What PrimeEnergy Resources Corp. told the SEC could break it.

PrimeEnergy's revenue swings with realized oil/NGL/gas prices — in 2025 realized crude fell 16.5% and NGL 24.4%, driving total oil & gas sales down 20.4% to $177.5M — exposing it to commodity-price volatility.

“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.”

PrimeEnergy's oil & gas sales are concentrated in three purchasers each over 10% — DE Central Operating (53% of oil, 40% of gas/NGL), APA Corp (18%/15%) and Civitas (12%/26%) — with no long-term purchase agreements, so loss of a purchaser (especially DE Central) would be material.

“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 %”

PrimeEnergy's drilling and reserves are concentrated in the West Texas Permian, with 97.6% of its ~16,838 gross acres in Reagan, Upton and Martin counties — concentrating operational and resource risk in one basin.

“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.”

PrimeEnergy's oil & gas operations are subject to evolving EPA environmental rules — Clean Water Act 'waters of the United States' jurisdiction (post-Sackett), RCRA waste handling and air-quality source-aggregation permitting — which could raise permitting costs and cause operational delays.

“This rule could cause small facilities, on an aggregate basis, to be deemed a major source, thereby triggering more stringent air permitting requirements, which in turn could result in operational delay”