Prairie Operating (PROP) Q2 2026 earnings summary

Executive summary

• Achieved significant revenue growth, with Q2 2026 revenue up 45% year-over-year to $98.9M and six-month revenue up 125% to $182.3M, driven by higher realized prices, increased production from new wells and acquisitions, and improved drilling performance.

• Net income attributable to common stockholders was $193.8M for Q2 2026 and $19.4M for the first half, reflecting strong operational performance and significant non-cash gains from financial instruments.

• Major operational milestones included bringing 21 new wells online across multiple pads, with 2.0 MMBoe produced in Q2 (72% liquids, 50% oil), and continued drilling and completion activities supporting future growth.

• Year-to-date production totaled 4.1 MMBoe, with management emphasizing cost savings from new wellbore design and strengthened financial position.

• Management highlighted improved drilling performance, cost savings, and strengthened financial position.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $34.0M, and $71.1M for the first half, up 65% year-over-year, reflecting robust cash generation despite increased operating expenses.

• Operating expenses rose due to higher production, with lease operating expenses at $13.6M for Q2 and $28.5M for the first half, and general and administrative expenses at $12.0M and $28.8M, respectively.

• Interest expense remained stable at $10.0M for Q2, while derivative gains and fair value adjustments contributed $45.1M and $48.2M, respectively, to Q2 results.

• Cash flow from operations was $94.3M for the first half, with $143.9M used in investing activities and $49.6M provided by financing activities.

• Q2 2026 production was 1,990 MBoe (21,866 Boe/d); average realized oil price (ex-derivatives) was $94.21/Bbl, with derivatives $59.79/Bbl.

Outlook and guidance

• 2026 capital expenditure guidance is $185M–$195M, with a one-rig, one-frac crew cadence and 27 wells drilled year-to-date.

• Full-year 2026 guidance: average daily production 23,000–25,000 Boe/d; adjusted EBITDA guidance for 2026: $180–$190M.

• Management expects continued production growth from new wells and incremental revenues to support liquidity and compliance with credit covenants.

• Active hedging program extends commodity price protection through Q2 2029.