Citi initiates Prairie Operating stock with buy rating citing growth

Published 02/06/2025, 12:58
Citi initiates Prairie Operating stock with buy rating citing growth

On Monday, Citi analysts initiated coverage on Prairie Operating Co (NASDAQ: PROP) with a Buy rating, setting a price target of $8.00 per share. With a current market capitalization of $169.62 million and a high beta of 3.1 indicating significant volatility, the analysts emphasized the company’s unique position as the sole pure-play single-basin public operator employing a roll-up strategy in the DJ Basin. InvestingPro data reveals 15+ additional insights about PROP’s financial health and growth prospects.

The analysts pointed to Prairie Operating’s recent acquisition of Bayswater as a demonstration of its consolidation capabilities. While integration of Bayswater is currently underway, showcasing the company’s ability to expand its operations effectively, InvestingPro analysis indicates the company operates with significant debt and is quickly burning through cash.

Prairie Operating is also poised for organic growth, with approximately 28 wells expected to be turned in line (TIL’d) this year. The company plans to advance to a single-rig program, targeting around 60 wells annually, which supports the analysts’ positive outlook.

Despite its small relative scale, the analysts noted that Prairie Operating’s growth strategy positions it well for future expansion, even amid potential macroeconomic challenges. The price target reflects a 4.0x 2025 estimated Debt Adjusted Cash Flow, and 2.5x for 2026.

In other recent news, Prairie Operating Co. has completed the acquisition of oil and gas properties from Bayswater Resources, enhancing its position in the energy sector. The acquisition includes audited financial statements and pro forma financial information, providing investors with insights into the company’s performance with these new assets. Additionally, Prairie Operating Co. has been the focus of analyst activity, with Clear Street initiating coverage with a Buy rating and a $16 price target, citing growth prospects and cost efficiency. Piper Sandler also started coverage with an Overweight rating and an $11 price target, highlighting the strategic consolidation in the DJ Basin.

Meanwhile, Prairie Operating Co. appointed Maree K. Delgado as Senior Vice President of Accounting & Controller, bringing over 20 years of experience in financial accounting and risk management. This appointment supports the company’s strategic growth plans. In related developments, ClearSign Technologies Corporation expanded its Board of Directors, appointing Anthony DiGiandomenico and Lou Basenese to new positions. The expansion aligns with ClearSign’s focus on decarbonization and improving performance in industrial systems.

These recent developments reflect ongoing strategic moves by both companies to strengthen their market positions and enhance operational efficiencies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.