• A digital gold mine.
• A factory for Bitcoin and other cryptocurrencies.

Prairie Operating (symbol: PROP) is an oil and gas exploration and production company. It sells its products, primarily crude oil, natural gas, and natural gas liquids (NGLs), primarily to other companies (B2B).

Its major customers fall into the following categories:

• Midstream Companies: These companies specialize in the gathering, processing, and transportation of crude oil and natural gas from the wellhead to market hubs. They often purchase raw hydrocarbons from E&P companies like Prairie Operating.
• Refineries: Refineries purchase crude oil from E&P companies to process it into various petroleum products such as gasoline, diesel, jet fuel, and petrochemical feedstocks.
• Commodity Traders and Wholesale Purchasers: These entities buy crude oil, natural gas, and NGLs in bulk for resale, often to utilities, industrial users, or other downstream participants in the energy market.

Richard N. Frommer – Interim President and CEO

Mr. Frommer has served as a director of Prairie Operating Co. since November 2024. He was the President and Chief Executive Officer of Great Western Petroleum from February 2013 to September 2021. From May 2002 to November 2012, Mr. Frommer was Senior Vice President, Rocky Mountain division at Samson Resources Company until its sale to KKR & Co., L.P. Before that, he spent four years at HS Resources Inc. as New Ventures Manager.

Greg Patton – Executive Vice President and Chief Financial Officer

Mr. Patton has over 15 years of industry experience. He previously served as Senior Vice President, Corporate Development and Finance for Great Western Petroleum and as CFO for Trigger Energy. Mr. Patton joined Prairie Operating Co. as VP of Commercial Development in March 2024 and was appointed CFO effective April 1, 2025. He holds a Master and Bachelor of Accounting from The University of Denver.

Bryan Freeman – Executive Vice President, Operations

Mr. Freeman previously served as the SVP of Drilling and Completions at Rosehill Resources, where he was responsible for managing the execution of the company's $750 million Capex program over three years. Before joining Rosehill Resources, he was the Production & Operation Engineering Manager for SM Energy.

Daniel T. Sweeney – Executive Vice President, General Counsel and Corporate Secretary

Mr. Sweeney has served as Executive Vice President, General Counsel and Corporate Secretary since July 2023. Prior to this role, he was the Senior Vice President, General Counsel and Secretary of Great Western Petroleum, LLC, a private oil and gas company, from June 2018 until its sale to PDC Energy Inc. in May 2022. From May 2013 to June 2018, he served as Director, Assistant Secretary and Associate General Counsel at Eclipse Resources Corp., also a private oil and gas exploration company. Mr. Sweeney also held legal roles at Chesapeake Energy Corporation and Rex Energy Corporation.

Louis J. Basenese – Executive Vice President, Market Strategy

Mr. Basenese has served as Executive Vice President, Market Strategy since January 2025. From June 2022 to January 2025, he was President and Chief Market Strategist for MDB Capital Holdings, a publicly traded investment bank and broker dealer. He founded and led The Basenese Group, an independent equity research, strategy, and advisory firm. Mr. Basenese started his career in capital markets as an investment consultant and analyst at Morgan Stanley from March 2002 to January 2005.

The key risks to Prairie Operating (symbol: PROP) primarily revolve around its financial health and the inherent volatility of the energy market.

1. Financial Distress and Dilution Risk: Prairie Operating faces significant financial challenges, operating with negative cash flow and requiring substantial capital expenditures for its growth initiatives, with planned spending between $300 million and $320 million in 2025. This situation is further exacerbated by a high debt-to-equity ratio of 4.13 and an Altman Z-Score of 0.24, which places the company in a distress zone, suggesting a potential risk of bankruptcy within the next two years. The company relies heavily on higher-risk funding sources, with 100% of its liabilities stemming from external borrowing, and frequent equity issuances to fund growth could lead to significant dilution of shareholder value. Moreover, there is substantial potential for further dilution from preferred stock, warrants, and other instruments.
2. Commodity Price Volatility: As an independent energy company focused on oil, natural gas, and natural gas liquids (NGL) resources, Prairie Operating's business, financial condition, and ability to meet capital expenditure obligations are highly susceptible to the volatile prices of these commodities. An extended decline in oil, natural gas, and NGL prices could severely impact the company's profitability and financial stability.
3. Operational Execution Risks: Prairie Operating has a limited history of drilling producing oil and natural gas wells, which introduces uncertainties in establishing successful operations and executing its development plans. There is a risk that the development of its estimated proved undeveloped reserves (PUD) may take longer and require higher capital expenditures than anticipated, potentially leading to undeveloped or unproduced reserves and challenging its ability to scale production effectively.

Prairie Operating (NASDAQ: PROP) is primarily an independent energy company focused on the acquisition, development, and operation of onshore oil, natural gas, and natural gas liquids (NGL) properties in the United States, with operations concentrated in the Denver-Julesburg (DJ) Basin in Colorado. The company's main products are crude oil, natural gas, and natural gas liquids.

While some sources indicate that Prairie Operating also has a Bitcoin mining operation or that Prairie Operating Co., LLC was acquired by Creek Road Miners, Inc., a cryptocurrency mining business, the bulk of Prairie Operating's revenue is described as coming from selling oil, natural gas, and natural gas liquids.

It is challenging to provide a precise addressable market size specifically for the exploration and production activities within the DJ Basin in a single numerical value. However, the broader markets for crude oil, natural gas, and natural gas liquids in the United States are substantial.

Currently, specific addressable market sizes directly attributable to Prairie Operating's main products (crude oil, natural gas, and natural gas liquids) for their specific operational region (DJ Basin, U.S.) are not readily available in a quantifiable figure that can be directly extracted as a "market size" from the provided search results. Therefore, it is not possible to size the markets for the company's products based on the available information.

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Prairie Operating (NASDAQ: PROP) is an independent energy company primarily focused on the development and acquisition of oil, natural gas, and natural gas liquids (NGL) resources in the Denver-Julesburg (DJ) Basin in the United States. The company exited its cryptocurrency mining operations in January 2024. Over the next 2-3 years, key drivers of Prairie Operating's future revenue growth are expected to include:

• Increased Production Volume from Acquisitions and Development: Prairie Operating's revenue growth is significantly driven by its strategy of acquiring and developing oil and gas assets. The company's $602.8 million acquisition of Bayswater's DJ Basin assets, which closed in March 2025, substantially expanded its land position and boosted daily production. In the third quarter of 2025, Prairie Operating achieved record production of 23,029 barrels of oil equivalent per day (Boe/d), with current rates reaching approximately 27,000 Boe/d due to successful development activities and additional bolt-on acquisitions. The company has reaffirmed its full-year 2025 production guidance of 24,000–26,000 Boe/d, with ongoing drilling and completion activities expected to drive further production growth.

• Development of Proved Reserves: Prairie Operating possesses substantial proved reserves, with an independent assessment as of year-end 2025 reporting total proved reserves of 121 million barrels of oil equivalent. A significant portion of these, 53 MMBoe, are categorized as proved undeveloped reserves. The systematic development and conversion of these undeveloped reserves into producing assets will be a key driver of increased production volumes and, consequently, revenue growth over the coming years.

• Operational Efficiency and Optimization: The company emphasizes operational efficiency and asset optimization to enhance per-well productivity and capital efficiency. Initiatives such as workover programs, the installation of plunger lift systems (which have shown an average oil production increase of 12.6% per well), and improvements to gas-lift systems and pad efficiencies contribute to maximizing output from existing and new wells. Prairie Operating also benefits from operating in rural areas, which results in fewer permitting hurdles and a faster development timeline, allowing for efficient capital deployment.

• Strategic Hedging and Commodity Price Management: While commodity prices inherently introduce volatility, Prairie Operating employs a proactive hedging strategy to secure favorable pricing for a significant portion of its production through 2028. This strategy helps to insulate the company from short-term commodity price fluctuations, enabling more reliable forecasting of cash flows and capital expenditures, and providing a stable revenue base to support ongoing growth initiatives.

Share Issuance

• In February 2025, Prairie Operating announced an underwritten public offering of $200 million of its common stock, with an option for underwriters to purchase an additional $30 million, primarily to fund a portion of the Bayswater acquisition.
• In March 2025, the company agreed to issue and sell 150,000 shares of new Series F Convertible Preferred Stock in a registered public offering, carrying a 12% annual dividend rate, with proceeds aimed at funding the acquisition of oil and gas assets.
• Prairie Operating downsized its common stock offering to just under $40 million in March 2025, incorporating the preferred stock issuance to minimize dilution for existing shareholders while funding the Bayswater acquisition.

Inbound Investments

• In December 2024, Prairie Operating secured a $1 billion reserve-based lending facility with Citibank, N.A., providing significant capital for development.
• In June 2025, the company's multi-year Reserve-Based Lending (RBL) credit facility with Citibank, N.A. was reaffirmed with a borrowing base of $475 million and a maximum facility size of $1.0 billion, maturing in March 2029.

Outbound Investments

• In March 2025, Prairie Operating closed the $602.75 million acquisition of certain Denver-Julesburg Basin (DJ Basin) assets from Bayswater Exploration and Production and its affiliated entities, significantly expanding its asset base.
• The company completed the NRO acquisition in October 2024.
• Prairie Operating closed the Edge acquisition in July 2025.

Capital Expenditures

• Capital expenditures for the second quarter of 2025 amounted to $56.6 million, reflecting the company's commitment to growth and operational expansion.
• In the third quarter of 2025, Prairie Operating incurred $69.6 million in capital expenditures.
• For the full year 2025, the company reaffirmed its guidance, projecting capital expenditures between $260 million and $280 million, primarily focused on growth and development opportunities.