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Prairie Operating Co. Announces Acquisition of DJ Basin Assets from Bayswater Exploration and Production for Approximately $600 Million
PROPPrairie Operating(PROP) GlobeNewswire·2025-02-07 11:00

Core Viewpoint - Prairie Operating Co. has announced a definitive purchase and sale agreement to acquire assets from Bayswater Exploration and Production, significantly expanding its operational scale and footprint in the Denver-Julesburg Basin [1][2][3] Acquisition Details - The purchase price for the Bayswater Acquisition is 602.75million,consistingofcashandapproximately5.2millionsharesofPrairiecommonstock[2]−Thecashportionwillbefundedthroughacombinationofcashonhand,borrowingsunderanexpandedcreditfacility,andproceedsfromcapitalmarketstransactions[2]−TheacquisitionisexpectedtocloseinFebruary2025,withaneconomiceffectivedateofDecember1,2024[2]StrategicandFinancialAdvantages−Theacquisitionisexpectedtobeimmediatelyaccretiveandwillenhanceoperationalefficiencies,acceleratedevelopmentplans,anddrivelong−termvaluecreationforshareholders[3]−ThetransactionisviewedasatransformativemilestoneforPrairie,significantlyincreasingitsfootprintandproductionofoil−richassetsintheDJBasin[3]2025UpdatedGuidance−Uponclosing,thecombinedcompany′s2025proformaoutlookincludesaddingapproximately24,000netacresand26mboepdofoil−weightednetproduction[5]−Theacquisitionadds77.9MMboeandapproximately602.75 million, consisting of cash and approximately 5.2 million shares of Prairie common stock [2] - The cash portion will be funded through a combination of cash on hand, borrowings under an expanded credit facility, and proceeds from capital markets transactions [2] - The acquisition is expected to close in February 2025, with an economic effective date of December 1, 2024 [2] Strategic and Financial Advantages - The acquisition is expected to be immediately accretive and will enhance operational efficiencies, accelerate development plans, and drive long-term value creation for shareholders [3] - The transaction is viewed as a transformative milestone for Prairie, significantly increasing its footprint and production of oil-rich assets in the DJ Basin [3] 2025 Updated Guidance - Upon closing, the combined company's 2025 pro forma outlook includes adding approximately 24,000 net acres and 26 mboepd of oil-weighted net production [5] - The acquisition adds 77.9 MMboe and approximately 1.1 billion in Proved PV-10 value [5] - The transaction is expected to significantly increase production, revenue, and adjusted EBITDA guidance for 2025 [5] Production and Financial Metrics - The acquisition will lead to a transformational increase in oil-weighted production to approximately 27,500 net BOEPD, with 69% liquids [6] - The total net acreage will expand to approximately 54,000, including around 600 highly economic drilling locations, providing about 10 years of drilling inventory [6] - Expected adjusted EBITDA is projected to range between 350millionand350 million and 370 million [7] Reserve Data - Pro forma net reserves as of November 30, 2024, include 23,581 MBbl of oil, 14,810 MBbl of NGL, and 113,611 MMcf of gas, totaling 104,093 MBoe [9] - The total proved reserves have a PV-10 value of approximately $1.36 billion [9]