Net Income of $1.3 million
Record Adjusted EBITDA of $56.3 million, an increase of over 45% quarter-over-quarter
Approximately 10% increase in quarterly production to a total of 23,029 Boe/d per day (52% oil / 72% liquids)
Current production rate of approximately 27,000 net Boe/d per day
HOUSTON, Nov. 14, 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 through and subsequent to the quarter ended September 30, 2025.
RECENT KEY HIGHLIGHTS
Record total production of 23,029 barrels of oil equivalent per day ("Boe/d") (approximately 52% oil), an increase of approximately 10% quarter-over-quarter.
Current production rate as of today of approximately 27,000 net Boe/d per day, reflecting the successful execution of our development program.
Expanded hedging program, securing favorable commodity pricing through 2028.
Completed transition services period following acquisition of assets from Bayswater Exploration & Production.
Closed two complementary bolt-on acquisitions, which added approximately 11 net drilling locations and 3,400 net acres.
From Edward Kovalik, Chairman and Chief Executive Officer
"The third quarter represented another major step forward for Prairie as we continue to execute across all areas of our business," said Edward Kovalik, Chairman and Chief Executive Officer. "With the Bayswater transition now complete, Prairie has assumed full operational control and is focused on expanding its DJ Basin footprint."
"Looking ahead, our strategy remains clear and disciplined. We're focused on building long-term shareholder value through a combination of high-return organic development, continued operational optimization, and selective, accretive acquisitions. I want to personally thank the entire Prairie team for their dedication, hard work, and professionalism. The progress we've made this year has set the stage for continued momentum into 2026 and beyond."
THIRD QUARTER FINANCIAL RESULTS SUMMARY
Revenue of $77.7 million, driven by realized prices (excluding hedges) of $58.70 per barrel for oil, $12.27 per barrel for NGLs, and $2.15 per thousand cubic feet ("Mcf") for natural gas.
Net loss attributable to common stockholders of $22.5 million, or $0.44 basic loss per share.
Adjusted EBITDA (1) of $56.3 million, an increase of over 45% quarter-over-quarter.
Capital expenditure incurred of $69.6 million.
Net cash provided by operating activities of $57.7 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.
Operations Update
Operationally, the third quarter marked another significant step forward for Prairie as the Company completed the transition period following the Bayswater acquisition and assumed full operational control of those assets.
As of today, Prairie's current production rate stands at approximately 27,000 net Boe/d, reflecting the combined impact of its legacy operations, the Bayswater assets, and new wells brought online during the quarter.
On the development front, flowback operations are now completed on seven new wells on our Noble pad, and completion activities are being finalized on six newly drilled wells at the Simpson pad. The Noble pad is now fully on-line with the Simpson pad expected to be fully online in the fourth quarter.
At the Rusch pad, drilling, completions, and drill-out operations for 11 wells have been finalized and turned to sales. These wells target multiple horizons across the Niobrara A, B, and C zones, as well as the Codell formation, and are expected to meaningfully contribute to production growth through the remainder of 2025.
In addition, Prairie successfully completed and turned to sales nine wells on the Opal Coalbank pad that were acquired as drilled and uncompleted ("DUC") locations in the Bayswater transaction. Initial results have exceeded expectations, with an average IP30 of approximately 525 Boe/d per well (two-stream, gross).
Beyond new drilling, Prairie remains focused on optimizing its existing asset base. The Company has launched a robust workover program targeting 32 wells across the third and fourth quarters, with 31 workovers completed to date, including 18 during the third quarter. Additionally, Prairie has installed plungers across 183 wells, resulting in an average oil production increase of 12.6% per well. These optimization initiatives, along with ongoing improvements to gas-lift systems and pad efficiencies, underscore Prairie's commitment to maximizing per-well productivity and overall capital efficiency.
THIRD QUARTER 2025 RESULTS
Key Financial Highlights
Three Months Ended
(In thousands, except per share amounts)
September 30, 2025
Total revenues
$
77,721
Net loss attributable to common stockholders
$
(22,508
)
Loss per share, basic & diluted
$
(0.44
)
Adjusted EBITDA
$
56,315
Capital expenditures
$
69,582
Revenue and Production
Revenue for the third quarter of 2025 was $77.7 million, $64.9 million related to oil. Production for the third quarter of 2025 was 23,029 Boe/d and was comprised of approximately 52% oil (approximately 72% liquids).
Three MonthsEndedSeptember 30, 2025
Revenues (in thousands)
Oil revenue
$
64,906
Natural gas revenue
7,571
NGL revenue
5,244
Total revenues
$
77,721
Production:
Oil (MBbls)
1,106
Natural gas (MMcf)
3,513
NGL (MBbls)
428
Total production (MBoe)
2,120
Average sales volumes per day (Boe/d)
23,029
Average realized price (excluding effects of derivatives):
Oil (per MBbl)
$
58.70
Natural gas (per MMcf)
$
2.15
NGL (per MBbl)
$
12.27
Average realized price (per MBoe)
$
36.68
Average realized price (including effects of derivatives):
Oil (per MBbl)
$
61.39
Natural gas (per MMcf)
$
3.68
NGL (per MBbl)
$
11.56
Average price (per MBoe)
$
40.47
Average NYMEX prices:
WTI (per MBbl)
$
65.78
Henry Hub (per MMBtu)
$
3.03
Operating Costs
(In thousands, except per Boe amounts)
Three MonthsEndedSeptember 30, 2025
Lease operating expenses
$
15,371
Lease operating expenses per Boe
$
7.25
Transportation and processing
$
2,200
Transportation and processing per Boe
$
1.04
Ad valorem and production taxes
$
4,676
Ad valorem and production taxes per Boe
$
2.21
General and administrative expenses
$
12,273
General and administrative expenses per Boe
$
5.79
Acquisitions and Capital Expenditures
(In thousands)
Nine Months EndedSeptember 30, 2025
Cash paid for Bayswater asset purchase
$
467,461
Cash paid for Edge asset purchase
$
12,709
Capital expenditures, cash
$
126,184
Leasehold purchases
$
3,015
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2025, we had approximately $68.6 million of liquidity, consisting of $58.0 million of borrowings available under our Credit Facility and $10.6 million in unrestricted cash. As of September 30, 2025, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
2025 UPDATED GUIDANCE
Prairie re-affirms full year guidance for 2025:
Average Daily Production: 24,000, 26,000 Boe/d.
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.
The 2025 full-year guidance includes production, revenue, and related expenses attributable to the assets acquired from Bayswater from January 1, 2025 through March 26, 2025, the closing date of the acquisition and is based on an active hedging program and a commodity price deck of $60.00, $64.00 per Bbl for oil and $4.00 per Mcf for gas.
Commodity Hedges
The following table reflects contracted volumes and weighted average prices we will receive under the terms of our derivative contracts as of September 30, 2025:
SettlingOctober 1, 2025throughDecember 31, 2025
SettlingJanuary 1, 2026throughDecember 31, 2026
SettlingJanuary 1, 2027throughDecember 31, 2027
SettlingJanuary 1, 2028throughDecember 31, 2028
Crude Oil Swaps:
Notional volume (Bbls)
717,598
2,241,616
1,592,503
471,907
Weighted average price ($/Bbl)
$
67.85
$
64.42
$
64.16
$
63.47
Natural Gas Swaps:
Notional volume (MMBtus)
3,017,447
11,413,134
9,874,626
4,406,357
Weighted average price ($/MMBtu)
$
4.33
$
4.08
$
4.07
$
4.00
Ethane Swaps:
Notional volume (Bbls)
85,845
288,956
232,375
51,809
Weighted average price ($/Bbl)
$
11.91
$
11.54
$
11.05
$
11.28
Propane Swaps:
Notional volume (Bbls)
149,550
509,724
417,744
94,220
Weighted average price ($/Bbl)
$
28.74
$
26.36
$
26.51
$
26.00
Iso Butane Swaps:
Notional volume (Bbls)
18,772
63,185
50,812
11,328
Weighted average price ($/Bbl)
$
35.62
$
33.92
$
30.22
$
29.63
Normal Butane Swaps:
Notional volume (Bbls)
51,933
174,809
140,580
31,343
Weighted average price ($/Bbl)
$
38.32
$
35.24
$
31.37
$
30.37
Pentane Plus Swaps:
Notional volume (Bbls)
38,716
130,321
104,802
23,366
Weighted average price ($/Bbl)
$
46.17
$
53.05
$
52.40
$
52.49
In October and November 2025, we executed a portfolio of hedges to maintain the hedging requirement under our Amended & Restated Credit Agreement. These hedges secured prices of $60.45 per barrel through the rest of 2025, $60.02 per barrel in 2026 and 2027, and $60.62 per barrel through the fourth quarter of 2028, and $4.07 per MMBtu through 2027.
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, loss on debt issuance, unrealized gain on derivatives, and litigation settlement expense 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 EndedSeptember 30,
Nine Months EndedSeptember 30,
2025
2024
2025(1)
2024
(In thousands)
Net income (loss) from continuing operations reconciliation to Adjusted EBITDA:
Net income (loss) from continuing operations
$
1,287
$
(11,424
)
$
34,353
$
(28,975
)
Adjustments:
Depreciation, depletion, and amortization
16,037
—
30,353
—
Accretion of asset retirement obligations
76
—
147
—
Non-cash stock-based compensation
4,123
1,511
7,908
5,836
Interest expense (income), net
8,613
(432
)
18,952
108
Non-cash loss on adjustment to fair value, embedded derivatives, debt, and warrants(2)
25,914
—
30,451
—
Loss on debt issuance(3)
—
3,039
—
3,039
Unrealized gain on derivatives
(962
)
