Prairie Operating (PROP) The 15th Annual East Coast IDEAS Conference summary

Strategic positioning and asset overview

• Operates exclusively in the DJ Basin, Colorado, with 65,000 gross acres and 47,500 net acres surrounded by major industry players.

• Holds over 550 identified drilling locations and maintains a three-year permit horizon for continued development.

• Completed a transformative $600 million acquisition of Bayswater, increasing production from 5,000 to 25,000 barrels equivalent per day.

• Focuses on exploiting known assets rather than exploration, leveraging proven acreage and production.

• Maintains a robust pipeline of potential acquisitions, targeting $2 billion in opportunities while remaining disciplined.

Cost structure, operational efficiency, and technology

• Achieves lower drilling and completion costs in the DJ Basin, targeting sub-$5 million per well through unbundling services and logistics optimization.

• Benefits from lower production declines and cost advantages compared to other basins like the Permian.

• Implements advanced technology, including E-Fleet completions and turbine-powered fracking rigs, to meet stringent environmental standards.

• Maintains a conservative leverage ratio around 1x and actively manages costs to drive efficiency.

• Secured 100% takeaway capacity for up to 100,000 barrels/day, providing a strategic midstream advantage.

Financial strategy and capital allocation

• Hedged 80% of production for 2025 at $68.20 per barrel, ensuring stable cash flows.

• No near-term debt maturities and a $1 billion reserve-based lending facility with blue-chip banks.

• Plans to reinvest in drilling and production in the near term, with a shift toward dividends and potential buybacks starting in 2026.

• CapEx budget for 2024 is $300–$325 million, expected to be self-funded.

• Financing for acquisitions includes a mix of RBL, preferred equity, and limited common equity, with a focus on non-dilutive structures.