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PNRG (PrimeEnergy Resources) Degree of Operating Leverage : 0.71 (As of Mar. 2025)


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What is PrimeEnergy Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. PrimeEnergy Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.71. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for PrimeEnergy Resources's Degree of Operating Leverage or its related term are showing as below:

PNRG's Degree of Operating Leverage is ranked better than
53.86% of 906 companies
in the Oil & Gas industry
Industry Median: 0.99 vs PNRG: 0.71

PrimeEnergy Resources Degree of Operating Leverage Historical Data

The historical data trend for PrimeEnergy Resources's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PrimeEnergy Resources Degree of Operating Leverage Chart

PrimeEnergy Resources Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.51 -32.46 8.98 4.12 1.21

PrimeEnergy Resources Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.03 0.70 1.16 1.21 0.71

Competitive Comparison of PrimeEnergy Resources's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, PrimeEnergy Resources's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PrimeEnergy Resources's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, PrimeEnergy Resources's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where PrimeEnergy Resources's Degree of Operating Leverage falls into.


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PrimeEnergy Resources Degree of Operating Leverage Calculation

PrimeEnergy Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 70.124 (Mar. 2025) / 47.348 (Mar. 2024) - 1 )/( 240.842 (Mar. 2025) / 143.348 (Mar. 2024) - 1 )
=0.481/0.6801
=0.71***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


PrimeEnergy Resources  (NAS:PNRG) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


PrimeEnergy Resources Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of PrimeEnergy Resources's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


PrimeEnergy Resources Business Description

Traded in Other Exchanges
Address
9821 Katy Freeway, Houston, TX, USA, 77024
PrimeEnergy Resources Corp is an independent oil and natural gas company that is engaged in acquiring, developing, and producing oil and natural gas. It owns producing and non-producing properties located in Texas and Oklahoma. The company's business activities include development and exploratory drilling and providing well servicing support operations for many of the onshore oil and gas wells through its subsidiaries. It is also active in the acquisition of producing oil and gas properties through joint ventures with industry partners.
Executives
Rothschild Robert De 10 percent owner 1251 AVENUE OF THE AMERICAS 51ST FL, NEW YORK NY 10020
Clint Hurt director 4015 HOLLAND #101, DALLAS TX 75219
Drimal Charles E Jr director, 10 percent owner, officer: Chief Executive Officer 4015 HOLLAND #101, DALLAS TX 75219
Gaines Wehrle director, 10 percent owner
Gifford Fong director
Jan K Smeets director 4015 HOLLAND #101, DALLAS TX 75219
Mcjunkin Red Man Holding Corp 10 percent owner FULBRIGHT TOWER, 1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Mcjunkin Red Man Corp 10 percent owner 2 HOUSTON CENTER, 909 FANNIN, SUITE 3100, HOUSTON TX 77010
Rene Pierre Azria 10 percent owner C/O JARDEN CORP, 555 THEODORE FREMD AVE, RYE NY 10580
Gimbel Thomas S T director
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Gs Capital Partners Vi Gmbh & Co Kg 10 percent owner 200 WEST STREET, New York NY 10282
Gs Capital Partners Vi Parallel Lp 10 percent owner 85 Broad St, New York NY 10004
Gs Advisors Vi, L.l.c. 10 percent owner 1209 ORANGE STREET, WILMINGTON DE 19801