PROP Prairie Operating Company

Prairie Operating Co. (Nasdaq: PROP) (the “Company” or “Prairie”) today announced its operational and financial guidance for 2025. These guidance metrics reflect Prairie’s strong performance and growth strategy as it continues to unlock value in the Denver Julesburg (“DJ”) basin.

2025 Guidance Highlights

Prairie expects:

• Average Daily Production: 7,000 – 8,000 barrels of oil equivalent per day (BOEPD), representing a ~300% increase year-over-year.

• Capital Expenditures (Capex): $120 million - $130 million, focused on high-return drilling opportunities in the DJ Basin.

• Net Income *: Expected to range between $69 million and $102 million.

• Adjusted EBITDA (1): Expected to range between $100 million and $140 million, driven by increased production and operational efficiencies.

• Well Count: Expect to drill and complete between 25-28 wells.

“Our 2025 guidance underscores the significant value proposition Prairie offers to investors," said Edward Kovalik, Chairman and Chief Executive Officer of Prairie. “With expected production growth of approximately 300% year-over-year and adjusted EBITDA projected between $100-$140 million, our current valuation reflects approximately 1x projected 2025 EBITDA. This valuation highlights a compelling opportunity for investors to participate in Prairie’s transformational growth as we execute our strategy and deliver shareholder value.”

Prairie plans to actively pursue additional strategic acquisition opportunities, the completion of which will result in an update to our guidance to reflect the enhanced scale and value of the Company.

*Based on an active hedging program and an average working interest (“WI”) of 75% or greater.

Reconciliation of Non-GAAP Measures

The following table reconciles Net Income to Adjusted EBITDA to the most directly comparable financial measure prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

Use of Non-GAAP Financial Measures

This press release contains Adjusted EBITDA, which is a financial measure not presented in accordance with U.S. GAAP. Adjusted EBITDA is used by management to evaluate the performance of our business, make operational decisions, and assess our ability to generate cashflows. Management believes Adjusted EBITDA provides investors with helpful information to better understand the underlying performance trends of our business, facilitate period-to-period comparisons, and assess the company’s operating results.

Adjusted EBITDA is derived from Net income and is adjusted for income tax expense, depreciation, depletion, and amortization (DD&A), accretion of asset retirement obligations, non-cash stock-based compensation, and loss on unrealized commodity derivatives. We adjust net income for the items listed above to arrive at Adjusted EBITDA because these amounts can vary substantially between periods and companies within our industry depending upon accounting methods, book values of assets, capital structures, and the method by which assets were acquired. Additionally, the presentation of Adjusted EBITDA does not imply that our operating results will not be affected by unusual or non-recurring items. 

Limitations of Non-GAAP Financial Measures

Adjusted EBITDA has limitations as an analytical tool, including that it excludes certain items that affect our reported financial results. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, GAAP Net income or as an indicator of our operating performance or liquidity. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

(1) Adjusted EBITDA is a financial measure not presented in accordance with GAAP. Please see section "Reconciliation of Non-GAAP Measures" and the reconciliation table in this press release.

About Prairie Operating Co.

Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil and natural gas resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil and natural gas resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation. More information about the Company can be found at www.prairieopco.com.

Forward-Looking Statement

The information included herein and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included herein, are forward-looking statements. When used herein, including any oral statements made in connection herewith, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on the Company’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date hereof. The Company cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of the Company. There may be additional risks not currently known by the Company or that the Company currently believes are immaterial that could cause actual results to differ from those contained in the forward-looking statements. Additional information concerning these and other factors that may impact the Company’s expectations can be found in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Annual Report on Form 10-K/A filed with the SEC on March 20, 2024, and any subsequently filed Quarterly Report and Current Report on Form 8-K. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov.

Investor Relations Contact:Wobbe Ploegsmainfo@prairieopco.com 832.274.3449

Attachment

• Adjusted EBITDA is a financial measure not presented in accordance with GAAP. Please see section "Reconciliation of Non-GAAP Measures" and the reconciliation table in this press release.