Welcome to our dedicated page for Prairie Operating news (Ticker: PROP), a resource for investors and traders seeking the latest updates and insights on Prairie Operating stock.
Overview of Prairie Operating Co.
Prairie Operating Co. (PROP) is a Houston-based independent energy company engaged in the development and acquisition of oil and natural gas resources in the United States. Specializing in assets located in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, the company focuses on the prolific Niobrara and Codell formations. With a careful blend of traditional energy practices and forward-thinking technological advancements, Prairie Operating Co. embraces innovation in hydraulic fracturing and resource development while adhering to capital discipline and sustainable cash flow generation.
Operations and Business Model
At its core, Prairie Operating Co. develops and acquires hydrocarbon resources through a disciplined approach to capital allocation and operational efficiency. The company’s business model is built on the responsible exploration and production of crude oil, natural gas, and natural gas liquids. This strategy is underpinned by a commitment to maintaining safety, efficiency, and regulatory compliance, ensuring that production activities are both economically viable and environmentally responsible.
- Asset Focus: Concentrated operations in the DJ Basin with a primary focus on areas known for oil and liquids production.
- Operational Efficiency: Emphasis on maximizing returns by leveraging consistent growth and stringent capital management.
- Innovative Practices: Adoption of advanced technologies such as an all-electric frac fleet to improve operational efficiency and reduce emissions.
Technological Innovation and Environmental Initiatives
Innovation is a critical component of the company’s strategy. Prairie Operating Co. has partnered with industry innovators to implement technological solutions that enhance energy production while reducing environmental impacts. A notable development is its collaboration with ProFrac to introduce a fully electrified frac fleet. Such advancements not only improve efficiency in hydraulic fracturing operations but also align with stringent regional emissions standards, underscoring the company’s proactive approach to modernizing traditional energy extraction techniques.
Market Position and Industry Context
Within the competitive landscape of the oil and gas industry, Prairie Operating Co. is recognized for its targeted focus on prolific oil-rich formations and its commitment to disciplined capital management. Its strategic positioning in the DJ Basin allows it to benefit from concentrated production areas with high-yield potential. The company's efforts to integrate advanced technologies into its operations further differentiate it in a market where responsible resource development and operational innovation are increasingly indispensable.
Commitment to Responsible Development
Prairie Operating Co. emphasizes responsible energy development by ensuring that every stage of its resource extraction process is governed by stringent safety and environmental protocols. The company integrates best practices in operational management and regulatory compliance, reaffirming its commitment to sustainable development. Through strategic partnerships, rigorous operational discipline, and a focus on reducing environmental impact, the company demonstrates a balanced approach to energy production in today’s complex regulatory and market environments.
Strategic Partnerships and Operational Enhancements
Strategic collaborations play a vital role in enhancing Prairie Operating Co.'s operational capabilities. Its recent partnership with ProFrac highlights the company’s commitment to embracing innovations that set new standards in operational efficiency and emissions reduction. Such alliances reinforce the company’s approach to integrating modern technological solutions into its traditional energy production processes, effectively positioning Prairie Operating Co. as a forward-thinking entity in a competitive market.
Key Takeaways
- Robust asset portfolio in the DJ Basin focused on high-quality oil and natural gas resources.
- Disciplined approach to capital and growth, ensuring sustainable cash flow generation.
- Emphasis on integrating innovative, environmentally friendly technologies to optimize operations.
- Commitment to operational excellence, regulatory adherence, and responsible development practices.
This comprehensive overview illustrates how Prairie Operating Co. combines traditional energy production with modern technological advancements. Investors and industry observers alike can appreciate the company’s balanced approach to resource development, operational efficiency, and environmental stewardship, making it a notable presence in the highly competitive energy sector.
Prairie Operating Co. (PROP) has announced a definitive agreement to acquire Bayswater Exploration and Production's DJ Basin assets for $602.75 million. The acquisition includes ~24,000 net acres in Weld County and adds ~26 mboepd of oil-weighted (69% liquids) net production.
The transaction will be funded through a combination of cash, up to ~5.2 million shares of Prairie common stock, and borrowings under an expanded credit facility with a $475 million borrowing base. The deal is expected to close in February 2025, with an economic effective date of December 1, 2024.
Key highlights include an increase to ~27,500 net BOEPD production, expanded footprint to ~54,000 net acres, and ~600 highly economic drilling locations providing ~10 years of inventory. The company's 2025 guidance projects production of 29,000-31,000 BOEPD, capital expenditures of $300-320 million, and adjusted EBITDA between $350-370 million.
Prairie Operating Co. (PROP) has expanded its executive management team with four key appointments to strengthen its leadership and drive growth in the DJ Basin. The new executives include: Gregory S. Patton as EVP of Commercial Development, bringing 15 years of oil and gas operations experience; Lou Basenese as EVP of Market Strategy, with 25 years in financial management; Tim Smith as SVP of Reservoir Engineering, with 15 years of energy sector expertise; and Steve R. Stacy as SVP of Land, with 34 years of industry experience.
The appointments aim to enhance Prairie's operational capabilities, drive efficiency, and maximize shareholder value. The expanded team will focus on growing drilling inventory, improving resource recovery, and expanding the company's media presence.
Prairie Operating Co. (PROP) has released its 2025 guidance, projecting significant growth with expected average daily production of 7,000-8,000 BOEPD, representing a 300% year-over-year increase. The company anticipates capital expenditures of $120-130 million, focusing on high-return drilling opportunities in the DJ Basin.
Financial projections include net income between $69-102 million and Adjusted EBITDA of $100-140 million. The company plans to drill and complete 25-28 wells in 2025. CEO Edward Kovalik highlighted that Prairie's current valuation represents approximately 1x projected 2025 EBITDA, suggesting a potential investment opportunity. The company also plans to pursue additional strategic acquisitions, which could lead to updated guidance.
Prairie Operating Co. (Nasdaq: PROP) has announced the timely completion of its eight-well Shelduck South pad in the DJ Basin, with production expected to be fully online in Q1 2025. This development, along with the recent Nickel Road Operating (NRO) acquisition, marks the first phase of Prairie's 2025 development program.
The company is implementing electrified drilling and completion technologies at Shelduck South, demonstrating its commitment to sustainable operations. Following this milestone, Prairie is now focusing on developing the newly acquired NRO acreage and advancing the Noble, Rusch, and Genesis pads.
Pioneer Energy has secured $27 million in DOE funding through four distinct awards. The primary focus is on advancing their Emission Control Treater™ (ECT), a revolutionary zero-emissions well pad production technology that can boost crude yield by 5-10%. Three awards totaling $21 million will support ECT development across different applications, including a $10MM commercial-scale project, a $6MM sour crude processing initiative, and a $5MM marginal wells program.
The ECT technology eliminates routine flaring, removes the need for atmospheric storage tanks, and improves separation efficiency. It features cloud-connected automation for remote monitoring and control, reducing operational costs. The fourth grant, worth $6MM, partners with Emvolon to develop a flare gas to methanol system. All projects will undergo extended field demonstrations, with emissions reduction validation by Colorado School of Mines and Montrose Environmental Group.
Prairie Operating Co. (PROP) has secured a multi-year Reserve-Based Lending (RBL) credit facility with Citibank. The facility provides an initial commitment of $44 million with potential expansion up to $1 billion following production additions. The agreement enhances Prairie's financial flexibility and development capabilities in the DJ Basin, supporting both organic growth and strategic asset acquisitions. Chairman and CEO Edward Kovalik emphasized that the partnership with Citibank validates the company's asset strength and disciplined growth approach.
Prairie Operating Co. (PROP) has announced a year-end update conference call and webcast scheduled for Thursday, December 19, 2024, at 4:30 PM ET. The event will provide insights into the company's operations and key achievements throughout 2024.
Participants can join via telephone by calling 1-877-704-4453 or 1-201-389-0920, or access the webcast through Prairie's website media section. Advanced registration is available, and participants can utilize the Call me™ link for instant telephone access, which becomes active 15 minutes before the start time.
The webcast recording will be available on the company's website for two weeks following the presentation.
Prairie Operating Co. (PROP) announced the appointment of Richard N. Frommer to its Board of Directors as an independent director. Frommer, the former CEO of Great Western Petroleum and current Prairie Advisory Board member, brings over 40 years of oil and gas industry experience. His expertise includes deep knowledge of Colorado's regulatory environment and the Denver-Julesburg Basin. As former Chairman of the Trade Association for the Colorado Oil and Gas Association, Frommer helped shape Colorado's regulatory framework and has a proven track record of building and monetizing multiple billion-dollar oil and gas companies across regions from Canada to the Gulf Coast.
Prairie Operating Co. (PROP) has announced multiple strategic midstream and gathering agreements in the Denver-Julesburg Basin. The partnerships with Rimrock Energy Partners, NGL Energy Partners, and Taproot Energy Partners secure takeaway, processing, sales, and water disposal solutions across the company's 44,000-acre asset base. These agreements include flexible provisions for future production volume increases, ensuring long-term operational reliability and efficient field development while positioning Prairie to benefit from high-grade crude oil production pricing.
Prairie Operating Co. (PROP) has partnered with ProFrac Holding Corp. to deploy an electric frac fleet in Colorado. The initiative features 25 advanced 3000 HHP Single E-Pumps for fully electrified hydraulic fracturing and pump down operations. Operations will begin on Prairie's 8-well Shelduck pad in Weld County. The fleet includes electric Blender units, hydration systems, and chemical additive units powered by natural gas. Two Solar – SMT130 Mobile Gas Turbines, each generating 16.5 MWe ISO, will power the fleet, aiming to meet Colorado's emissions standards and reduce environmental impact.
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