- Total Revenue of $83.4 million, an increase of over 500% quarter-over-quarter
- Adjusted EBITDA(1) of $37.2 million, an increase of over 600% quarter-over-quarter
- Approximate quarterly production of 23,200 net Boe/d (48% oil / 72% liquids)
- Reached agreement to extend grant of Series F Preferred equity anniversary warrants
HOUSTON, May 14, 2026 (GLOBE NEWSWIRE) -- Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our,” or “us”) – an independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquids (“NGL”) resources in the Denver-Julesburg (DJ) Basin – today announced its financial and operational results for the first quarter ended March 31, 2026.
Recent Key Highlights
- Total production of 2.1 MMBoe, or approximately 23,200 Boe/d, with 72% liquids (48% oil).
- Total revenue of $83.4 million, an increase of over 500% quarter-over-quarter.
- Adjusted EBITDA(1) of $37.2 million, an increase of over 600% quarter-over-quarter.
- Delivered strong operational execution, with recently drilled wells coming in below AFE.
- Expanded hedging program, securing commodity price protection through the second quarter of 2029.
- Executed partial refinancing of the Series F Preferred Stock in April, reducing the outstanding balance and significantly lowering potential warrant-related dilution.
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Richard Frommer Interim Chief Executive Officer, commented:
“Prairie delivered a strong start to 2026, with meaningful production growth, solid financial performance, and continued operational execution across our DJ Basin assets. Importantly, we have made significant progress on our capital structure through the partial refinancing of the Series F Preferred, which reduced both the outstanding balance and potential dilution. This marks an important step forward, and we remain focused on further addressing the remaining Series F Preferred to simplify our capital structure. With a high-quality asset base, improving financial profile, and clear strategic priorities, we believe Prairie is well positioned to deliver sustainable long-term value for our shareholders.”
First Quarter 2026 Highlights
- Revenue of $83.4 million, driven by realized prices (excluding hedges) of $67.91 per barrel for oil, $13.33 per barrel for NGLs, and $2.53 per Mcf for natural gas.
- Net loss attributable to Prairie Operating Co. common stockholders of $174.4 million, or $2.16 basic loss per share.
- Adjusted EBITDA(1) of $37.2 million compared to $5.2 million for the quarter ended March 31, 2025.
- Capital expenditures incurred of $34.1 million.
- Net cash provided by operating activities of $42.3 million.
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Operational Update
Operationally, the first quarter of 2026 reflected continued strong execution across Prairie’s DJ Basin position, with a clear focus on efficiency, cost control, and consistent well performance.
Since January 1, the Company has drilled a total of 17 wells across two of its key development pads. At the Elder pad, Prairie drilled nine wells with an average spud-to-rig release time of 6.2 days and an average measured depth of approximately 18,435 feet. At the Opal Coalbank pad, the Company drilled 8 wells with an average spud-to-rig release time of 5.5 days and an average measured depth of approximately 18,373 feet.
Operational performance remained strong across both pads. Notably, 13 of the 17 wells were drilled in a single run, and all wells were delivered below AFE, with average cost savings exceeding $100,000 per well. These results highlight the Company’s continued improvements in drilling efficiency, execution consistency, and capital discipline. From a geological standpoint, the program included 13 Niobrara wells and 4 Codell wells, further enhancing the depth and quality of Prairie’s development inventory.
In addition to drilling activity, the Company continued to advance completion and turn-in-line operations, with early well performance meeting or exceeding expectations.
Overall, Prairie continues to execute at a high level, delivering strong operational results while maintaining disciplined capital allocation and positioning the Company for sustained, efficient growth.
First Quarter Results
Key Financial Highlights
(In thousands, except per share amounts) Three Months Ended March 31, 2026 Total revenues $83,417 Net loss attributable to Prairie Operating Co. common stockholders $(174,397)Loss per share – basic & diluted $(2.16)Adjusted EBITDA $37,203 Capital expenditures (1) $34,074(1) Excludes $47.3 million of capital costs included in accounts payable and accrued expenses as of March 31, 2026.
Revenue And Production
Revenue for the quarter ended March 31, 2026, was $83.4 million, $67.8 million related to oil. Production for the quarter ended March 31, 2026, was 2.1 MMBoe and was comprised of approximately 48% oil (approximately 72% liquids).
Three Months Ended March 31, 2026 Revenues (in thousands) Oil revenue $67,838 Natural gas revenue 8,956 NGL revenue 6,623 Total revenues $83,417 Production: Oil (MBbls) 999 Natural gas (MMcf) 3,538 NGL (MBbls) 497 Total production (MBoe) (2) 2,086 Average sales volumes per day (Boe/d) 23,182 Average realized price (excluding effects of derivatives): Oil (per MBbl) $67.91 Natural gas (per MMcf) $2.53 NGL (per MBbl) $13.33 Average realized price (per MBoe) $39.99 Average realized price (including effects of derivatives): Oil (per MBbl) $56.49 Natural gas (per MMcf) $1.82 NGL (per MBbl) $12.76 Average price (per MBoe) $33.19 Average NYMEX prices: WTI (per MBbl) $72.74 Henry Hub (per MMBtu) $4.71(1) MBoe is calculated using six MMcf of natural gas equivalent to one MBbl of oil.
Operating Costs
(1) Ad valorem and production taxes payable for the three months ended March 31, 2026 includes the quarterly Colorado production fee of $0.6 million or $0.27 per Boe.
(2) General and administrative expenses for the three months ended March 31, 2026, includes non-cash stock-based compensation of $5.8 million or $2.78 per Boe, and non-recurring litigation and severance settlement expenses of $3.3 million or $1.60 per Boe.
Liquidity and Capital Resources
As of March 31, 2026, we had approximately $113.5 million of liquidity, primarily consisting of borrowings available under our Credit Facility. As of March 31, 2026, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
2026 Guidance Reaffirmed
Prairie reaffirms full-year guidance for 2026 as follows:
- Average Daily Production: 25,500 – 27,500 Boe/d.
- Capital Expenditures: $200.0 million – $220.0 million.
- Adjusted EBITDA(1): $240.0 million – $260.0 million.
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Commodity Hedges
As of March 31, 2026, the Company had the following outstanding crude oil and natural gas derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mount Belvieu OPIS, respectively:
SettlingApril 1,
2026
through
December 31,
2026 Settling
January 1,
2027
through
December 31,
2027 Settling
January 1,
2028
through
December 31,
2028 Settling
January 1,
2029
through
December 31,
2029Crude Oil Swaps: Notional volume (Bbls) 3,775,808 4,662,503 2,862,307 210,000Weighted average price ($/Bbl)$62.86 $62.51 $62.17 $61.57Natural Gas Swaps: Notional volume (MMBtus) 10,957,305 14,082,126 5,606,357 400,000Weighted average price ($/MMBtu)$4.07 $4.08 $4.02 $4.11Ethane Swaps: Notional volume (Bbls) 309,747 400,675 220,109 —Weighted average price ($/Bbl)$11.25 $10.70 $9.96 $—Propane Swaps: Notional volume (Bbls) 436,790 522,684 199,160 —Weighted average price ($/Bbl)$28.64 $26.85 $25.93 $—Iso Butane Swaps: Notional volume (Bbls) 60,157 74,572 35,088 —Weighted average price ($/Bbl)$35.19 $31.77 $30.77 $—Normal Butane Swaps: Notional volume (Bbls) 153,300 184,140 74,903 —Weighted average price ($/Bbl)$35.71 $31.95 $30.36 $—Pentane Plus Swaps: Notional volume (Bbls) 126,531 160,242 78,806 —Weighted average price ($/Bbl)$54.79 $53.31 $52.81 $—
Non-GAAP Financial Measures
This press release contains Adjusted EBITDA which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows. Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results.
Adjusted EBITDA is derived from net loss attributable to Prairie Operating Co. and is adjusted for income tax benefit, depreciation, depletion, and amortization, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants, unrealized loss on derivatives, and litigation and severance settlement expense, all as applicable. We adjust net loss attributable to Prairie Operating Co. for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income calculated in accordance with GAAP or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
The following table presents the reconciliation of Net loss attributable to Prairie Operating Co. to Adjusted EBITDA for the periods indicated:
Three Months EndedMarch 31, 2026 2025 (In thousands) Net loss attributable to Prairie Operating Co.$(152,673) $(2,617)Adjustments: Depreciation, depletion, and amortization 15,844 2,123 Abandonment and impairment of unproved properties (1) 412 — Non-cash stock-based compensation 5,805 1,324 Interest expense, net 8,130 1,308 Unrealized loss on derivatives 162,883 898 Non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants (2) 31,851 2,164 Litigation and severance settlement expense 3,345 — Income tax benefit (3) (38,394) — Adjusted EBITDA$37,203 $5,200
(1) Reflects the abandonment of unproved locations which we have deemed non–core and allowed to expire.
(2) Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis.
(3) Reflects deferred income taxes recognized for the three months ended March 31, 2026.
The following table presents the reconciliation of expected full-year 2026 Net income attributable to Prairie Operating Co. to expected full-year 2026 Adjusted EBITDA:
(1) Reflects the abandonment of unproved locations which we have deemed non–core and allowed to expire.
(2) Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis.
(3) Reflects deferred income taxes.
Cautionary Statement about Forward-Looking Statements
The information included in this Current Report on Form 8-K 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. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Current Report on Form 8-K, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained herein are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks are not exhaustive. Other sections of this Current Report on Form 8-K could include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our Securities and Exchange Commission (the “SEC”), filings are available publicly on the SEC website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Accordingly, forward-looking statements in this Current Report on Form 8-K should not be relied upon as representing our views as of any subsequent date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
All forward-looking statements expressed or implied, included in this Current Report on Form 8-K are expressly qualified in their entirety by this cautionary statement.
Regulation FD Disclosure
The Company announces material information to the public through a variety of means, including filings with the SEC, press releases, public conference calls, and the investor relations section of its website at www.prairieopco.com.
In addition to these traditional channels, the Company also uses its official social media accounts as a means of disclosing information about Prairie and its business, and to comply with its disclosure obligations under Regulation FD. The Company’s official social media accounts currently include @PrairieOpCo on X (formerly Twitter) and linkedin.com/company/prairie-operating-co on LinkedIn. Information the Company posts through these social media channels may be deemed material. Accordingly, investors, the media, and others interested in the Company should monitor these accounts in addition to following the Company’s press releases, SEC filings, and public conference calls and webcasts. The Company may update the list of official social media accounts from time to time, and any such updates will be posted on the investor relations section of its website.
About Prairie Operating Co.
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquid 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 natural gas, and natural gas liquid 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.
Investor Relations Contact:
Wobbe Ploegsma
832-274-3449
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
March 31,
2026 December 31,
2025 Assets Current assets: Cash and cash equivalents$263 $20 Oil, natural gas, and NGL accrued revenue 27,095 22,728 Joint interest and other receivables 26,683 23,106 Derivative assets — 28,812 Inventory 2,653 3,604 Prepaid expenses and other current assets 1,655 1,452 Total current assets 58,349 79,722 Property and equipment: Oil and natural gas properties, successful efforts method of accounting including $115,613 and $57,897 excluded from depletable base as of March 31, 2026 and December 31, 2025, respectively 912,615 852,732 Other property and equipment 21,349 21,067 Less: Accumulated depreciation, depletion, and amortization (65,110) (49,343)Total property and equipment, net 868,854 824,456 Deferred tax asset 16,742 — Derivative assets — 24,627 Debt issuance costs, net 11,679 12,642 Operating lease assets 2,997 2,966 Other non–current assets 133 133 Total assets$958,754 $944,546 Liabilities, Mezzanine Equity, and Stockholders’ Equity Current liabilities: Accounts payable and accrued expenses$104,642 $62,792 Oil, natural gas, and NGL revenue payable 34,026 30,300 Ad valorem and production taxes payable 30,352 31,385 Derivative liabilities 68,988 — Operating lease liabilities 1,363 1,300 Total current liabilities 239,371 125,777 Long–term liabilities: Credit facility 361,500 366,000 Subordinated note – related party 1,458 1,458 Subordinated note warrants, at fair value – related party 725 316 Series F convertible preferred stock embedded derivatives, at fair value 15,806 15,853 Series F convertible preferred stock warrants, at fair value 114,433 90,134 Derivative liabilities 40,457 — Oil, natural gas, and NGL revenue payable 24,831 27,402 Ad valorem and production taxes payable 31,259 22,751 Deferred tax liability — 21,652 Asset retirement obligation 3,657 4,019 Operating lease liabilities 1,756 1,792 Other long-term liabilities 1,042 1,082 Total long–term liabilities 596,924 552,459 Total liabilities 836,295 678,236 Commitments and contingencies Mezzanine equity: Series F convertible preferred stock; $0.01 par value; 50,000,000 shares authorized, and 98,000 and 121,500 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 122,059 136,146 Stockholders’ equity: Series D convertible preferred stock; $0.01 par value; 50,000 shares authorized, and 5,982 shares issued and outstanding as of March 31, 2026 and December 31, 2025 — — Common stock; $0.01 par value; 500,000,000 shares authorized, and 85,331,304 and 62,499,375 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 854 625 Treasury stock, at cost; 659,096 and 111,357 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively (1,719) (531)Additional paid–in capital 241,653 217,785 Accumulated deficit (240,388) (87,715)Total stockholders’ equity 400 130,164 Total liabilities, mezzanine equity, and stockholders’ equity$958,754 $944,546
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Three Months Ended March 31, 2026 2025 Revenues: Crude oil sales$67,838 $10,788 Natural gas sales 8,956 1,223 NGL sales 6,623 1,579 Total revenues 83,417 13,590 Operating expenses: Lease operating expenses 14,841 2,012 Transportation and processing expenses 2,496 907 Ad valorem and production taxes 6,792 957 Depreciation, depletion, and amortization 15,844 2,123 Exploration expenses 298 287 Abandonment and impairment of unproved properties 412 — General and administrative expenses 16,886 5,551 Total operating expenses 57,569 11,837 Other (expenses) income: Interest expense (8,197) (1,378)Loss on derivatives, net (177,060) (898)Loss on adjustment to fair value – embedded derivatives, debt, and warrants (31,851) (2,164)Interest income and other 193 70 Total other expenses (216,915) (4,370) Loss from operations before income taxes (191,067) (2,617)Income tax benefit 38,394 — Net loss attributable to Prairie Operating Co. (152,673) (2,617)Series F preferred stock declared dividends (3,670) — Series F preferred stock undeclared dividends (966) (245)Remeasurement of Series F preferred stock (17,088) (90,612)Net loss attributable to Prairie Operating Co. common stockholders$(174,397) $(93,474) Loss per common share: Loss per share, basic and diluted$(2,16) $(3.49)Weighted average common shares outstanding, basic and diluted 80,585,148 26,796,704
Condensed Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss attributable to Prairie Operating Co.$(152,673) $(2,617)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion, and amortization 15,844 2,123 Abandonment and impairment of unproved properties 412 — Stock–based compensation 5,733 1,324 Unrealized loss on derivatives 162,883 898 Loss on adjustment to fair value – embedded derivatives, debt, and warrants 31,851 2,164 Deferred income taxes (38,394) — Amortization of deferred financing costs 963 270 Changes in operating assets and liabilities: Oil, natural gas, and NGL accrued revenue (4,368) (6,528)Joint interest and other receivables (3,576) 1,914 Inventory, prepaid expenses, and other current assets 1,062 (1,471)Accounts payable, accrued expenses, and other current liabilities 13,901 20,756 Revenue, ad valorem, and production taxes payable 8,630 (1,901)Net cash provided by operating activities 42,268 16,932 Cash flows from investing activities: Cash paid for Bayswater asset purchase, net of cash received — (474,581)Deposit on other oil and natural gas properties — (15,000)Development of oil and natural gas properties (34,074) (38,999)Other asset and leasehold purchases (2,263) — Cash received from payment on note receivable — 149 Net cash used in investing activities (36,337) (528,431) Cash flows from financing activities: Borrowings on the Credit Facility 56,000 349,000 Repayment on the Credit Facility (60,500) — Debt issuance costs associated with the Credit Facility — (12,511)Proceeds from the issuance of Common Stock — 43,817 Financing costs associated with issuance of Common Stock — (3,077)Proceeds from the issuance of Series F Preferred Stock — 148,250 Financing costs associated with the issuance of Series F Preferred Stock — (1,233)Payments of the Subordinated Note – related party — (3,214)Proceeds from option exercise — 583 Treasury stock repurchased (1,188) (336)Net cash (used in) provided by financing activities (5,688) 521,279 Net increase in cash and cash equivalents 243 9,780 Cash and cash equivalents, beginning of the period 20 5,192 Cash and cash equivalents, end of the period$263 $14,972
Supplemental Disclosures of Cash Flow Information
The following table presents non–cash investing and financing activities for the periods presented:
Three Months Ended March 31, 2026 2025 (In thousands)Non–cash investing activities: Increase in capital expenditure accruals and accounts payable$24,183 $25,939 Non–cash financing activities: Common Stock issued upon conversion of Series F Preferred Stock$36,186 $1,351Common Stock issued for Series F Preferred Stock dividends (1)$3,487 $—Common Stock issued to Bayswater as part of Bayswater Acquisition purchase price (2)$— $16,000Common Stock issuance costs included in accrued liabilities$— $3,078Series F Preferred Stock agreement amendment fees and issuance costs included in accrued liabilities and accounts payable$3,327 $6,778Common Stock issued upon conversion of Senior Convertible Note (3)$— $18,164Common Stock issued upon conversion of Series D Preferred Stock$— $8,475(1) The Company elected to issue shares of Common Stock for the Series F Preferred Stock dividends payable on March 1, 2026.
(2) The Company issued approximately 3.7 million shares of the Company’s common stock, par value $0.01 per share (“Common Stock”) to Bayswater (as defined herein) as part of the Bayswater Purchase Price (as defined herein).
(3) During the three months ended March 31, 2025, YA II PN, LTD., a Cayman Islands exempt limited company (“Yorkville”), converted the remaining $11.3 million of the initial $15.0 million convertible promissory note (the “Senior Convertible Note”) in exchange for 2.1 million shares of Common Stock.