Prairie Operating (PROP) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformative year with full integration of acquired Bayswater assets, production growth to 28,000 BOE/d exit rate, and average 18,500 BOE/d, or 24,000 BOE/d pro forma for acquisitions.

• Completed $602.75 million Bayswater acquisition and six bolt-on deals, adding 44,000 net acres and expanding DJ Basin inventory.

• Yearly production surged 3,900% year-over-year, with operational execution including multiple new pads online and a perfect safety record.

• Net loss attributable to common stockholders was $60.9 million, or $1.35 per share, mainly due to non-cash Series F Preferred expenses.

Financial highlights

• Reported revenue was $242 million and Adjusted EBITDA $156 million, or $315 million revenue and $220 million Adjusted EBITDA pro forma for Bayswater.

• Oil revenue was $204 million, with total production of 6,748 MBoe (50% oil, 73% liquids).

• Lease operating expense was $6.14/BOE, G&A $7.50/BOE (cash G&A $5.29/BOE), reflecting cost control.

• Net cash from operating activities was $153.9 million; capital expenditures totaled $183.4 million, 35% below guidance midpoint.

Outlook and guidance

• 2026 guidance: average production of 25,500–27,500 BOE/d, capital expenditures of $200–$220 million, and Adjusted EBITDA of $240–$260 million at $60–$64 WTI, including hedges.

• Q1 2026 production expected to average ~23,000 BOE/d due to temporary pad shut-ins, with gradual ramp-up through the year.

• Expanded hedging program secures favorable commodity pricing through 2029.

• Strategy remains focused on disciplined capital allocation, organic growth, and maintaining balance sheet strength.