Prairie Operating (PROP) Water Tower Research Virtual Insights Conference summary

Strategic overview and asset base

• Closed a transformative $600 million acquisition in Colorado's DJ Basin in March 2025, supporting a growth-focused model with nine acquisitions to date.

• Current production guidance for 2026 is 23,000-25,000 BOE/d, with an asset base supporting about 600 future development wells.

• Focused on oil-rich windows in the DJ Basin, particularly the northeast extension, Hereford, and Greater Wattenberg fields, prioritizing contiguous acreage and infrastructure access.

• Team assembled from seven different DJ Basin operators, emphasizing safety, operational efficiency, and best practices.

Regulatory environment and operational approach

• Navigates Colorado's stringent regulations by maintaining a two to three-year rolling permit inventory, with permits typically taking 6-18 months to secure.

• Targets more rural areas to minimize conflict with population growth, but also operates in some residential-adjacent acreage.

• Collaborates closely with state agencies and local communities to ensure compliance and maintain strong relationships.

Development strategy and production management

• Focuses development on one to two benches in the Niobrara and Codell formations, with some legacy acreage offering all five stacked pay zones.

• Operates with slightly less than one rig and one frack crew, targeting a 5-10% production growth rate while remaining cash flow positive.

• Schedules pad development to minimize production volatility, coordinating with offset operators to reduce shut-in times.

• Prioritizes infrastructure access, working with midstream providers to ensure timely gathering and disposal solutions.