Prairie Operating Co. Makes a Massive Move in the DJ Basin!

Ladies and gentlemen, buckle up! Prairie Operating Co. just pulled off a transformative acquisition that's going to shake up the DJ Basin and send shockwaves through the energy sector. This isn't just a deal; it's a game-changer! Let's dive in and see why this is a no-brainer for investors looking to capitalize on the oil and gas boom.

Prairie Operating Co. just closed a $602.75 million acquisition of Bayswater's DJ Basin assets. This isn't just about adding more land; it's about expanding their operational footprint to a staggering 55,000 net acres and extending their inventory life to a whopping 10 years. That's right, folks—10 years of drilling inventory! This acquisition adds approximately 24,000 net acres and 600 highly economic drilling locations, extending inventory life to roughly 10 years. This expansion is expected to increase average daily production by ~25,700 net BOEPD (69% liquids), which is a transformational increase in oil-weighted production. The acquisition is also expected to be immediately accretive to per-share cash flow metrics, maintaining a strong balance sheet with an expected leverage ratio of ~1.0x at closing. Prairie will leverage advantageous takeaway contracts and existing infrastructure to drive operational efficiencies and reduce development costs.

But wait, there's more! This acquisition is immediately accretive to per-share cash flow metrics, and Prairie is maintaining a strong balance sheet with an expected leverage ratio of ~1.0x at closing. This means they're not just growing; they're doing it responsibly. Prairie will leverage advantageous takeaway contracts and existing infrastructure to drive operational efficiencies and reduce development costs. This is a win-win for shareholders and the company alike.



Now, let's talk about the financials. Prairie is funding this acquisition through a mix of equity and debt, including a new issuance of Series F convertible preferred stock, a common stock public offering, and a draw on their expanded credit facility. This is smart financing—it shows they're not overleveraging and are maintaining financial discipline. The acquisition is expected to significantly increase 2025 production, revenue, and adjusted EBITDA, reinforcing Prairie's commitment to delivering long-term shareholder value.

But here's the kicker: Prairie is acquiring 77.9 million barrels of oil equivalent in proved reserves with an estimated PV-10 value of $1.1 billion for $602.75 million. That's a 45% discount to the reserves' estimated value! This pricing equates to approximately $23,450 per flowing BOE—a reasonable valuation in the current market environment. This is a steal, folks! Prairie is getting high-quality assets at a bargain price, and that's music to investors' ears.

So, what does this mean for you? If you're looking for a high-growth, low-cost oil producer, Prairie Operating Co. is your play. This acquisition is a pivotal moment for Prairie, significantly expanding their operational footprint in the DJ Basin. By integrating these high-quality assets, they are materially enhancing their production profile, strengthening their financial position, and creating meaningful value for their shareholders. Prairie remains singularly focused on executing their strategic vision to become a premier high-growth, low-cost oil producer.

But don't just take my word for it. Edward Kovalik, Chairman and CEO of Prairie, said it best: "This acquisition is a pivotal moment for Prairie, significantly expanding our operational footprint in the DJ Basin. By integrating these high-quality assets, we are materially enhancing our production profile, strengthening our financial position, and creating meaningful value for our shareholders." Gary Hanna, President of Prairie, added, "the addition of the Bayswater Assets further establishes Prairie as a leading operator in the DJ Basin. These assets are a strong complement to our existing portfolio, and we remain focused on maximizing operational efficiencies, optimizing production, and delivering sustainable growth for shareholders."

So, what are you waiting for? This is a no-brainer! Prairie Operating Co. is on fire, and this acquisition is just the beginning. Get in now and ride the wave of growth and profitability. This is your chance to be part of a transformative moment in the energy sector. Don't miss out!