Prairie Operating Co. Q4 FY2025 earnings call

2025 was transformative. Successfully integrated acquired assets, expanded inventory, delivered strong operational execution, production growth, and strengthened balance sheet. Completed six bolt-on acquisitions adding approx 44,000 net acres. Brought multiple pads online, achieved 0.0 safety record. Focused on optimization initiatives like workovers and artificial lift enhancements. Secured key agreements for services and infrastructure in 2026. Management and board aligned on disciplined capital allocation, capital structure optimization, and delivering long-term value.

For the full year, Prairie generated total production of approximately 6.75 million BOE, or 18,500 BOE on average, and exited the year at a production rate of approximately 28,000 net BOE per day. Total revenue was approximately $242 million, or $315 million inclusive of Bayswater assets. Adjusted EBITDA totaled approximately $156 million, with including Bayswater assets for the first quarter, full year adjusted EBITDA would have been approximately $220 million. Net cash provided by operating activities was $153.9 million, and capital expenditures totaled approximately $183.4 million. As of December 31, 2025, Prairie had approximately $109 million of liquidity, with a borrowing base and elected commitment of $475 million under its credit facility. Prairie ended the year with 121.1 million BOE of approved reserves, including a balanced mix of approved developed and undeveloped reserves, with a PB10 value of approximately $1.2 billion.

For 2026, expect average production of approximately 25,500 to 27,500 BOE per day, capital expenditures of $200 to $220 million, and adjusted EBITDA expected to range between $240 and $260 million, assuming a weighted average WTI price of $60 to $64, including hedges. Prioritize high return organic growth, maintain balance sheet strength, and preserve flexibility for accretive opportunities.

Q: Leo Mariani of Roth asked about production cadence, well performance, share count, and preferred refinancing.

A: Greg Patton discussed Q1 production being around 23-ish due to pad shut-ins, well performance factors, share count increase related to prep conversion, and ongoing communication with prep holder.

Q: Chris Begner of Water Tower Research asked about cash flow priorities and midstream constraints.

A: Cash flow to build robust balance sheet, target debt reduction and accretive acquisitions. Midstream systems not anticipated to be a constraint with good partner relationships.

Q: John Davenport of Johnson Rice asked about 2026 production and CapEx guidance flexibility.

A: Focus on bolstering balance sheet, one rig one frack crew plan, potential to increase activity in Q4 depending on rig speed.

Q: Tim Moore of Clear Street asked about rig leasing and frack room optimization.

A: Utilize rig opportunistically, work on aligning frack room with technology improvements.

Q: Chris Begner of Water Tower Research asked about management transition and strategy changes.

A: No changes in operations plans as board and management aligned and team operating at high level