Prairie Operating Co.
Prairie Operating Co. is a U.S.-based independent oil and gas company focused on acquiring and developing crude oil, natural gas, and natural gas liquids. Its assets are concentrated in Weld County, Colorado, within the DJ Basin, where it operates producing wells and development acreage.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueSales of produced crude oil from operated and acquired wells in the DJ Basin.
Sales of produced natural gas from company-operated acreage and wells.
Sales of natural gas liquids recovered from produced hydrocarbons.
Oil and gas property acquisitions, drilling, completion, and development work.
Products
Reported · share of revenue- Crude Oil Sales84.4 %
- NGL Sales11.6 %
- Natural Gas Sales3.9 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Prairie Operating sells primarily into the upstream energy value chain, where its production is marketed as crude oil, natural gas, and NGLs. Its direct counterparties are typically commodity purchasers and marketers, while its capital providers and lenders are also important stakeholders because the business is asset-intensive and financing-dependent.
Buy produced crude oil, natural gas, and NGLs for resale, refining, or processing.
Provide gathering, transportation, and processing services that move production to market.
Provide borrowing capacity secured by reserves and production cash flow.
Provide funding for acquisitions, drilling, and general corporate purposes.
Co-invest in selected wells or acreage development where Prairie is operator.
Strategy
Prairie Operating’s strategy centers on operating its acreage, developing its reserve base, and using acquisitions to expand production in the DJ Basin. The company also relies on hedging, reserve-based borrowing, and access to equity capital to support drilling and acquisition activity.
Core value creation comes from converting acreage and reserves into production.
Acquisitions can add producing wells, reserves, and scale in a familiar basin.
Capital is needed for drilling, acquisitions, and working capital in a cyclical industry.
Oil and gas prices directly affect realized revenue and development economics.
Geography
Prairie Operating’s business is concentrated in rural Weld County, Colorado, within the DJ Basin. The company’s production, reserves, and development activity are tied to this single operating region, making local geology, infrastructure, permitting, and commodity economics especially important.
Risks
Prairie Operating is exposed to commodity price volatility, reserve and drilling execution risk, and dependence on external financing. Its concentration in a single basin also creates regional operating and regulatory exposure, while its capital structure and derivative positions add financial and valuation risk.
The business requires ongoing funding for drilling, acquisitions, and operations.
Revenue and capital spending depend on realized oil, gas, and NGL prices.
Production growth depends on well performance, reserve quality, and completion results.
Exposure: DJ Basin development program
Most assets are in Weld County, so local permitting, infrastructure, and geology matter.
Exposure: Colorado / DJ Basin
Hedging instruments and embedded derivatives can create earnings volatility through remeasurement.
Accounting
Judgemental itemsReserve volumes and future cash flows drive DD&A and impairment testing.
Impact: Changes in reserve estimates can materially alter expense recognition.
Hedging contracts are remeasured each period based on market prices.
Impact: Can create non-cash gains or losses in reported earnings.
Embedded features and preferred equity require valuation assumptions.
Impact: Can affect liabilities/equity classification and periodic fair value changes.
Future plugging and abandonment costs are estimated for producing wells.
Impact: Affects liabilities and accretion expense over time.
Losses and future taxable income assumptions determine recoverability.
Impact: Can change tax expense and balance sheet valuation allowances.
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Last updated: 24/09/2026