Prairie Operating Co. Announces Pricing of Common Stock Offering
Prairie Operating Co. (NASDAQ: PROP) has announced the pricing of an underwritten public offering of $38.5 million of common stock at $4.50 per share. The underwriters have a 30-day option to purchase up to an additional $5.8 million of shares.
The net proceeds, estimated at $35.4 million (or $40.8 million if underwriters exercise their full option), will primarily fund the Bayswater Acquisition of oil and gas assets. Additional proceeds will support general corporate purposes, including development and drilling programs, debt repayment, and potential acquisitions.
The offering, expected to close on March 26, 2025, is concurrent with a previously announced offering of 150,000 shares of Series F Convertible Preferred Stock. Citigroup leads the offering as book-running manager, alongside KeyBanc Capital Markets, Truist Securities, MUFG Securities Americas, and Piper Sandler & Co. as joint book-running managers.
Prairie Operating Co. (NASDAQ: PROP) ha annunciato il prezzo di un'offerta pubblica sottoscritta di 38,5 milioni di dollari di azioni ordinarie a 4,50 dollari per azione. Gli underwriter hanno un'opzione di 30 giorni per acquistare fino a ulteriori 5,8 milioni di dollari di azioni.
Il ricavato netto, stimato in 35,4 milioni di dollari (o 40,8 milioni di dollari se gli underwriter esercitano la loro opzione completa), finanzierà principalmente l'Acquisizione Bayswater di attivi petroliferi e di gas. Ulteriori proventi supporteranno scopi aziendali generali, inclusi programmi di sviluppo e perforazione, rimborso del debito e potenziali acquisizioni.
L'offerta, che dovrebbe chiudersi il 26 marzo 2025, è concomitante con un'offerta precedentemente annunciata di 150.000 azioni di Azioni Preferenziali Convertibili di Serie F. Citigroup guida l'offerta come manager di book-running, insieme a KeyBanc Capital Markets, Truist Securities, MUFG Securities Americas e Piper Sandler & Co. come co-manager di book-running.
Prairie Operating Co. (NASDAQ: PROP) ha anunciado el precio de una oferta pública suscrita de 38.5 millones de dólares en acciones comunes a 4.50 dólares por acción. Los suscriptores tienen una opción de 30 días para comprar hasta 5.8 millones de dólares adicionales en acciones.
Los ingresos netos, estimados en 35.4 millones de dólares (o 40.8 millones de dólares si los suscriptores ejercen su opción completa), financiarán principalmente la Adquisición Bayswater de activos de petróleo y gas. Los ingresos adicionales apoyarán propósitos corporativos generales, incluidos programas de desarrollo y perforación, pago de deudas y posibles adquisiciones.
Se espera que la oferta se cierre el 26 de marzo de 2025, y coincide con una oferta previamente anunciada de 150,000 acciones de Acciones Preferentes Convertibles de Serie F. Citigroup lidera la oferta como gerente de book-running, junto con KeyBanc Capital Markets, Truist Securities, MUFG Securities Americas y Piper Sandler & Co. como co-gerentes de book-running.
프레리 오퍼레이팅 컴퍼니 (NASDAQ: PROP)는 3,850만 달러의 보통주 공모가 주당 4.50달러로 책정되었다고 발표했습니다. 인수자는 추가로 580만 달러의 주식을 구매할 수 있는 30일 옵션을 보유하고 있습니다.
순수익은 3,540만 달러로 추정되며 (인수자가 전체 옵션을 행사할 경우 4,080만 달러), 주로 석유 및 가스 자산의 베이즈워터 인수를 위한 자금으로 사용될 것입니다. 추가 수익은 개발 및 시추 프로그램, 부채 상환 및 잠재적 인수를 포함한 일반 기업 목적을 지원합니다.
이번 공모는 2025년 3월 26일에 마감될 예정이며, 이전에 발표된 150,000주의 F급 전환 우선주 공모와 동시에 진행됩니다. 시티그룹은 북런닝 매니저로서 이 공모를 주도하며, KeyBanc Capital Markets, Truist Securities, MUFG Securities Americas 및 Piper Sandler & Co.가 공동 북런닝 매니저로 참여합니다.
Prairie Operating Co. (NASDAQ: PROP) a annoncé le prix d'une offre publique souscrite de 38,5 millions de dollars d'actions ordinaires à 4,50 dollars par action. Les souscripteurs disposent d'une option de 30 jours pour acheter jusqu'à 5,8 millions de dollars d'actions supplémentaires.
Les produits nets, estimés à 35,4 millions de dollars (ou 40,8 millions de dollars si les souscripteurs exercent leur option complète), financeront principalement l'Acquisition Bayswater d'actifs pétroliers et gaziers. Les produits supplémentaires soutiendront des objectifs d'entreprise généraux, y compris des programmes de développement et de forage, le remboursement de dettes et des acquisitions potentielles.
L'offre, qui devrait se clôturer le 26 mars 2025, est concomitante avec une offre précédemment annoncée de 150 000 actions d'actions privilégiées convertibles de série F. Citigroup dirige l'offre en tant que gestionnaire de book-running, aux côtés de KeyBanc Capital Markets, Truist Securities, MUFG Securities Americas et Piper Sandler & Co. en tant que co-gestionnaires de book-running.
Prairie Operating Co. (NASDAQ: PROP) hat die Preisgestaltung einer unterzeichneten öffentlichen Angebots von 38,5 Millionen Dollar an Stammaktien zu 4,50 Dollar pro Aktie bekannt gegeben. Die Underwriter haben eine 30-tägige Option, bis zu 5,8 Millionen Dollar an zusätzlichen Aktien zu kaufen.
Der Nettoproceeds, geschätzt auf 35,4 Millionen Dollar (oder 40,8 Millionen Dollar, wenn die Underwriter ihre volle Option ausüben), werden hauptsächlich die Bayswater-Akquisition von Öl- und Gasvermögen finanzieren. Zusätzliche Erlöse werden allgemeine Unternehmenszwecke unterstützen, einschließlich Entwicklungs- und Bohrprogramme, Schuldenrückzahlung und potenziellen Akquisitionen.
Das Angebot, das voraussichtlich am 26. März 2025 abgeschlossen wird, erfolgt parallel zu einem zuvor angekündigten Angebot von 150.000 Aktien der Serie F Wandelschuldverschreibungen. Citigroup führt das Angebot als Book-Running-Manager, zusammen mit KeyBanc Capital Markets, Truist Securities, MUFG Securities Americas und Piper Sandler & Co. als gemeinsame Book-Running-Manager.
- Secured significant funding of $38.5 million through common stock offering
- Additional $5.8 million potential proceeds from underwriter options
- Strategic expansion through Bayswater Acquisition of oil and gas assets
- Strong underwriter support from major financial institutions
- Dilution of existing shareholders through new stock issuance
- Stock offering priced at $4.50 per share may represent discount to market price
- Additional dilution potential from concurrent preferred stock offering
Insights
Prairie Operating Co. has announced a $38.5 million public offering of common stock at $4.50 per share, representing a substantial
The offering's dilutive impact deserves close attention. With Prairie's current market cap of
This capital raise appears primarily intended to fund the Bayswater Acquisition, alongside a concurrent Series F Convertible Preferred Stock offering. The combined transactions suggest Prairie is leveraging multiple financing vehicles to secure necessary capital while potentially minimizing the total common equity dilution that would occur from a single-source financing.
The offering's structure, including the 30-day option for underwriters to purchase additional shares worth
The secondary uses of proceeds - advancing development drilling, debt repayment, and financing other acquisitions - highlight Prairie's strategic focus on growth and financial flexibility, though the Bayswater Acquisition remains the clear priority.
This capital raise illustrates the ongoing consolidation trend in U.S. oil and gas, particularly in smaller operators seeking scale advantages. Prairie's decision to acquire Bayswater assets reflects the industry's focus on building operational critical mass amid challenging capital markets for energy companies.
The steep discount on the common stock offering price suggests Prairie faced resistance in capital markets, not uncommon for sub-
While the announcement lacks details on the Bayswater assets being acquired, the substantive capital raise indicates these are likely significant producing properties or development opportunities that Prairie believes will materially enhance its operational footprint. The preference for equity financing over debt suggests Prairie is maintaining financial discipline regarding leverage ratios.
The company's mention of potentially directing proceeds toward "advancing the Company's development and drilling program" indicates Prairie likely sees near-term development inventory within the acquisition that could quickly generate returns. This approach aligns with investor preferences for short-cycle capital deployment rather than longer-term speculative acreage acquisition.
The financing structure and timing reflect tough market realities for smaller producers - while Prairie must accept substantial dilution, the strategic benefits of increased scale, operational synergies, and enhanced development inventory could provide meaningful long-term value if executed effectively.
HOUSTON, March 24, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (“Prairie,” the “Company,” “we,” or “our”) (Nasdaq: PROP) announced today the pricing of an underwritten public offering of
Net proceeds to Prairie from the sale of the
The Company intends to use the net proceeds from the Common Stock Offering, together with the net proceeds from its previously announced concurrent registered offering of 150,000 shares of new Series F Convertible Preferred Stock and certain warrants (the “Concurrent Preferred Stock Offering”), to fund a portion of the purchase price for the Company’s proposed acquisition of certain oil and gas assets from Bayswater Exploration and Production and certain of its affiliates (the “Bayswater Acquisition”). The Company intends to use any remaining net proceeds from the Common Stock Offering and the Concurrent Preferred Stock Offering, including any net proceeds from the underwriters’ exercise of their option to purchase additional shares, for other general corporate purposes, which may include advancing the Company’s development and drilling program, repayment of existing indebtedness or financing other potential acquisition opportunities.
The Common Stock Offering is expected to close on March 26, 2025, subject to customary closing conditions.
Citigroup is acting as lead book-running manager for the Common Stock Offering. KeyBanc Capital Markets Inc., Truist Securities, Inc., MUFG Securities Americas Inc., and Piper Sandler & Co. are also acting as joint book-running managers. Roth Capital Partners, Clear Street LLC, Johnson Rice & Company L.L.C., and Pickering Energy Partners are acting as co-managers.
The Common Stock Offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) and became effective on December 20, 2024. The preliminary prospectus supplement, and accompanying base prospectus, relating to the offering, and a final prospectus supplement, when available, will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement, and accompanying base prospectus, relating to the Common Stock Offering, and the final prospectus supplement, when available, may be obtained by sending a request to: Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-800-831-9146; KeyBanc Capital Markets Inc., Attn: Equity Syndicate, 127 Public Square, 7th Floor, Cleveland, OH 44114, telephone: 1-800-859-1783; Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, Georgia 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com; MUFG Securities Americas Inc., Attention: Equity Capital Markets, 1221 Avenue of the Americas, 6th Floor, New York, New York 10020, telephone: 212-405-7440, email: ECM@us.sc.mufg.jp; Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at (800) 747-3924, or by email at prospectus@psc.com; or by accessing the SEC’s website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the shares of Common Stock or any other securities, nor shall there be any sale of such shares of Common Stock or any other securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Prairie
Houston-based Prairie Operating Co. is an independent oil and gas company focused on the acquisition and development of crude oil, natural gas and natural gas liquids. 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.
For more information, visit www.prairieopco.com.
Forward-Looking Statements
This press release contains “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 historical fact, included in this press release, regarding our strategy, future operations, financial position, estimated reserves, revenues and income or losses, projected costs and capital expenditures, prospects, acquisition opportunities, plans and objectives of management are forward-looking statements. When used in this press release, the words “plan,” “may,” “endeavor,” “will,” “would,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “forecast” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are (or were when made) based on current expectations and assumptions about future events and are (or were when made) based on currently available information as to the outcome and timing of future events. Forward-looking statements in this press release may include, for example, statements about: the Company’s ability to successfully finance and consummate the Bayswater Acquisition, including the risk that the Company may fail to complete the Bayswater Acquisition on the terms and timing currently contemplated or at all, fail to enter into the New Credit Agreement on expected terms and/or fail to realize the expected benefits of the Bayswater Acquisition; the Company’s financial performance following the Bayswater Acquisition; this public offering, the Concurrent Preferred Stock Offering, the timing thereof and the use of proceeds therefrom; estimates of the Company’s oil, natural gas and NGLs reserves; drilling prospects, inventories, projects and programs; estimates of future oil and natural gas production from our oil and gas assets, including estimates of any increases or decreases in production; the availability and adequacy of cash flow to meet the Company’s requirements; financial strategy, liquidity and capital required for the Company’s development program and other capital expenditures; the availability of additional capital for the Company’s operations; changes in the Company’s business and growth strategy, including the Company’s ability to successfully operate and expand its business; the Company’s integration of acquisitions, including the Bayswater Acquisition; changes or developments in applicable laws or regulations, including with respect to taxes; and actions taken or not taken by third-parties, including the Company’s contractors and competitors. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” in the prospectus supplement, the accompanying base prospectus, the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Forms 10-Q filed with the SEC and our other filings with the SEC, all of which can be accessed on the SEC’s website at www.sec.gov. The Company cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. These risks include, but are not limited to: the Company’s and Bayswater’s ability to satisfy the conditions of the Bayswater Acquisition in a timely manner or at all, including the Company’s ability to successfully finance the Bayswater Acquisition; the Company’s ability to complete the Concurrent Preferred Stock Offering in a timely manner and on acceptable terms, if at all; the Company’s ability to recognize the anticipated benefits of the Bayswater Acquisition, which may be affected by, among other things, competition and the Company’s ability to grow and manage growth profitably following the Bayswater Acquisition; the Company’s ability to fund its development and drilling plan; the possibility that the Company may be unable to achieve expected cash flow, production levels, drilling, operational efficiencies and other anticipated benefits within the expected time-frames, or at all, and to successfully integrate the Bayswater Assets, and/or any other assets or operations the Company has acquired or may acquire in the future with those of the Company; the Company’s integration of the Bayswater Assets with those of the Company may be more difficult, time-consuming or costly than expected; the Company’s operating costs, customer loss and business disruption may be greater than expected following the Bayswater Acquisition or the public announcements of the Bayswater Acquisition; the Company’s ability to grow its operations, and to fund such operations, on the anticipated timeline or at all; uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future rates of production and the amount and timing of development expenditures; commodity price and cost volatility and inflation; the ability to maintain necessary permits and approvals to develop our assets; safety and environmental requirements that may subject the Company to unanticipated liabilities; changes in the regulations governing our business and operations, including the businesses and operations we have acquired or may acquire in the future, such as, but not limited to, those pertaining to the environment, our drilling program and the pricing of our future production; the Company’s success in retaining or recruiting, or changes required in, the Company’s officers, key employees or directors; general economic, financial, legal, political, and business conditions and changes in domestic and foreign markets; the risks related to the growth of the Company’s business; the effects of competition on the Company’s future business; and other factors detailed under the section entitled “Risk Factors” in the prospectus supplement and, accompanying base prospectus related to the offering and the periodic filings with the SEC. Reserve engineering is a process of estimating underground accumulations of oil, natural gas and NGLs that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify upward or downward revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil, natural gas and NGLs that are ultimately recovered. Should one or more of the risks or uncertainties described herein or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially from those express in any forward-looking statements. All forward-looking statements, expressed or implied, in this press release, are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.
Contact: Investor Relations
Wobbe Ploegsma
info@prairieopco.com
832.274.3449
