-- Total revenue of $98.9 million, an increase of approximately 45%
year-over-year
-- Net income attributable to Prairie Operating Co. common stockholders of
$193.8 million
-- Quarterly production of 21,866 Boe/d, an increase of approximately 4%
year-over-year (50% oil)
-- Adjusted EBITDA of $34.0 million
HOUSTON, Aug. 17, 2026 (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, 2026.
SECOND QUARTER 2026 RESULTS SUMMARY
-- Produced 2.0 MMBoe, or approximately 21,866 Boe/d, with 72% liquids (50%
oil).
-- Revenue of $98.9 million, an increase of approximately 45%
year-over-year.
-- Reported net income attributable to Prairie Operating Co. common
stockholders of $193.8 million, or $1.75 basic earnings per share and
$0.23 diluted earnings per share.
-- Generated Adjusted EBITDA(1) of $34.0 million.
-- Capital expenditures of $98.5 million.
-- Net cash provided by operating activities of $52.0 million.
KEY HIGHLIGHTS FOR YEAR-TO-DATE 2026
-- Total production of 4.1 MMBoe, or approximately 22,500 Boe/d, with 72%
liquids (49% oil).
-- Daily production of approximately 27,000 Boe/d throughout the month of
August.
-- Total revenue of $182.3 million, an increase of 125% year-over-year.
-- Adjusted EBITDA(1) of $71.1 million, an increase of 65% year-over-year.
-- Continued execution with recently drilled wells coming in below AFE.
-- Active hedging program, securing commodity price protection through the
second quarter of 2029.
-- Executed partial refinancing of the Series F Preferred Stock in April,
reducing outstanding balance and significantly lowering warrant-related
dilution, while extending the Anniversary warrant date to August 31,
2026.(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, Chief Executive Officer, commented:
"Prairie delivered strong operational progress during the second quarter and throughout the first half of 2026. Our team continued to improve drilling performance, execute within budget and advance our development program across multiple pads in the DJ Basin, despite a planned pause in activity related to seasonal operating restrictions. We also achieved several important technical milestones, including successfully drilling our first three-mile lateral and testing a new wellbore design that demonstrated meaningful cost savings without changing the completion or production configuration."
"These achievements reflect the continued improvement of our operating capabilities. As we move into the second half of the year, we remain focused on safe and consistent execution, applying proven efficiencies across our development program and allocating capital to the opportunities that generate the strongest returns. We believe this disciplined approach will support sustainable production growth, improved capital efficiency and long-term value creation for our shareholders."
Michael Shelly, Executive Vice President and Chief Financial Officer, added:
"Prairie continued to strengthen its financial position and generated meaningful operating cash flow while continuing to fund an active capital program, expanded our commodity hedge portfolio to provide greater visibility and coverage of our future cash flows and made important progress simplifying our capital structure and reducing potential shareholder dilution."
"As we move through the remainder of the year, our financial priorities remain centered on disciplined capital allocation, building liquidity and strengthening the balance sheet. We will continue to align capital spending with operating performance, pursue opportunities to enhance financial flexibility and support the Company's development program in a manner designed to generate sustainable free cash flow through a range of commodity-price environments."
Erik Thoresen, Chairman of the Board, concluded:
"During the second quarter, Prairie took several important steps to strengthen its leadership, governance and financial position. We added key members to the management team and reinvigorated the Board by welcoming a new director whose experience and perspectives will enhance our oversight and strategic decision-making."
"These actions reflect the Board's commitment to a strong alignment with management and shareholders. Together, we remain focused on disciplined execution, prudent capital allocation and continued cost improvement, all with the objective of creating sustainable, long-term shareholder value."
Operations Update
Prairie maintained strong drilling execution during the second quarter of 2026, drilling 12 wells, including two Codell and ten Niobrara wells. Eight of the 12 wells were drilled in a single run, and all wells were completed below AFE. The wells consisted of two- and three-mile laterals and averaged approximately 19,100 feet in measured depth, with an average rate of penetration of 390 feet per hour and an average spud-to-rig-release time of 6.65 days.
During the quarter, Prairie successfully drilled its first three-mile lateral, a Niobrara B well, in a single run and completed drilling operations at the Burnett Pad. Drilling operations at the Castor pad were subsequently completed during the first month of the third quarter. Second-quarter drilling activity included a planned pause between the Opal Coalbank and Burnett pads to accommodate seasonal restrictions associated with Colorado Parks and Wildlife.
On the Castor pad, Prairie completed two successful trials utilizing a 7-7/8-inch hole design, compared with the Company's standard 8-1/2-inch design. The trials generated realized savings and utilized the same 5-1/2-inch production casing. As such, it does not alter the delivered well configuration for completion or production purposes. Based on these results, Prairie plans to deploy the smaller hole design across a significant portion of its upcoming Niobrara development program.
Year to date, Prairie has drilled 27 wells, including six Codell and 21 Niobrara wells, with 19 wells drilled in a single run. On average, the wells were delivered below AFE. Year-to-date wells averaged approximately 18,700 feet in measured depth, an average rate of penetration of 377 feet per hour and an average spud-to-rig-release time of 6.2 days. Prairie has completed drilling operations at the Elder, Opal Coalbank, Burnett and Castor pads during 2026.
SECOND QUARTER 2026 RESULTS
Key Financial Highlights
Three Months Ended
(In thousands, except per share amounts) June 30, 2026
--------------------------------------------------- --------------------
Total revenues $ 98,859
Net income attributable to Prairie Operating Co.
common stockholders $ 193,794
Earnings per share -- basic $ 1.75
Earnings per share -- diluted $ 0.23
Adjusted EBITDA $ 34,010
Capital expenditures (1) $ 98,489
(1) Excludes $12.4 million of capital costs included in accounts payable and accrued expenses as of June 30, 2026.
Revenue and Production
Revenue for the second quarter of 2026 was $98.9 million, including $93.5 million related to oil. Production for the second quarter of 2026 totaled 1,990 MBoe, or 21,866 Boe/d, and was comprised of approximately 50% oil and 72% liquids.
Three Months Ended
June 30, 2026
----------------------
Revenues (in thousands)
Oil revenue $ 93,458
Natural gas revenue (1) (4,292)
NGL revenue 9,693
--- -------------
Total revenues $ 98,859
Production:
Oil (MBbls) 992
Natural gas (MMcf) 3,299
NGL (MBbls) 448
--- -------------
Total production (MBoe) (2) 1,990
Average sales volumes per day (Boe/d) 21,866
Average realized price (excluding effects of
derivatives):
Oil (per Bbl) $ 94.21
Natural gas (per Mcf) (1) $ (1.30)
NGL (per Bbl) $ 21.64
--- -------------
Average realized price (per Boe) $ 49.68
Average sales price (including effects of
derivatives):
Oil (per Bbl) $ 59.79
Natural gas (per Mcf) (1) $ (0.20)
NGL (per Bbl) $ 16.72
--- -------------
Average price (per Boe) $ 33.25
Average NYMEX prices:
WTI (per Bbl) $ 84.29
Henry Hub (per MBtu) $ 3.81
(1) For the three months ended June 30, 2026, we realized
negative natural gas revenue and average realized
prices (excluding and including the effects of derivatives)
due to lower gross sales, driven by decreased pricing
during the quarter, compared to gathering and processing
fees.
(2) MBoe is calculated using six MMcf of natural gas equivalent
to one MBbl of oil.
Operating Costs
For the second quarter of 2026, lease operating expenses were $13.6 million, or $6.85 per Boe; transportation and processing expenses were $2.4 million, or $1.22 per Boe; ad valorem and production taxes were $8.0 million, or $4.01 per Boe; and general and administrative expenses were $12.0 million, or $6.01 per Boe.
Three Months Ended
(In thousands, except per Boe amounts) June 30, 2026
-------------------------------------------------- --------------------
Lease operating expenses $ 13,628
Lease operating expenses per Boe $ 6.85
Gathering, transportation, and processing $ 2,426
Gathering, transportation, and processing per Boe $ 1.22
Ad valorem and production taxes $ 7,983
Ad valorem and production taxes per Boe $ 4.01
General and administrative expenses (1) $ 11,952
General and administrative expenses per Boe $ 6.01
(1) General and administrative expenses for the three
months ended June 30, 2026, includes non-cash stock-based
compensation of $3.3 million, or $1.66 per Boe, and
non-recurring litigation and severance settlement
expenses of $0.8 million, or $0.41 per Boe.
Liquidity and Capital Resources
As of June 30, 2026, we had a working capital deficit of approximately $125.5 million and availability of $39.0 million under the reserve based credit agreement with Citibank, N.A. (the "Credit Facility"). As of June 30, 2026, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
During the six months ended June 30, 2026, our cash expenditures for the development of oil and natural gas properties totaled $132.6 million, with an additional $12.4 million incurred in accounts payable and accrued expenses.
On August 14, 2026, we entered into an amendment to our Credit Facility agreement which, among other things, modifies the Current Ratio covenant requirement for the quarters ended June 30, 2026, through December 31, 2026. Additionally, the amendment includes a new covenant which requires our net monthly production to not fall below an average number specified in the agreement, which will be measured on a rolling three-month average, beginning September 30, 2026. After giving effect to the amendment, we are in compliance with all covenants under the Credit Facility as of June 30, 2026.
Adjusting 2026 Guidance
Prairie adjusts full-year guidance for 2026 as follows:
-- Average Daily Production: 23,000 -- 25,000 Boe/d. -- Capital Expenditures: $185.0 million -- $195.0 million. -- Adjusted EBITDA(1): $180.0 million -- $190.0 million.
(1) Adjusted EBITDA is a Non-GAAP measure, refer to "Non-GAAP Financial Measures" for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Commodity Hedges
As of June 30, 2026, we had the following outstanding crude oil and natural gas derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mont Belvieu OPIS, respectively:
Settling Settling Settling Settling
July 1, January 1, January 1, January
2026 2027 2028 1, 2029
through through through through
December December December December
31, 2026 31, 2027 31, 2028 31, 2029
---------- ----------- ---------- ---------
Crude Oil
Swaps:
Notional
volume
(Bbls) 2,651,848 4,662,503 2,862,307 210,000
Weighted
average
price
($/Bbl) $ 63.09 $ 62.51 $ 62.17 $ 61.57
Natural
Gas
Swaps:
Notional
volume
(MMBtus) 7,584,322 14,082,126 5,606,357 400,000
Weighted
average
price
($/MMBtu) $ 4.08 $ 4.08 $ 4.02 $ 4.11
Ethane
Swaps:
Notional
volume
(Bbls) 215,747 400,675 220,109 --
Weighted
average
price
($/Bbl) $ 11.22 $ 10.70 $ 9.96 $ --
Propane
Swaps:
Notional
volume
(Bbls) 293,113 522,684 199,160 --
Weighted
average
price
($/Bbl) $ 28.69 $ 26.85 $ 25.93 $ --
Iso Butane
Swaps:
Notional
volume
(Bbls) 41,114 74,572 35,088 --
Weighted
average
price
($/Bbl) $ 35.41 $ 31.77 $ 30.77 $ --
Normal
Butane
Swaps:
Notional
volume
(Bbls) 103,276 184,140 74,903 --
Weighted
average
price
($/Bbl) $ 35.81 $ 31.95 $ 30.36 $ --
Pentane
Plus
Swaps:
Notional
volume
(Bbls) 86,958 160,242 78,806 --
Weighted
average
price
($/Bbl) $ 55.12 $ 53.31 $ 52.81 $ --
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) attributable to Prairie Operating Co. and is adjusted for depreciation, depletion, and amortization, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, unrealized (gain) loss on derivatives, non-cash (gain) loss on adjustment to fair value -- financial instrument liabilities, litigation and severance settlement expense, and income tax expense (benefit), all as applicable. We adjust net income (loss) attributable to Prairie Operating Co. 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) attributable to Prairie Operating Co. to Adjusted EBITDA for the periods indicated:
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2026 2025 2026 2025(1)
-------- -------- -------- --------
(In thousands)
Net income
(loss)
attributable
to Prairie
Operating Co. $109,017 $ 35,683 $(43,656) $ 33,066
Adjustments:
Depreciation,
depletion, and
amortization 17,075 12,265 32,919 14,386
Abandonment and
impairment of
unproved
properties
(2) 196 -- 608 --
Non-cash
stock-based
compensation 3,307 2,419 9,040 3,786
Interest
expense, net 9,805 9,030 17,935 10,336
Unrealized
(gain) loss on
derivatives (77,779) (23,206) 85,104 (23,090)
Non-cash (gain)
loss on
adjustment to
fair value --
financial
instrument
liabilities
(3) (48,233) 2,373 (16,382) 4,537
Litigation and
severance
settlement
expense 808 -- 4,154 --
Income tax
expense
(benefit) (4) 19,814 -- (18,580) --
------- ------- ------- -------
Adjusted EBITDA $ 34,010 $ 38,564 $ 71,142 $ 43,021
======= ======= ======= =======
(1) Net income (loss) attributable to Prairie Operating
Co. 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 Bayswater Acquisition, through
June 30, 2025.
(2) Reflects the abandonment of unproved locations which
we have deemed non--core and allowed to expire.
(3) Reflects the changes in the fair values of the financial
instruments measured at fair value on a recurring
basis.
(4) Reflects the deferred income tax expense and benefit
recognized for the three and six months ended June
30, 2026, respectively.
The following table presents the reconciliation of expected full-year 2026 Net income attributable to Prairie Operating Co. to expected full-year 2026 Adjusted EBITDA:
Full-year 2026 Guidance Range
-------------------------------------
(In thousands)
Net income attributable to
Prairie Operating Co. $ 18,000 $ 28,000
Adjustments:
Depreciation, depletion, and
amortization 52,000 52,000
Non-cash stock-based
compensation 18,000 18,000
Interest expense, net 36,000 33,000
Unrealized (loss) on derivatives (60,000) (60,000)
Non-cash loss on adjustment to
fair value -- financial
instrument liabilities (1) 96,000 96,000
Income tax expense (2) 20,000 23,000
------------ -----------
Adjusted EBITDA $ 180,000 $ 190,000
============ ===========
((1) () Reflects the changes in the fair values of the financial
instruments measured at fair value on a recurring
basis.
((2) () Reflects deferred income tax expense.
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 Securities and Exchange Commission (the "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.
Regulation FD Disclosure
The Company announces material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and the investor relations section of its website at www.prairieopco.com.
In addition to these traditional channels, the Company also uses its official social media accounts as a means of disclosing information about Prairie and its business, and to comply with its disclosure obligations under Regulation FD. The Company's official social media accounts currently include @PrairieOpCo on X (formerly Twitter) and linkedin.com/company/prairie-operating-co on LinkedIn. Information the Company posts through these social media channels may be deemed material. Accordingly, investors, the media, and others interested in the Company should monitor these accounts in addition to following the Company's press releases, SEC filings, and public conference calls and webcasts. The Company may update the list of official social media accounts from time to time, and any such updates will be posted on the investor relations section of its website.
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 liquid 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 liquid 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
720-716-5415
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
June 30, 2026 December 31, 2025
--------------- -------------------
Assets
Current assets:
Cash and cash equivalents $ 21 $ 20
Oil, natural gas, and NGL
accrued revenue 28,737 22,728
Joint interest and other
receivables 7,234 23,106
Derivative assets, net -- 28,812
Inventory 4,220 3,604
Prepaid expenses and other
current assets 1,689 1,452
----------- --- --------------
Total current assets 41,901 79,722
Property and equipment:
Oil and natural gas
properties, successful
efforts method of
accounting including
$101,499 and $57,897
excluded from depletable
base as of June 30, 2026
and December 31, 2025,
respectively 1,007,985 852,732
Other property and equipment 21,604 21,067
Less: Accumulated
depreciation, depletion,
and amortization (82,098) (49,343)
----------- --- --------------
Total property and
equipment, net 947,491 824,456
Derivative assets, net -- 24,627
Debt issuance costs, net 12,688 12,642
Operating lease assets 2,966 2,966
Other non--current assets 167 133
----------- --- --------------
Total assets $ 1,005,213 $ 944,546
=========== === ==============
Liabilities, Mezzanine
Equity, and Stockholders'
Equity
Current liabilities:
Accounts payable and accrued
expenses $ 92,729 $ 62,792
Oil, natural gas, and NGL
revenue payable 21,115 30,300
Ad valorem and production
taxes payable 35,074 31,385
Derivative liabilities, net 16,954 --
Operating lease liabilities 1,543 1,300
----------- --- --------------
Total current liabilities 167,415 125,777
Long--term liabilities:
Credit facility 436,000 366,000
Subordinated note -- related
party 1,458 1,458
Series F convertible
preferred stock embedded
derivatives, at fair value 12,262 15,853
Series F convertible
preferred stock warrants,
at fair value 9,492 90,134
Incremental share right
liability, at fair value 15,264 --
Derivative liabilities, net 14,711 --
Oil, natural gas, and NGL
revenue payable 39,582 27,402
Ad valorem and production
taxes payable 33,411 22,751
Deferred tax liability 3,072 21,652
Asset retirement obligation 3,781 4,019
Operating lease liabilities 1,544 1,792
Other long-term liabilities 1,026 1,398
----------- --- --------------
Total long--term liabilities 571,603 552,459
----------- --- --------------
Total liabilities 739,018 678,236
Commitments and
contingencies
Mezzanine equity:
Series F convertible
preferred stock; $0.01 par
value; 50,000,000 shares
authorized, and 78,000 and
121,050 shares issued and
outstanding as of June 30,
2026 and December 31, 2025,
respectively 43,224 136,146
Stockholders' equity:
Series D convertible
preferred stock; $0.01 par
value; 50,000 shares
authorized, and 44 and
5,982 shares issued and
outstanding as of June 30,
2026 and December 31, 2025,
respectively -- --
Common stock; $0.01 par
value; 500,000,000 shares
authorized, and 105,828,010
and 62,499,375 shares
issued and outstanding as
of June 30, 2026 and
December 31, 2025,
respectively 1,060 625
Treasury stock, at cost;
715,955 and 111,357 shares
issued and outstanding as
of June 30, 2026 and
December 31, 2025,
respectively (1,778) (531)
Additional paid--in capital 355,060 217,785
Accumulated deficit (131,371) (87,715)
----------- --- --------------
Total stockholders' equity 222,971 130,164
----------- --- --------------
Total liabilities, mezzanine
equity, and stockholders'
equity $ 1,005,213 $ 944,546
=========== === ==============
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- --------------------------
2026 2025 2026 2025
------------ ------------ ------------ -----------
Revenues:
Crude oil,
natural gas,
and NGL
revenues $ 98,859 $ 68,100 $ 182,276 $ 80,915
Operating
expenses:
Lease operating
expenses 13,628 11,348 28,469 13,361
Transportation
and processing
expenses 2,426 2,234 4,922 2,367
Ad valorem and
production
taxes 7,983 6,416 14,775 7,374
Depreciation,
depletion, and
amortization 17,075 12,265 32,919 14,386
Exploration
expenses 243 458 541 745
Abandonment and
impairment of
unproved
properties 196 -- 608 --
General and
administrative
expenses 11,952 16,443 28,838 21,995
----------- ----------- ----------- ----------
Total operating
expenses 53,503 49,164 111,072 60,228
Other income
(expenses):
Interest expense (10,033) (9,124) (18,230) (10,502)
Gain (loss) on
derivatives,
net 45,079 28,150 (131,981) 27,252
Gain (loss) on
adjustment to
fair value --
financial
instrument
liabilities 48,233 (2,373) 16,382 (4,537)
Interest income
and other 196 94 389 166
----------- ----------- ----------- ----------
Total other
income
(expenses) 83,475 16,747 (133,440) 12,379
Income (loss)
from operations
before income
taxes 128,831 35,683 (62,236) 33,066
Income tax
(expense)
benefit (19,814) -- 18,580 --
----------- ----------- ----------- ----------
Net income
(loss)
attributable to
Prairie
Operating Co. 109,017 35,683 (43,656) 33,066
Series F
preferred stock
declared
dividends (2,598) (3,289) (6,268) (3,289)
Series F
preferred stock
undeclared
dividends 186 (1,402) (780) (1,647)
Remeasurement of
Series F
preferred
stock 87,189 17,511 70,101 (73,101)
----------- ----------- ----------- ----------
Net income
(loss)
attributable to
Prairie
Operating Co.
common
stockholders $ 193,794 $ 48,503 $ 19,397 $ (44,971)
=========== =========== =========== ==========
Earnings (loss)
per common
share
Basic earnings
(loss) per
share $ 1.75 $ 1.04 $ 0.21 $ (1.27)
Diluted earnings
(loss) per
share $ 0.23 $ 0.18 $ (0.41) $ (1.27)
Weighted
average common
shares
outstanding
Basic 107,141,123 44,063,281 87,711,102 35,477,691
Diluted 185,590,890 198,365,207 183,000,521 35,477,691
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Six Months Ended June 30,
-----------------------------
2026 2025
--------------- -----------
Cash flows from operating
activities:
Net (loss) income attributable to
Prairie Operating Co. $ (43,656) $ 33,066
Adjustments to reconcile net
(loss) income attributable to
Prairie Operating Co.to net cash
provided by operating
activities:
Depreciation, depletion, and
amortization 32,919 14,386
Abandonment and impairment of
unproved properties 608 --
Stock--based compensation 9,040 3,722
Unrealized loss (gain) on
derivatives 85,104 (23,090)
(Gain) loss on adjustment to fair
value -- financial instrument
liabilities (16,382) 4,537
Deferred income taxes (18,580) --
Amortization of deferred financing
costs 1,899 2,940
Changes in operating assets and
liabilities:
Oil, natural gas, and NGL
accrued revenue (6,010) (43,699)
Joint interest and other
receivables 15,872 1,152
Inventory, prepaid expenses, and
other current assets (531) (3,461)
Accounts payable, accrued
expenses, and other current
liabilities 16,630 16,175
Revenue, ad valorem, and
production taxes payable 17,343 3,994
----------- ----------
Net cash provided by operating
activities 94,256 9,722
----------- ----------
Cash flows from investing
activities:
Development of oil and natural gas
properties (132,563) (53,973)
Other asset and leasehold
purchases (11,336) (950)
Cash paid for Bayswater asset
purchase, net of cash received -- (467,461)
Cash received from payment on note
receivable -- 95
----------- ----------
Net cash used in investing
activities (143,899) (522,289)
----------- ----------
Cash flows from financing
activities:
Borrowings on the Credit Facility 134,000 359,000
Repayments on the Credit Facility (64,000) --
Debt issuance costs associated
with the Credit Facility (1,945) (15,670)
Proceeds from the issuance of
Common Stock 1,841 43,817
Financing costs associated with
the issuance of Common Stock (46) (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)
Redemption of Series F Preferred
Stock (18,999) --
Payments of the Subordinated Note
-- related party -- (3,214)
Proceeds from option exercises 40 633
Treasury stock repurchased (1,247) (418)
----------- ----------
Net cash provided by financing
activities 49,644 518,028
----------- ----------
Net increase in cash and cash
equivalents 1 5,461
Cash and cash equivalents,
beginning of the period 20 5,192
----------- ----------
Cash and cash equivalents, end of
the period $ 21 $ 10,653
=========== ==========
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,
-------------------------------
2026 2025
--------------- --------------
(In thousands)
Non--cash investing activities:
Increase in capital expenditure
accrued liabilities and accounts
payable $ 12,441 $ 15,692
Non--cash financing activities:
Common Stock issued upon conversion
of Series F Preferred Stock $ 45,858 $ 4,772
Common Stock issued for Series F
Preferred Stock dividends (1) $ 6,014 $ 3,289
Common Stock issued to Bayswater as
part of Bayswater Acquisition
purchase price (2) $ -- $ 16,000
Common Stock issuance costs
included in accrued liabilities $ -- $ 292
Bayswater transaction costs
included in accrued liabilities $ -- $ 6,035
Series F Preferred Stock agreement
amendment fees and issuance costs
included in accrued liabilities
and accounts payable $ 381 $ 1,113
Common Stock issued upon conversion
of Series D Preferred Stock $ 33 $ 8,475
Common Stock issued upon option
exercise $ 42 $ --
Common Stock issued upon conversion
of Senior Convertible Note (3) $ -- $ 18,164
(1) The Company elected to issue shares of the Company's
common stock, par value $0.01 per share ("Common Stock")
for the Series F Preferred Stock dividends payable
on June 1, 2025, March 1, 2026, and June 1, 2026.
(2) The Company issued approximately 3.7 million shares
of Common Stock to Bayswater Resources, LLC, Bayswater
Fund III--A, LLC, Bayswater Fund III--B, LLC, Bayswater
Fund IV--A, LP, Bayswater Fund IV--B, LP, Bayswater
Fund IV--Annex, LP, and Bayswater Exploration & Production,
LLC (collectively, "Bayswater") as part of the Bayswater
acquisition.
(3) During the six months ended June 30, 2025, YA II PN,
LTD. converted the remaining $11.3 million of the
initial $15.0 million convertible promissory note
in exchange for 2.1 million shares of Common Stock.