$184.55
+0.22%PrimeEnergy Resources Corporation, an independent oil and natural gas company, through its subsidiaries, engages in acquiring, developing, and producing oil and natural gas properties in the United States. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support operations, site-preparation, and construction services for oil and gas drilling and reworking operations. The company operates approximately 710 active wells and owns non-operating interests in approximately 822 additional wells primarily in Oklahoma and Texas. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. The company was incorporated in 1973 and is headquartered in Houston, Texas.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $193.5M | $386.9M | $773.9M | $1.5B | $3.1B | $6.2B | $12.4B | $24.8B | $49.5B | $99.1B |
| Maintenance CapEx | -$30.4M | -$60.8M | -$121.5M | -$243.1M | -$486.1M | -$972.2M | -$1.9B | -$3.9B | -$7.8B | -$15.6B |
| Owner Earnings | $163.1M | $326.2M | $652.3M | $1.3B | $2.6B | $5.2B | $10.4B | $20.9B | $41.8B | $83.5B |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $151.0M | $279.6M | $517.9M | $959.0M | $1.8B | $3.3B | $6.1B | $11.3B | $20.9B | $38.7B |
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