Prairie Operating confirms $475 million credit facility

Published 09/06/2025, 12:40
Prairie Operating confirms $475 million credit facility

HOUSTON - Prairie Operating Co. (NASDAQ:PROP), a Houston-based energy company specializing in oil and natural gas acquisition and development with a current market capitalization of $171 million, announced today the reaffirmation of its Reserve-Based Lending (RBL) credit facility. The borrowing base remains at $475 million with the potential to reach a maximum facility size of $1.0 billion. The credit line, led by Citibank, N.A., is set to mature on March 26, 2029.

The company’s credit facility reassessment, which occurs semi-annually, has also led to the expansion of its banking syndicate. Bank of America, N.A. and West Texas National Bank are the latest financial institutions to join the group, which includes Citibank, N.A., KeyBank National Association, MUFG Bank, Ltd., Truist Bank, UMB Bank, N.A., and Macquarie Bank Limited. According to InvestingPro data, Prairie operates with a significant debt burden of $380 million and maintains a current ratio of 0.57.

Edward Kovalik, Chairman and CEO of Prairie, expressed that the reaffirmation and syndicate expansion reflect the lenders’ confidence in the company’s asset base and strategic execution. Kovalik emphasized that the facility bolsters Prairie’s financial agility, supporting its development activities and growth opportunities in the Denver-Julesburg (DJ) Basin. The company maintains a strong gross profit margin of 69% and analysts forecast revenue growth of 51% for the current fiscal year. InvestingPro analysis reveals 14 additional key insights about Prairie’s financial health and market position.

Prairie Operating Co. is focused on the Niobrara and Codell formations within the DJ Basin, prioritizing responsible development and aiming for consistent growth and sustainable cash flow.

This reaffirmation of the credit facility is based on information from a press release statement. The company has cautioned that forward-looking statements are subject to risks and uncertainties, and future events may differ from current expectations. These statements are not guarantees of future performance and are qualified by cautionary language within the release. Prairie’s filings with the Securities and Exchange Commission (SEC) provide additional details on these risks.

In other recent news, Prairie Operating Co. has been the focus of several analyst firms, reflecting strong investor interest. Clear Street initiated coverage with a Buy rating and set a price target of $16.00, highlighting Prairie Operating’s growth prospects and cost efficiency in the DJ Basin. Piper Sandler also gave an Overweight rating with an $11.00 target, noting the company’s strategic consolidation efforts and significant project inventory. Citi analysts initiated coverage with a Buy rating and an $8.00 target, emphasizing Prairie’s unique position in the DJ Basin and its recent acquisition of Bayswater. This acquisition is seen as a key driver of current production levels and future growth.

Additionally, Prairie Operating appointed Maree K. Delgado as Senior Vice President of Accounting & Controller, bringing over 20 years of experience in the energy sector. Her expertise is expected to support the company’s strategic growth plans. Meanwhile, ClearSign Technologies Corporation expanded its Board of Directors, appointing Anthony DiGiandomenico and Lou Basenese to new positions. These appointments aim to strengthen ClearSign’s focus on decarbonization and improving industrial systems. These developments underscore the active strategic maneuvers and leadership changes within both companies.

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

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