Prairie Operating Co. Shares Surge 53% Following 2025 Guidance Announcement

Generated by AI AgentWesley Park
Thursday, Jan 16, 2025 11:15 am ET1min read
PROP--


Prairie Operating Co. (PROP) shares soared 53% midday Wednesday after the company forecasted that its rate of production would triple in 2025. The Houston-based oil and natural gas company expects net income in 2025 between $69 million and $102 million, with average daily production for the year landing between 7,000 and 8,000 barrels of oil equivalent per day (BOEPD). This represents a 300% increase year-over-year.

The company also expects capital expenditures during 2025 to be between $120 million and $130 million, with an eye toward drilling opportunities around the DJ Basin in Colorado. Prairie plans to drill and complete between 25-28 wells throughout 2025, further boosting its production and cash flow generation.



Prairie's strong performance and growth strategy are reflected in its 2025 guidance, which underscores the significant value proposition the company offers to investors. With expected production growth of approximately 300% year-over-year and adjusted EBITDA projected between $100-$140 million, Prairie's current valuation reflects approximately 1x projected 2025 EBITDA. This valuation highlights a compelling opportunity for investors to participate in Prairie's transformational growth as the company executes its strategy and delivers shareholder value.

In addition to its robust production and financial guidance, Prairie plans to actively pursue additional strategic acquisition opportunities. The completion of these acquisitions will result in an update to the company's guidance, reflecting the enhanced scale and value of the Company. This proactive approach to growth further solidifies Prairie's position as a strong performer in the oil and gas industry.

Prairie's impressive stock price increase following its 2025 guidance announcement is a testament to the company's strong performance and growth prospects. As the company continues to unlock value in the Denver Julesburg ("DJ") basin and execute its strategic growth initiatives, investors can expect Prairie to remain a compelling investment opportunity in the oil and gas sector.

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