Prairie Operating Co. Completes Transformative Acquisition from Bayswater
Prairie Operating Co. (PROP) has successfully completed its previously announced $602.75 million acquisition of DJ Basin assets from Bayswater Exploration and Production. The transaction significantly expands Prairie's operational footprint, adding approximately 24,000 net acres and increasing average daily production by 25,700 net BOEPD (69% liquids).
The acquisition adds approximately 600 highly economic drilling locations, extending inventory life to roughly 10 years. The assets contribute 77.9 million barrels of oil equivalent in proved reserves with an estimated PV-10 value of $1.1 billion. The transaction was funded through a combination of Series F convertible preferred stock issuance, common stock public offering, credit facility draw, and direct issuance of common stock to Bayswater.
Post-closing, Prairie maintains a strong balance sheet with an expected leverage ratio of ~1.0x and has approximately 35.4 million shares of common stock outstanding. The acquisition is expected to be immediately accretive to per-share cash flow metrics.
Prairie Operating Co. (PROP) ha completato con successo la sua acquisizione precedentemente annunciata di 602,75 milioni di dollari di beni nel DJ Basin da Bayswater Exploration and Production. La transazione amplia significativamente la presenza operativa di Prairie, aggiungendo circa 24.000 acri netti e aumentando la produzione media giornaliera di 25.700 BOEPD netti (69% liquidi).
L'acquisizione aggiunge circa 600 posizioni di perforazione altamente economiche, estendendo la vita dell'inventario a circa 10 anni. Gli attivi contribuiscono con 77,9 milioni di barili di equivalente petrolifero in riserve dimostrate con un valore PV-10 stimato di 1,1 miliardi di dollari. La transazione è stata finanziata attraverso una combinazione di emissione di azioni privilegiate convertibili di Serie F, offerta pubblica di azioni ordinarie, prelievo di una linea di credito e emissione diretta di azioni ordinarie a Bayswater.
Dopo la chiusura, Prairie mantiene un bilancio solido con un rapporto di indebitamento previsto di ~1,0x e ha circa 35,4 milioni di azioni ordinarie in circolazione. Si prevede che l'acquisizione sia immediatamente accretiva per le metriche di flusso di cassa per azione.
Prairie Operating Co. (PROP) ha completado con éxito su adquisición previamente anunciada de 602,75 millones de dólares de activos en DJ Basin de Bayswater Exploration and Production. La transacción amplía significativamente la huella operativa de Prairie, añadiendo aproximadamente 24,000 acres netos y aumentando la producción diaria promedio en 25,700 BOEPD netos (69% líquidos).
La adquisición añade aproximadamente 600 ubicaciones de perforación altamente económicas, extendiendo la vida del inventario a alrededor de 10 años. Los activos contribuyen con 77.9 millones de barriles de equivalente de petróleo en reservas probadas con un valor PV-10 estimado de 1.1 mil millones de dólares. La transacción fue financiada a través de una combinación de emisión de acciones preferentes convertibles de la Serie F, oferta pública de acciones ordinarias, disposición de una línea de crédito y emisión directa de acciones ordinarias a Bayswater.
Tras el cierre, Prairie mantiene un balance sólido con una relación de apalancamiento esperada de ~1.0x y tiene aproximadamente 35.4 millones de acciones ordinarias en circulación. Se espera que la adquisición sea inmediatamente accretiva para las métricas de flujo de caja por acción.
프레리 오퍼레이팅 컴퍼니 (PROP)는 베이스워터 탐사 및 생산으로부터 DJ 분지 자산을 6억 2백75만 달러에 인수한 것을 성공적으로 완료했습니다. 이 거래는 프레리의 운영 범위를 크게 확장하여 약 24,000 에이커의 순면적을 추가하고 평균 일일 생산량을 25,700 BOEPD (69% 액체)만큼 증가시킵니다.
이번 인수로 약 600개의 고수익 드릴링 위치가 추가되어 재고 수명이 약 10년으로 연장됩니다. 이 자산은 인증된 매장량으로 7790만 배럴의 석유 등가물을 기여하며, 추정 PV-10 가치는 11억 달러입니다. 이 거래는 F 시리즈 전환 우선주 발행, 보통주 공개 모집, 신용 시설 인출 및 베이스워터에 대한 보통주 직접 발행의 조합을 통해 자금을 조달했습니다.
종료 후 프레리는 예상 레버리지 비율이 ~1.0x인 강력한 재무 상태를 유지하며, 약 3,540만 주의 보통주가 발행되어 있습니다. 이번 인수는 주당 현금 흐름 지표에 즉각적으로 기여할 것으로 예상됩니다.
Prairie Operating Co. (PROP) a réussi à finaliser son acquisition précédemment annoncée de 602,75 millions de dollars d'actifs du bassin DJ auprès de Bayswater Exploration and Production. La transaction élargit considérablement l'empreinte opérationnelle de Prairie, ajoutant environ 24 000 acres nets et augmentant la production quotidienne moyenne de 25 700 BOEPD nets (69 % liquides).
L'acquisition ajoute environ 600 emplacements de forage hautement économiques, prolongeant la durée de vie de l'inventaire à environ 10 ans. Les actifs contribuent avec 77,9 millions de barils d'équivalent pétrole en réserves prouvées, avec une valeur PV-10 estimée à 1,1 milliard de dollars. La transaction a été financée par une combinaison d'émission d'actions privilégiées convertibles de série F, d'offre publique d'actions ordinaires, de tirage d'une ligne de crédit et d'émission directe d'actions ordinaires à Bayswater.
Après la clôture, Prairie maintient un bilan solide avec un ratio d'endettement prévu d'environ ~1,0x et dispose d'environ 35,4 millions d'actions ordinaires en circulation. On s'attend à ce que l'acquisition soit immédiatement accretive pour les indicateurs de flux de trésorerie par action.
Prairie Operating Co. (PROP) hat erfolgreich seine zuvor angekündigte 602,75 Millionen Dollar Übernahme von DJ Basin Vermögenswerten von Bayswater Exploration and Production abgeschlossen. Die Transaktion erweitert erheblich den operativen Fußabdruck von Prairie, indem sie etwa 24.000 Netto-Acres hinzufügt und die durchschnittliche tägliche Produktion um 25.700 Netto BOEPD (69% Flüssigkeiten) erhöht.
Die Übernahme fügt etwa 600 hochwirtschaftliche Bohrstandorte hinzu und verlängert die Lebensdauer des Inventars auf etwa 10 Jahre. Die Vermögenswerte tragen 77,9 Millionen Barrel an nachgewiesenen Reserven mit einem geschätzten PV-10-Wert von 1,1 Milliarden Dollar bei. Die Transaktion wurde durch eine Kombination aus der Emission von Serie-F-umwandlungsbevorzugten Aktien, einem öffentlichen Angebot von Stammaktien, der Inanspruchnahme einer Kreditfazilität und der direkten Emission von Stammaktien an Bayswater finanziert.
Nach dem Abschluss hat Prairie eine starke Bilanz mit einem erwarteten Verschuldungsgrad von ~1,0x und etwa 35,4 Millionen Aktien ausstehend. Es wird erwartet, dass die Übernahme sofort positiv zu den Kennzahlen des Cashflows pro Aktie beiträgt.
- Immediately accretive to per-share cash flow metrics
- Increases production by 25,700 net BOEPD (69% liquids)
- Adds 77.9 MMBOE in proved reserves valued at $1.1 billion PV-10
- Expands drilling inventory by 600 locations with 10-year life
- Maintains conservative leverage ratio of ~1.0x
- Infrastructure synergies expected to reduce development costs
- Significant shareholder dilution through new stock issuance
- Increased debt through credit facility draw
- Substantial capital outlay of $602.75 million
Insights
Prairie's $602.75 million acquisition of Bayswater's DJ Basin assets represents a transformative transaction that significantly enhances the company's operational scale and financial profile. The deal adds
The acquisition economics appear particularly compelling - Prairie is acquiring 77.9 MMBOE in proved reserves with a PV-10 value of
Most importantly, the transaction is immediately accretive to cash flow metrics while expanding Prairie's inventory life to approximately 10 years. The company has structured the financing intelligently through a balanced mix of equity and debt, avoiding overleveraging while positioning itself for enhanced free cash flow generation.
This acquisition reflects classic consolidation dynamics in U.S. shale - a smaller operator (
Expands footprint in DJ Basin to ~55,000 net acres and inventory life to ~10 years
Increases average daily production by ~25,700 net BOEPD
Immediately accretive and maintains strong balance sheet
Houston, TX, March 26, 2025 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our” or “us”), today announced the successful closing of its previously announced
“This acquisition is a pivotal moment for Prairie, significantly expanding our operational footprint in the DJ Basin,” said Edward Kovalik, Chairman and CEO of Prairie. “By integrating these high-quality assets, we are materially enhancing our production profile, strengthening our financial position, and creating meaningful value for our shareholders. Prairie remains singularly focused on executing our strategic vision to become a premier high-growth, low-cost oil producer.”
Gary Hanna, President of Prairie, added, “the addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin. These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders.”
Transaction Highlights:
- Transformational Increase in Oil-Weighted Production: Adds ~25,700 net BOEPD (
69% liquids).
- Expands Footprint / Inventory Life: Additional 24,000 net acres, adding to approximately 600 highly economic drilling locations and roughly 10 years of drilling inventory.
- Significantly Increases Free Cash Flow: Expected to be immediately accretive to per-share cash flow metrics.
- Maintains Strong Balance Sheet: Expected leverage ratio of ~1.0x at closing with upsized credit facility and ample liquidity.
- Meaningful Infrastructure Synergies: Leverages advantageous takeaway contracts and existing infrastructure to drive operational efficiencies and reduce development costs.
Completed at an attractive valuation, the assets contribute 77.9 million barrels of oil equivalent (MMBOE) in proved reserves with an estimated PV-10 value of
Transaction Details and Advisors
The transaction was funded through a combination of proceeds from a new issuance of Series F convertible preferred stock to a single institutional investor, a common stock public offering, a draw on the newly expanded Company’s
Citi served as exclusive financial advisor and Norton Rose Fulbright US LLP served as legal advisor to Prairie. Citibank N.A. also led the financing under the Company’s expanded credit facility, with Latham & Watkins LLP as legal advisor to Citibank N.A.
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.
Pro-Forma Reserve Data
A summary of the estimated reserves and values of our properties (inclusive of the Bayswater Assets), as of December 31, 2024, and as determined by Cawley, Gillespie & Associates, Inc., the Company’s independent petroleum reserve evaluation firm, using SEC pricing.
Pro-Forma Reserve Data
(1) PV-10 is a non-GAAP financial measure. Please see “Reconciliation of Non-GAAP Measure” below.
Reconciliation of Non-GAAP Measure
PV-10
This press release contains PV-10, which is a financial measure not presented in accordance with U.S. GAAP. PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes discounted at
The following table reconciles PV-10 to the Standard Measure, which is the most directly comparable GAAP financial measure:
Reconciliation of Non-GAAP Measure
Forward-Looking Statements
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, including statements about our acquisition of the Bayswater Assets, including the expected benefits of such transaction, our financial performance following such acquisition, estimates of oil, natural gas and NGLs reserves, estimates of future oil, natural gas and NGLs production. 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, including the risks related to our acquisition of the Bayswater Assets, our ability to recognize the anticipated benefits of the Bayswater Assets, the possibility that we may be unable to achieve expected free cash flow accretion, production levels, drilling, operational efficiencies and other anticipated benefits of the Bayswater Assets within the expected time-frames or at all, and our ability to successfully integrate the Bayswater Assets. 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 filed with the SEC on March 6, 2025, and any subsequently filed Quarterly Report on Form 10-Q 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
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FAQ
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