Prairie Operating Co. Acquires Oil and Gas Properties

HOUSTON, TX – Prairie Operating Co., a company engaged in crude petroleum and natural gas extraction with a current market capitalization of $150 million, has completed the acquisition of specific oil and gas properties from Bayswater Resources and its affiliates, as per their 8-K filing with the SEC today. This move follows the previously disclosed agreement on February 7, 2025. According to InvestingPro data, the company faces significant challenges with its current ratio of 0.29, indicating potential liquidity constraints as it pursues this expansion.

The acquisition includes audited combined statements of revenue and direct operating expenses for the years ended December 31, 2024, and 2023. The company has also provided its management’s discussion and analysis of the operations for the acquired properties. Additionally, unaudited pro forma condensed combined financial information for the year ended December 31, 2024, was filed, offering investors a view of the company’s performance inclusive of the new assets. InvestingPro analysis reveals the company’s challenging financial position, with an EBITDA of -$30.5 million in the last twelve months and a concerning Altman Z-Score of -1.15, suggesting financial distress.

Prairie Operating Co. has also filed a report from Cawley, Gillespie & Associates, Inc., independent petroleum engineers, which includes the pro forma estimated reserves of the company as of December 31, 2024.

The transaction is expected to enhance Prairie Operating Co.’s position in the oil and gas sector by incorporating the Acquired Properties into its portfolio. The company’s strategic move is to bolster its operations and potentially increase its revenue streams from these assets. The detailed financial impacts of this acquisition are laid out in the pro forma financial information provided.

This acquisition signifies Prairie Operating Co.’s ongoing efforts to expand its footprint in the energy sector. The company, formerly known as Creek Road Miners, Inc., Wizard Brands, Inc., and Wizard Entertainment, Inc., has undergone several name changes, with the most recent being in 2021. InvestingPro data shows the company’s current financial health score is rated as WEAK, with particularly low scores in profitability (0.82) and cash flow (0.85). Subscribers to InvestingPro can access 8 additional key insights about the company’s financial position and growth prospects.

Investors can find the audited financial statements and other relevant documents filed with the SEC to understand the financial implications of this acquisition. The information is based on the press release statement filed with the SEC and is intended to provide shareholders and potential investors with a clearer picture of Prairie Operating Co.’s financial standing post-acquisition.

In other recent news, Prairie Operating Co. has extended the deadline for its Purchase and Sale Agreement with Bayswater Entities. This amendment, effective as of Monday, pushes the termination date to March 20, 2025, allowing more time for the transaction’s completion. The agreement involves a $16.0 million equity consideration for Bayswater Exploration and Production, LLC, with a maximum of 5,249,639 shares to be issued. This extension reflects ongoing negotiations and a mutual commitment to finalize the deal. The strategic move is closely watched by investors, given its potential impact on Prairie Operating Co.’s asset portfolio and market position. The full terms of the amendment are detailed in an SEC filing. These developments are part of Prairie Operating Co.’s efforts to expand within the energy sector.

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