PrimeEnergy Corp. (PNRG, Financial) filed Quarterly Report for the period ended 2010-09-30.
Primeenergy Corp. has a market cap of $59.67 million; its shares were traded at around $20.7999 with and P/S ratio of 0.66. Primeenergy Corp. had an annual average earning growth of 25.5% over the past 10 years. GuruFocus rated Primeenergy Corp. the business predictability rank of 4.5-star.
The Company has in place both a stock repurchase program and a limited partnership interest repurchase program. Spending under these programs for the first nine months of 2009 was $417,000. The Company expects to continue spending under the programs in 2010. During the first nine months of 2010 the Company spent $2,376,000 under these programs.
The Company currently maintains a credit facility totaling $250 million, with a current borrowing base of $100 million. The bank reviews the borrowing base semi-annually and, at their discretion, may decrease or propose an increase to the borrowing base relative to a redetermined estimate of proved oil and gas reserves. Our oil and gas properties are pledged as collateral for the line of credit and we are subject to certain financial covenants defined in the agreement. We are currently in compliance with these financial covenants. If we do not comply with these covenants on a continuing basis, the lenders have the right to refuse to advance additional funds under the facility and/or declare all principal and interest immediately due and payable.
The Companys offshore subsidiary maintains a subordinated credit facility with a private lender controlled by a Director of the Company. The facility provides availability of $50 million and is secured by properties released by the bank and pledged under this agreement. The current advances under this credit facility are $20 million due November 1, 2014.
Field service income for the nine months of 2010 decreased $731,000 or 5.66% compared to 2009. Field service expense for the nine months of 2010 decreased $1,529,000 or 13.11% compared to 2009. The changes in field service income are a direct result of changes in utilization of equipment and rates charged to customers. Workover rig services represent the bulk of our operation, and those rates all decreased in our most active districts. Utilization in South Texas and Oklahoma decreased and was offset by an increase in West Texas. The most significant costs included in field service expense are salaries and employee-related expenses. These costs decreased relative to our decreased utilization and rates.
Depreciation, depletion and amortization expense decreased to $24,238,000 in 2010 from $31,584,000 in 2009 or 23.26%. This decrease is primarily related to the decrease in offshore production during the first nine months of 2010.
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Primeenergy Corp. has a market cap of $59.67 million; its shares were traded at around $20.7999 with and P/S ratio of 0.66. Primeenergy Corp. had an annual average earning growth of 25.5% over the past 10 years. GuruFocus rated Primeenergy Corp. the business predictability rank of 4.5-star.
Highlight of Business Operations:
In July 2010 the Company successfully completed the amendment and restatement of its $250,000,000 credit facility with a current borrowing base of $100,000,000.The Company has in place both a stock repurchase program and a limited partnership interest repurchase program. Spending under these programs for the first nine months of 2009 was $417,000. The Company expects to continue spending under the programs in 2010. During the first nine months of 2010 the Company spent $2,376,000 under these programs.
The Company currently maintains a credit facility totaling $250 million, with a current borrowing base of $100 million. The bank reviews the borrowing base semi-annually and, at their discretion, may decrease or propose an increase to the borrowing base relative to a redetermined estimate of proved oil and gas reserves. Our oil and gas properties are pledged as collateral for the line of credit and we are subject to certain financial covenants defined in the agreement. We are currently in compliance with these financial covenants. If we do not comply with these covenants on a continuing basis, the lenders have the right to refuse to advance additional funds under the facility and/or declare all principal and interest immediately due and payable.
The Companys offshore subsidiary maintains a subordinated credit facility with a private lender controlled by a Director of the Company. The facility provides availability of $50 million and is secured by properties released by the bank and pledged under this agreement. The current advances under this credit facility are $20 million due November 1, 2014.
Field service income for the nine months of 2010 decreased $731,000 or 5.66% compared to 2009. Field service expense for the nine months of 2010 decreased $1,529,000 or 13.11% compared to 2009. The changes in field service income are a direct result of changes in utilization of equipment and rates charged to customers. Workover rig services represent the bulk of our operation, and those rates all decreased in our most active districts. Utilization in South Texas and Oklahoma decreased and was offset by an increase in West Texas. The most significant costs included in field service expense are salaries and employee-related expenses. These costs decreased relative to our decreased utilization and rates.
Depreciation, depletion and amortization expense decreased to $24,238,000 in 2010 from $31,584,000 in 2009 or 23.26%. This decrease is primarily related to the decrease in offshore production during the first nine months of 2010.
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