PrimeEnergy (NASDAQ:PNRG) Posts Quarterly Earnings Results, Misses Expectations By $3.15 EPS

Key Points

• PrimeEnergy reported quarterly EPS of $2.75, falling well short of the $5.90 consensus estimate by $3.15. The company posted a 12.06% net margin and 10.10% return on equity.
• Shares rose $5.39 to $200.98 on Friday, although trading volume was below average. The stock has a market capitalization of about $325.6 million and has traded between $126.40 and $278.90 over the past year.
• Analyst sentiment remains cautious: Freedom Capital downgraded the stock to “strong sell,” while other firms rated it “hold,” resulting in a consensus “Reduce” rating. Several institutional investors nevertheless increased their positions during the first and second quarters.

PrimeEnergy (NASDAQ:PNRG - Get Free Report) issued its quarterly earnings results on Friday. The oil and natural gas company reported $2.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.90 by ($3.15), Zacks reports. PrimeEnergy had a net margin of 12.06% and a return on equity of 10.10%.

PrimeEnergy Stock Performance

Shares of PrimeEnergy stock traded up $5.39 on Friday, reaching $200.98. 44,548 shares of the stock were exchanged, compared to its average volume of 72,097. The firm has a market cap of $325.59 million, a PE ratio of 21.83 and a beta of -0.27. The firm's 50 day moving average is $182.66 and its 200-day moving average is $201.27. PrimeEnergy has a one year low of $126.40 and a one year high of $278.90.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its stake in PrimeEnergy by 286.2% during the first quarter. AQR Capital Management LLC now owns 6,897 shares of the oil and natural gas company's stock worth $1,572,000 after purchasing an additional 5,111 shares during the last quarter. Empowered Funds LLC increased its stake in shares of PrimeEnergy by 6.7% in the 1st quarter. Empowered Funds LLC now owns 8,649 shares of the oil and natural gas company's stock valued at $1,971,000 after purchasing an additional 541 shares during the last quarter. Rhumbline Advisers increased its stake in shares of PrimeEnergy by 99.3% in the 2nd quarter. Rhumbline Advisers now owns 1,373 shares of the oil and natural gas company's stock valued at $201,000 after purchasing an additional 684 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of PrimeEnergy by 16.5% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 16,719 shares of the oil and natural gas company's stock worth $2,447,000 after buying an additional 2,374 shares in the last quarter. Finally, Qube Research & Technologies Ltd acquired a new position in shares of PrimeEnergy during the 2nd quarter worth $1,894,000.

Wall Street Analyst Weigh In

Several brokerages have weighed in on PNRG. Freedom Capital cut PrimeEnergy from a "hold" rating to a "strong sell" rating in a report on Thursday, May 28th. Wall Street Zen lowered PrimeEnergy from a "buy" rating to a "hold" rating in a report on Sunday, May 31st. Finally, Weiss Ratings restated a "hold (c)" rating on shares of PrimeEnergy in a research report on Wednesday, June 24th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce".

PrimeEnergy Company Profile

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations.

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