Prairie Operating Co. Announces Third Quarter 2026 Results
HOUSTON, Nov. 12, 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 quarter ended September 30, 2026.
THIRD QUARTER 2026 RESULTS SUMMARY
KEY HIGHLIGHTS FOR YEAR-TO-DATE 2026
Greg Patton, Chief Executive Officer, commented:
“Prairie’s third-quarter results demonstrate the strength of our assets and the excellent work our team continues to deliver across our development program. Average daily sales volumes increased 21% from the prior quarter to 2.4 MMBoe or 26,117 Boe per day, driving revenue growth of 31% from the prior quarter to $129.5 million. We achieved that growth while reducing lease operating expense per Boe by 17% from the prior quarter, reflecting our continued focus on improving well performance and operating efficiency.”
“Our Burnett development is a significant step forward in demonstrating the value of Prairie’s acreage. Its production results supported the conversion of 30 gross possible locations to proved undeveloped locations within Genesis OGDP I, expanding our proved inventory and reducing uncertainty around nearby development. By bringing 37 wells across five pads online by the quarter-end, we have a stronger production base and even greater confidence in the opportunities ahead.”
Michael Shelly, Executive Vice President and Chief Financial Officer, added:
“Prairie generated $65.3 million of Adjusted EBITDA in the third quarter, an increase of 92% from the prior quarter, as sales volumes increased and unit operating costs declined. With Burnett and Castor now producing, our focus is on realizing the cash returns from the capital invested this year and carefully managing the spending required to sustain that production.”
“We continue to evaluate opportunities to refinance the remaining Series F preferred stock as part of our broader effort to strengthen Prairie’s balance sheet, improve financial flexibility and better align our capital structure with the scale of our operations. Our objective is to support Prairie’s operating momentum through disciplined financial management and capital allocation that creates sustainable, long-term shareholder value.”
Operations Update
During the third quarter of 2026, Prairie recorded sales volumes of 2,403 MBoe, an increase of 21% from the prior quarter, which equates to average daily sales volumes of 26,117 Boe/d. Oil represented approximately 56% of sales volumes, and liquids represented approximately 77%.
Operated and non-operated production reached a third-quarter peak of approximately 30,229 Boe/d at the end of September. As a result of the wells being turned in line during the third quarter, production continued to increase following quarter-end, with production reaching approximately 32,287 Boe/d by early October.
Year to date, Prairie has drilled 27 wells across four pads, with 19 wells drilled in a single run. Year-to-date wells averaged approximately 18,700 feet in measured depth, an average rate of penetration of 380 feet per hour and an average spud-to-rig-release time of 6.2 days.
The four-well Burnett pad came online at the end of August, delivering successful initial production results that validate the quality and future development potential of Prairie’s acreage. Maximum initial production averaged approximately 722 Boe/d per well, with 81% oil on a two-stream basis, and cumulative gross production reached 131,490 Boe through October 20, 2026.
Completion activities on the six-well Castor pad were finalized in September, with the wells coming online at the end of September. The late-quarter start limited Castor’s contribution to third-quarter average production.
The strong drilling, completion and early production performance supported the conversion of 30 gross possible locations to proved undeveloped locations within the 5,700-acre Genesis OGDP I. These results reinforce the commercial viability of nearby undeveloped locations, de-risk Prairie’s near-term development inventory and provide greater confidence in future development across the project area. The Company remains focused on well performance, operating efficiency and disciplined capital allocation.
SUMMARY FINANCIAL HIGHLIGHTS
NM: Percent not meaningful.
Revenues, Sales Volumes, and Operational Metrics
Revenue for the third quarter of 2026 was $129.5 million, including $114.0 million related to oil, an increase in total revenue of 31% from the prior quarter. Sales volumes totaled 2,403 MBoe, or 26,117 Boe/d, and were comprised of approximately 56% oil and 77% liquids.
For the third quarter of 2026, lease operating expenses were $13.7 million, or $5.71 per Boe, a decline of 17% from the prior quarter on a per-Boe basis. Transportation and processing expenses were $2.4 million, or $1.00 per Boe; ad valorem and production taxes were $11.9 million, or $4.96 per Boe; and general and administrative expenses were $11.0 million, or $4.56 per Boe.
NM: Percent not meaningful.
Liquidity and Capital Resources
As of September 30, 2026, we had cash and cash equivalents of $7.8 million and availability of $3.0 million under the reserve-based credit agreement with Citibank, N.A. (the “Credit Facility”). As of September 30, 2026, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
Commodity Hedges
As of September 30, 2026, we had the following outstanding crude oil, natural gas, and NGL derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mont Belvieu OPIS, respectively:
Cautionary Statement about Forward-Looking Statements
The information included in this press release 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 press release, 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 press release 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 press release 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 press release 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
info@prairieopco.com
720-716-5415
Supplemental Disclosures of Cash Flow Information
The following table presents non–cash investing and financing activities for the periods presented:
Prairie Operating Co. and Subsidiaries
Non-GAAP Financial Measures
Reconciliation of Net (Loss) Income to Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that 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) income attributable to Prairie Operating Co. and represents earnings before depreciation, depletion, and amortization, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, unrealized loss (gain) on derivatives, non-cash (gain) loss on adjustment to fair value – financial instrument liabilities, litigation and severance settlement expense, and income tax benefit, all as applicable. We present Adjusted EBITDA because the adjustments listed above 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, because 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 a reconciliation of the GAAP financial measure of net (loss) income attributable to Prairie Operating Co. to the non-GAAP financial measure of Adjusted EBITDA for the periods indicated: