Prairie Operating Co. Announces $1 Billion Reserve Based Lending Facility with Citibank, N.A.
Rhea-AI Summary
Prairie Operating Co. (PROP) has secured a multi-year Reserve-Based Lending (RBL) credit facility with Citibank. The facility provides an initial commitment of $44 million with potential expansion up to $1 billion following production additions. The agreement enhances Prairie's financial flexibility and development capabilities in the DJ Basin, supporting both organic growth and strategic asset acquisitions. Chairman and CEO Edward Kovalik emphasized that the partnership with Citibank validates the company's asset strength and disciplined growth approach.
Positive
- Secured $44 million initial RBL facility with potential expansion to $1 billion
- Partnership with major financial institution (Citibank) enhances credibility
- Increased financial flexibility for development and acquisitions
- Facility can expand based on production growth
Negative
- Initial facility amount ($44M) is significantly smaller than the potential maximum ($1B)
- Expansion dependent on future production increases
News Market Reaction
On the day this news was published, PROP gained 1.23%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
HOUSTON, TX, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) today announced it has entered into a multi-year Reserve-Based Lending (“RBL”) credit facility. The RBL facility, arranged with Citibank, N.A. (“Citi”), provides for an initial commitment of
"This facility enhances our financial flexibility and accelerates our development plans,” said Edward Kovalik, Chairman and CEO of Prairie Operating Co. “The ability to expand further with Citi underscores the strength of our asset base and our disciplined approach to strategically growing the Company.”
The initial
This credit facility backstops Prairie’s ability to secure tailored financial solutions that align with its development milestones, further positioning the Company for sustained growth.
About Prairie Operating Co.
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil and natural gas resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation. More information about the Company can be found at www.prairieopco.com.
Forward-Looking Statement
The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on the Company’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. There may be additional risks not currently known by the Company or that the Company currently believes are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact the Company’s expectations can be found in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K/A filed with the SEC on March 20, 2024, and any subsequently filed Quarterly Report and Current Report on Form 8-K. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
Investor Relations Contact:
Wobbe Ploegsma
info@prairieopco.com
832.274.3449
FAQ
What is the initial commitment amount of Prairie Operating's (PROP) new RBL facility?
What is the maximum potential expansion of PROP's new credit facility?
Who is the lending partner for Prairie Operating's (PROP) new RBL facility?
What is the purpose of PROP's new RBL facility?
What conditions must PROP meet to expand the credit facility beyond $44 million?
