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Core Insights - Prairie Operating Co. has reported significant progress in its operations and financial performance for the third quarter of 2025, highlighting a focus on expanding its footprint in the DJ Basin and optimizing operations [3][6][8]. Financial Performance - Total revenue for the third quarter reached $77.7 million, marking a 15% increase quarter-over-quarter [8][10]. - Net income was reported at $1.3 million, with a net loss attributable to common stockholders of $22.5 million, equating to a loss per share of $0.44 [10][46]. - Adjusted EBITDA reached a record $56.3 million, reflecting an increase of over 45% quarter-over-quarter [8][10]. - Capital expenditures for the quarter totaled $69.6 million [10][20]. Production and Operations - The company achieved a record production rate of 23,029 barrels of oil equivalent per day (Boe/d), with approximately 52% of this being oil [9][15]. - Current production rate stands at approximately 27,000 net Boe/d, driven by successful development programs and the completion of new wells [6][9]. - The company completed flowback operations on seven new wells and is finalizing completion activities on six additional wells [7][11]. Acquisitions and Strategic Initiatives - Prairie completed the transition period following the Bayswater acquisition, assuming full operational control of those assets [6][9]. - The company closed two bolt-on acquisitions, adding approximately 11 net drilling locations and 3,400 net acres [9][10]. - An expanded hedging program has been implemented to secure favorable commodity pricing through 2028 [9][10]. Guidance and Future Outlook - Prairie reaffirms its full-year guidance for 2025, expecting adjusted EBITDA to range between $240 million and $260 million [26][32]. - The company anticipates average daily production between 24,000 and 26,000 Boe/d and capital expenditures of $260 million to $280 million for the year [26][32].

Production and Operations - Record total production of 23,029 barrels of oil equivalent per day ("Boe/d"), an increase of approximately 10% quarter-over-quarter[7] - Current production rate as of today is approximately 27,000 net Boe/d, reflecting successful execution of the development program[7][9] - The company closed two bolt-on acquisitions, adding approximately 11 net drilling locations and 3,400 net acres[7] Financial Performance - Revenue of $77.7 million, with oil revenue contributing $64.9 million, and an average realized price of $58.70 per barrel for oil[8][15] - Adjusted EBITDA of $56.3 million, an increase of over 45% quarter-over-quarter[8] - Net loss attributable to common stockholders of $22.5 million, or $0.44 basic loss per share[8][14] - For the three months ended September 30, 2025, the net income from continuing operations was $1,287,000, compared to a loss of $11,424,000 for the same period in 2024[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $56,315,000, a significant increase from an adjusted EBITDA of $(7,304,000) in the prior year[26] - For the nine months ended September 30, 2025, the net income from continuing operations was $34,353,000, compared to a loss of $28,975,000 for the same period in 2024[26] - The company expects full-year 2025 net income to be in the range of $192 million to $202 million, with adjusted EBITDA projected between $240 million and $260 million[28] Assets and Liabilities - Total current assets as of September 30, 2025, were $120,977,000, a substantial increase from $18,302,000 as of December 31, 2024[38] - Total assets increased to $939,788,000 as of September 30, 2025, compared to $156,554,000 as of December 31, 2024[38] - Current liabilities rose to $145,010,000 as of September 30, 2025, up from $63,009,000 as of December 31, 2024[38] - The company has a credit facility with long-term liabilities amounting to $417,000,000 as of September 30, 2025, compared to $28,000,000 as of December 31, 2024[38] - The total stockholders' equity increased to $101,837,000 as of September 30, 2025, from $52,768,000 as of December 31, 2024[40] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $67.384 million, a significant increase from a cash outflow of $6.118 million in 2024[44] - The company incurred $608.536 million in net cash used in investing activities during the nine months ended September 30, 2025, primarily due to the Bayswater asset purchase[44] - Proceeds from the issuance of common stock amounted to $43.817 million during the nine months ended September 30, 2025[44] Stock Performance - The company reported a basic and diluted loss per share of $0.44 for the three months ended September 30, 2025, compared to a loss of $0.68 in the same period of 2024[42] - The company issued approximately 3.7 million shares of common stock to Bayswater as part of the Bayswater acquisition[46] Operating Expenses - The company reported a total operating expense of $110.901 million for the nine months ended September 30, 2025, which included $30.353 million in depreciation, depletion, and amortization[42] - The company reported a loss on adjustment to fair value of embedded derivatives, debt, and warrants amounting to $30.451 million for the nine months ended September 30, 2025[42] Guidance and Future Outlook - Full-year guidance for 2025 includes average daily production of 24,000 – 26,000 Boe/d and expected Adjusted EBITDA between $240.0 million and $260.0 million[22] - The company has secured favorable commodity pricing through an expanded hedging program, with prices of $60.45 per barrel through the rest of 2025[23]

Acquisitions - The company completed the Edge Acquisition on July 3, 2025, acquiring 47 wells on approximately 11,000 net acres for a total purchase price of $12.5 million [224]. - The Bayswater Acquisition was finalized on March 26, 2025, with a purchase price of $602.8 million, funded through cash, stock issuance, and borrowings [226][228]. - The company acquired approximately 5,500 net acres from Exok for $1.6 million as part of the Third Exok Acquisition completed on August 8, 2025 [225]. - The Edge Acquisition involved acquiring 47 operated and non-operated wells on approximately 11,000 net acres for a total purchase price of $12.5 million [239]. - The Bayswater Acquisition had a total cash consideration of $482.5 million, with an interim settlement payment of $30.7 million received on June 6, 2025 [240]. - The NRO Acquisition's total consideration was reduced to $84.5 million in cash after amendments on August 15, 2024 [241]. - The final purchase price for the NRO Acquisition was $55.5 million, settled in December 2024 [242]. Production and Revenue - Total revenues for the three months ended September 30, 2025, were $77.7 million, compared to $158.6 million for the nine months ended September 30, 2025 [244]. - Crude oil sales for the three months ended September 30, 2025, were $64.9 million, while natural gas sales were $7.6 million and NGL sales were $5.2 million [244]. - Average realized price for oil (excluding effects of derivatives) was $58.70 per MBbl for the three months ended September 30, 2025 [245]. - Total production for the nine months ended September 30, 2025, was 4,329 MBoe, with an average sales volume of 23,029 Boe/d [244]. - The Bayswater Acquisition, closed on March 26, 2025, contributed significantly to production and revenues from March 26, 2025, through September 30, 2025 [248]. - The NRO Acquisition, closed in October 2024, did not contribute any production or revenue prior to its closing [248]. Financial Performance - Net income from continuing operations for the three months ended September 30, 2025, was $1.287 million, compared to a loss of $11.424 million for the same period in 2024 [263]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $99.518 million, significantly up from a loss of $19.992 million in the same period of 2024 [263]. - The company had a net loss of $22.5 million and $67.5 million for the three and nine months ended September 30, 2025, respectively, with cash and cash equivalents of $10.6 million and a working capital deficit of $24.0 million [300]. Expenses - For the three months ended September 30, 2025, total operating expenses increased to $50.7 million from $8.8 million in the same period of 2024, representing a significant rise driven by acquisitions [249]. - Lease operating expenses for the three months ended September 30, 2025, were $15.4 million, an increase of $15.4 million compared to the same period in 2024, primarily due to increased production from the Bayswater and NRO Acquisitions [249]. - Transportation and processing expenses rose by $2.2 million for the three months ended September 30, 2025, compared to the same period in 2024, attributed to increased production from recent acquisitions [250]. - Ad valorem and production taxes increased by $4.7 million for the three months ended September 30, 2025, compared to the same period in 2024, driven by higher production levels [251]. - Depreciation, depletion, and amortization expenses increased by $16.0 million for the three months ended September 30, 2025, compared to the same period in 2024, largely due to increased production from acquisitions [252]. - General and administrative expenses for the three months ended September 30, 2025, increased by $3.5 million compared to the same period in 2024, driven by higher non-cash stock-based compensation and litigation expenses [253]. - Interest expense for the three months ended September 30, 2025, increased by $9.0 million compared to the same period in 2024, primarily due to interest on the Credit Facility [254]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $10.640 million, an increase from $5.192 million at the beginning of the period [273]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $67.384 million, compared to a net cash used of $5.658 million in the same period of 2024 [273]. - Net cash used in investing activities increased to $608.536 million for the nine months ended September 30, 2025, primarily due to the Bayswater Acquisition costing $467.5 million [274]. - As of September 30, 2025, the company had a working capital deficit of $24.0 million, improved from a deficit of $44.7 million as of December 31, 2024 [272]. - As of September 30, 2025, the company had $58.0 million available under the Credit Facility, indicating sufficient liquidity to meet its obligations [302]. Debt and Financing - The company has a maximum credit commitment of $1.0 billion under its Amended & Restated Credit Facility, with a borrowing base of $475.0 million as of September 30, 2025 [227]. - The company plans to fund its development program and operations through cash flow from operations, liquidity from the Credit Agreement, and proceeds from the ATM Offering [268]. - The company is in compliance with all financial covenants under the Amended & Restated Credit Agreement as of September 30, 2025 [277]. - On September 30, 2024, the company issued a Senior Convertible Note to Yorkville for $15.0 million with an 8.00% interest rate and a maturity date of September 30, 2025 [283]. - During Q1 2025, Yorkville converted the remaining $11.3 million of the Senior Convertible Note into 2.1 million shares of Common Stock, resulting in a loss of $5.5 million recognized on the statement of operations for the nine months ended September 30, 2025 [287]. - The company entered into a Subordinated Note for $5.0 million on September 30, 2024, with a 10.00% interest rate and a maturity date of March 17, 2027 [289]. - The Series F Preferred Stock was issued for $148.3 million, with net proceeds of approximately $137.2 million used to fund a portion of the Bayswater Acquisition [293]. - The Series F Preferred Stockholder is entitled to a 12% annual dividend, which may be paid in cash or shares of Common Stock, with the dividend rate increasing to 25% after six months post-maturity of the Amended & Restated Credit Agreement [294]. - As of September 30, 2025, the maximum redemption amount of the Series F Preferred Stock was adjusted to $158.7 million, resulting in a remeasurement of $20.0 million for the three months ended September 30, 2025 [297]. Hedging - The company executed a hedging program securing prices of $60.45 per barrel for the remainder of 2025 and $60.02 per barrel for 2026 and 2027 [233]. Derivatives - The realized gain on derivatives for the three months ended September 30, 2025, was $8.0 million, reflecting favorable changes in cash settlements during the period [255]. - The unrealized gain on derivatives for the three months ended September 30, 2025, was $1.0 million, driven by favorable changes in the fair value of open derivative contracts [256]. Discontinued Operations - The net loss from discontinued operations for the nine months ended September 30, 2025, decreased by $1.0 million compared to the same period in 2024, primarily due to the completion of the Crypto Sale [260].

Core Viewpoint - Prairie Operating Co. is set to release its third quarter 2025 financial and operational results on November 14, 2025, after market close, indicating ongoing transparency and engagement with investors [1] Group 1: Financial Results Announcement - The company will announce its third quarter 2025 financial and operating results after market close on November 14, 2025 [1] - A conference call and webcast will be held on November 17, 2025, at 9:00 AM Eastern Time to review the results and provide updates on recent developments [2][3] Group 2: Webcast and Participation Details - Participants can access the webcast from the "Press & Media" page of Prairie's website [3] - To participate via telephone, registration is required in advance, and a replay of the webcast will be available for two weeks following the call [4] Group 3: Company Overview - Prairie Operating Co. is an independent energy company based in Houston, focused on the development and acquisition of oil and natural gas resources in the Denver-Julesburg (DJ) Basin, particularly in the Niobrara and Codell formations [5] - The company emphasizes responsible development and aims to maximize returns through consistent growth, capital discipline, and sustainable cash flow generation [5]

Core Viewpoint - Prairie Operating Co. (NASDAQ:PROP) is considered a potential high-growth stock within the Reddit community, with analysts maintaining a positive outlook despite recent price target adjustments [1][2] Group 1: Analyst Ratings and Price Targets - Clear Street analyst Tim Moore lowered the price target for Prairie Operating from $11 to $10 while maintaining a Buy rating, reflecting a slight reduction in volume forecasts for Q3 and Q4 of 2025 [1] - Roth MKM analyst Leo Mariani also maintained a Buy rating on Prairie Operating with a price target of $7, indicating confidence in the stock's potential [1] Group 2: Company Overview - Prairie Operating Co. is an independent energy company engaged in the acquisition, development, and production of crude oil, natural gas, and natural gas liquids in the United States [2] Group 3: Investment Comparisons - While Prairie Operating shows potential as an investment, certain AI stocks are suggested to offer greater upside potential and lower downside risk, indicating a competitive investment landscape [2]

Core Insights - Prairie Operating Co. (NASDAQ:PROP) is recognized as one of the best oil and gas penny stocks to buy, highlighting its significant upside potential according to analysts [1]. Production and Operations - Prairie Operating Co. has completed nine wells from its Opal/Coalbank pad, achieving a first 30-day average production rate of 525 barrels of oil equivalent per day (boepd) [2]. - The company is advancing several projects in the Denver-Julesburg Basin, bolstered by wells acquired in the Bayswater deal [3]. - The Nobel pad is currently drilling four 2-mile U-turn wells and three 1-mile laterals, with initial output expected by Q4 2025. Additionally, 11 wells in the Niobrara and Codell zones are being turned to sales at the Rusch pad [4]. - Six 2-mile wells are scheduled for completion later this year at the Simpson pad, contributing to the company's operational progress [4]. Strategic Acquisitions - Prairie Operating Co. completed two bolt-on acquisitions last month, enhancing its oil-weighted inventory and adding 16,000 net acres to its holdings [4].

Core Viewpoint - Prairie Operating Co. (PROP) and Ring Energy (REI) are two smaller oil and energy companies in the U.S. market, both trading under $5 per share and facing a challenging environment, making it essential for investors to compare their prospects [1][2]. Company Overview - PROP is aggressively expanding in the Denver-Julesburg (DJ) Basin, while REI is adopting a more measured growth strategy in the Permian Basin [2]. Prairie Operating Co. (PROP) Analysis - PROP has expanded its land to approximately 60,000 acres, allowing for a decade of drilling potential, and achieved a fivefold production increase in Q2 2025 compared to the previous quarter [3]. - The company plans to bring 41 new wells online in 2025, but faces risks from ambitious growth targets and rising drilling costs, which may impact profitability [4]. - Financially, PROP's foundation is weakening due to significant equity dilution, with Q2 2025 average output at 21,052 barrels of oil-equivalent per day, falling short of expectations [5]. - Well costs exceeded projections, further reducing project returns, and the fully diluted share count increased significantly due to Series F preferred equity [6]. Ring Energy (REI) Analysis - REI reported record oil sales in Q2 2025, exceeding forecasts, with over 70% of its production being oil, leading to higher profit margins [7]. - The company generated $25 million in free cash flow, allowing for debt repayment and future project funding, while managing costs effectively with a 12% reduction in lease operating expenses [8]. - Despite its strengths, REI faces challenges with high debt levels nearing $450 million, which could limit financial flexibility if oil prices decline [9]. Price Performance - Over the past year, PROP's stock has dropped 74%, while REI's shares have decreased by 40%, indicating greater investor skepticism towards PROP's growth strategy and dilution risks [10][11]. Valuation Comparison - REI trades at 0.58X forward price-to-sales with a Zacks Value Score of A, reflecting its high-margin production and cash generation, while PROP trades at 0.21X forward sales with a Value Score of C, indicating concerns over dilution and financial stability [13]. Earnings Outlook - The Zacks Consensus Estimate for REI's 2025 earnings has increased by 20% over the past 30 days, while PROP has seen no upward revisions and a 38% cut to 2026 estimates, suggesting analysts view REI more favorably [14][16]. Conclusion - PROP's rapid expansion presents significant risks due to financial weaknesses and operational challenges, while REI offers more stable cash flow and better cost management, positioning it more favorably in the current market [18].

Core Viewpoint - Prairie Operating Co. is focused on enhancing production growth, margins, and cash flow through operational optimization and a robust drilling schedule in the Denver-Julesburg Basin [3][11]. Operations Update - The company has successfully integrated acquired assets, leading to increased production growth and cash flow [3]. - An initial batch of 32 high-return workovers is planned for the third and fourth quarters of 2025 [3]. 2025 Drilling Schedule - The company plans to drill a total of 41 wells in 2025, with specific pads and formations outlined for each quarter [4]. - The drilling program includes: - Shelduck Pad: 8 wells - Opal/Coalbank Pad: 9 wells - Rusch Pad: 11 wells - Noble Pad: 7 wells - Simpson Pad: 6 wells - New Locations: 10 wells - Workovers: 32 wells [4]. Recent Performance Highlights - The Opal/Coalbank pad has exceeded expectations with an average initial production rate of approximately 525 barrels of oil equivalent per day (boepd) per well over the first 30 days [7]. - The Rusch Pad has completed drilling and is expected to contribute significantly to production growth in the second half of 2025 [7]. - The Noble Pad features the company's first U-turn wells, designed for cost efficiency, with first production anticipated in Q4 2025 [7]. - The Simpson Pad is currently drilling and expected to finalize completions in Q4 2025 [7].

Core Insights - Prairie Operating Co. has significantly increased its production, achieving an average of 21,052 barrels of oil equivalent per day (Boe/d) in Q2 2025, which is over five times its Q1 output [1][10] - The company has a robust drilling schedule, having drilled 18 wells and completed nine during the quarter, showcasing efficiency with eight wells drilled in one continuous run at the Rusch pad [2][10] - Prairie is focused on cost management and efficiency, reducing drilling times to just over five days and utilizing an electric frac fleet to lower emissions [3][10] Production and Drilling Activity - The surge in production is attributed to a busy drilling schedule, with Prairie drilling 18 wells and completing nine in Q2 2025 [2] - The company employed innovative techniques such as U-shaped laterals to enhance production while minimizing land use [2] - Prairie anticipates maintaining strong output levels in 2025, projecting an average production between 24,000 Boe/d and 26,000 Boe/d [2] Cost Management and Efficiency - Prairie has successfully cut drilling times to just over five days while keeping expenditures nearly on budget [3] - The deployment of an electric frac fleet has contributed to reduced emissions and faster completion times [3] Market Position and Strategy - Prairie Operating Co. has secured 157 permits and identified around 700 drilling locations, providing a strong inventory for over 10 years [6] - The company is focusing on the DJ Basin while larger competitors like Chevron and Civitas Resources are diversifying their efforts, allowing Prairie to capture value in a less competitive environment [4][6] Stock Performance and Valuation - Shares of Prairie Operating Co. have declined over 60% this year, contrasting with a 5.4% increase in the Oil/Energy sector [7] - The company is currently trading at a discount in terms of forward price-to-sales ratio compared to the industry average [8]