Prairie Operating Co. Announces $1 Billion Reserve Based Lending Facility with Citibank, N.A.
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) ha ottenuto una linea di credito basata sulle riserve (RBL) con Citibank per un periodo pluriennale. La linea di credito prevede un impegno iniziale di 44 milioni di dollari con la possibilità di espansione fino a 1 miliardo di dollari in seguito all'aumento della produzione. L'accordo migliora la flessibilità finanziaria e le capacità di sviluppo di Prairie nel bacino DJ, supportando sia la crescita organica che acquisizioni strategiche di asset. Il presidente e CEO Edward Kovalik ha sottolineato che la partnership con Citibank convalida la robustezza degli asset dell'azienda e il suo approccio disciplinato alla crescita.
Prairie Operating Co. (PROP) ha asegurado una instalación de crédito basada en reservas (RBL) con Citibank por varios años. La instalación proporciona un compromiso inicial de 44 millones de dólares con una posible expansión hasta 1 mil millones de dólares tras aumentos en la producción. El acuerdo mejora la flexibilidad financiera de Prairie y sus capacidades de desarrollo en la Cuenca DJ, apoyando tanto el crecimiento orgánico como la adquisición de activos estratégicos. El presidente y CEO Edward Kovalik enfatizó que la asociación con Citibank valida la fortaleza de los activos de la empresa y su enfoque disciplinado hacia el crecimiento.
프레리 오퍼레이팅 컴퍼니(PROP)는 시티은행과 함께 다년간의 유전 기반 대출(RBL) 신용 시설을 확보했습니다. 이 시설은 4,400만 달러의 초기 약정을 제공하며, 생산 증가에 따라 최대 10억 달러까지 확장이 가능합니다. 이번 계약은 프레리의 재정적 유연성과 DJ 분지 내 개발 능력을 향상시키며, 유기적 성장과 전략적 자산 인수를 지원합니다. 회장 겸 CEO인 에드워드 코발릭은 시티은행과의 파트너십이 회사의 자산 강점과 규칙적인 성장 방식을 입증한다고 강조했습니다.
Prairie Operating Co. (PROP) a sécurisé une facilité de crédit basée sur des réserves (RBL) de plusieurs années avec Citibank. La facilité offre un engagement initial de 44 millions de dollars, avec une expansion potentielle jusqu'à 1 milliard de dollars suite à des augmentations de production. L'accord améliore la flexibilité financière et les capacités de développement de Prairie dans le bassin DJ, soutenant à la fois la croissance organique et les acquisitions stratégiques d'actifs. Le président et PDG Edward Kovalik a souligné que le partenariat avec Citibank valide la force des actifs de l'entreprise et son approche disciplinée de la croissance.
Prairie Operating Co. (PROP) hat eine mehrjährige kreditbasierte Reserve-Finanzierung (RBL) mit Citibank gesichert. Die Einrichtung bietet ein anfängliches Engagement von 44 Millionen Dollar und möglicherweise eine Erweiterung auf bis zu 1 Milliarde Dollar nach Produktionszuwächsen. Die Vereinbarung verbessert die finanzielle Flexibilität und Entwicklungsmöglichkeiten von Prairie im DJ-Becken und unterstützt sowohl organisches Wachstum als auch strategische Vermögensübernahmen. Vorsitzender und CEO Edward Kovalik betonte, dass die Partnerschaft mit Citibank die Stärke der Vermögenswerte des Unternehmens und den disziplinierten Wachstumsansatz bestätigt.
- Secured $44 million initial RBL facility with potential expansion to $1 billion
- Partnership with major financial institution (Citibank) enhances credibility
- Increased financial flexibility for development and acquisitions
- Facility can expand based on production growth
- Initial facility amount ($44M) is significantly smaller than the potential maximum ($1B)
- Expansion dependent on future production increases
Insights
HOUSTON, TX, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) today announced it has entered into a multi-year Reserve-Based Lending (“RBL”) credit facility. The RBL facility, arranged with Citibank, N.A. (“Citi”), provides for an initial commitment of
"This facility enhances our financial flexibility and accelerates our development plans,” said Edward Kovalik, Chairman and CEO of Prairie Operating Co. “The ability to expand further with Citi underscores the strength of our asset base and our disciplined approach to strategically growing the Company.”
The initial
This credit facility backstops Prairie’s ability to secure tailored financial solutions that align with its development milestones, further positioning the Company for sustained growth.
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 “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 20, 2024, 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
What is the initial commitment amount of Prairie Operating's (PROP) new RBL facility?
What is the maximum potential expansion of PROP's new credit facility?
Who is the lending partner for Prairie Operating's (PROP) new RBL facility?
What is the purpose of PROP's new RBL facility?
What conditions must PROP meet to expand the credit facility beyond $44 million?
