Prairie Operating Co. ( PROP ) is a sizable, profitable oil producer, but its stock price has been hammered by the threat of a dilution trigger. Its stock is so depressed that there is a sizable margin ofI founded Korwell Capital, employing a value investing strategy, after working in private equity. I also write on an investing publication called Fundamental Digest.I look to find stock opportunities with a tangible margin of safety or significant discount to long-term earning power. I like situations where ...

Stocks staged a relief rally Monday after President Trump softened his tone on China, easing fears of a full-blown trade war that sparked a $2 trillion sell-off last week. The rebound followed Trump's weekend post on Truth Social, where he assured followers that "it will all be fine," just days after threatening to impose 100% tariffs on Chinese goods starting Nov. 1. But while those comments helped calm investor jitters, strategists warn this could be the biggest test yet for Wall Street's favorite refl ...

Shell plc’s (SHEL) ambitions to lead the global gas and liquefied natural gas (LNG) market have encountered resistance from a significant portion of its shareholders. At its recent annual general meeting (AGM), over 20% of investors backed a resolution calling for greater transparency around the company’s gas-heavy strategy, citing concerns about climate commitments and long-term economic risk.Shell is betting heavily on gas in anticipation of a 60% global increase in demand through 2040, primarily from Asi ...

Core Viewpoint - Petrobras is facing a two-day warning strike due to stalled negotiations over variable compensation and cost-cutting measures, reflecting growing tensions between the company and its workforce [1][5][6]. Group 1: Company Strategy and Financials - Petrobras is implementing austerity measures in response to declining Brent crude oil prices, which are currently near $65 per barrel, necessitating tighter financial controls and cost reductions [2][3]. - The company has revised its five-year strategic plan to prioritize cost-cutting over its previous expansionary strategy, although the capital expenditure for 2025 remains unchanged [4]. - Petrobras aims to explore all avenues for cost reduction while focusing on simpler projects with quicker cash returns [4]. Group 2: Labor Relations and Union Response - The variable compensation plan has become a key point of contention for the oil workers' union, which argues that the company's cost-cutting approach undermines employee morale [5]. - The union, representing a significant portion of Petrobras' workforce, claims that management has shown little progress in negotiations, leading to the decision to strike [6]. - Petrobras has acknowledged the union's announcement but has not received an official notification of the strike and has not commented further on negotiations or austerity measures [7].

Core Viewpoint - Prairie Operating Co. (PROP) has received a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, which can result in stock price movements [4]. Company Performance Indicators - The recent upgrade for Prairie Operating Co. indicates a positive outlook on its earnings, suggesting that the stock price may rise as investors respond to the improving business trend [5][10]. - Prairie Operating Co. is projected to earn $6.07 per share for the fiscal year ending December 2025, reflecting a substantial year-over-year increase of 389.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Prairie Operating Co. has risen by 148.8%, indicating strong upward revisions in earnings estimates [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Prairie Operating Co. to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Prairie Operating Co. (PROP) has been beaten down lately with too much selling pressure. While the stock has lost 36% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscil ...

A downtrend has been apparent in Prairie Operating Co. (PROP) lately with too much selling pressure. The stock has declined 35.1% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicato ...

Core Insights - Bayswater Exploration and Production has successfully closed a sale of certain DJ Basin assets to Prairie Operating Co. for approximately $603 million in cash and stock [1][2] - The transaction includes the acquisition of around 24,000 leased acres, 300 horizontal wells producing 27,500 barrels of oil equivalent per day, and a saltwater disposal system [2] - Following the sale, Bayswater will retain 70 horizontal wells producing approximately 18,000 BOED and is committed to continuing operations in Colorado [3] Company Overview - Bayswater is a privately held oil and natural gas development company with operations in Colorado and Texas, focusing on responsible energy development and minimizing environmental impacts [4] - The company has been operating in the DJ Basin for 16 years and aims to rebuild its Colorado footprint in the coming years [3]

Company Overview - Prairie Operating Co. (PROP) is an independent oil and gas company based in Houston, focusing on acquiring and developing assets in the DJ Basin, particularly in the Niobrara and Codell formations [2] - The company benefits from its strategic location near major industry players like Chevron and Occidental Petroleum, which allows for efficient permitting and drilling processes [2] Recent Performance and Acquisition - Prairie Operating has experienced a 39% decline in stock price over the past six months, reaching a 52-week low of $4.50 [1] - The company made a significant acquisition of Bayswater's DJ Basin assets for $602.75 million, adding 24,000 net acres and 26,000 barrels of oil equivalent per day (BOE/d) in production [3] Production Growth Targets - Prairie Operating aims for a production increase to 7,000-8,000 BOE/d by 2025, representing a 300% increase from the previous year [8] - Post-acquisition, production is expected to rise to 29,000-31,000 BOE/d, positioning the company as a major player in the DJ Basin [8] Earnings Growth Expectations - The Zacks Consensus Estimate predicts a 327.6% increase in earnings for 2025, with analysts revising their earnings forecast from $2.44 per share to $4.78 over the past 60 days [10] - Projected net income for 2025 is between $69 million and $102 million, with adjusted EBITDA expected to jump to $350-$370 million post-acquisition [11] Operational Efficiencies - Prairie Operating plans to optimize costs and enhance production efficiency by leveraging existing midstream infrastructure and multi-well pad drilling strategies [12] - The focus on high-return oil formations ensures strong margins and rapid payback periods, with some wells expected to recover costs in less than a year [12] Financial Outlook - The company has expanded its credit facility to $475 million, providing sufficient liquidity for aggressive expansion while maintaining a manageable leverage ratio of 1.0x [11] - Capital expenditures are projected to rise significantly, with planned spending between $300 million and $320 million in 2025 [13]

Core Viewpoint - NextDecade Corporation has received a favorable ruling from the U.S. Court of Appeals for the D.C. Circuit, allowing the Rio Grande LNG project to proceed without legal obstacles, which is crucial for its future development [1][2]. Legal Challenges - In August 2024, the U.S. Court of Appeals revoked the permit for the Rio Grande LNG project, following a case filed by environmental groups arguing that FERC did not adequately assess the project's environmental impact [3]. Project Overview - The Rio Grande LNG project is the largest privately funded LNG project in Texas, located on a 984-acre site at the Port of Brownsville, benefiting from proximity to the Permian Basin and Eagle Ford shale, ensuring a steady natural gas supply [4]. - Once fully operational, the project will have the capacity to provide energy to nearly 34 million U.S. households annually [4]. Commercialization and Expansion Plans - Construction of Phase 1 is underway, with long-term LNG sale agreements secured with ADNOC and Aramco, and TotalEnergies expected to exercise its LNG purchase option [5]. - Plans for further expansion include pre-filing for Train 6 in 2025 and full application filing in early 2026, with development for Trains 7 and 8 also in progress [6]. Commitment to Sustainability - The Rio Grande LNG project aims to reduce emissions by over 90% through a proposed carbon capture and storage initiative, targeting the capture and storage of more than 5 million metric tons of CO2 annually [7]. Company Ranking - NextDecade Corporation currently holds a Zacks Rank 2 (Buy), indicating a positive outlook in the market [8].