Prairie Operating Co. Announces Second Quarter 2025 Results
Prairie Operating Co. (NASDAQ:PROP) reported exceptional Q2 2025 results with significant growth across all metrics. The company achieved total revenue of $68.1 million (400% increase quarter-over-quarter) and record production of 21,052 Boe/d (540% increase), with approximately 50% oil composition.
Key financial highlights include net income of $35.7 million, earnings per share of $1.04, and record Adjusted EBITDA of $38.6 million (600% increase). The company completed over $600 million in producing asset acquisitions and secured a $475 million credit facility with Citibank.
Operational achievements include drilling 18 wells and completing 9 wells, with improved spud-to-total-depth times of 5.3 days. Prairie implemented innovative U-shaped lateral designs and deployed an electric frac fleet, demonstrating technical leadership in the DJ Basin.
Prairie Operating Co. (NASDAQ:PROP) ha registrato risultati eccellenti nel 2° trimestre 2025, con una crescita significativa su tutti i fronti. La società ha raggiunto ricavi totali di 68,1 milioni di dollari (aumento del 400% trimestre su trimestre) e una produzione record di 21.052 Boe/d (incremento del 540%), con una composizione di petrolio di circa il 50%.
I principali indicatori finanziari comprendono un utile netto di 35,7 milioni di dollari, un utile per azione di 1,04 dollari e un Adjusted EBITDA record di 38,6 milioni di dollari (aumento del 600%). La società ha completato acquisizioni di asset produttivi per oltre 600 milioni di dollari e ha ottenuto una linea di credito da 475 milioni di dollari con Citibank.
Sul piano operativo sono stati trivellati 18 pozzi e completati 9 pozzi, con un miglioramento dei tempi da spud a profondità totale a 5,3 giorni. Prairie ha implementato design laterali a forma di U e ha schierato una flotta di fratturazione elettrica, dimostrando leadership tecnica nel DJ Basin.
Prairie Operating Co. (NASDAQ:PROP) presentó resultados excepcionales en el 2T 2025, con un crecimiento significativo en todos los indicadores. La compañía alcanzó ingresos totales de 68,1 millones de dólares (incremento del 400% trimestral) y una producción récord de 21.052 Boe/d (subida del 540%), con una composición de petróleo de aproximadamente el 50%.
Los aspectos financieros clave incluyen un beneficio neto de 35,7 millones de dólares, ganancias por acción de 1,04 dólares y un Adjusted EBITDA récord de 38,6 millones de dólares (aumento del 600%). La compañía completó adquisiciones de activos en producción por más de 600 millones de dólares y aseguró una línea de crédito de 475 millones de dólares con Citibank.
En operaciones perforó 18 pozos y completó 9, mejorando el tiempo de spud a profundidad total a 5,3 días. Prairie aplicó diseños laterales en forma de U y desplegó una flota de fracturación eléctrica, demostrando liderazgo técnico en la cuenca DJ.
Prairie Operating Co. (NASDAQ:PROP)는 2025년 2분기에 모든 지표에서 큰 폭의 성장을 보이며 우수한 실적을 발표했습니다. 회사는 총 수익 6,810만 달러(전분기 대비 400% 증가)를 기록했고, 약 50%의 유류 비중으로 일평균 생산량 21,052 Boe/d(540% 증가)의 기록을 세웠습니다.
주요 재무 하이라이트로는 순이익 3,570만 달러, 주당순이익 1.04달러, 그리고 조정 EBITDA 3,860만 달러(600% 증가, 역대 최고)가 있습니다. 회사는 6억 달러가 넘는 생산 자산 인수를 완료했으며 Citibank와 4억7,500만 달러 규모의 신용 한도를 확보했습니다.
운영 측면에서는 18개 유정 시추 및 9개 유정 완료를 수행했으며, 착수부터 총심도까지의 시간이 5.3일로 단축되었습니다. Prairie는 U자형 측면(래터럴) 설계를 도입하고 전기 프랙(Frac) 함대를 배치하여 DJ 분지에서 기술적 리더십을 입증했습니다.
Prairie Operating Co. (NASDAQ:PROP) a publié des résultats exceptionnels au 2e trimestre 2025, avec une forte progression sur tous les indicateurs. La société a réalisé un chiffre d'affaires total de 68,1 M$ (hausse de 400% d'un trimestre à l'autre) et une production record de 21 052 Boe/j (augmentation de 540%), avec une part d'environ 50% de pétrole.
Les principaux points financiers comprennent un résultat net de 35,7 M$, un bénéfice par action de 1,04 $ et un Adjusted EBITDA record de 38,6 M$ (augmentation de 600%). La société a finalisé des acquisitions d'actifs en production pour plus de 600 M$ et obtenu une ligne de crédit de 475 M$ auprès de Citibank.
Sur le plan opérationnel, 18 puits ont été forés et 9 puits complétés, avec un temps spud‑à‑profondeur totale amélioré à 5,3 jours. Prairie a mis en œuvre des trajectoires latérales en forme de U et déployé une flotte de fracturation électrique, montrant son leadership technique dans le DJ Basin.
Prairie Operating Co. (NASDAQ:PROP) meldete hervorragende Ergebnisse für das 2. Quartal 2025 mit deutlichem Wachstum in allen Bereichen. Das Unternehmen erzielte Gesamtumsatz von 68,1 Mio. USD (plus 400% gegenüber dem Vorquartal) und eine rekordverdächtige Produktion von 21.052 Boe/d (plus 540%), wobei der Ölanteil bei rund 50% lag.
Zu den wichtigsten finanziellen Kennzahlen gehören ein Nettoergebnis von 35,7 Mio. USD, ein Gewinn je Aktie von 1,04 USD sowie ein rekordverdächtiges Adjusted EBITDA von 38,6 Mio. USD (Anstieg um 600%). Das Unternehmen schloss Produzenten-Asset-Übernahmen von über 600 Mio. USD ab und sicherte sich eine Kreditlinie über 475 Mio. USD bei der Citibank.
Operativ wurden 18 Bohrungen durchgeführt und 9 Brunnen fertiggestellt; die Zeit von Spud bis zur Gesamttiefe verbesserte sich auf 5,3 Tage. Prairie setzte innovative U-förmige Lateralen ein und brachte eine elektrische Frac-Flotte zum Einsatz, wodurch die technische Führungsrolle im DJ Basin unterstrichen wurde.
- Revenue surged 400% quarter-over-quarter to $68.1 million
- Production increased 540% to 21,052 Boe/d with 50% oil composition
- Record Adjusted EBITDA of $38.6 million, up 600% quarter-over-quarter
- Completed over $600 million in strategic producing asset acquisitions
- Secured $475 million credit facility with strong 1x leverage ratio
- Successfully implemented cost-efficient electric frac fleet
- Expanded team from 20 to 59 employees and increased operated wells from 34 to over 360
- Secured favorable commodity pricing through 2028 with hedging program
- Capital expenditures increased to $56.6 million in Q2
- Operating costs rose with lease operating expenses at $5.92 per Boe
- General and administrative expenses increased to $8.58 per Boe
- Well costs remained 5% above AFE targets
Insights
Prairie's Q2 shows extraordinary 400%+ revenue growth and 540% production increase, demonstrating successful DJ Basin consolidation strategy.
Prairie Operating has delivered an exceptional quarter that solidifies its position as a significant player in the DJ Basin. The 400% quarter-over-quarter revenue growth to
What's particularly impressive is the 600% increase in Adjusted EBITDA to
Drilling economics are strengthening, with average spud-to-total-depth times improving to 5.3 days and well costs tracking within 5% of AFE. The company's focus on driving two-mile well costs toward
From a financial perspective, Prairie has smartly secured its pricing through 2028 with an extensive hedging program covering 85% of current production, providing cash flow certainty even if commodity prices decline. With
The 2025 guidance of 24,000-26,000 Boe/d with Adjusted EBITDA between
The operational achievements in this quarter reveal a company successfully scaling its technical capabilities while maintaining execution excellence. The dramatic
The Rusch pad execution demonstrates technical prowess: eight wells drilled in a single run using Schlumberger's Neosteer technology with penetration rates exceeding 450 feet per hour is industry-leading performance. This efficiency directly translates to capital savings and faster time to first production.
Prairie's implementation of U-shaped lateral designs represents genuine innovation in field development. This technique maximizes reservoir contact within lease boundaries – a creative solution to the geometric constraints often faced in mature basins like the DJ. The deployment of electric frac fleets further demonstrates operational sophistication, reducing both emissions and completion costs.
The company's base management strategy also impresses, with 30 plunger lift systems installed and more planned. These relatively low-cost interventions typically deliver exceptional returns by extending well life and reducing downtime. Similarly, the high-return workovers brought online in June-July represent the type of incremental optimization that builds significant value over time.
Looking ahead, Prairie faces the typical challenges of a rapidly scaling operator. The current lease operating expense of
- Total Revenue of
$68.1 million , an increase of approximately400% quarter-over-quarter - Net Income of
$35.7 million , an increase of over500% quarter-over-quarter - Over
540% increase in quarterly production to a total of 21,052 Boe/d per day (50% oil) - Record Adjusted EBITDA of
$38.6 million , an increase of over600% quarter-over-quarter
HOUSTON, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our,” or “us”), an independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquids (“NGL”) resources in the Denver-Julesburg (DJ) Basin – today announced its financial and operational results for the quarter ended June 30, 2025.
RECENT KEY HIGHLIGHTS
- Total revenue of
$68.1 million , an increase of approximately400% quarter-over-quarter. - Record total production of 21,052 barrels of oil equivalent per day (“Boe/d”) (approximately
50% oil), an increase of approximately540% quarter-over-quarter. - Net income attributable to common stockholders of
$48.5 million , or$1.04 b asic earnings per share. - Adjusted EBITDA(1) of
$38.6 million , an increase of over600% quarter-over-quarter. - Acquired over
$600.0 million of producing oil and gas assets. - Initiated hedging program, securing favorable commodity pricing through 2028.
- Amended our Credit Facility Agreement with Citibank, which among other things, brought additional banks into the syndicate, and re-affirmed the borrowing base to
$475.0 million .
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Edward Kovalik, Chairman and Chief Executive Officer, commented:
“The second quarter highlighted our tremendous growth rate. We delivered record production, achieved new highs in adjusted EBITDA, and closed our third strategic acquisition in under a year — further solidifying our position as an oil-weighted consolidator in the DJ Basin.”
“Through disciplined capital allocation, operational control, and technical execution, we’ve built a platform that is well-positioned to generate sustainable returns. Our recent acquisitions — all sourced off-market and executed at compelling valuations — have expanded our inventory depth, improved capital efficiency, and created a clear path for continued growth.”
“We also completed the integration of the Bayswater assets acquired earlier this year, increased the size of our team from 20 to 59 employees, increased our portfolio of operated wells from 34 to over 360, and implemented robust internal systems for accounting, land administration, and production optimization.”
“As a result, we’ve laid the groundwork for lower cost realizations in the third quarter and beyond, as we continue to ramp production through development of our drilling inventory, and save costs previously associated with outsourced consultant expenses.”
SECOND QUARTER RESULTS SUMMARY
- Revenue of
$68.1 million , driven by realized prices (excluding hedges) of$65.66 per barrel for oil,$8.70 per barrel for NGLs, and$1.80 per thousand cubic feet (“Mcf”) for natural gas. - Net income attributable to common stockholders of
$48.5 million , or$1.04 b asic earnings per share. - Adjusted EBITDA (1) of
$38.6 million , an increase of over600% quarter-over-quarter. - Capital expenditures incurred of
$56.6 million . - Net cash provided by operating activities of
$9.7 million .
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Greg Patton, Executive Vice President and Chief Financial Officer, added:
"Our second quarter results highlight the steps we’ve taken to strengthen Prairie’s financial and operating foundation. Our ability to stand up a rig, kick off a continuous frac program, transition the operations of acquired assets, and implement all new accounting and productions systems, is a true testament to our teams’ abilities.”
“To date, we have grown EBITDA more than six-fold, expanded our credit facility, and closed over
Operations Update
The second quarter reflected Prairie’s continued operational momentum, with strong execution across drilling, completions, and innovative well designs that are helping unlock additional value across our DJ Basin footprint. We drilled 18 and completed 9 wells during the quarter, remaining on track to meet or exceed our full-year turn-in-line (“TIL”) target. Average spud-to-total-depth times improved to just 5.3 days, driven by field execution and optimized rig operations. Overall, well costs remained within
A key highlight for the quarter was the successful execution of the 11-well Rusch pad in Weld County, which includes eight Niobrara wells and three Codell wells, all drilled as two-mile laterals. Eight of the wells were drilled in a single run using Schlumberger’s Neosteer rotary steerable system, achieving average rates of penetration exceeding 450 feet per hour. The Rusch pad was drilled on time and within budget, with first production expected early in the third quarter.
Prairie also advanced its position as a technical leader in the DJ Basin with the implementation of U-shaped lateral designs — a next-generation well architecture that enables extended lateral lengths within constrained lease boundaries. Four of the seven wells on the Noble pad incorporated this technique to target multiple stacked zones while maximizing drainage and minimizing surface impact. Precision Drilling and Ensign contributed to efficient surface hole and production interval drilling, with all seven wells progressing on schedule.
In addition to design and drilling innovation, Prairie continued aligning operations with cost efficiency and sustainability through the deployment of an electric frac fleet. This fleet significantly reduced emissions and completion costs while completing the nine-well Opal-Coalbank pad, which included legacy DUCs acquired in the Bayswater transaction. Our first zipper frac on this pad achieved excellent efficiency — averaging 14 stages per day and peaking at 18 — while sustaining 22 hours of daily pumping time. Early pressure data suggests strong reservoir communication, and all nine wells flowed oil within the first week of flowback, supported by tubing pressures in excess of 1,500 psi.
In total, Prairie turned 17 wells to sales in the first half of 2025 and now operates over 360 wells. As part of our ongoing production optimization strategy, we installed plunger lift systems on 30 wells during the quarter, with another 25 to 30 wells currently being evaluated for Q3 implementation. Additional value creation came through three high-return workovers brought back online in June and July.
Altogether, Prairie’s operational performance in the second quarter underscores our focus on efficiency, innovation, and disciplined capital deployment. We remain committed to maximizing asset value, delivering returns-driven growth, and maintaining the highest standards of safety and environmental stewardship.
SECOND QUARTER 2025 RESULTS
Key Financial Highlights
| Three Months Ended | ||||
| (In thousands, except per share amounts) | June 30, 2025 | |||
| Total revenues | $ | 68,100 | ||
| Net income attributable to common stockholders | $ | 35,683 | ||
| Earnings per share – basic | $ | 1.04 | ||
| Earnings per share – diluted | $ | 0.18 | ||
| Adjusted EBITDA | $ | 38,564 | ||
| Capital expenditures | $ | 56,605 | ||
Revenue and Production
Revenue for the second quarter of 2025 was
| Three Months Ended June 30, 2025 | ||||
| Revenues (in thousands) | ||||
| Oil revenue | $ | 57,941 | ||
| Natural gas revenue | 6,084 | |||
| NGL revenue | 4,075 | |||
| Total revenues | $ | 68,100 | ||
| Production: | ||||
| Oil (MBbls) | 883 | |||
| Natural gas (MMcf) | 3,388 | |||
| NGL (MBbls) | 469 | |||
| Total production (MBoe) | 1,916 | |||
| Average sales volumes per day (Boe/d) | 21,052 | |||
| Average realized price (excluding effects of derivatives): | ||||
| Oil (per MBbl) | $ | 65.66 | ||
| Natural gas (per MMcf) | $ | 1.80 | ||
| NGL (per MBbl) | $ | 8.70 | ||
| Average realized price (per MBoe) | $ | 35.55 | ||
| Average sales price (including effects of derivatives): | ||||
| Oil (per MBbl) | $ | 70.36 | ||
| Natural gas (per MMcf) | $ | 2.16 | ||
| NGL (per MBbl) | $ | 7.78 | ||
| Average price (per MBoe) | $ | 38.13 | ||
| Average NYMEX prices: | ||||
| WTI (per MBbl) | $ | 64.57 | ||
| Henry Hub (per MMBtu) | $ | 3.19 | ||
Operating Costs
| (In thousands, except per Boe amounts) | Three Months Ended June 30, 2025 | |||
| Lease operating expenses | $ | 11,348 | ||
| Lease operating expenses per Boe | $ | 5.92 | ||
| Gathering, transportation, and processing | $ | 2,234 | ||
| Gathering, transportation, and processing per Boe | $ | 1.17 | ||
| Ad valorem and production taxes | $ | 6,416 | ||
| Ad valorem and production taxes per Boe | $ | 3.35 | ||
| General and administrative expenses | $ | 16,443 | ||
| General and administrative expenses per Boe | $ | 8.58 | ||
Capital Expenditures and Acquisitions
| (In thousands) | Six Months Ended June 30, 2025 | |||
| Cash paid for Bayswater asset purchase | $ | 467,461 | ||
| Capital expenditures - cash | $ | 53,973 | ||
| Capital expenditures - accrued | $ | 15,692 | ||
| Leasehold purchases | $ | 950 | ||
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2025, we had approximately
2025 UPDATED GUIDANCE
In line with analyst consensus, Prairie’s full year guidance for 2025 is:
- Average Daily Production: 24,000 – 26,000 BOEPD.
- Capital Expenditures (Capex):
$260.0 million -$280.0 million . - Adjusted EBITDA(1): Expected to range between
$240.0 million and$260.0 million .
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Guidance reflects the timing of March 26, 2025 closing the Bayswater Acquisition and is based on an active hedging program with an average working interest of
HEDGES
Following the close of the Bayswater Acquisition, we executed a portfolio of hedges covering approximately
The following table reflects contracted volumes and weighted average prices we will receive under the terms of our derivative contracts as of June 30, 2025:
| Settling July 1, 2025 through December 31, 2025 | Settling January 1, 2026 through December 31, 2026 | Settling January 1, 2027 through December 31, 2027 | Settling January 1, 2028 through December 31, 2028 | |||||||||||||
| Crude Oil Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 1,542,652 | 2,241,616 | 1,592,503 | 471,907 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 68.04 | $ | 64.42 | $ | 64.16 | $ | 63.47 | ||||||||
| Natural Gas Swaps: | ||||||||||||||||
| Notional volume (MMBtus) | 6,285,244 | 11,413,134 | 9,874,626 | 4,406,357 | ||||||||||||
| Weighted average price ($/MMBtu) | $ | 4.30 | $ | 4.08 | $ | 4.07 | $ | 4.00 | ||||||||
| Ethane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 178,406 | 288,956 | 232,375 | 51,809 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 11.91 | $ | 11.54 | $ | 11.05 | $ | 11.28 | ||||||||
| Propane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 310,017 | 509,724 | 417,744 | 94,220 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 28.74 | $ | 26.36 | $ | 26.51 | $ | 26.00 | ||||||||
| Iso Butane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 39,012 | 63,185 | 50,812 | 11,328 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 35.62 | $ | 33.92 | $ | 30.22 | $ | 29.63 | ||||||||
| Normal Butane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 107,931 | 174,809 | 140,580 | 31,343 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 38.32 | $ | 35.24 | $ | 31.37 | $ | 30.37 | ||||||||
| Pentane Plus Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 80,461 | 130,321 | 104,802 | 23,366 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 46.17 | $ | 53.05 | $ | 52.40 | $ | 52.49 | ||||||||
Non-GAAP Financial Measures
This press release contains Adjusted EBITDA which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows. Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results.
Adjusted EBITDA is derived from net income (loss) from continuing operations and is adjusted for income tax expense, depreciation, depletion, and amortization, accretion of asset retirement obligations, non-cash stock-based compensation, interest expense (income), net, non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants, and unrealized gain on derivatives, all as applicable. We adjust net income (loss) from continuing operations for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income calculated in accordance with GAAP or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
The following table presents the reconciliation of Net income (loss) from continuing operations to Adjusted EBITDA for the periods indicated:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 (1) | 2024 | |||||||||||||
| (In thousands) | ||||||||||||||||
| Net income (loss) from continuing operations reconciliation to Adjusted EBITDA: | ||||||||||||||||
| Net income (loss) from continuing operations | $ | 35,683 | $ | (8,514 | ) | $ | 33,066 | $ | (17,550 | ) | ||||||
| Adjustments: | ||||||||||||||||
| Depreciation, depletion, and amortization | 12,199 | — | 14,315 | — | ||||||||||||
| Accretion of asset retirement obligations | 66 | — | 71 | — | ||||||||||||
| Non-cash stock-based compensation | 2,419 | 1,511 | 3,786 | 3,626 | ||||||||||||
| Interest expense (income), net | 9,030 | (55 | ) | 10,336 | 52 | |||||||||||
| Non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants (2) | 2,373 | — | 4,537 | — | ||||||||||||
| Unrealized gain on derivatives | (23,206 | ) | — | (23,090 | ) | — | ||||||||||
| Income tax expense | — | — | — | — | ||||||||||||
| Adjusted EBITDA | $ | 38,564 | $ | (7,058 | ) | $ | 43,021 | $ | (13,872 | ) | ||||||
| (1) | Net income (loss) from continuing operations for the six months ended June 30, 2025 includes revenue and related expenses attributable to the assets acquired from Bayswater beginning on March 26, 2025, the closing date of the acquisition, through June 30, 2025. |
| (2) | Reflects the changes in the fair values of the financial instruments for which we’ve elected to value at fair value on a recurring basis. |
The following table presents the reconciliation of our expected full year 2025 Net income to our expected full year 2025 Adjusted EBITDA:
| Full-year 2025 Guidance Range | ||||||||
| (In millions) | ||||||||
| Net income reconciliation to Adjusted EBITDA: | ||||||||
| Net income | $ | 192 | $ | 202 | ||||
| Adjustments: | ||||||||
| Depreciation, depletion, and amortization | 32 | 35 | ||||||
| Accretion of asset retirement obligations | 2 | 2 | ||||||
| Non-cash stock-based compensation | 15 | 20 | ||||||
| Interest expense, net | 20 | 25 | ||||||
| Non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants (1) | 5 | 5 | ||||||
| Unrealized gain on derivatives | (26 | ) | (29 | ) | ||||
| Income tax expense | — | — | ||||||
| Adjusted EBITDA | $ | 240 | $ | 260 | ||||
| (1) Reflects the changes in the fair values of the financial instruments for which we’ve elected to value at fair value on a recurring basis. | ||||||||
Cautionary Statement about Forward-Looking Statements
The information included in this press release 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. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Press release, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained herein are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks are not exhaustive. Other sections of this press release could include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our SEC filings are available publicly on the SEC website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Accordingly, forward-looking statements in this press release should not be relied upon as representing our views as of any subsequent date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
All forward-looking statements, expressed or implied, included in this Press release are expressly qualified in their entirety by this cautionary statement.
About Prairie Operating Co.
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil, natural gas, 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, natural gas, 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.
Investor Relations Contact:
Wobbe Ploegsma
info@prairieopco.com
832.274.3449
| Prairie Operating Co. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share amounts) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,653 | $ | 5,192 | ||||
| Accounts receivable: | ||||||||
| Oil, natural gas, and NGL revenue | 46,723 | 3,024 | ||||||
| Joint interest and other | 8,122 | 9,275 | ||||||
| Acquisition receivable | 14,685 | — | ||||||
| Derivative assets | 12,713 | — | ||||||
| Inventory | 3,415 | 66 | ||||||
| Prepaid expenses and other current assets | 654 | 251 | ||||||
| Note receivable | 435 | 494 | ||||||
| Total current assets | 97,400 | 18,302 | ||||||
| Property and equipment: | ||||||||
| Oil and natural gas properties, successful efforts method of accounting including | 731,778 | 134,953 | ||||||
| Other | 21,277 | 94 | ||||||
| Less: Accumulated depreciation, depletion, and amortization | (14,742 | ) | (427 | ) | ||||
| Total property and equipment, net | 738,313 | 134,620 | ||||||
| Derivative assets | 5,981 | — | ||||||
| Debt issuance costs, net | 14,461 | 1,731 | ||||||
| Operating lease assets | 1,844 | 1,323 | ||||||
| Other non–current assets | 541 | 578 | ||||||
| Total assets | $ | 858,540 | $ | 156,554 | ||||
| Liabilities, Mezzanine Equity, and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 79,389 | $ | 38,225 | ||||
| Ad valorem and production taxes payable | 35,538 | 7,094 | ||||||
| Oil, natural gas, and NGL revenue payable | 45,823 | 2,366 | ||||||
| Senior convertible note, at fair value | — | 12,555 | ||||||
| Derivative liabilities | — | 2,446 | ||||||
| Operating lease liabilities | 888 | 323 | ||||||
| Total current liabilities | 161,638 | 63,009 | ||||||
| Long–term liabilities: | ||||||||
| Credit facility | 387,000 | 28,000 | ||||||
| Subordinated note – related party | 1,458 | 4,609 | ||||||
| Subordinated note warrants, at fair value – related party | 538 | 4,159 | ||||||
| Series F convertible preferred stock embedded derivatives, at fair value | 1,130 | — | ||||||
| Series F convertible preferred stock warrants, at fair value | 43,718 | — | ||||||
| SEPA, at fair value | — | 790 | ||||||
| Derivative liabilities | — | 1,949 | ||||||
| Asset retirement obligation | 2,672 | 227 | ||||||
| Operating lease liabilities | 1,063 | 1,043 | ||||||
| Other long-term liabilities | 560 | — | ||||||
| Total long–term liabilities | 438,139 | 40,777 | ||||||
| Total liabilities | 599,777 | 103,786 | ||||||
| Commitments and contingencies | ||||||||
| Mezzanine equity: | ||||||||
| Series F convertible preferred stock; | 164,590 | — | ||||||
| Stockholders’ equity: | ||||||||
| Series D convertible preferred stock; | — | — | ||||||
| Common stock; | 456 | 230 | ||||||
| Treasury stock, at cost; 57,245 and 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | (418 | ) | — | |||||
| Additional paid–in capital | 180,835 | 172,304 | ||||||
| Accumulated deficit | (86,700 | ) | (119,766 | ) | ||||
| Total stockholders’ equity | 94,173 | 52,768 | ||||||
| Total liabilities, mezzanine equity, and stockholders’ equity | $ | 858,540 | $ | 156,554 | ||||
| Prairie Operating Co. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share amounts) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues: | ||||||||||||||||
| Crude oil sales | $ | 57,941 | $ | — | $ | 68,729 | $ | — | ||||||||
| Natural gas sales | 6,084 | — | 6,533 | — | ||||||||||||
| NGL sales | 4,075 | — | 5,653 | — | ||||||||||||
| Total revenues | 68,100 | — | 80,915 | — | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Lease operating expenses | 11,348 | — | 13,361 | — | ||||||||||||
| Gathering, transportation, and processing expenses | 2,234 | — | 2,367 | — | ||||||||||||
| Ad valorem and production taxes | 6,416 | — | 7,374 | — | ||||||||||||
| Depreciation, depletion, and amortization | 12,199 | — | 14,315 | — | ||||||||||||
| Accretion of asset retirement obligation | 66 | — | 71 | — | ||||||||||||
| Exploration expenses | 458 | 57 | 745 | 498 | ||||||||||||
| General and administrative expenses | 16,443 | 8,512 | 21,995 | 16,115 | ||||||||||||
| Total operating expenses | 49,164 | 8,569 | 60,228 | 16,613 | ||||||||||||
| Income (loss) from operations | 18,936 | (8,569 | ) | 20,687 | (16,613 | ) | ||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | (9,124 | ) | — | (10,502 | ) | — | ||||||||||
| Realized gain on derivatives | 4,944 | — | 4,162 | — | ||||||||||||
| Unrealized gain on derivatives | 23,206 | — | 23,090 | — | ||||||||||||
| Loss on adjustment to fair value – embedded derivatives, debt, and warrants | (2,373 | ) | — | (4,537 | ) | — | ||||||||||
| Interest income and other | 94 | 55 | 166 | 107 | ||||||||||||
| Total other income (expenses) | 16,747 | 55 | 12,379 | 107 | ||||||||||||
| Income (loss) from operations before provision for income taxes | 35,683 | (8,514 | ) | 33,066 | (16,506 | ) | ||||||||||
| Provision for income taxes | — | — | — | — | ||||||||||||
| Net income (loss) from continuing operations | 35,683 | (8,514 | ) | 33,066 | (16,506 | ) | ||||||||||
| Discontinued operations | ||||||||||||||||
| Loss from discontinued operations, net of taxes | — | — | — | (1,045 | ) | |||||||||||
| Net loss from discontinued operations | — | — | — | (1,045 | ) | |||||||||||
| Net income (loss) attributable to Prairie Operating Co. | 35,683 | (8,514 | ) | 33,066 | (17,551 | ) | ||||||||||
| Series F preferred stock declared dividends | (3,289 | ) | — | (3,289 | ) | — | ||||||||||
| Series F preferred stock undeclared dividends | (1,402 | ) | — | (1,647 | ) | — | ||||||||||
| Remeasurement of Series F preferred stock | 17,511 | — | (73,101 | ) | — | |||||||||||
| Net income (loss) attributable to Prairie Operating Co. common stockholders | $ | 48,503 | $ | (8,514 | ) | $ | (44,971 | ) | $ | (17,551 | ) | |||||
| Earnings (loss) per common share | ||||||||||||||||
| Basic earnings (loss) per share | $ | 1.04 | $ | (3.49 | ) | $ | (1.27 | ) | $ | (1.60 | ) | |||||
| Diluted earnings (loss) per share | $ | 0.18 | $ | (3.49 | ) | $ | (1.27 | ) | $ | (1.60 | ) | |||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 44,063,281 | 12,000,568 | 35,477,691 | 11,002,778 | ||||||||||||
| Diluted | 198,365,207 | 12,000,568 | 35,477,691 | 11,002,778 | ||||||||||||
| Prairie Operating Co. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) from continuing operations | $ | 33,066 | $ | (16,506 | ) | |||
| Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Stock–based compensation | 3,722 | 3,451 | ||||||
| Depreciation, depletion, and amortization | 14,315 | — | ||||||
| Unrealized gain on derivatives | (23,090 | ) | — | |||||
| Loss on adjustment to fair value – embedded derivatives, debt, and warrants | 4,537 | — | ||||||
| Amortization and expensing of deferred financing costs | 2,940 | — | ||||||
| Accretion of asset retirement obligation | 71 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (42,546 | ) | — | |||||
| Prepaid expenses and other current assets | (342 | ) | (78 | ) | ||||
| Inventory | (3,410 | ) | — | |||||
| Accounts payable and accrued expenses | 16,401 | 5,844 | ||||||
| Ad valorem and production taxes payable | 1,319 | — | ||||||
| Oil, natural gas, and NGL revenue payable | 2,676 | — | ||||||
| Other assets and liabilities | 63 | (1,619 | ) | |||||
| Net cash provided by (used in) continuing operating activities | 9,722 | (8,908 | ) | |||||
| Net cash provided by discontinued operations | — | 460 | ||||||
| Net cash provided by (used in) operating activities | 9,722 | (8,448 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Cash paid for Bayswater asset purchase | (467,461 | ) | — | |||||
| Deposit for Nickel Road asset purchase | — | (9,000 | ) | |||||
| Transaction expenses paid related to Nickel Road asset purchase | — | (100 | ) | |||||
| Development of oil and natural gas properties | (53,973 | ) | (3,927 | ) | ||||
| Cash paid for leasehold property purchases | (950 | ) | — | |||||
| Cash received from payment on note receivable related to sale of cryptocurrency miners | 95 | 186 | ||||||
| Cash received from sale of cryptocurrency miners | — | 1,000 | ||||||
| Net cash used in investing activities | (522,289 | ) | (11,841 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from the issuance of Common Stock | 43,817 | — | ||||||
| Financing costs associated with issuance of Common Stock | (3,311 | ) | — | |||||
| Proceeds from the issuance of Series F Preferred Stock | 148,250 | — | ||||||
| Financing costs associated with the issuance of Series F Preferred Stock | (11,059 | ) | — | |||||
| Borrowings on the Credit Facility | 359,000 | — | ||||||
| Debt issuance costs associated with the Credit Facility | (15,670 | ) | — | |||||
| Payments of the Subordinated Note – related party | (3,214 | ) | — | |||||
| Proceeds from option exercise | 633 | — | ||||||
| Treasury stock repurchased | (418 | ) | — | |||||
| Proceeds from the exercise of Series D and E Preferred Stock warrants | — | 9,478 | ||||||
| Net cash provided by financing activities | 518,028 | 9,478 | ||||||
| Net increase (decrease) in cash and cash equivalents | 5,461 | (10,811 | ) | |||||
| Cash and cash equivalents, beginning of the period | 5,192 | 13,037 | ||||||
| Cash and cash equivalents, end of the period | $ | 10,653 | $ | 2,226 | ||||
Supplemental Disclosures of Cash Flow Information
The following table presents non–cash investing and financing activities for the periods presented:
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Non–cash investing and financing activities: | ||||||||
| Capital expenditures included in accrued liabilities | $ | (15,692 | ) | $ | (1,120 | ) | ||
| Equipment purchased in exchange for note payable | $ | (560 | ) | $ | — | |||
| Common Stock issued to seller as part of Bayswater Acquisition purchase price (1) | $ | 16,000 | $ | — | ||||
| Bayswater transaction costs included in accrued liabilities | $ | 6,035 | $ | — | ||||
| Common Stock issuance costs included in accrued liabilities (2) | $ | 292 | $ | — | ||||
| Series F Preferred Stock issuance costs included in accrued liabilities (3) | $ | 1,113 | $ | — | ||||
| Common Stock issued upon conversion of Series D Preferred Stock | $ | 8,475 | $ | 4,120 | ||||
| Common Stock issued upon conversion of Series F Preferred Stock | $ | 4,772 | $ | — | ||||
| Common Stock issued upon conversion of Senior Convertible Note (4) | $ | 18,164 | $ | — | ||||
| Common Stock issued for Series F Preferred dividends (5) | $ | 3,289 | $ | — | ||||
| Series F Preferred Stock undeclared dividends | $ | 1,647 | $ | — | ||||
| Remeasurement of Series F preferred stock (6) | $ | 73,101 | $ | — | ||||
| Series F Preferred Stock embedded derivatives | $ | 1,130 | $ | — | ||||
| Series F Preferred Stock warrant liabilities | $ | 43,718 | $ | — | ||||
| Additions to asset retirement obligation | $ | 46 | $ | — | ||||
| (1) | We issued approximately 3.7 million shares of Common Stock to Bayswater as part of the Bayswater Purchase Price. |
| (2) | Relates to the Common Stock issued to partially fund the Bayswater Acquisition. |
| (3) | Relates to the Series F Preferred Stock issued to partially fund the Bayswater Acquisition. |
| (4) | During the six months ended June 30, 2025, YA II PN, LTD., a Cayman Islands exempt limited company, converted the remaining |
| (5) | We elected to issue shares of Common Stock for the Series F Preferred Dividend payable on June 1, 2025. |
| (6) | Reflects the June 30, 2025 adjustment of the Series F Preferred Stock to maximum redemption in accordance with ASC Topic 480, Distinguishing Liabilities from Equity. |
FAQ
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