Prairie Operating Co.

Second-quarter revenue was $98.9 million, up approximately 45% year over year. Oil revenue was $93.5 million; average realized prices excluding derivatives were $94.21 per barrel for oil, $21.64 per barrel for NGLs, and negative $1.30 per Mcf for natural gas, with weaker CIG pricing cited as the main drag on gas realizations. GAAP net income attributable to Prairie was $109 million; net income attributable to common stockholders was $193.8 million, or $1.75 per basic share and $0.23 per diluted share. Adjusted EBITDA was $34 million, operating cash flow was about $52 million, and cash capex was about $98.5 million. For the first six months, revenue was $182.3 million, adjusted EBITDA was $71.1 million, operating cash flow was $94.3 million, capex was $132.6 million, and production averaged about 22,500 BOE/day. Full-year 2026 guidance was raised to average daily production of 23,000 to 25,000 BOE/day, capex of $185 million to $195 million, and adjusted EBITDA of $180 million to $190 million.

Greg Patton framed Q2 as a transformative quarter marked by operational progress and corporate restructuring. He emphasized management and board changes, the partial refinancing of the Series F Preferred, and the goal of strengthening liquidity and financial flexibility while maintaining disciplined development. His tone was constructive and upbeat about execution, saying the year-to-date progress supports the company’s foundation for the rest of 2026 and into 2027.

Michael Shelly highlighted stronger financial results and improving capital structure. He noted that the preferred refinancing reduced the outstanding preferred balance and lowered potential warrant dilution, and he said Prairie still has opportunities to address the remaining balance and strengthen the balance sheet. He also pointed to $39 million of revolver availability at June 30, a hedge book extending through Q2 2029, and second-half 2026 oil swaps on about 2.7 million barrels at $63.09 per barrel and gas swaps on about 7.6 million MMBtu at $4.08 per MMBtu.

Analysts focused on August production strength, the outlook into 4Q, and whether Burnett and Castor were included in the current rate run-rate. Management said Burnett had not yet cut hydrocarbons at the time of the call, Castor was still in completion stages, and they expected production to fluctuate around 26,000-28,000 BOE/day through the third quarter and into early fourth quarter before a small year-end decline. Questions also centered on the credit facility’s production threshold and the repeated extensions on the Series F Preferred; management said the bank covenant is meant to avoid both overgrowth and a blowdown case, and that they are actively pursuing multiple solutions to keep reducing the preferred and warrant burden.