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
(In thousands, except per Boe amounts)
Three Months Ended March 31, 2026
Lease operating expenses
$
14,841
Lease operating expenses per Boe
$
7.11
Transportation and processing
$
2,496
Transportation and processing per Boe
$
1.20
Ad valorem and production taxes (1)
$
6,792
Ad valorem and production taxes per Boe
$
3.26
General and administrative expenses (1)
$
16,886
General and administrative expenses per Boe
$
8.09
(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, $260.0 million.
(1) Adjusted EBITDA is a Non-GAAP measure, refer to "Non-GAAP Financial Measures" for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
Commodity Hedges
As of March 31, 2026, the Company had the following outstanding crude oil and natural gas derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mount Belvieu OPIS, respectively:
SettlingApril 1,2026throughDecember 31,2026
SettlingJanuary 1,2027throughDecember 31,2027
SettlingJanuary 1,2028throughDecember 31,2028
SettlingJanuary 1,2029throughDecember 31,2029
Crude Oil Swaps:
Notional volume (Bbls)
3,775,808
4,662,503
2,862,307
210,000
Weighted average price ($/Bbl)
$
62.86
$
62.51
$
62.17
$
61.57
Natural Gas Swaps:
Notional volume (MMBtus)
10,957,305
14,082,126
5,606,357
400,000
Weighted average price ($/MMBtu)
$
4.07
$
4.08
$
4.02
$
4.11
Ethane 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, ...
