Welcome to our dedicated page for Prairie Operating Co. news (Ticker: crkrd), a resource for investors and traders seeking the latest updates and insights on Prairie Operating Co. stock.
Overview of Prairie Operating Co. (Symbol: CRKRD)
Prairie Operating Co. is an independent oil and gas company headquartered in Houston, Texas. The company specializes in the acquisition, development, and production of crude oil, natural gas, and natural gas liquids (NGLs). Its operations are strategically concentrated in the resource-rich Denver-Julesburg (DJ) Basin, a prominent area for hydrocarbon extraction in the United States. Within this basin, Prairie focuses on the Niobrara and Codell formations, which are known for their abundant reserves of oil and natural gas. The company's business model emphasizes resource optimization, operational efficiency, and sustainable cash flow generation through disciplined capital management.
Core Business Model and Revenue Streams
Prairie Operating Co. generates revenue primarily through the extraction and sale of crude oil, natural gas, and NGLs. Its operations are designed to maximize recovery from its targeted formations using advanced drilling and completion techniques. The company’s focus on the DJ Basin allows it to benefit from proximity to established infrastructure, reducing transportation costs and improving market access. By leveraging its expertise in resource development, Prairie aims to achieve consistent growth and profitability.
Industry Context and Competitive Position
The oil and gas industry is highly competitive and influenced by factors such as commodity price volatility, regulatory changes, and technological advancements. Prairie Operating Co. operates within this dynamic landscape by concentrating on a geographically and geologically advantageous region. The DJ Basin's Niobrara and Codell formations offer significant opportunities for resource extraction, positioning Prairie as a key player in this area. Its commitment to operational efficiency and capital discipline further enhances its competitive edge.
Operational Focus and Strategic Advantages
Prairie's operations in the DJ Basin are characterized by a focus on high-quality assets and efficient development practices. The Niobrara and Codell formations are known for their favorable geology, which supports cost-effective drilling and production. Prairie's strategic approach includes the use of modern drilling technologies and techniques to optimize resource recovery while minimizing environmental impact. This operational focus allows the company to maintain a strong position in the market and deliver value to stakeholders.
Challenges and Market Dynamics
Like other companies in the oil and gas sector, Prairie faces challenges such as fluctuating commodity prices, evolving environmental regulations, and competition from both traditional and renewable energy sources. To navigate these challenges, the company emphasizes disciplined capital allocation, operational efficiency, and a commitment to responsible resource development. Its focus on the DJ Basin provides a competitive advantage by offering access to high-quality reserves and established infrastructure.
Commitment to Responsible Development
Prairie Operating Co. is dedicated to the responsible development of its oil and natural gas resources. The company prioritizes operational practices that balance economic growth with environmental stewardship. By focusing on sustainable cash flow generation and capital discipline, Prairie aims to create long-term value for its stakeholders while adhering to industry best practices.
Prairie Operating Co. (PROP) has announced an underwritten public offering of $200 million of common stock shares, with an additional 30-day option for underwriters to purchase up to $30 million in additional shares. The proceeds will primarily fund the company's proposed Bayswater Acquisition, which involves purchasing oil and gas assets from Bayswater Exploration and Production.
The remaining proceeds will support general corporate purposes, including development and drilling programs, debt repayment, and potential acquisitions. Citigroup leads the offering as the book-running manager, joined by KeyBanc Capital Markets, MUFG Securities Americas, Piper Sandler & Co., and Truist Securities as joint book-running managers. The offering is being made through a shelf registration statement that became effective on December 20, 2024.
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.
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.
FAQ
What is the market cap of Prairie Operating Co. (crkrd)?
What does Prairie Operating Co. do?
Where are Prairie Operating Co.'s operations located?
How does Prairie Operating Co. generate revenue?
What are Prairie Operating Co.'s competitive advantages?
What challenges does Prairie Operating Co. face in its industry?
What formations does Prairie Operating Co. target for resource extraction?
How does Prairie Operating Co. ensure responsible resource development?
What is Prairie Operating Co.'s business strategy?
