Commodity price volatility
Revenue and capital spending depend on realized oil, gas, and NGL prices.
- Scope
- Crude oil, natural gas, and NGL sales
- Materiality
- high
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.
47,4 %
13,3 %
+2 943,8 %
0.63
0.61
| % | |
|---|---|
| Crude oil sales | 79% Sales of produced crude oil from operated and acquired wells in the DJ Basin. |
| Natural gas sales | 9% Sales of produced natural gas from company-operated acreage and wells. |
| NGL sales | 12% Sales of natural gas liquids recovered from produced hydrocarbons. |
| Acquisition and development activities | 0% Oil and gas property acquisitions, drilling, completion, and development work. |
Prairie Operating sells primarily into the upstream energy value chain, where its production is marketed as crude oil,...
- Commodity buyers and marketersprimary
Buy produced crude oil, natural gas, and NGLs for resale, refining, or processing.
- Midstream service counterpartiesprimary
Provide gathering, transportation, and processing services that move production to market.
- Credit facility lendersprimary
Provide borrowing capacity secured by reserves and production cash flow.
- Equity capital marketssecondary
Provide funding for acquisitions, drilling, and general corporate purposes.
- Working-interest partnerssecondary
Co-invest in selected wells or acreage development where Prairie is operator.
Prairie Operating’s business is concentrated in rural Weld County, Colorado, within the DJ Basin...
- •Operations are concentrated in Weld County, Colorado
- •DJ Basin acreage is the core operating footprint
- •Local geology drives drilling economics and reserve quality
- •Colorado permitting and infrastructure affect development timing
- •Single-basin concentration increases regional operating exposure
Prairie Operating’s strategy centers on operating its acreage, developing its reserve base, and using acquisitions to...
01
Develop and operate DJ Basin acreagemedium-term
Core value creation comes from converting acreage and reserves into production.
02
Expand through acquisitionsmedium-term
Acquisitions can add producing wells, reserves, and scale in a familiar basin.
03
Preserve liquidity and funding accessshort-term
Capital is needed for drilling, acquisitions, and working capital in a cyclical industry.
04
Manage commodity price exposureshort-term
Oil and gas prices directly affect realized revenue and development economics.
Prairie Operating is exposed to commodity price volatility, reserve and drilling execution risk, and dependence on...
Liquidity and financing dependence
The business requires ongoing funding for drilling, acquisitions, and operations.
- Scope
- Credit facility, ATM offering, equity markets
- Materiality
- high
Reserve and drilling execution risk
Production growth depends on well performance, reserve quality, and completion results.
- Scope
- DJ Basin development program
- Materiality
- high
Regional concentration
Most assets are in Weld County, so local permitting, infrastructure, and geology matter.
- Scope
- Colorado / DJ Basin
- Materiality
- medium
Derivative and fair value volatility
Hedging instruments and embedded derivatives can create earnings volatility through remeasurement.
- Scope
- Commodity swaps, subordinated note warrants, Series F preferred stock
- Materiality
- medium
Proved reserve estimates and depletion
Changes in reserve estimates can materially alter expense recognition
Commodity derivative fair value
Can create non-cash gains or losses in reported earnings
Fair value of Series F preferred stock and warrants
Can affect liabilities/equity classification and periodic fair value changes
Asset retirement obligations
Affects liabilities and accretion expense over time
Deferred tax asset realizability
Can change tax expense and balance sheet valuation allowances
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: 29/04/2026