PROP · Prairie Operating Co.

Prairie Operating Co. reported strong first-quarter 2026 results, with total revenue of $83.4 million, a more than 500% increase quarter-over-quarter, driven by production of 2.1 MMBoe (23,200 Boe/d) with 72% liquids. Adjusted EBITDA surged to $37.2 million from $5.2 million in the prior-year quarter, reflecting operational leverage and cost control. However, the company reported a net loss attributable to common stockholders of $174.4 million, primarily due to $162.9 million in unrealized losses on derivatives and $31.9 million in non-cash fair value adjustments on embedded derivatives, debt, and warrants. Excluding these non-cash items, underlying operations were profitable. Management highlighted strong drilling performance, with 17 wells drilled below AFE and average cost savings exceeding $100,000 per well. The company also expanded its hedging program through 2029, providing price protection on crude, natural gas, and NGLs. Prairie reaffirmed its full-year 2026 guidance: average daily production of 25,500-27,500 Boe/d, capital expenditures of $200-220 million, and Adjusted EBITDA of $240-260 million. The partial refinancing of Series F Preferred Stock in April reduced outstanding balance and dilution, signaling progress on capital structure simplification. Overall, the results demonstrate robust operational execution and improving financial performance, though significant non-cash charges weigh on GAAP net income.