Prairie Operating Co. 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.