Prairie Operating Co. Secures Strong Cash Flow with Strategic Hedging Program Ahead of Market Downturn
Prairie Operating Co. (PROP) has successfully implemented a strategic hedging program covering 85% of its current daily production in the Denver-Julesburg Basin. The program, executed after acquiring DJ Basin assets from Bayswater Exploration and Production, secures pricing at $68.27/bbl WTI and $4.28/MMBtu Henry Hub for remaining 2025 production, and $64.29/bbl WTI and $4.09/MMBtu Henry Hub for 2026-1Q 2028 production.
The company is advancing development with an 11-well Rusch Pad project targeting the Niobrara and Codell formations. This hedging initiative aims to protect cash flows, reduce risk, and support the company's growth strategy while maintaining capital discipline.
Prairie Operating Co. (PROP) ha implementato con successo un programma di copertura strategica che copre l'85% della sua attuale produzione giornaliera nel bacino di Denver-Julesburg. Il programma, eseguito dopo l'acquisizione degli asset del bacino DJ da Bayswater Exploration and Production, garantisce prezzi a $68.27/bbl WTI e $4.28/MMBtu Henry Hub per la produzione rimanente del 2025, e $64.29/bbl WTI e $4.09/MMBtu Henry Hub per la produzione dal 2026 al primo trimestre del 2028.
L'azienda sta avanzando nello sviluppo con un progetto da 11 pozzi al Rusch Pad, mirato alle formazioni Niobrara e Codell. Questa iniziativa di copertura mira a proteggere i flussi di cassa, ridurre il rischio e supportare la strategia di crescita dell'azienda, mantenendo al contempo una disciplina di capitale.
Prairie Operating Co. (PROP) ha implementado con éxito un programa de cobertura estratégica que cubre el 85% de su producción diaria actual en la cuenca de Denver-Julesburg. El programa, ejecutado tras la adquisición de activos de la cuenca DJ de Bayswater Exploration and Production, asegura precios de $68.27/bbl WTI y $4.28/MMBtu Henry Hub para la producción restante de 2025, y $64.29/bbl WTI y $4.09/MMBtu Henry Hub para la producción de 2026 hasta el primer trimestre de 2028.
La empresa está avanzando en el desarrollo con un proyecto de 11 pozos en el Rusch Pad, dirigido a las formaciones Niobrara y Codell. Esta iniciativa de cobertura tiene como objetivo proteger los flujos de efectivo, reducir el riesgo y apoyar la estrategia de crecimiento de la empresa, manteniendo a la vez una disciplina de capital.
프레리 운영 회사 (PROP)는 덴버-줄스버그 분지에서 현재 일일 생산량의 85%를 커버하는 전략적 헤지 프로그램을 성공적으로 구현했습니다. 이 프로그램은 Bayswater Exploration and Production으로부터 DJ 분지 자산을 인수한 후 실행되었으며, 2025년 잔여 생산에 대해 $68.27/bbl WTI 및 $4.28/MMBtu 헨리 허브의 가격을 보장하고, 2026년부터 2028년 1분기 생산에 대해 $64.29/bbl WTI 및 $4.09/MMBtu 헨리 허브의 가격을 보장합니다.
회사는 니오브라라 및 코델 층을 목표로 하는 11개 우물의 러쉬 패드 프로젝트로 개발을 진행하고 있습니다. 이 헤지 이니셔티브는 현금 흐름을 보호하고 위험을 줄이며 회사의 성장 전략을 지원하는 동시에 자본 규율을 유지하는 것을 목표로 합니다.
Prairie Operating Co. (PROP) a mis en œuvre avec succès un programme de couverture stratégique couvrant 85 % de sa production quotidienne actuelle dans le bassin de Denver-Julesburg. Le programme, exécuté après l'acquisition d'actifs du bassin DJ auprès de Bayswater Exploration and Production, garantit des prix de $68.27/bbl WTI et $4.28/MMBtu Henry Hub pour la production restante de 2025, et $64.29/bbl WTI et $4.09/MMBtu Henry Hub pour la production de 2026 au premier trimestre 2028.
L'entreprise avance dans le développement avec un projet de 11 puits sur le Rusch Pad visant les formations Niobrara et Codell. Cette initiative de couverture vise à protéger les flux de trésorerie, à réduire les risques et à soutenir la stratégie de croissance de l'entreprise tout en maintenant une discipline de capital.
Prairie Operating Co. (PROP) hat erfolgreich ein strategisches Hedging-Programm implementiert, das 85% seiner aktuellen täglichen Produktion im Denver-Julesburg-Becken abdeckt. Das Programm, das nach dem Erwerb von DJ-Becken-Assets von Bayswater Exploration and Production durchgeführt wurde, sichert Preise von $68.27/bbl WTI und $4.28/MMBtu Henry Hub für die verbleibende Produktion 2025 und $64.29/bbl WTI und $4.09/MMBtu Henry Hub für die Produktion von 2026 bis zum ersten Quartal 2028.
Das Unternehmen entwickelt ein Projekt mit 11 Bohrlöchern auf dem Rusch Pad, das auf die Niobrara- und Codell-Formationen abzielt. Diese Hedging-Initiative soll die Cashflows schützen, Risiken reduzieren und die Wachstumsstrategie des Unternehmens unterstützen, während gleichzeitig eine Kapitaldisziplin aufrechterhalten wird.
- Secured favorable hedging prices above current market rates
- 85% of daily production protected against price volatility
- Long-term price protection extends to Q1 2028
- Strategic timing of hedges before market downturn
- upside potential if commodity prices rise above hedged levels
- High percentage of hedged production (85%) reduces flexibility
HOUSTON, TX, April 10, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) – an independent energy company engaged in the development and acquisition of oil and natural gas resources in the Denver-Julesburg (DJ) Basin – today announced the successful execution of a strategic hedging program which covers approximately
This well-timed risk management initiative secures strong pricing, enhances visibility, and reinforces the Company’s commitment to capital discipline and long-term value creation.
Key Hedging Terms:
- Remaining 2025 Production:
$68.27 /bbl WTI and$4.28 /MMBtu Henry Hub - 2026–1Q 2028 Production:
$64.29 /bbl WTI and$4.09 /MMBtu Henry Hub
“Our hedging strategy is a powerful example of how we’re executing our broader growth plan with discipline and foresight,” said Edward Kovalik, Chairman and CEO of Prairie. “We’ve protected cash flows, reduced risk, and positioned the Company to accelerate growth while delivering long-term shareholder value.”
Prairie continues to advance development across its DJ Basin footprint, including the recently announced 11-well Rusch Pad targeting the Niobrara and Codell formations. The Company remains focused on operational execution, cost efficiency, and disciplined capital allocation, all supported by a fortified balance sheet and a proactive risk management strategy.
About Prairie Operating Co.
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil and natural gas 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 and natural gas 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.
Forward-Looking Statement
The information included herein 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. All statements, other than statements of present or historical fact included herein, are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words “strive”, “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on the Company’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. There may be additional risks not currently known by the Company or that the Company currently believes are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact the Company’s expectations can be found in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K/A filed with the SEC on March 6, 2025, and any subsequently filed Quarterly Report and Current Report on Form 8-K. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov.
Investor Relations Contact:
Wobbe Ploegsma
info@prairieopco.com
832.274.3449
FAQ
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