Exhibit 99.1
 
Prairie Operating Co. Announces Third Quarter 2026 Results
 
Houston, Texas, November 12, 2026 (GLOBE NEWSWIRE) — Prairie Operating Co. (Nasdaq: PROP) (the “Company,” “Prairie,” “we,” “our,” or “us”) – an independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquids (“NGL”) resources in the Denver-Julesburg (DJ) Basin – today announced its financial and operational results for the quarter ended September 30, 2026.
 
Third Quarter 2026 Results Summary
 
•
Sales volumes of 2.4 MMBoe, or 26,117 Boe/d, a total volume increase of 21% from the prior quarter, with 77% liquids (56% oil).
•
Revenue of $129.5 million, an increase of 31% from the prior quarter.
•
Net loss attributable to Prairie Operating Co. common stockholders of $34.0 million, or $0.26 per basic and $0.28 per diluted share.
•
Generated Adjusted EBITDA(1) of $65.3 million, an increase of 92% from the prior quarter.
•
Lease operating expense per Boe of $5.71, a decrease of 17% from the prior quarter.
•
Exit rate production of approximately 30,229 Boe/d.
•
General and administrative expenses decreased 24% from the prior quarter to $4.56 per Boe.
 
Key Highlights for Year-to-Date 2026
 
•
Sales volumes of 6.5 MMBoe, or approximately 23,730 Boe/d, with 74% liquids (52% oil).
•
All 27 wells drilled across four pads were online at September 30, 2026.
•
Total revenue of $311.8 million, an increase of approximately 97% year-over-year.
•
Adjusted EBITDA(1) of $136.4 million, an increase of approximately 37% year-over-year.
•
Brought Burnett online at the end of August and Castor online at the end of September.
•
During the third quarter, extended the issuance date of the Series F Preferred Stock anniversary warrants to December 1, 2026.
•
Subsequent to quarter-end, production reached approximately 32,287 Boe/d.
 
(1) Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for the definition and a reconciliation of GAAP to non-GAAP financial measures used in this press release.
 
Greg Patton, Chief Executive Officer, commented:
 
“Prairie’s third-quarter results demonstrate the strength of our assets and the excellent work our team continues to deliver across our development program. Average daily sales volumes increased 21% from the prior quarter to 2.4 MMboe or 26,117 Boe per day, driving revenue growth of 31% from the prior quarter to $129.5 million. We achieved that growth while reducing lease operating expense per Boe by 17% from the prior quarter, reflecting our continued focus on improving well performance and operating efficiency.”
 
“Our Burnett development is a significant step forward in demonstrating the value of Prairie’s acreage. Its production results supported the conversion of 30 gross possible locations to proved undeveloped locations within Genesis OGDP I, expanding our proved inventory and reducing uncertainty around nearby development. By bringing 37 wells across five pads online by the quarter-end, we have a stronger production base and even greater confidence in the opportunities ahead.”
 
Michael Shelly, Executive Vice President and Chief Financial Officer, added:
 
“Prairie generated $65.3 million of Adjusted EBITDA in the third quarter, an increase of 92% from the prior quarter, as sales volumes increased and unit operating costs declined. With Burnett and Castor now producing, our focus is on realizing the cash returns from the capital invested this year and carefully managing the spending required to sustain that production.”
 
“We continue to evaluate opportunities to refinance the remaining Series F preferred stock as part of our broader effort to strengthen Prairie’s balance sheet, improve financial flexibility and better align our capital structure with the scale of our operations. Our objective is to support Prairie’s operating momentum through disciplined financial management and capital allocation that creates sustainable, long-term shareholder value.”
1
 
Operations Update
 
During the third quarter of 2026, Prairie recorded sales volumes of 2,403 MBoe, an increase of 21% from the prior quarter, which equates to average daily sales volumes of 26,117 Boe/d. Oil represented approximately 56% of sales volumes, and liquids represented approximately 77%.
 
Operated and non-operated production reached a third-quarter peak of approximately 30,229 Boe/d at the end of September. As a result of the wells being turned in line during the third quarter, production continued to increase following quarter-end, with production reaching approximately 32,287 Boe/d by early October.
 
Year to date, Prairie has drilled 27 wells across four pads, with 19 wells drilled in a single run. Year-to-date wells averaged approximately 18,700 feet in measured depth, an average rate of penetration of 380 feet per hour and an average spud-to-rig-release time of 6.2 days.
 
The four-well Burnett pad came online at the end of August, delivering successful initial production results that validate the quality and future development potential of Prairie’s acreage. Maximum initial production averaged approximately 722 Boe/d per well, with 81% oil on a two-stream basis, and cumulative gross production reached 131,490 Boe through October 20, 2026.
 
Completion activities on the six-well Castor pad were finalized in September, with the wells coming online at the end of September. The late-quarter start limited Castor’s contribution to third-quarter average production.
 
The strong drilling, completion and early production performance supported the conversion of 30 gross possible locations to proved undeveloped locations within the 5,700-acre Genesis OGDP I. These results reinforce the commercial viability of nearby undeveloped locations, de-risk Prairie’s near-term development inventory and provide greater confidence in future development across the project area. The Company remains focused on well performance, operating efficiency and disciplined capital allocation.
 
2
 
Summary Financial Highlights
 
                                         
   Three Months Ended   % Change   Three Months Ended  % Change   Nine Months Ended   % Change
    September 30,    June 30,  Q326 to   September 30,   Q326 to   September 30,   YTD 2026 to
   2026   2026  Q226   2025  Q325   2026    2025 (1)  YTD 2025
  (In thousands)
Total revenue
 $129,502   $98,859    31%  $77,721    67%  $311,778   $158,638    97%
Net (loss) income attributable to Prairie Operating Co. common stockholders
 $(33,994)   $193,794    NM   $(22,508)    (51)%   $(14,597)   $(67,478)    78%
Adjusted EBITDA (2)
  $65,304   $34,010    92%  $56,315    16%  $136,446   $99,518    37%
 
NM
Percent not meaningful
 (1)
Total revenue and net loss attributable to Prairie Operating Co. common stockholders for the nine months ended September 30, 2025, includes revenues and related expenses attributable to the assets acquired from Bayswater Resources, LLC, Bayswater Fund III-A, LLC, Bayswater Fund III-B, LLC, Bayswater Fund IV-A, LP, Bayswater Fund IV-B, LP, Bayswater Fund IV-Annex, LP, and Bayswater Exploration & Production, LLC (collectively, “Bayswater”) beginning on March 26, 2025, the closing date of the Bayswater acquisition, through September 30, 2025.
 (2)
Adjusted EBITDA is a non-GAAP financial measure. See "Non-GAAP Financial Measures" for the definition and a reconciliation of GAAP to non-GAAP financial measures used in this press release.
 
 
3
 
Revenues, Sales Volumes, and Operational Metrics
 
Revenue for the third quarter of 2026 was $129.5 million, including $114.0 million related to oil, an increase in total revenue of 31% from the prior quarter. Sales volumes totaled 2,403 MBoe, or 26,117 Boe/d, and were comprised of approximately 56% oil and 77% liquids.
 
For the third quarter of 2026, lease operating expenses were $13.7 million, or $5.71 per Boe, a decline of 17% from the prior quarter on a per-Boe basis. Transportation and processing expenses were $2.4 million, or $1.00 per Boe; ad valorem and production taxes were $11.9 million, or $4.96 per Boe; and general and administrative expenses were $11.0 million, or $4.56 per Boe.
 
                                 
                                         
   Three Months Ended    % Change   Three Months Ended
    % Change    Nine Months Ended
 		   % Change
 		 
    September 30,    June 30,   Q326 to    September 30,    Q326 to   September 30,    YTD 2026 
    2026    2026   Q226    2025    Q325    2026    2025 (1)   to 2025 
Revenues (in thousands)
                                       
Oil revenue
 $113,969   $93,458    22%  $64,906    76%  $275,265   $133,635    106%
Natural gas revenue (2) (3)
  3,537  (4,292)   182%  5,099  (31)%  8,201  7,645   7%
NGL revenue (3)
  11,996  9,693   24%  7,716   55%  28,312  17,358   63%
Total revenues
 $129,502   $98,859    31%  $77,721    67%  $311,778   $158,638    97%
                                         
Sales volumes
                                       
Oil (MBbls)
  1,349    992    36%   1,106    22%   3,340    2,149    55%
Natural gas (MMcf)
  3,359    3,299    2%   3,513    (4)%   10,196    7,338    39%
NGL (MBbls)
  494    448    10%   428    15%   1,439    957    50%
Total sales volumes (MBoe) (4)
   2,403    1,990    21%   2,120    13%   6,478    4,329    50%
% oil
  56%   50%        52%        52%   50%     
% liquids
  77%   72%        72%        74%   72%     
                                         
Average sales volumes per day (Boe/d)
  26,117    21,866    19%   23,029    13%   23,730    15,917    49%
                                         
Average realized price (excluding effects of derivatives)
                                       
Oil (per Bbl)
 $84.48   $94.21    (10)%  $58.70    44%  $82.41   $62.18    33%
Natural gas (per Mcf) (2) (3)
  $1.05   $(1.30)    181%  $1.45    (28)%  $0.80   $1.04    (23)%
NGL (per Bbl) (3)
  $24.28   $21.64    12%  $18.03    35%  $19.67   $18.14    8%
Average realized price (per Boe)
 $53.90   $49.68    8%  $36.68    47%  $48.13   $36.64    31%
                                         
Average sales price (including effects of derivatives)
                                       
Oil (per Bbl)
 $62.24   $59.79    4%  $61.39    1%  $59.80   $65.25    (8)%
Natural gas (per Mcf) (2) (3)
  $2.14   $(0.20)    
NM
   $2.97    (28)%  $1.27   $1.90    (33)%
NGL (per Bbl) (3)
  $19.98   $16.72    19%  $17.32    15%  $16.48   $17.37    (5)%
Average price (per Boe)
 $42.04   $33.25    26%  $40.47    4%  $36.49   $39.45    (8)%
                                         
Operating expense per BOE
                                       
Lease operating expenses
 $5.71   $6.85    (17)%  $7.25    (21)%  $6.51   $6.64    (2)%
Transportation and processing
 $1.00   $1.22    (18)%  $1.04    (4)%  $1.13   $1.05    8%
Ad valorem and production taxes
 $4.96   $4.01    24%  $2.21    124%  $4.13   $2.78    49%
Depreciation, depletion, and amortization
 $10.78   $8.58    26%  $7.61    42%  $9.08   $7.04    29%
General and administrative expenses
 $4.56   $6.01    (24)%  $5.79    (21)%  $6.14   $7.92    (22)%
 
NM
Percent not meaningful
(1)
Total revenues, sales volumes, and operating expenses per Boe for the nine months ended September 30, 2025, include revenues, sales volumes, and operating expenses per Boe from the assets acquired from Bayswater beginning on March 26, 2025, the closing date of the Bayswater Acquisition, through September 30, 2025.
(2)
For the three months ended June 30, 2026, we realized negative natural gas revenue and average realized prices (excluding and including the effects of derivatives) due to lower gross sales, driven by decreased pricing during the quarter, compared to gathering and processing fees.
(3)
We have reclassified certain gathering and processing fees presented net within natural gas and NGL sales for the three and nine months ended September 30, 2025 to conform with the allocation used during the three months ended June 30, 2026 and the three and nine months ended September 30, 2026. This reallocation has no impact on our total revenues or net (loss) income attributable to Prairie Operating Co. as reported on the condensed consolidated statements of operations.
(4)
MBoe is calculated using six MMcf of natural gas equivalent to one MBbl of oil.
 
4
 
Liquidity and Capital Resources
 
As of September 30, 2026, we had cash and cash equivalents of $7.8 million and availability of $3.0 million under the reserve-based credit agreement with Citibank, N.A. (the “Credit Facility”). As of September 30, 2026, the Credit Facility had a borrowing base of $475.0 million and aggregate elected commitments of $475.0 million.
 
Commodity Hedges
 
As of September 30, 2026, we had the following outstanding crude oil, natural gas, and NGL derivative contracts in place, which settle monthly and are indexed to NYMEX West Texas Intermediate, NYMEX Henry Hub, and Mont Belvieu OPIS, respectively:
 
                 
   
Settling
October 1, 2026
through
December 31, 2026		  
 Settling
January 1, 2027
through
December 31, 2027		  
 Settling
January 1, 2028
through
December 31, 2028		  
 Settling
January 1, 2029
through
December 31, 2029		 
Crude Oil Swaps:
                           
Notional volume (Bbls)
    1,367,376      4,662,503      2,862,307      210,000 
Weighted average price ($/Bbl)
  $ 63.23    $ 62.51    $ 62.17    $ 61.57 
Natural Gas Swaps:
                           
Notional volume (MMBtus)
    4,300,655      14,082,126      5,606,357      400,000 
Weighted average price ($/MMBtu)
  $ 4.09    $ 4.08    $ 4.02    $ 4.11 
Ethane Swaps:
                           
Notional volume (Bbls)
    120,246      400,675      220,109        —  
Weighted average price ($/Bbl)
  $ 11.17    $ 10.70    $ 9.96    $ —  
Propane Swaps:
                           
Notional volume (Bbls)
    152,034      522,684      199,160        —  
Weighted average price ($/Bbl)
  $ 28.80    $ 26.85    $ 25.93    $ —  
Iso Butane Swaps:
                           
Notional volume (Bbls)
    22,142      74,572      35,088        —  
Weighted average price ($/Bbl)
  $ 35.84    $ 31.77    $ 30.77    $ —  
Normal Butane Swaps:
                           
Notional volume (Bbls)
    54,147      184,140      74,903        —  
Weighted average price ($/Bbl)
  $ 36.02    $ 31.95    $ 30.36    $ —  
Pentane Plus Swaps:
                           
Notional volume (Bbls)
    47,452      160,242      78,806        —  
Weighted average price ($/Bbl)
  $ 55.76    $ 53.31    $ 52.81    $ —  
 
5
 
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 Securities and Exchange Commission (the “SEC”), filings are available publicly on the SEC website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Accordingly, forward-looking statements in this press release should not be relied upon as representing our views as of any subsequent date, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
 
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 SEC, press releases, public conference calls, and the investor relations section of its website at www.prairieopco.com.
 
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, SEC filings, and public conference calls and webcasts. The Company may update the list of official social media accounts from time to time, and any such updates will be posted on the investor relations section of its website.
 
About Prairie Operating Co.
 
Prairie Operating Co. is a Houston-based publicly traded independent energy company engaged in the development and acquisition of oil, natural gas, and natural gas liquid resources in the United States. The Company’s assets and operations are concentrated in the oil and liquids-rich regions of the Denver-Julesburg (DJ) Basin, with a primary focus on the Niobrara and Codell formations. The Company is committed to the responsible development of its oil natural gas, and natural gas liquid resources and is focused on maximizing returns through consistent growth, capital discipline, and sustainable cash flow generation.
 
More information about the Company can be found at www.prairieopco.com.
 
Investor Relations Contact:
 
Wobbe Ploegsma
 
info@prairieopco.com
 
720-716-5415
 
6
 
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share amounts)
 
         
    September 30,  
2026 		 
 December 31,
2025		  
Assets
         
Current assets:
         
Cash and cash equivalents
  $ 7,751    $ 20  
Oil, natural gas, and NGL accrued revenue
    43,857      22,728  
Joint interest and other receivables
    7,560      23,106  
Derivative assets, net
      —        28,812  
Inventory
    2,672      3,604  
Prepaid expenses and other current assets
    2,605      1,452  
Total current assets
    64,445      79,722  
                
Property and equipment:
              
Oil and natural gas properties, successful efforts method of accounting including $45,787 and $57,897 excluded from depletable base as of September 30, 2026 and December 31, 2025, respectively
    1,072,924      852,732  
Other property and equipment
    24,367      21,067  
Less: Accumulated depreciation, depletion, and amortization
    (107,907 )     (49,343 ) 
Total property and equipment, net
    989,384      824,456  
Deferred tax asset
     15,342        —    
Derivative assets, net
      —        24,627  
Debt issuance costs, net
    12,171      12,642  
Operating lease assets
    5,168      2,966  
Other non–current assets
    167      133  
Total assets
  $ 1,086,677    $ 944,546  
                
Liabilities, Mezzanine Equity, and Stockholders’ Equity
              
Current liabilities:
              
Accounts payable and accrued expenses
  $ 107,096    $ 62,792  
Oil, natural gas, and NGL revenue payable
    30,184      30,300  
Ad valorem and production taxes payable
    25,517      31,385  
Derivative liabilities, net
    90,311        —    
Operating lease liabilities
    1,565      1,300  
Total current liabilities
    254,673      125,777  
                
Long–term liabilities:
              
Credit facility
    472,000      366,000  
Subordinated note – related party
    1,458      1,458  
Series F convertible preferred stock embedded derivatives, at fair value
    8,991      15,853  
Series F convertible preferred stock warrants, at fair value
    5,437      90,134  
Incremental share right liability, at fair value
    7,243        —    
Derivative liabilities, net
    47,072        —    
Oil, natural gas, and NGL revenue payable
    33,238      27,402  
Ad valorem and production taxes payable
    25,037      22,751  
Deferred tax liability
      —        21,652  
Asset retirement obligation
    3,933      4,019  
Operating lease liabilities
    3,785      1,792  
Other long-term liabilities
    992      1,398  
Total long–term liabilities
    609,186      552,459  
Total liabilities
    863,859      678,236  
                
Commitments and contingencies
              
                
Mezzanine equity:
              
Series F convertible preferred stock; $0.01 par value; 50,000,000 shares authorized, and 74,506 and 121,050 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
    21,337      136,146  
                
Stockholders’ equity:
              
Series D convertible preferred stock; $0.01 par value; 50,000 shares authorized, and 44 and 5,982 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
      —          —    
Common stock; $0.01 par value; 500,000,000 shares authorized, and 118,681,858 and 62,499,375 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
    1,189      625  
Treasury stock, at cost; 715,955 and 111,357 shares as of September 30, 2026 and December 31, 2025, respectively
    (1,778 )     (531 ) 
Additional paid–in capital
    382,375      217,785  
Accumulated deficit
    (180,305 )     (87,715 ) 
Total stockholders’ equity
    201,481      130,164  
Total liabilities, mezzanine equity, and stockholders’ equity
  $ 1,086,677    $ 944,546  
 
7
 
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share amounts)
 
                 
   
Three Months Ended
September 30, 		 
 Nine Months Ended
September 30, 		 
   
2026  
 2025  
 2026  
 2025  
Revenues:
                 
Crude oil, natural gas, and NGL revenues
  $ 129,502    $ 77,721    $ 311,778    $ 158,638  
                              
Operating expenses:
                            
Lease operating expenses
    13,737      15,371      42,206      28,732  
Transportation and processing expenses
    2,395      2,200      7,317      4,567  
Ad valorem and production taxes
    11,916      4,676      26,691      12,049  
Depreciation, depletion, and amortization
    25,900      16,113      58,819      30,500  
Exploration expenses
    2      40      543      785  
Abandonment and impairment of unproved properties
    669        —      1,277        —  
General and administrative expenses
    10,963      12,273      39,801      34,268  
Total operating expenses
    65,582      50,673      176,654      110,901  
                              
Other (expenses) income:
                            
Interest expense
    (10,353 )     (9,039 )     (28,583 )     (19,541 ) 
(Loss) gain on derivatives, net
    (134,196 )     8,974      (266,177 )     36,227  
Gain (loss) on adjustment to fair value – financial instrument liabilities
    13,079      (25,914 )     29,461      (30,451 ) 
Interest income and other
    202      218      591      381  
Total other expenses
    (131,268 )     (25,761 )     (264,708 )     (13,384 ) 
                              
(Loss) income from operations before income taxes
    (67,348 )     1,287      (129,584 )     34,353  
Income tax benefit
    18,414        —      36,994        —  
Net (loss) income attributable to Prairie Operating Co.
    (48,934 )     1,287      (92,590 )     34,353  
Series F preferred stock declared dividends
    (2,426 )     (4,252 )     (8,694 )     (7,540 ) 
Series F preferred stock undeclared dividends
    34      443      (746 )     (1,204 ) 
Remeasurement of Series F preferred stock
    17,332      (19,986 )     87,433      (93,087 ) 
Net loss attributable to Prairie Operating Co. common stockholders
  $ (33,994 )   $ (22,508 )   $ (14,597 )   $ (67,478 ) 
                              
Loss per common share
                            
Basic
  $ (0.26 )   $ (0.44 )   $ (0.14 )   $ (1.66 ) 
Diluted
  $ (0.28 )   $ (0.44 )   $ (0.70 )   $ (1.66 ) 
Weighted average common shares outstanding
                            
Basic
    131,043,270      50,624,457      102,313,884      40,582,092  
Diluted
    205,241,741      50,624,457      189,099,527      40,582,092  
 
8
 
Prairie Operating Co. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 
         
    Nine Months Ended
September 30, 		 
    2026     2025  
Cash flows from operating activities:                
Net (loss) income attributable to Prairie Operating Co.
  $ (92,590 )    $ 34,353  
Adjustments to reconcile net (loss) income attributable to Prairie Operating Co. to net cash provided by operating activities
               
Depreciation, depletion, and amortization
    58,819       30,500  
Abandonment and impairment of unproved properties
    1,277         —    
Stock–based compensation
    12,165       7,845  
Unrealized loss (gain) on derivatives
    190,821       (24,052 ) 
(Gain) loss on adjustment to fair value – financial instrument liabilities
    (29,461 )      30,451  
Deferred income taxes
    (36,994 )        —    
Amortization of deferred financing costs
    3,199       3,902  
Changes in operating assets and liabilities:
               
Oil, natural gas, and NGL accrued revenue
    (21,130 )      (45,692 ) 
Joint interest and other receivables
    14,922       (8,470 ) 
Inventory, prepaid expenses, and other current assets
    1,027       (5,949 ) 
Accounts payable, accrued expenses, and other current liabilities
    19,183       22,966  
Revenue, ad valorem, and production taxes payable
    2,139       21,530  
Net cash provided by operating activities
    123,377       67,384  
                 
Cash flows from investing activities:
               
Development of oil and natural gas properties
    (185,525 )      (126,184 ) 
Other asset and leasehold purchases
    (15,031 )      (15,724 ) 
Cash paid for Bayswater asset purchase, net of cash received
      —         (467,461 ) 
Cash received from payment on note receivable
      —         833  
Net cash used in investing activities
    (200,556 )      (608,536 ) 
                 
Cash flows from financing activities:
               
Borrowings on the Credit Facility
    177,000       389,000  
Repayments on the Credit Facility
    (71,000 )        —    
Debt issuance costs associated with the Credit Facility
    (2,728 )      (15,670 ) 
Proceeds from the issuance of Common Stock
    2,098       43,817  
Financing costs associated with the issuance of Common Stock
    (148 )      (3,603 ) 
Proceeds from the issuance of Series F Preferred Stock
      —         148,250  
Financing costs associated with the issuance of Series F Preferred Stock
      —         (12,171 ) 
Redemption of Series F Preferred Stock
    (19,105 )        —    
Payments of the Subordinated Note – related party
      —         (3,214 ) 
Proceeds from option exercises
    40       633  
Treasury stock repurchased
    (1,247 )      (442 ) 
Net cash provided by financing activities
    84,910       546,600  
                 
Net increase in cash and cash equivalents
    7,731       5,448  
Cash and cash equivalents, beginning of the period
    20       5,192  
Cash and cash equivalents, end of the period
  $ 7,751     $ 10,640  
 
9
 
Supplemental Disclosures of Cash Flow Information
 
The following table presents non–cash investing and financing activities for the periods presented:
 
               
    Nine Months Ended September 30,
    2026  
 2025 
    (In thousands)
Non–cash investing and financing activities:
             
Common Stock issued upon conversion of Series F Preferred Stock
  $ 52,452    $ 27,148 
Common Stock issued for Series F Preferred Stock dividends (1)
   $ 8,300    $ 7,540 
Common Stock issued to Bayswater as part of Bayswater Acquisition purchase price (2)
   $ —    $ 16,000 
Common Stock issuance costs included in accrued liabilities
  $ —    $ 254 
Bayswater transaction costs included in accrued liabilities
  $ —    $ 6,035 
Common Stock issued upon conversion of Series D Preferred Stock
  $ 33    $ 8,475 
Common Stock issued upon option exercise
  $ 42    $ —  
Common Stock issued upon conversion of Senior Convertible Note (3)
   $ —    $ 18,164 
 
 
(1)
The Company has elected to issue shares of its common stock, par value $0.01 per share (“Common Stock”) for the quarterly Series F Preferred Stock dividends beginning June 1, 2025.
(2)
The Company issued approximately 3.7 million shares of Common Stock to Bayswater as part of the Bayswater acquisition.
(3)
During the nine months ended September 30, 2025, YA II PN, LTD. converted the remaining $11.3 million of the initial $15.0 million convertible promissory note in exchange for 2.1 million shares of Common Stock.
 
10
 
Prairie Operating Co. and Subsidiaries
 Non-GAAP Financial Measures
 
Reconciliation of Net (Loss) Income to Adjusted EBITDA
 
Adjusted EBITDA is a supplemental non-GAAP financial measure that 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 (loss) income attributable to Prairie Operating Co. and represents earnings before depreciation, depletion, and amortization, abandonment and impairment of unproved properties, non-cash stock-based compensation, interest expense, net, unrealized loss (gain) on derivatives, non-cash (gain) loss on adjustment to fair value – financial instrument liabilities, litigation and severance settlement expense, and income tax benefit, all as applicable. We present Adjusted EBITDA because the adjustments listed above 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, because 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 a reconciliation of the GAAP financial measure of net (loss) income attributable to Prairie Operating Co. to the non-GAAP financial measure of Adjusted EBITDA for the periods indicated:
 
                 
    Three Months Ended  
September 30, 		    Nine Months Ended  
September 30, 		 
    2026     2025     2026     2025(1)  
    (In thousands)  
Net (loss) income attributable to Prairie Operating Co.
  $ (48,934 )    $ 1,287     $ (92,590 )    $ 34,353  
Adjustments:
                               
Depreciation, depletion, and amortization
    25,900       16,113       58,819       30,500  
Abandonment and impairment of unproved properties (2)
     669         —         1,277         —    
Non-cash stock-based compensation
    3,125       4,123       12,165       7,908  
Interest expense, net
    10,103       8,613       28,038       18,952  
Unrealized loss (gain) on derivatives
    105,717       (962 )      190,821       (24,052 ) 
Non-cash (gain) loss on adjustment to fair value – financial instrument liabilities (3)
     (13,079 )      25,914       (29,461 )      30,451  
Litigation and severance settlement expense
    217       1,227       4,371       1,406  
Income tax benefit (4)
     (18,414 )        —       (36,994 )        —  
Adjusted EBITDA
  $ 65,304   $ 56,315     $ 136,446     $ 99,518  
 
(1)
Net income attributable to Prairie Operating Co. for the nine months ended September 30, 2025 includes revenue and related expenses attributable to the assets acquired from Bayswater beginning on March 26, 2025, the closing date of the Bayswater Acquisition, through September 30, 2025.
(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 deferred income tax benefit recognized for the three and nine months ended September 30, 2026.