Prairie Operating Co. Announces Second Quarter 2025 Results
Total Revenue of $68.1 million, an increase of approximately 400% quarter-over-quarter
Net Income of $35.7 million, an increase of over 500% 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 over 600% 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 approximately 400% quarter-over-quarter.
Record total production of 21,052 barrels of oil equivalent per day ("Boe/d") (approximately 50% oil), an increase of approximately 540% quarter-over-quarter.
Net income attributable to common stockholders of $48.5 million, or $1.04 basic earnings per share.
Adjusted EBITDA(1) of $38.6 million, an increase of over 600% 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 basic earnings per share.
Adjusted EBITDA (1) of $38.6 million, an increase of over 600% 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 $600.0 million in accretive acquisitions. We also broadened analyst coverage, further enhancing our visibility in the market. With leverage of approximately 1x, enhanced liquidity, and attractive pricing locked in through 2028, Prairie is well positioned to generate cash flow and pursue strategic growth opportunities. We are looking forward to optimizing our cost structures, which we believe will translate directly into stronger margins, higher returns, and additional free cash flow."
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 5% of AFE, with our most recent pad averaging approximately $5.6 million per well. We continue work on driving our 2-mile well AFE down towards $5 million per well.
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 $68.1 million, $57.9 million related to oil. Production for the second quarter of 2025 was 21,052 Boe/d and was comprised of approximately 50% oil.
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 EndedJune 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 $98.7 million of liquidity, consisting of $88.0 million of borrowings available under our Credit Facility and $10.7 million in unrestricted cash. As of June 30, 2025, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
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 75% or greater and a commodity price deck of $60.00, $64.00 per Bbl for oil and $4.00 per Mcf for gas.
HEDGES
Following the close of the Bayswater Acquisition, we executed a portfolio of hedges covering approximately 85% of our current daily production, inclusive of volumes from the Bayswater Acquisition assets.
The following table reflects contracted volumes and weighted average prices we will receive under the terms of our derivative contracts as of June 30, 2025:
SettlingJuly 1, 2025throughDecember 31, 2025
SettlingJanuary 1, 2026throughDecember 31, 2026
SettlingJanuary 1, 2027throughDecember 31, 2027
SettlingJanuary 1, 2028throughDecember 31, 2028
Crude Oil Swaps:
Notional volume (Bbls)
1,542,652
2,241,616
1,592,503
471,907
Weighted average price ($/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
