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Prairie Operating Co. Completes Transformative Acquisition from Bayswater
PROPPrairie Operating(PROP) GlobeNewswire·2025-03-26 22:45

Core Insights - Prairie Operating Co. has successfully closed a 602.75millionacquisitionofcertainassetsintheDenver−JulesburgBasin,significantlyenhancingitsoperationalfootprintandproductioncapabilities[1][4][5]−Theacquisitionaddsapproximately55,000netacresandincreasesaveragedailyproductionbyabout25,700netBOEPD,withasubstantialupliftexpectedin2025production,revenue,andadjustedEBITDA[1][4][12]−Thetransactionisexpectedtobeimmediatelyaccretivetoper−sharecashflowmetricswhilemaintainingastrongbalancesheetwithananticipatedleverageratioofaround1.0xatclosing[12]TransactionHighlights−Theacquiredassetscontribute77.9millionbarrelsofoilequivalent(MMBOE)inprovedreserves,withanestimatedPV−10valueof602.75 million acquisition of certain assets in the Denver-Julesburg Basin, significantly enhancing its operational footprint and production capabilities [1][4][5] - The acquisition adds approximately 55,000 net acres and increases average daily production by about 25,700 net BOEPD, with a substantial uplift expected in 2025 production, revenue, and adjusted EBITDA [1][4][12] - The transaction is expected to be immediately accretive to per-share cash flow metrics while maintaining a strong balance sheet with an anticipated leverage ratio of around 1.0x at closing [12] Transaction Highlights - The acquired assets contribute 77.9 million barrels of oil equivalent (MMBOE) in proved reserves, with an estimated PV-10 value of 1.1 billion [4] - The acquisition is positioned to create meaningful value for shareholders and reinforce Prairie's commitment to long-term shareholder value [4][12] - The transaction was funded through a combination of preferred stock issuance, common stock public offering, and a draw on an expanded credit facility [5][6] Company Overview - Prairie Operating Co. is an independent energy company based in Houston, focused on the development and acquisition of oil and natural gas resources in the U.S., particularly in the DJ Basin [7] - The company aims to maximize returns through consistent growth, capital discipline, and sustainable cash flow generation [7]