PrimeEnergy Corp. (NASDAQ:PNRG) filed Quarterly Report for the period ended 2011-09-30.
Primeenergy Corp. has a market cap of $54.4 million; its shares were traded at around $19.85 with and P/S ratio of 0.4. Primeenergy Corp. had an annual average earning growth of 28.5% over the past 10 years. GuruFocus rated Primeenergy Corp. the business predictability rank of 3-star.
Highlight of Business Operations:Oil and gas sales increased $3.0 million, or 16% from $18.7 million for the third quarter 2010 to $21.7 million for the third quarter 2011 and $4.2 million, or 7% from $61.0 million for the nine months ended September 30, 2010 to $65.2 million for the nine months ended September 30, 2011. Crude oil and natural gas sales vary due to changes in volumes of production sold and realized commodity prices. Our realized prices at the well head increased an average of $8.01 per barrel, or 11% and $1.45 per mcf, or 27% on crude oil and natural gas, respectively, during the third quarter 2011 from the same period in 2010. Our realized prices at the well
The following table summarizes the primary components of production volumes and average sales prices realized for the three and nine months ended September 30, 2011 and 2010 (excluding realized gains and losses from 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 consolidated statements of operations. As oil and natural gas prices remain volatile, mark-to-market accounting treatment creates volatility in our revenues. During the three months ended September 30, 2011, we recognized $12.5 million in unrealized gains. This unrealized gain consists of $11.4 million associated with crude oil fixed swaps and collars due to a decrease in crude oil futures market prices between June 30, 2011 and September 30, 2011 and $1.1 million associated with natural gas fixed swap contracts due to decreased natural gas futures market prices between June 30, 2011 and September 30, 2011. For the nine months ended September 30, 2011, we recognized $9.0 million in unrealized gains primarily associated with crude oil fixed swaps and collars due to a decrease in crude oil futures market prices between December 31, 2010 and September 30, 2011.
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