Prairie Operating (PROP) Q2 2026 earnings summary

Executive summary

• Achieved significant revenue growth, with Q2 2026 revenue up 45% year-over-year to $98.9M and six-month revenue up 125% to $182.3M, driven by higher realized prices and increased production from new wells and acquisitions.

• Net income attributable to common stockholders was $193.8M for Q2 2026 and $19.4M for the first half, reflecting strong operational performance and significant non-cash gains from financial instruments.

• Major operational milestones included bringing 21 new wells online across multiple pads, with continued drilling and completion activities supporting future growth.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $34.0M, and $71.1M for the first half, reflecting robust cash generation despite increased operating expenses.

• Operating expenses rose due to higher production, with lease operating expenses at $13.6M for Q2 and $28.5M for the first half, and general and administrative expenses at $12.0M and $28.8M, respectively.

• Interest expense remained stable at $10.0M for Q2, while derivative gains and fair value adjustments contributed $45.1M and $48.2M, respectively, to Q2 results.

• Cash flow from operations was $94.3M for the first half, with $143.9M used in investing activities and $49.6M provided by financing activities.

Outlook and guidance

• 2026 capital expenditure guidance is $185M–$195M, with a one-rig, one-frac crew cadence and 27 wells drilled year-to-date.

• Management expects continued production growth from new wells and incremental revenues to support liquidity and compliance with credit covenants.