Primeenergy Resources (PNRG) risk factors, FY2025 10-K

Other

1. 01The prices of oil, NGL and gas are highly volatile. A sustained decline in these commodity prices could materially and adversely affect the Company ’ s business, financial condition and results of operations20% rewritten
2. 02global or national health concerns, including the outbreak of pandemic or contagious disease
3. 03Concerns over general economic, business or industry conditions may have a material adverse effect on our results of operations, liquidity and financial condition
4. 04Financial difficulties encountered by our oil and natural gas purchasers, third-party operators or other third parties could decrease cash flow from operations and adversely affect our exploration and development activities
5. 05We have substantial capital requirements, and we may not be able to obtain needed financing on satisfactory terms, if at all
6. 06Negative public perception regarding us and/or our industry could have an adverse effect on our operations
7. 07We may not be insured against all of the operating risks to which we are exposed
8. 08Terrorist activities and the potential for military and other actions could adversely affect our business
9. 09Our ability to sell our natural gas and oil production could be materially harmed if we fail to obtain adequate services such as transportation and processing
10. 10Competition in our industry is intense, and many of our competitors have substantially greater financial and technological resources than we do, which could adversely affect our competitive position
11. 11The loss of key personnel could adversely affect our ability to operate
12. 12A failure of technology systems, data breach or cyber incident could materially affect our operations

Risks Related to our Business

1. 13The shut-in of our wells could negatively impact our production, liquidity, and, ultimately, our operations, results, and performance
2. 14Our production depends, in part, upon our wells that are capable of commercial production not being shut-in (i.e., suspended from production). The lack of availability of capacity on third-party systems and facilities or the shut-in of an oil field’s production could result in the shut-in of our wells
3. 15Drilling natural gas and oil wells is a high-risk activity
4. 16shortages or delays in the availability of required goods or services such as drilling rigs or crews, the delivery of equipment and the availability of sufficient water for drilling operations
5. 17Reserve estimates depend on many assumptions that may prove to be inaccurate. Any material inaccuracies in our reserve estimates or underlying assumptions could cause the quantities and net present value of our reserves to be overstated
6. 18the judgment of the persons preparing the estimate
7. 19The Company ’ s expectations for future drilling activities will be realized over several years, making them susceptible to uncertainties that could materially alter the occurrence or timing of such activities
8. 20Our future performance depends on our ability to find or acquire additional natural gas and oil reserves that are economically recoverable
9. 21The borrowing base under our revolving credit facility may be reduced in light of recent commodity price declines, which could limit us in the future
10. 22We face a variety of hazards and risks that could cause substantial financial losses
11. 23The nature of the Company ’ s assets and production operations may impact the environment or cause environmental contamination, which could result in material liabilities to the Company
12. 24We have limited control over the activities on properties we do not operate
13. 25We may have hedging arrangements that expose us to risk of financial loss and limit the benefit to us of increases in prices for natural gas and oil
14. 26there is an adverse change in the expected differential between the underlying price in the derivative instrument and actual prices received for our production

Legal and Regulatory Risks

1. 27Laws and regulations regarding hydraulic fracturing, as well as governmental reviews of such activities, could result in increased costs and additional operating restrictions, delays or cancellations and have a material adverse effect on the Company ’ s production
2. 28The Company ’ s operations are subject to stringent environmental, oil and gas-related and occupational safety and health laws and regulations that could cause it to delay, curtail or cease its operations or expose it to material costs and liabilities
3. 29The Company ’ s operations are subject to a number of risks arising out of concerns regarding the threat of climate change
4. 30We are subject to complex laws and regulations, including environmental regulations, which can adversely affect the cost, manner or feasibility of doing business
5. 31Increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our Environmental, Social and Governance ( “ ESG ” ) policies may impose additional costs on us or expose us to additional risks
6. 32Changes to the U.S. federal tax laws could adversely affect our financial position, results of operations and cash flow
7. 33The IRS includes a 1% tax on publicly traded corporations on the fair market value of stock repurchased during any taxable year. Such tax applies to the extent such buybacks exceed $1 million during such year, which buyback value may be offset by other stock issuances