Prairie Operating Co. Delivers Significant Revenue and Production Growth in Q1 2026

HOUSTON, Texas — Prairie Operating Co., a growing independent oil and natural gas company focused on the Denver-Julesburg (DJ) Basin, announced its financial and operational results for the first quarter of 2026. The company reported major improvements in revenue, production output, and adjusted EBITDA while reaffirming its guidance for the remainder of 2026.

The company stated that total revenue for the quarter reached $83.4 million, representing an increase of more than 500% compared to the previous quarter. Prairie also generated $37.2 million in adjusted EBITDA, which marked an increase of over 600% quarter-over-quarter. These results reflect stronger operational execution, improved well performance, and continued expansion across its core DJ Basin assets.

Production Growth Continues to Accelerate

Prairie Operating reported total production of approximately 2.1 million barrels of oil equivalent (MMBoe) during the first quarter of 2026. Average daily production reached around 23,200 barrels of oil equivalent per day (Boe/d).

According to the company, liquids represented approximately 72% of total production, while crude oil accounted for nearly 48%. The strong liquids mix helped Prairie benefit from favorable commodity pricing and improve overall revenue generation.

Management highlighted that recently drilled wells performed better than expected and were completed below authorized expenditure forecasts, demonstrating strong operational discipline and efficient capital deployment.

Revenue Supported by Commodity Prices and Operational Efficiency

Prairie attributed its strong quarterly revenue performance to higher production volumes and stable commodity prices. During the quarter, the company realized average prices excluding hedges of:

• $67.91 per barrel for oil
• $13.33 per barrel for natural gas liquids (NGLs)
• $2.53 per Mcf for natural gas

The company’s disciplined operating strategy and efficient drilling program helped support stronger margins despite ongoing market volatility in the energy sector.

Adjusted EBITDA Shows Significant Improvement

Adjusted EBITDA increased dramatically to $37.2 million compared to only $5.2 million during the same period last year. Company executives noted that the improvement was driven by:

• Higher production volumes
• Improved operational execution
• Strong commodity price realizations
• Lower-than-expected well development costs
• Strategic hedging activities

Prairie believes this financial momentum positions the company well for the remainder of 2026 as it continues expanding its footprint within the DJ Basin.

Company Reaffirms Full-Year 2026 Guidance

Prairie Operating Co. reaffirmed its previously announced guidance for full-year 2026 production and operational targets. Management expressed confidence that current drilling performance and asset development trends remain aligned with expectations.

The company continues to focus on:

• Maintaining capital discipline
• Increasing production efficiency
• Optimizing cash flow generation
• Strengthening its balance sheet
• Enhancing shareholder value

Executives also emphasized that Prairie remains committed to delivering sustainable long-term growth while carefully managing market risks and commodity price exposure.

Expanded Hedging Program Extends Through 2029

One of the key highlights from the quarter was Prairie’s decision to expand its commodity hedging program. The company announced that it has secured additional commodity price protection through the second quarter of 2029.

Management explained that the expanded hedge portfolio is intended to:

• Reduce exposure to commodity price volatility
• Protect future cash flow stability
• Support predictable operational planning
• Improve financial flexibility

The strategy reflects Prairie’s cautious approach to risk management during a period of fluctuating energy prices and uncertain global economic conditions.

Series F Preferred Stock Refinancing Reduces Potential Dilution

Prairie also announced progress related to its capital structure. In April 2026, the company completed a partial refinancing of its Series F Preferred Stock.

According to management, the refinancing reduced the outstanding preferred stock balance and significantly lowered potential warrant-related dilution for existing shareholders. Prairie also reached an agreement to extend the grant date for anniversary warrants associated with the Series F financing arrangement.

Company leadership described the refinancing initiative as an important step toward improving long-term financial flexibility and enhancing shareholder value.

Net Loss Reported Despite Operational Improvements

Although Prairie delivered strong operational and revenue growth, the company reported a net loss attributable to common shareholders of approximately $174.4 million, or $2.16 basic loss per share.

Management explained that several non-cash expenses and financing-related accounting adjustments impacted reported earnings during the quarter. However, executives stressed that adjusted EBITDA and operational cash flow remain stronger indicators of Prairie’s underlying business performance.

Capital expenditures during the quarter totaled approximately $34.1 million, primarily related to drilling, completions, and infrastructure development within the DJ Basin.

Leadership Comments on Q1 2026 Results

Prairie executives described the first quarter as a strong start to 2026 and emphasized confidence in the company’s future growth outlook.

Management stated that Prairie achieved meaningful production growth while continuing to execute efficiently across its operational areas. Company leaders also highlighted the importance of strengthening the balance sheet and reducing future shareholder dilution through the recent refinancing activities.

Executives further noted that Prairie’s asset base, drilling inventory, and operational momentum position the company to continue generating growth and shareholder returns throughout the year.

Focus on the Denver-Julesburg Basin Remains Central Strategy

Prairie Operating Co. remains heavily focused on the development and acquisition of oil and natural gas assets within the Denver-Julesburg Basin, one of the most active energy-producing regions in the United States.

The DJ Basin continues to attract investment due to:

• High-quality hydrocarbon resources
• Strong infrastructure access
• Competitive operating costs
• Efficient drilling economics
• Large undeveloped resource potential

Prairie believes its growing acreage position and technical expertise within the basin provide a strong platform for future expansion.

Analysts Continue Monitoring Prairie’s Growth Potential

Industry analysts remain focused on Prairie’s ability to achieve profitability while maintaining production growth. Several market observers have noted that the company’s operational improvements and increased production levels could help support stronger financial performance over the coming quarters.

Some analysts have also projected that Prairie may move closer to profitability during 2026 if commodity prices remain supportive and operational execution continues improving.

Investor Conference Call and Market Reaction

Prairie Operating scheduled an investor conference call and webcast following the earnings release to discuss first-quarter performance and provide additional operational updates.

During the call, management is expected to address:

• Production growth expectations
• Capital spending plans
• Commodity hedge positions
• Operational efficiencies
• Balance sheet management initiatives
• Long-term development strategy

Investors and analysts are likely to closely monitor Prairie’s ability to maintain production growth while improving profitability and reducing leverage exposure.

Outlook for the Remainder of 2026

Looking ahead, Prairie Operating Co. remains optimistic about the remainder of 2026. The company believes its combination of operational efficiency, production growth, disciplined capital allocation, and expanded hedging protection will support continued progress.

Management expects recently drilled wells and ongoing development projects to contribute additional production growth throughout the year. Prairie also plans to continue evaluating strategic acquisition opportunities within the DJ Basin to further strengthen its asset portfolio.

Despite broader uncertainty in global energy markets, Prairie executives expressed confidence that the company’s operational strategy and financial initiatives position it for long-term success.

The company reaffirmed its commitment to disciplined growth, shareholder value creation, and operational excellence as it continues expanding its presence in the U.S. energy sector.

Source: GlobeNewswire Official Release

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