performance suggests that the company is struggling to offset natural production declines with new drilling activity. Investors should monitor whether this trend reflects a strategic choice to preserve capital or an inability to maintain production levels in the current pricing environment.
Based on reported income statements, gross margins have compressed significantly from a high of 44.4% in 2024Q3 to 24.8% in 2026Q1, suggesting that the company's internal service arm and production assets are failing to maintain historical profitability levels during this period of declining commodity prices.
The erosion of gross margins appears to be driven by the dual impact of lower realized prices and persistent inflationary pressures on field labor and materials. This margin volatility warrants further investigation into whether the service segment is effectively passing through costs to third-party clients or absorbing them to maintain volume.
According to the quarterly income statements, operating income has demonstrated extreme volatility, swinging from a peak of $25.7 million in 2024Q3 to $7.4 million in 2026Q1, which highlights the company's limited ability to scale operating expenses efficiently in response to sharp fluctuations in gross profit.
The lack of consistent operating leverage suggests that fixed costs, particularly those associated with the service subsidiary and non-operated well interests, remain a significant burden during revenue downturns. Management's ability to control SG&A appears inconsistent, with periodic spikes in overhead costs further pressuring the bottom line.
As reported in financial filings, the company's cost structure is heavily weighted toward COGS, which consumed approximately 75% of revenue in 2026Q1, indicating that the high fixed-cost nature of oil and gas production leaves little room for operational adjustment when commodity prices face downward pressure.
The reliance on full-cost accounting means that the company's cost base is inherently rigid, making it difficult to achieve meaningful expense discipline during cyclical troughs. Investors should monitor whether the company's internal service capabilities can provide a sufficient cost buffer to prevent further deterioration of operating margins.
Quick answers to the most common questions about buying PNRG stock.
For fiscal year 2025, PrimeEnergy Resources Corporation (PNRG) reported total revenue of $185.9M. This represents a 704.8% increase compared to $23.1M in 1996.
PrimeEnergy Resources Corporation (PNRG) is profitable, generating $26.3M in net income for the fiscal year ending 2025 with a net profit margin of 14.2%.
PrimeEnergy Resources Corporation (PNRG) reported an operating income of $29.6M, resulting in an operating profit margin of 15.9%. This margin reflects the operational efficiency of the business before interest and taxes.
PrimeEnergy Resources Corporation (PNRG) generated $49.0M in gross profit for the year, representing a gross profit margin of 26.4%. This demonstrates the company's core pricing power and production efficiency.