- 2025 Total Revenue of
$241.6 million (approximately$315.0 million including Bayswater), an increase of approximately 3,000% year-over-year - Record Adjusted EBITDA(1) of
$155.5 million (approximately$220.0 million including Bayswater), an increase of over 975% year-over-year - Approximately 3,900% increase in annual production to 18,500 net Boe/d (approximately 24,000 Boe/d including Bayswater) (50% oil / 73% liquids)
- Current production rate of approximately 28,000 net Boe/d
- Reached agreement to extend grant of Series F Preferred equity anniversary warrants
KEY HIGHLIGHTS
- Record total production of 6.75 million of barrels of oil equivalent (“MMBoe”) (approximately 73% liquids).
- Proved reserves of 121,119 MBoe, 43% of which are proved undeveloped with discounted future net cash flows of
$851.7 million , PV-10(1) of$1,219.8 million . - Expanded hedging program, securing favorable commodity pricing through 2029.
- Closed and completed transition services period for
$602.75 million acquisition of assets fromBayswater Exploration & Production . - Completed six additional complementary acquisitions, adding approximately 44,000 net acres at attractive metrics.
- Exited 2025 with a current production rate of approximately 28,000 net Boe/d, reflecting the strength of the Company’s asset base and the impact of development activity during the year.
(1) EBITDA and PV-10 are Non-GAAP measures, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
From
“2025 marked a transformational year for Prairie. We materially scaled production, expanded margins, fully integrated the Bayswater assets, and strengthened our balance sheet while maintaining capital discipline and operational excellence.”
“Our team delivered record production and Adjusted EBITDA(1), giving us strong momentum entering 2026. With a deep inventory of high-quality drilling locations, expanded hedge protection, and growing scale in the
YEAR END FINANCIAL RESULTS SUMMARY
Full Year 2025 Highlights
- Revenue of
$241.6 million (approximately$315.0 million including Bayswater), driven by realized prices (excluding hedges) of$59.91 per barrel for oil,$18.16 per barrel for NGLs, and$0.88 per Mcf for natural gas. - Net loss attributable to common stockholders of
$60.9 million , or$1.35 basic loss per share. - Adjusted EBITDA(1) of
$155.5 million (approximately$220.0 million including Bayswater) compared to$(17.7) million for the year endedDecember 31, 2024 . - Capital expenditures incurred of
$183.4 million , approximately 35% below midpoint of guidance. - Net cash provided by operating activities of
$153.9 million . - Proved reserves of 121,119 MBoe, 43% of which are proved undeveloped.
- Standardized measure of discounted future net cash flows of
$851.7 million , PV-10(1) of$1,219.8 million .
(1) Adjusted EBITDA and PV-10 are Non-GAAP measures, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
OPERATIONS UPDATE
Operationally, 2025 marked a significant step forward for Prairie as the Company completed the transition period following the Bayswater acquisition and assumed full operational control of those assets.
On
On
On
In
In
At the end of 2025, we moved the drilling rig to the Elder East and West pad, which consists of nine wells. Drilling at this pad is expected to be completed imminently.
YEAR END 2025 RESULTS
Key Financial Highlights
| (In thousands, except per share amounts) | Year Ended | |||
| Total revenues | $ | 241,648 | ||
| Net loss attributable to common stockholders | $ | (60,907 | ) | |
| Loss per share – basic & diluted | $ | (1.35 | ) | |
| Adjusted EBITDA | $ | 155,535 | ||
| Capital expenditures | $ | 183,352 | ||
RESERVES
Our reserve estimates as of
The following table presents our estimated proved reserves by category, the standardized measure of discounted future net cash flows, PV-10, and the prices used in the calculation of net proved reserves estimates for the year ended
| Year Ended | ||||
| Net reserve volumes: | ||||
| Proved developed producing: | ||||
| Oil (MBbls) | 27,900 | |||
| Natural gas (MMcf) | 122,975 | |||
| NGL (MBbls) | 17,974 | |||
| Total (MBoe)(1) | 66,370 | |||
| Proved developed non-producing: | ||||
| Oil (MBbls) | 1,406 | |||
| Natural gas (MMcf) | 2,258 | |||
| NGL (MBbls) | 330 | |||
| Total (MBoe)(1) | 2,112 | |||
| Proved undeveloped: | ||||
| Oil (MBbls) | 30,725 | |||
| Natural gas (MMcf) | 70,041 | |||
| NGL (MBbls) | 10,238 | |||
| Total (MBoe)(1) | 52,637 | |||
| Total proved: | ||||
| Oil (MBbls) | 60,031 | |||
| Natural gas (MMcf) | 195,274 | |||
| NGL (MBbls) | 28,542 | |||
| Total (MBoe)(1) | 121,119 | |||
| Reserves data (in thousands): | ||||
| Standardized measure of discounted future net cash flows | $ | 851,702 | ||
| PV-10(2) | $ | 1,219,814 | ||
| SEC Prices(3): | ||||
| Oil (per Bbl) | $ | 65.34 | ||
| Natural gas (per Mcf) | $ | 3.39 | ||
| NGL (per Bbl) | $ | 19.28 | ||
| (1) | Assumes a ratio of 6 MMcf of natural gas per MBoe. |
| (2) | PV-10 is a financial measure not presented in accordance with |
| (3) | Our estimated proved reserves and the related net revenues were determined using the 12-month unweighted arithmetic average of the first-day-of-the-month price for each month in the period January through December (“SEC Prices”). The SEC Prices are adjusted for treating costs and/or crude quality and gravity corrections. |
REVENUE AND PRODUCTION
Revenue for the year ended
| Year Ended | ||||
| Revenues (in thousands) | ||||
| Oil revenue | $ | 204,040 | ||
| Natural gas revenue | 9,472 | |||
| NGL revenue | 28,136 | |||
| Total revenues | $ | 241,648 | ||
| Production: | ||||
| Oil (MBbls) | 3,406 | |||
| Natural gas (MMcf) | 10,753 | |||
| NGL (MBbls) | 1,550 | |||
| Total production (MBoe)(2) | 6,748 | |||
| Average sales volumes per day (Boe/d) | 18,487 | |||
| Average realized price (excluding effects of derivatives): | ||||
| Oil (per MBbl) | $ | 59.91 | ||
| Natural gas (per MMcf) | $ | 0.88 | ||
| NGL (per MBbl) | $ | 18.16 | ||
| Average realized price (per MBoe) | $ | 35.81 | ||
| Average realized price (including effects of derivatives): | ||||
| Oil (per MBbl) | $ | 63.87 | ||
| Natural gas (per MMcf) | $ | 1.65 | ||
| NGL (per MBbl) | $ | 17.93 | ||
| Average price (per MBoe) | $ | 38.98 | ||
| Average NYMEX prices: | ||||
| WTI (per MBbl) | $ | 65.39 | ||
| $ | 3.51 | |||
| (1) | Total revenues and production for the year ended |
| (2) | MBoe is calculated using six MMcf of natural gas equivalent to one MBbl of oil. |
OPERATING COSTS
| (In thousands, except per Boe amounts) | Year Ended | |||
| Lease operating expenses | $ | 41,411 | ||
| Lease operating expenses per Boe | $ | 6.14 | ||
| Transportation and processing | $ | 8,910 | ||
| Transportation and processing per Boe | $ | 1.32 | ||
| Ad valorem and production taxes(2) | $ | 21,231 | ||
| Ad valorem and production taxes per Boe | $ | 3.15 | ||
| General and administrative expenses(3) | $ | 50,614 | ||
| General and administrative expenses per Boe | $ | 7.50 | ||
| (1) | Total operating expenses for the year ended |
| (2) | Ad valorem and production taxes payable for the year ended |
| (3) | General and administrative expenses for the year ended |
ACQUISITIONS AND CAPITAL EXPENDITURES
| (In thousands) | Year Ended | |||
| Cash paid for Bayswater asset purchase | $ | 459,593 | ||
| Capital expenditures – cash | $ | 177,700 | ||
| Other asset and leasehold purchases(1) | $ | 19,428 | ||
| (1) | Other asset and leasehold purchases for the year ended |
Liquidity and Capital Resources
As of
2026 UPDATED GUIDANCE
Prairie initiates full-year guidance for 2026 as follows:
? Average Daily Production: 25,500 – 27,500 Boe/d.
? Capital Expenditures:
? Adjusted EBITDA(1):
(1) Adjusted EBITDA is a Non-GAAP measure, refer to “Non-GAAP Financial Measures” for reconciliations of GAAP to non-GAAP financial measures used throughout this press release.
COMMODITY HEDGES
The following table reflects contracted volumes and weighted average prices we will receive under the terms of our derivative contracts as of
| Settling through December 31, 2026 | Settling through December 31, 2027 | Settling through December 31, 2028 | ||||||||||
| Crude Oil Swaps: | ||||||||||||
| Notional volume (Bbls) | 4,230,866 | 3,306,753 | 1,515,007 | |||||||||
| Weighted average price ($/Bbl) | $ | 62.36 | $ | 62.03 | $ | 61.60 | ||||||
| Natural Gas Swaps: | ||||||||||||
| Notional volume (MMBtus) | 13,420,634 | 11,882,126 | 4,406,357 | |||||||||
| Weighted average price ($/MMBtu) | $ | 4.08 | $ | 4.07 | $ | 4.00 | ||||||
| Ethane Swaps: | ||||||||||||
| Notional volume (Bbls) | 288,956 | 232,375 | 51,809 | |||||||||
| Weighted average price ($/Bbl) | $ | 11.54 | $ | 11.05 | $ | 11.28 | ||||||
| Propane Swaps: | ||||||||||||
| Notional volume (Bbls) | 509,724 | 417,744 | 94,220 | |||||||||
| Weighted average price ($/Bbl) | $ | 26.36 | $ | 26.51 | $ | 26.00 | ||||||
| Iso Butane Swaps: | ||||||||||||
| Notional volume (Bbls) | 63,185 | 50,812 | 11,328 | |||||||||
| Weighted average price ($/Bbl) | $ | 33.92 | $ | 30.22 | $ | 29.63 | ||||||
| Normal Butane Swaps: | ||||||||||||
| Notional volume (Bbls) | 174,809 | 140,580 | 31,343 | |||||||||
| Weighted average price ($/Bbl) | $ | 35.24 | $ | 31.37 | $ | 30.37 | ||||||
| Pentane Plus Swaps: | ||||||||||||
| Notional volume (Bbls) | 130,321 | 104,802 | 23,366 | |||||||||
| Weighted average price ($/Bbl) | $ | 53.05 | $ | 52.40 | $ | 52.49 | ||||||
During the first quarter of 2026, we executed a portfolio of hedges securing the following weighted-average prices through the indicated periods:
| Settling through December 31, 2026 | Settling through December 31, 2027 | Settling through December 31, 2028 | Settling through | |||||||||||||
| Crude Oil Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 695,518 | 960,750 | 861,300 | 210,000 | ||||||||||||
| Weighted average price ($/Bbl) | $ | 65.33 | $ | 63.49 | $ | 62.94 | $ | 61.57 | ||||||||
| Natural Gas Swaps: | ||||||||||||||||
| Notional volume (MMBtus) | 600,000 | 1,600,000 | 1,200,000 | 400,000 | ||||||||||||
| Weighted average price ($/MMBtu) | $ | 4.05 | $ | 4.07 | $ | 4.11 | $ | 4.11 | ||||||||
| Ethane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 98,985 | 168,300 | 168,300 | — | ||||||||||||
| Weighted average price ($/Bbl) | $ | 10.63 | $ | 10.21 | $ | 9.55 | $ | — | ||||||||
| Propane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 64,175 | 104,940 | 104,940 | — | ||||||||||||
| ted average price ($/Bbl) | $ | 30.07 | $ | 28.22 | $ | 25.87 | $ | — | ||||||||
| Iso Butane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 14,070 | 23,760 | 23,760 | — | ||||||||||||
| Weighted average price ($/Bbl) | $ | 39.36 | $ | 35.10 | $ | 31.32 | $ | — | ||||||||
| Normal Butane Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 25,795 | 43,560 | 43,560 | — | ||||||||||||
| Weighted average price ($/Bbl) | $ | 37.99 | $ | 33.81 | $ | 30.35 | $ | — | ||||||||
| Pentane Plus Swaps: | ||||||||||||||||
| Notional volume (Bbls) | 31,475 | 55,440 | 55,440 | — | ||||||||||||
| Weighted average price ($/Bbl) | $ | 60.06 | $ | 55.05 | $ | 52.94 | $ | — | ||||||||
NON-GAAP FINANCIAL MEASURES
This press release contains Adjusted EBITDA and PV-10, which are financial measures not calculated or presented in accordance with GAAP. These supplemental non-GAAP financial measures are used by management and external users of our financial statements, such as investors, lenders, and rating agencies and may not be comparable to similarly titled measures reported by other companies.
ADJUSTED EBITDA
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 (loss) from continuing operations and is adjusted for income tax expense, depreciation, depletion, and amortization, accretion of asset retirement obligations, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants, loss on debt issuance, unrealized gain on derivatives, and litigation settlement expense, all as applicable. We adjust net income (loss) from continuing operations 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. 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, net income calculated in accordance with GAAP 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.
The following table presents the reconciliation of Net income (loss) from continuing operations to Adjusted EBITDA for the years indicated:
| Year Ended | ||||||||
| 2025(1) | 2024 | |||||||
| (In thousands) | ||||||||
| Net income (loss) from continuing operations reconciliation to Adjusted EBITDA: | ||||||||
| Net income (loss) from continuing operations | $ | 32,051 | $ | (39,867 | ) | |||
| Adjustments: | ||||||||
| Depreciation, depletion, and amortization | 48,916 | 427 | ||||||
| Accretion of asset retirement obligations | 247 | 6 | ||||||
| Abandonment and impairment of unproved properties(2) | 3,409 | — | ||||||
| Non-cash stock-based compensation | 14,764 | 8,377 | ||||||
| Interest expense, net | 27,471 | 562 | ||||||
| Non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants(3) | 63,341 | 5,358 | ||||||
| Non- cash loss on issuance of debt(4) | — | 3,039 | ||||||
| Unrealized (gain) loss on derivatives | (57,834 | ) | 4,395 | |||||
| Litigation settlement expense | 1,516 | — | ||||||
| Income tax expense(5) | 21,654 | — | ||||||
| Adjusted EBITDA | $ | 155,535 | $ | (17,703 | ) | |||
| (1) | Net income (loss) from continuing operations for the year ended |
| (2) | Reflects the abandonment of unproved locations which we have deemed non-core and allowed to expire. |
| (3) | Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis. |
| (4) | Reflects the loss recognized for the issuance of the Subordinated Note and the Subordinated Note Warrants in the third quarter of 2024. |
| (5) | Reflects deferred income tax expense recognized for the year ended |
The following table presents the reconciliation of our expected full-year 2026 Net income to our expected full-year 2026 Adjusted EBITDA:
| Full-year 2026 | ||||||||
| (In millions) | ||||||||
| Net income reconciliation to Adjusted EBITDA: | ||||||||
| Net income | $ | 55 | $ | 65 | ||||
| Adjustments: | ||||||||
| Depreciation, depletion, and amortization | 40 | 40 | ||||||
| Accretion of asset retirement obligations | 1 | 1 | ||||||
| Non-cash stock-based compensation | 18 | 18 | ||||||
| Interest expense, net | 35 | 33 | ||||||
| Non-cash loss on adjustment to fair value – embedded derivatives, debt, and warrants(1) | 65 | 65 | ||||||
| Unrealized loss on derivatives | 5 | 15 | ||||||
| Income tax expense(2) | 21 | 23 | ||||||
| Adjusted EBITDA | $ | 240 | $ | 260 | ||||
| (1) | Reflects the changes in the fair values of the financial instruments measured at fair value on a recurring basis. |
| (2) | Reflects deferred income tax expense. |
PV-10
PV-10 is a financial measure not presented in accordance with
We believe that the presentation of PV-10 is relevant and useful to our investors as a supplemental disclosure to the Standardized Measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our reserves before considering future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV-10 is based on prices and discount factors that are consistent for all companies. PV-10 has limitations as a financial measure since it excludes future income taxes and should not be considered as an alternative to, or more meaningful than, Standardized Measure calculated in accordance with GAAP.
The following table presents the reconciliation of the Standardized Measure to the PV-10 of our estimated proved reserves for the years indicated:
| Year Ended | ||||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Standardized Measure | $ | 851,702 | $ | 255,142 | ||||
| Present value of future income taxes discounted at 10% | 368,112 | 48,017 | ||||||
| PV-10 | $ | 1,219,814 | $ | 303,159 | ||||
Cautionary Statement about Forward-Looking Statements
The information included in this press release and in any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained herein are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
These risks are not exhaustive. Other sections of this press release could include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the effects of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in, or implied by, any forward-looking statements. Our
All forward-looking statements expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement.
Regulation FD Disclosure
The Company announces material information to the public through a variety of means, including filings with the
In addition to these traditional channels, the Company also uses its official social media accounts as a means of disclosing information about Prairie and its business, and to comply with its disclosure obligations under Regulation FD. The Company’s official social media accounts currently include @PrairieOpCo on X (formerly Twitter) and linkedin.com/company/prairie-operating-co on LinkedIn. Information the Company posts through these social media channels may be deemed material. Accordingly, investors, the media, and others interested in the Company should monitor these accounts in addition to following the Company’s press releases,
About
More information about the Company can be found at www.prairieopco.com.
Investor Relations Contact:
Wobbe Ploegsma
832-274-3449
Consolidated Balance Sheets (In thousands, except share amounts) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 20 | $ | 5,192 | ||||
| Oil, natural gas, and NGL accrued revenue | 22,728 | 3,024 | ||||||
| Joint interest and other receivables | 23,106 | 9,275 | ||||||
| Derivative assets | 28,812 | — | ||||||
| Inventory | 3,604 | 5 | ||||||
| Prepaid expenses and other current assets | 1,452 | 312 | ||||||
| Note receivable | — | 494 | ||||||
| Total current assets | 79,722 | 18,302 | ||||||
| Property and equipment: | ||||||||
| Oil and natural gas properties, successful efforts method of accounting including | 852,732 | 134,953 | ||||||
| Other property and equipment | 21,067 | 94 | ||||||
| Less: Accumulated depreciation, depletion, and amortization | (49,343 | ) | (427 | ) | ||||
| Total property and equipment, net | 824,456 | 134,620 | ||||||
| Derivative assets | 24,627 | — | ||||||
| Debt issuance costs, net | 12,642 | 1,731 | ||||||
| Operating lease assets | 2,966 | 1,323 | ||||||
| Other non–current assets | 133 | 578 | ||||||
| Total assets | $ | 944,546 | $ | 156,554 | ||||
| Liabilities, Mezzanine Equity, and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 62,792 | $ | 38,225 | ||||
| Oil, natural gas, and NGL revenue payable | 30,300 | 2,366 | ||||||
| Ad valorem and production taxes payable | 31,385 | 7,094 | ||||||
| Senior convertible note, at fair value | — | 12,555 | ||||||
| Derivative liabilities | — | 2,446 | ||||||
| Operating lease liabilities | 1,300 | 323 | ||||||
| Total current liabilities | 125,777 | 63,009 | ||||||
| Long–term liabilities: | ||||||||
| Credit facility | 366,000 | 28,000 | ||||||
| Subordinated note – related party | 1,458 | 4,609 | ||||||
| Subordinated note warrants, at fair value – related party | 316 | 4,159 | ||||||
| Series F convertible preferred stock embedded derivatives, at fair value | 15,853 | — | ||||||
| Series F convertible preferred stock warrants, at fair value | 90,134 | — | ||||||
| SEPA, at fair value | — | 790 | ||||||
| Derivative liabilities | — | 1,949 | ||||||
| Oil, natural gas, and NGL revenue payable | 27,402 | — | ||||||
| Ad valorem and production taxes payable | 22,751 | — | ||||||
| Deferred tax liability | 21,652 | — | ||||||
| Asset retirement obligation | 4,019 | 227 | ||||||
| Operating lease liabilities | 1,792 | 1,043 | ||||||
| Other long-term liabilities | 1,082 | — | ||||||
| Total long–term liabilities | 552,459 | 40,777 | ||||||
| Total liabilities | 678,236 | 103,786 | ||||||
| Commitments and contingencies | ||||||||
| Mezzanine equity: | ||||||||
| Series F convertible preferred stock; | 136,146 | — | ||||||
| Stockholders’ equity: | ||||||||
| Series D convertible preferred stock; | — | — | ||||||
| Common stock; | 625 | 230 | ||||||
| (531 | ) | — | ||||||
| Additional paid–in capital | 217,785 | 172,304 | ||||||
| Accumulated deficit | (87,715 | ) | (119,766 | ) | ||||
| Total stockholders’ equity | 130,164 | 52,768 | ||||||
| Total liabilities, mezzanine equity, and stockholders’ equity | $ | 944,546 | $ | 156,554 | ||||
Consolidated Statements of Operations (In thousands, except share and per share amounts) | ||||||||
| Years Ended | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| Crude oil sales | $ | 204,040 | $ | 6,595 | ||||
| Natural gas sales | 9,472 | 551 | ||||||
| NGL sales | 28,136 | 793 | ||||||
| Total revenues | 241,648 | 7,939 | ||||||
| Operating expenses: | ||||||||
| Lease operating expenses | 41,411 | 1,265 | ||||||
| Transportation and processing expenses | 8,910 | 864 | ||||||
| Ad valorem and production taxes | 21,231 | 591 | ||||||
| Depreciation, depletion, and amortization | 48,916 | 427 | ||||||
| Accretion of asset retirement obligation | 247 | 6 | ||||||
| Exploration expenses | 1,332 | 734 | ||||||
| Abandonment and impairment of unproved properties | 3,409 | — | ||||||
| General and administrative expenses | 50,614 | 30,565 | ||||||
| Total operating expenses | 176,070 | 34,452 | ||||||
| Income (loss) from operations | 65,578 | (26,513 | ) | |||||
| Other (expenses) income: | ||||||||
| Interest expense | (28,521 | ) | (1,142 | ) | ||||
| Gain (loss) on derivatives, net | 79,230 | (4,395 | ) | |||||
| Loss on adjustment to fair value – embedded derivatives, debt, and warrants | (63,341 | ) | (5,358 | ) | ||||
| Loss on issuance of debt | — | (3,039 | ) | |||||
| Interest income and other | 759 | 580 | ||||||
| Total other expenses | (11,873 | ) | (13,354 | ) | ||||
| Income (loss) from operations before income taxes | 53,705 | (39,867 | ) | |||||
| Income tax expense | (21,654 | ) | — | |||||
| Net income (loss) from continuing operations | 32,051 | (39,867 | ) | |||||
| Discontinued operations | ||||||||
| Loss from discontinued operations, net of taxes | — | (1,045 | ) | |||||
| Net loss from discontinued operations | — | (1,045 | ) | |||||
| Net income (loss) attributable to | 32,051 | (40,912 | ) | |||||
| Series F preferred stock declared dividends | (11,269 | ) | — | |||||
| Series F preferred stock undeclared dividends | (1,211 | ) | — | |||||
| Remeasurement of Series F preferred stock | (80,478 | ) | — | |||||
| Net loss attributable to | $ | (60,907 | ) | $ | (40,912 | ) | ||
| Loss per common share: | ||||||||
| Loss per share, basic and diluted | $ | (1.35 | ) | $ | (2.65 | ) | ||
| Weighted average common shares outstanding, basic and diluted | 45,232,756 | 15,453,502 | ||||||
Consolidated Statements of Cash Flows (In thousands) | ||||||||
| Year Ended | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) from continuing operations | $ | 32,051 | $ | (39,867 | ) | |||
| Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation, depletion, and amortization | 48,916 | 427 | ||||||
| Accretion of asset retirement obligation | 247 | 6 | ||||||
| Abandonment and impairment of unproved properties | 3,409 | — | ||||||
| Stock based compensation | 14,764 | 8,377 | ||||||
| Unrealized (gain) loss on derivatives | (57,834 | ) | 4,395 | |||||
| Loss on adjustment to fair value – embedded derivatives, debt, and warrants | 63,341 | 5,358 | ||||||
| Deferred income tax expense | 21,654 | — | ||||||
| Amortization of deferred financing costs | 3,175 | 35 | ||||||
| Loss on issuance of debt | — | 3,039 | ||||||
| Non-cash SEPA commitment fee | — | 600 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Oil, natural gas, and NGL accrued revenue | (19,703 | ) | (3,024 | ) | ||||
| Joint interest and other receivables | (6,229 | ) | (9,241 | ) | ||||
| Inventory | (3,552 | ) | — | |||||
| Prepaid expenses and other current assets | (1,140 | ) | (74 | ) | ||||
| Accounts payable and accrued expenses | 19,202 | 18,590 | ||||||
| Oil, natural gas, and NGL revenue payable | 17,478 | 1,140 | ||||||
| Ad valorem and production taxes payable | 17,947 | 496 | ||||||
| Other assets and liabilities | 176 | (65 | ) | |||||
| Net cash provided by (used in) continuing operating activities | 153,902 | (9,808 | ) | |||||
| Net cash provided by discontinued operations | — | 460 | ||||||
| Net cash provided by (used in) operating activities | 153,902 | (9,348 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Cash paid for Bayswater asset purchase, net of cash received | (459,593 | ) | — | |||||
| Development of oil and natural gas properties | (177,700 | ) | (28,522 | ) | ||||
| Other asset and leasehold purchases | (19,428 | ) | (94 | ) | ||||
| Cash received from payment on note receivable related to sale of cryptocurrency miners | 805 | 338 | ||||||
| Cash paid for | — | (55,509 | ) | |||||
| Transaction expenses paid related to | — | (239 | ) | |||||
| Deposit on other oil and natural gas properties purchase | — | (382 | ) | |||||
| Cash received from sale of cryptocurrency miners | — | 1,000 | ||||||
| Net cash used in investing activities | (655,916 | ) | (83,408 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings on the Credit Facility | 390,000 | 28,000 | ||||||
| Repayment on the Credit Facility | (52,000 | ) | — | |||||
| Debt issuance costs associated with the Credit Facility | (14,085 | ) | (336 | ) | ||||
| Proceeds from the issuance of Common Stock | 43,817 | 15,000 | ||||||
| Financing costs associated with issuance of Common Stock | (3,857 | ) | (5,008 | ) | ||||
| Proceeds from the issuance of Series F Preferred Stock | 148,250 | — | ||||||
| Financing costs associated with the issuance of Series F Preferred Stock | (12,171 | ) | — | |||||
| Proceeds from the issuance of the Subordinated Note – related party | — | 5,000 | ||||||
| Payments of the Subordinated Note – related party | (3,214 | ) | (1,786 | ) | ||||
| Proceeds from the issuance of the Senior Convertible Note | — | 14,250 | ||||||
| Payments of the Senior Convertible Note | — | (3,748 | ) | |||||
| Proceeds from option exercise | 633 | — | ||||||
| (531 | ) | — | ||||||
| Proceeds from the exercise of Series D and E Preferred Stock warrants | — | 33,539 | ||||||
| Net cash provided by financing activities | 496,842 | 84,911 | ||||||
| Net decrease in cash and cash equivalents | (5,172 | ) | (7,845 | ) | ||||
| Cash and cash equivalents, beginning of the year | 5,192 | 13,037 | ||||||
| Cash and cash equivalents, end of the year | $ | 20 | $ | 5,192 | ||||
Supplemental Disclosures of Cash Flow Information
The following table presents non–cash investing and financing activities and supplemental cash flow disclosures relating to the cash paid for interest and income taxes for the years indicated:
| Year Ended | ||||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Non–cash investing activities: | ||||||||
| Increase in capital expenditure accruals and accounts payable | $ | 5,652 | $ | 14,136 | ||||
| Equipment purchased in exchange for note payable | $ | 560 | $ | — | ||||
| Non–cash financing activities: | ||||||||
| Common Stock issued to Bayswater as part of Bayswater Acquisition purchase price(1) | $ | 16,000 | $ | — | ||||
| Common Stock issued for SEPA commitment fee(2) | $ | — | $ | 600 | ||||
| Common Stock issued upon conversion of Senior Convertible Note(3) | $ | 18,164 | $ | — | ||||
| Common Stock issued upon conversion of Series D Preferred Stock | $ | 8,475 | $ | 6,170 | ||||
| Common Stock issued upon conversion of Series E Preferred Stock | $ | — | $ | 20,000 | ||||
| Common Stock issued upon conversion of Series F Preferred Stock | $ | 38,490 | $ | — | ||||
| Common Stock issued for Series F Preferred Stock dividends(4) | $ | 11,269 | $ | — | ||||
| Credit facility issuance costs included in accrued liabilities | $ | — | $ | 331 | ||||
| Credit facility issuance costs paid by the issuance of Common Stock(5) | $ | — | $ | 1,000 | ||||
| Supplemental disclosure: | ||||||||
| Cash paid for interest | $ | 25,259 | $ | 715 | ||||
| (1) | The Company issued approximately 3.7 million shares of common stock, par value |
| (2) | Pursuant to the SEPA, the Company issued 100,000 shares to YA II PN, LTD., a |
| (3) | During the year ended |
| (4) | The Company elected to issue shares of Common Stock for the Series F Preferred Stock dividends payable on |
| (5) | Prior to entering into the reserve-based credit agreement with |
